Adani Green Energy Exits Sri Lanka's Wind Power Projects
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Synopsis
Adani Green Energy has officially announced its withdrawal from the renewable energy wind project and two transmission initiatives in Sri Lanka, while expressing readiness for future collaborations in the country.
Key Takeaways
- Adani Green Energy is stepping back from its Sri Lanka projects.
- Investment of around $5 million in pre-development activities.
- Commitment to future opportunities in Sri Lanka remains.
- Previous plans included two wind farms with a capacity of 484 MW.
- Adani Group involved in a $700 million terminal project in Colombo.
Ahmedabad, Feb 13 (NationPress) Adani Green Energy announced on Thursday its decision to withdraw from its involvement in the renewable energy (RE) wind power project along with two transmission initiatives in Sri Lanka. Nonetheless, the company expressed its willingness to explore future development opportunities in the South Asian nation.
According to a spokesperson from Adani Group, “Adani Green Energy has officially informed its Board's resolution to withdraw from further involvement in the RE wind energy project and the two transmission initiatives in Sri Lanka.”
“We maintain our commitment to Sri Lanka and are open to future partnerships if the Government of Sri Lanka shows interest,” the spokesperson elaborated.
The Adani Green teams engaged in numerous discussions with state-appointed committees and had been working on land for the project as well as the related transmission infrastructure. To date, Adani Green has invested approximately $5 million in pre-development activities.
Previously, Adani Green had pledged to establish two wind farms in Mannar town and Pooneryn village, boasting a total capacity of 484 megawatts with an estimated investment of around Rs 6,177 crore.
In May 2024, Adani Green Energy and the government of Sri Lanka signed a 20-year power-purchase agreement to set up two wind power stations in the northern provinces of Mannar and Pooneryn, as reported by the official news portal.
The 20-year power purchase agreement was established with Adani Green Energy for the two wind power stations.
In February 2023, Adani Green Energy received approval to invest $442 million to develop the 484 megawatts wind power plants in Mannar town and Pooneryn village, both situated in the Northern province of Sri Lanka.
The Adani Group is also working on a $700 million terminal project at Colombo, the largest port in Sri Lanka.
Recently, Crisil Ratings upgraded its outlook for the long-term bank facilities and non-convertible debentures of Adani Green Restricted Group 1 (RG) to “positive” and maintained the rating at 'Crisil AA+', reflecting strong revenue visibility.
'AGEL RG1' consists of three special purpose vehicles (SPVs): Adani Green Energy UP Ltd, Prayatna Developers Private Limited, and Parampujya Solar Energy Private Limited, collectively referred to as 'AGEL RG1'.
In the third quarter of fiscal 2025 (Q3 FY25), Adani Green Energy's consolidated net profit surged by 85 percent year-on-year.
The operational renewable energy (RE) capacity increased 37 percent YoY to 11.6 GW, maintaining its status as India's largest. The company accounted for 15 percent of the total utility-scale solar and 12 percent of wind installations in CY24.
