Tariff cuts force Adani Green to pull out of two wind power projects in Sri Lanka, impacting $1 billion investment
Adani Green Energy stepped away from developing two wind power projects in Sri Lanka because the government attempted to lower their previously established pricing agreement. An investment amounting to $1 billion represents the major financial reason behind Adani Green Energy’s decision to withdraw from two Sri Lankan wind power projects. The wind power facilities meant to produce 484 MW of electricity were expected to finish construction in 2026 until the new government sought power tariffs below market rates which rendered the projects unprofitable for Adani Green.
Tariff Adjustments Lead to Withdrawal
The Sri Lankan wind power projects were agreed upon in May 2024 when President Ranil Wickremesinghe was in power. The company had previously pledged to establish two wind farms together with their transmission lines across Mannar and Pooneryn regions. The updated proposals from the government for decreased tariff rates led Adani Green to determine that the terms became non-feasible.
By official communication, the Sri Lankan Board of Investment received word from Adani Green that they would no longer pursue the mentioned projects. The company supports Sri Lanka while promising future project involvement when the government changes its present position.
Political Shift Creates Uncertainty
During this period of broad political transitions in Sri Lanka, the tariff reduction takes place. Government authorities have implemented regulatory changes that require a heightened focus on foreign investments operating in the renewable energy sector. The updated tariff framework shows government attempts to lower electricity costs yet foreign investors remain concerned about preserving long-term project sustainability.
Although Adani Green withdrew from the Sri Lankan power project the company maintains active interest for future development prospects in the country. The company has shown interest in starting new ventures when they can obtain beneficial agreements that indicate continued opportunity even after the present setback.
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Potential for Future Collaboration
Adani Green continues to demonstrate dedication toward the Sri Lankan market even after leaving its existing ventures. The company maintains its openness to renewable energy opportunities in Sri Lanka provided the negotiation terms become more advantageous. Despite withdrawing its projects for now Adani Green continues its future interest in Sri Lanka’s energy sector.
