August 04, Colombo (LNW): India’s Adani Group has received legal relief temporarily to proceed with the 484 MW wind power stations in Sri Lanka, a crucial investment for the island nation to meet its goal of sourcing 70% of its energy from renewables by 2030.
The project includes two wind energy initiatives: a 250 MW project in Mannar and a 234 MW project in Pooneryn, with a total proposed investment of USD 750 million.
A five-member senior bench in the Supreme Court, appointed by the Chief Justice to handle the Adani Wind Power case, acknowledged the project’s importance to Sri Lanka’s economy and energy sustainability.
On August 2, the court rejected a request for an early hearing and additional support days by the petitioners, scheduling the next hearing for October
The court did not issue any stay orders against the objections raised by the Wildlife Nature Protection Society, Dr. Rohan Pethiyagoda, and some scientists, who challenged the May 6, 2024, cabinet decision to award the tender to Adani.
The group had also challenged the action by Minister of Environment Pavithra Wanniarachchi to exclude the Mannar district’s Viddathalathivu area from being a forest reserve, an action taken to facilitate the project.
This decision included entering a power purchase agreement (PPA) with Adani to buy wind power at 8.26 cents per kWh for the next 20 years.
The environmental rights group had claimed in court that a decision by the Cabinet to treat the Adani wind power project as a Sri Lanka-India government-to-government venture was illegal and that it would cause immense damage to the migratory bird population causing environmental hazards.
Adani’s investment represents the largest renewable energy investment in Sri Lanka, exceeding USD 1 billion.
The project will develop the country’s largest wind power plant, with a capacity of 484 MW, and feature the longest 400 kV transmission backbone line, essential for connecting new renewable energy plants with a combined capacity of 1,200 MW.
The generated wind energy is expected to save Sri Lanka approximately LKR 30 billion annually and reduce consumer tariffs by nearly LKR 17 per unit, offering the lowest wind tariffs in the country and enhancing Sri Lanka’s competitiveness in the renewable energy sector.
If Adani were to withdraw, Sri Lanka would lose significant foreign direct investment, signaling to the global community a reluctance to accept FDI in renewable energy.
Recent projects, like a 50 MW initiative, have been funded by local investors without international involvement, highlighting Adani’s unique capability to undertake the 484 MW project. Adani’s commitment, even during Sri Lanka’s economic crisis, sets a benchmark that other investors might not match.
Losing this investment could deter future international investors from viewing Sri Lanka as a viable market for large-scale renewable energy projects.
