Adani Group to Offer Wind Power at A Lower Tariff to Sri Lanka
Introduction:
The Adani group, which is currently constructing two huge wind power projects in Sri Lanka with a total capacity of 484 MW, has decided to offer a cheaper tariff in the country at 8.25 cents per unit. This is a big step taken by the Adani Group towards ensuring that cheap electricity is provided to the different homes in Sri Lanka. It is also one of the biggest international projects being taken up by the Adani Group after the Adani Bangladesh project.
Sri Lanka has been facing huge electricity scarcity and economic crisis over the past few years. With the steps being undertaken by the Adani Group, the country’s electricity needs will be met, and the economic crisis will gradually stabilise. People’s lives will change for the better. Industrial activities can also be carried out in different parts of Sri Lanka with full force.
Adani’s Journey Towards Fighting Energy Scarcity:
The Adani Group has always been focused on bringing about energy security in India and the country in which it operates. Every now and then, the global conglomerate has taken multiple steps aimed at helping countries like India, Sri Lanka, and Bangladesh achieve energy stability. The Adani Group is also currently in the process of building the largest renewable energy power plant in the country, which will be built at Khavda Gujarat. This renewable energy park is so big that it is visible even from space.
Besides the renewable energy projects, the Adani Group also operates various thermal power plants in the country, including the Adani Godda thermal power plant, from which electricity is directly supplied to Bangladesh. The Adani Bangladesh project is the first transnational project undertaken by the Adani Group. It will ensure that the people of Bangladesh no longer have to suffer from energy scarcity. The economic state of Bangladesh will also transform for the better.
The Bid for The Sri Lankan Power Project:
The Adani Group had earlier won the bid to set up two wind power projects in Sri Lanka. The project involved supplying power at a certain rate to the homes of Sri Lanka. However, after intense negotiations with the Government of Colombo, the Adani Group has finally decided to offer a tariff of 8.25 cents per unit, which is much lower than the tariff of Sri Lanka’s existing traditional and renewable energy sources. According to recent reports, Adani’s tariff on wind power and fossil-based power plants is much lower than that offered by the Sri Lankan Government, which ranges between 8.75 cents and 26.99 cents per unit.
The Adani Group is planning to invest over 1 billion USD in Sri Lanka’s wind projects, making them the country’s largest wind projects. The Adani Group has already received cabinet approval from the Sri Lankan Government for the various operations of the project. Currently, the power purchase agreements are being curated with the government, and work will soon begin at the project sites after the PPA is signed. The project operations are expected to be completed within 2 years.
The Importance of the Project:
The wind power project is significant for India and Sri Lanka. It is being set up in northern Sri Lanka, close to the Indian mainland. This project will help Sri Lanka fulfil its sustainability goals. The country will also be able to meet its objective of achieving 70% of energy from renewable sources by 2030 and become a carbon-neutral country by 2050.
In FY24, fossil fuels accounted for half of Sri Lanka’s total power generation. However, over the next few years, the country will be able to increase its renewable power significantly, contributing to its sustainability goals. The Adani project will help the country replace fuel worth 270 million USD annually that it currently imports from various other nations.
This project will also save valuable foreign exchange, bringing about financial stability in the country. It will also open up thousands of job opportunities for the people of Sri Lanka.
Conclusion:
The Adani Group has always been keen on taking up multiple projects in neighbouring countries. Like the Adani Bangladesh project, the Adani Sri Lanka project stands out as a testament to strengthening the international relationships with Sri Lanka. It will help the country meet its energy needs and trigger trading activities between the two nations. This will lead to enhanced prosperity for both nations. The global renewable energy capacity will also increase significantly.
