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SJB MP Kabir Hashim - Pic by Lasantha Kumara
Samagi Jana Balawegaya (SJB) MP Kabir Hashim emphasised the importance of verifying the correct cost for one wind power unit, warning that failure to do so could have negative consequences for both the power and energy sector and the country as a whole.
Addressing a press conference yesterday, Hashim said the SJB has been a proponent of wind power stations. “Restructuring of the power sector is an important matter to recover the country’s economy. Wind Power is important. However, the price used for a wind power unit should be properly identified. Otherwise, there will be a huge loss to the wind power industry and the country,” he said.
“The Government decided to allow the Adani Company to build a 500 MW wind power plant. Consequently, the Cabinet was prepared to approve the purchase of wind power units from Adani at $ 8.2 cents per unit. At that time, the Samagi Jana Balawegaya declared that they should not sign an agreement with Adani at that price, asserting that it is possible to obtain wind power units for less,” he noted.
“Additionally, international investors and Sri Lanka jointly invited tenders for the proposed 50 MW wind power plant in Mannar. The Government subsequently began opening price bids for the project. After the bids were opened, Samagi Jana Balawegaya requested the Minister of Power to compare the prices and ensure that the Government secures a competitive rate for wind power units from Adani,” he said.
However, Hashim said the Government turned down the request. “Meanwhile, bids for the 50 MW wind power plant were recently opened. According to those bids, the lowest price for a wind power unit is $ 4.8 cents,” he pointed out.
He noted the Public Utilities Commission of Sri Lanka (PUCSL) has refused approval for the 484 MW wind power plants in Mannar and Pooneryn proposed by Adani Green Energy Ltd.
“The Government had decided to grant Adani the 500 MW wind power plant for a period of 25 years. During that time, if wind power units had been purchased from Adani at $ 8.2 cents per unit, the additional cost would have amounted to figure $2 billion,” he noted.
He said the Government should have negotiated with Adani for a better unit price. He said the Government had failed in this task and the subject Minister had also been misled.
“Adani has the ability to sell a unit of electricity at a lower price, raising suspicions of a potential scam with this project. The Government has not provided satisfactory answers when questioned on this matter. We welcome the involvement of the Public Utilities Commission in this project. Sri Lanka is capable of producing wind and solar power and can generate electricity at a minimal cost,” he said.
