By: Staff Writer
November 03, Colombo (LNW): The Adani wind power project in Sri Lanka is currently facing significant legal challenges that have resulted in delays, yet the government remains committed to advancing its renewable energy initiatives.
This project is vital for Sri Lanka’s transition to sustainable energy sources, but legal disputes surrounding land acquisition and environmental regulations have disrupted its timeline.
Despite these setbacks, government officials are actively seeking solutions to these obstacles.
In a recent meeting with the Indian High Commissioner to Sri Lanka, President Anura Kumara Dissanayake expressed a keen interest in leveraging India’s experience in energy sector development.
This interest coincides with ongoing legal proceedings affecting the Adani renewable energy project, which is under scrutiny due to environmental concerns and the higher tariffs proposed.
The President’s Media Division indicated that discussions focused on enhancing the bilateral relationship and reviewing Indian-supported projects within Sri Lanka, highlighting both achievements and challenges.
The timing of this meeting is crucial, as it comes just weeks before parliamentary elections in Sri Lanka, where Dissanayake’s National People’s Power (NPP) party is positioned favorably.
A party representative mentioned that the government delegation plans to discuss the Adani project, among other important topics, during a visit to New Delhi in January.
The Adani project was initiated without a competitive tender process, which has raised eyebrows in the new administration. Dissanayake’s government has requested time from the court to reevaluate the project, particularly in light of ongoing legal challenges.
The NPP has pledged not to endorse any projects lacking open tenders, promising to scrutinize the Adani agreement approved by the previous government.
Adani had proposed the installation of 500 megawatts (MW) of wind capacity in the regions of Mannar and Pooneryn, with an energy permit already issued for a 234 MW plant in Pooneryn earlier this year.
However, local environmentalists and the Bishop of Mannar have raised alarms, asserting that the wind plants threaten a migratory bird route and that the tariffs agreed upon are excessively high.
Petitioners have challenged the fixed tariff of 8.26 US cents per kilowatt-hour (KWh) for 20 years, arguing it far exceeds the environmentally assessed rate of 4.6 US cents, potentially resulting in significant financial burdens for consumers and the country.
In their petition, they have sought the Supreme Court’s intervention to declare the project approvals as unlawful and in violation of the fundamental rights of the community.
Concerns about the long-term implications of negotiated power purchase agreements have emerged, especially following amendments to laws that now allow substantial power projects to bypass competitive bidding processes.
