Thursday Jan 30, 2025
Thursday Jan 30, 2025
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Cabinet Spokesman and Minister Dr. Nalinda Jayatissa
By Charumini de Silva
The Government yesterday confirmed that it has begun negotiations to revise the Power Purchase Agreement (PPA) over Adani Green Energy’s proposed 484 MW wind power project with a focus on reducing the tariff below six cents per kilowatt-hour (kWh).
The move marks a sharp departure from the original agreement approved by the previous regime, which offered Adani a tariff of 8.26 cents per kWh.
Addressing the media, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa asserted that the earlier rate was excessive, even for a renewable energy project and emphasised the Government’s responsibility to ensure that energy costs benefit both the public and the economy.
“The Government is of the view that the previously offered rate was way too high and it should be below six cents per kWh. The project must offer tangible benefits to the electricity users and the country as a whole,” he said at the weekly post-Cabinet meeting briefing.
Dr. Jayatissa, clarifying that the project itself has not terminated, reiterated that the tariff must come down.
The project which was set to bring a significant boost to the country’s energy mix faced scrutiny for its higher than-expected tariff, which critics argued could burden the public and dampen the economic advantages of the initiative (https://www.ft.lk/front-page/The-Adani-agony/44-772280).
Despite earlier plans for a delegation from Sri Lanka to visit India to assess the project further, the Cabinet Spokesman assured that the focus at present remains solely on revising the PPA terms.
Dr. Jayatissa said the review process would proceed thoroughly before any additional steps are taken.
On 24 January, the Daily FT exclusively reported that President Anura Kumara Dissanayake-led new Cabinet on 30 December 2024 decided to revoke Adani Energy’s 484 MW wind power energy plants in Mannar and Pooneryn approved by the Ranil Wickremesinghe administration in March 2022 as well as in August 2023. (https://www.ft.lk/top-story/AKD-Government-revokes-contentious-500-MW-Adani-wind-power-contract/26-772133)
On its part Adani later on Friday (24) denied cancellation of its 484 MW wind power project in Mannar and Pooneryn, citing “false and misleading.” (https://www.ft.lk/front-page/Adani-denies-cancellation-of-wind-power-project/44-772221)
In a related development, Cabinet Spokesman Minister Dr. Nalinda Jayatissa speaking at a special briefing on Saturday (25) said Adani Energy projects have not been terminated, clarifying that the Government had only annulled a Cabinet decision by the previous administration related to a high power purchasing agreement, asserting a committee has now been appointed to review the project and address concerns.
In Friday’s (24) article, the Daily FT quoted biodiversity scientist Dr. Rohan Pethiyagoda, who for the last year fought tirelessly against the proposal award, as saying, “Everyone interested in environmental integrity and financial transparency will celebrate the fact that President Dissanayake has delivered on his promise to defeat this conspiracy to defraud the people of Sri Lanka.”
“Personally, I am delighted by this decision. But it is not enough. The Government must now release all the related files to the Bribery Commission and request a full investigation as to how this scam was perpetrated in the first place. Who was the mastermind behind it? Remember, the last Government agreed to buy electricity from Adani at a rate that was 70% higher than the locally tendered price. Into whose pockets was that 70% going? It added up to billions of dollars,” Dr. Pethiyagoda said.
Adani is India’s renewable energy leader with significant capacity additions. Adani Green Energy’s total operational renewable generation capacity is 11,608.9 MW, advancing its ambitious target of achieving 50 GW by 2030.
