Adani Green Energy announced on Thursday that it has decided to withdraw from its involvement in a renewable energy wind power project and two transmission projects in Sri Lanka. The company confirmed that its Board had made the decision to step back, but reassured that it remains committed to Sri Lanka and open to future collaboration if the government expresses interest.
In an official statement, Adani Group mentioned, “Adani Green Energy has informed of its Board’s decision to respectfully disengage from further participation in the RE wind energy project and two transmission projects in Sri Lanka. Nevertheless, we continue to be committed to Sri Lanka and are open to potential future collaboration, should the Government of Sri Lanka wish it.”
Originally, the previous Sri Lankan administration had agreed in May 2024 to purchase power from the Adani wind plant at a rate of USD 0.0826 per kilowatt-hour. However, the new government, which came into power in January 2025, cancelled the power purchase agreement, expressing its intent to review and renegotiate the terms in order to reduce the price below USD 0.06 per unit.
It appears that the renegotiation efforts were unsuccessful, prompting Adani to withdraw its plans for the wind power projects in Sri Lanka. Adani Green had previously planned to establish two wind farms with a combined capacity of 484 megawatts in Sri Lanka’s Mannar and Pooneryn regions, with a proposed investment of USD 740 million. The projects were initially expected to be completed by mid-2026 but faced several challenges, including opposition from environmental groups and legal disputes concerning ecological concerns in Sri Lanka’s Supreme Court.
The projects had been approved in February 2023 by Sri Lanka’s Board of Investment, and were expected to play a significant role in the country’s renewable energy efforts. However, due to the inability to finalize an agreement, Adani Green made the decision to withdraw from the initiative.
Following the announcement, shares of Adani Green Energy saw a 2% increase, with stock trading at Rs 921 at the time of reporting. The market response indicates that investors have welcomed the company’s decision.
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