Adani Green Energy announced that it will withdraw from two planned wind power projects in Sri Lanka, according to a letter the company sent to a Sri Lankan government agency.
“Adani Green Energy has conveyed its Board’s decision to respectfully withdraw from further engagement in the RE wind energy project and two transmission projects in Sri Lanka. However, we remain committed to Sri Lanka and are open to future collaboration if the Government of Sri Lanka so desires,” a Adani Group spokesperson said.
Last month, the Sri Lankan government said it had started talks with the Adani Group to reduce the cost of electricity from the projects, which were estimated to cost a total of $1 billion.
Under the deal with Sri Lanka, Adani Green was to build two wind power projects in Mannar town and Pooneryn village, both in the northern province of the country. Adani’s renewable energy division had earmarked a $442 million investment for wind power generation and transmission in Sri Lanka.
The Adani Group is also involved in constructing a $700 million terminal project at Sri Lanka’s largest port in Colombo.
Sri Lanka, which faced severe power blackouts and fuel shortages during its economic crisis in 2022, has been working to speed up renewable energy projects to reduce its reliance on expensive imported fuel.
In May 2024, the former government in Sri Lanka had reached a deal to purchase electricity at a rate of $0.0826 per kilowatt from an Adani wind power facility planned for construction in the northwest region of the island.
Opposition to the agreement came from activists who believed that smaller renewable energy projects were able to provide electricity at a significantly lower cost compared to Adani’s proposal.