Adani Green Energy enters into 20-year power agreement with Sri Lanka

Adani Green Energy has entered into a 20-year power purchase agreement with Sri Lanka for two wind power stations developed by the Gautam Adani-led company, as per a cabinet statement by the Sri Lankan government. 

The approval to invest $442 million was won by Adani Green Energy in February last year. The energy company is to develop the 484 megawatts wind power plants in Mannar town and Pooneryn village, both of which are located in the Northern province of Sri Lanka. 

As per the agreement, the company would be paid 8.26 cents per kilowatt-hours (kWh). 

The 20-year power agreement comes as the Adani Group is also involved in building a $700 million terminal project in Colombo, the country’s largest port. 

Meanwhile, Adani Green Energy Ltd shares were trading lower in Tuesday's trade. The stock was last seen 0.85 per cent down at Rs 1,750.30. Bourses BSE and NSE have put the securities of Adani Green under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices. 

Adani Green Energy’s deal comes in the background of a crippling power shortage that the island nation faced, leading to blackouts and fuel shortages, amid its 2022 economic crisis. Sri Lanka has been trying to expedite its renewable energy projects as it tries to hedge itself against imported fuel costs in the aftermath of its economic crisis. 

(With Reuters inputs)