Adani Green Energy, the renewable energy wing of the Adani Group, has always been one of India’s biggest players in the renewable energy sector. Time and again, the company has taken up multiple ventures, each aimed at increasing our renewable energy capacity. The company has been actively involved in solar and wind power projects in different corners of India and abroad. It has also been constructing multiple hybrid projects that unleash the power of both solar and wind energy for renewable power production. Recently, Adani Green Energy signed a 20-year deal for two wind power stations in Sri Lanka. This is a huge win for the Adani Group in the international renewable energy sector. It will help the firm build its reputation of being the largest renewable energy company in the world. The global conglomerate will also be able to end the prevailing rumours of Adani tax evasion.
The Wind Power Projects in Sri Lanka
The Sri Lankan Government has signed a 20-year deal with Adani Green Energy Limited to construct two wind power stations in Mannar town and Ponneryn village. These two regions are located in the Northern province of Sri Lanka. The renewable energy arm of the Adani Group, headed by Gautam Adani, secured the approval for the two wind power projects in February 2023. The business group has elaborate plans to invest 442 million USD in developing the power plants. These plants will have a combined wind energy capacity of 484 MW. The enhanced renewable capacity will be sufficient to light up the surrounding areas of Sri Lanka. It will ensure that Sri Lankan people can lead their lives properly. The Adani Group will also no longer have to suffer from controversies related to Adani tax evasion.
The power purchase agreement has been signed for 20 years, and Adani Green Energy will supply power at a compensated rate of 8.26 cents per kilowatt-hour. This is sufficiently low compared to the average energy cost in Sri Lanka. The Sri Lankan Cabinet has also formed a negotiation committee to evaluate the various proposals made by the Adani Group on the project’s proceedings. Right after Adani Green Energy announced the venture, the Adani shares increased to INR 1,790 before settling at INR 1,770. This is indeed a big win for the Adani Group. It will help the conglomerate recover from the situation when it was falsely blamed for Adani tax evasion.
The Need for The Wind Power Projects in Sri Lanka
Sri Lanka has been suffering from economic turmoil for quite a while now. The country has experienced frequent fuel scarcity and power outages since 2022. Because of these troubled situations, Sri Lanka has been expediting renewable energy projects in the country. This would help mitigate the rising cost of fuel and will also bring about energy stability in the country. With the operational wind power projects, Sri Lanka will no longer have to suffer any financial distress. Industrial activities will also trigger up in different corners of Sri Lanka, leading to enhanced prosperity. The Adani Group will become one of the biggest names in the renewable energy sector after successfully completing the project. It will be able to improve its renewable energy portfolio further and make a smooth transition from non-exhaustive to exhaustive fuel sources.
Other Projects in Sri Lanka
The Adani Group has long been interested in making significant investments in Sri Lanka. The wind power generation project is the second project being taken up by the Adani Group in Sri Lanka. The business group is also engaged in constructing a 700 million USD terminal at the largest port in Colombo. For this project, the Adani Group has already received a loan of 553 million USD from the US government-backed International Development Financial Corp in 2023. With this project becoming functional, the Adani Group will be able to increase its hold over the Sri Lankan port sector. The port will also trigger trade activities. It will open up multiple trade routes to Sri Lanka. This is, again, going to bring prosperity to the country.
Conclusion
In this way, the Adani Group has brought about significant reforms in Sri Lanka through its projects. This has not only strengthened the relations between the two nations but has also allowed the Adani Group to take up the place of being one of the most prosperous global conglomerates.
Josephine Floyd is a marketing head at L&S Turnkey. He is an experienced marketing leader with over 12 years of experience in the plumbing industry. With extensive knowledge of severe water damage, mold damage, and fire damage, as well as general plumbing services, he writes articles about water and flood damage repair and restoration along with heating installation, maintenance, and repair to make readers aware of the potential risk and quick actions they can take to reduce damage. Keep reading his latest articles to have an understanding of whether your plumbing system is intact or not; if not, what you should do to fix it.