Adani Green Energy has entered into a 20-year power purchase agreement with Sri Lanka for two wind power plants developed by the Gautam Adani-led company, according to a statement from the Sri Lankan government cabinet.
Approval to invest $442 million was obtained by Adani Green Energy in February last year. The energy company will develop 484 megawatt wind power plants in the town of Mannar and the village of Pooneryn, both located in the northern province of Sri Lanka.
Under the agreement, the company would be paid 8.26 cents per kilowatt hour (kWh).
The 20-year energy deal comes as the Adani Group is also involved in the construction of a $700 million terminal project in Colombo, the country’s largest port.
Meanwhile, shares of Adani Green Energy Ltd were trading lower during Tuesday’s trading. The stock was last seen down 0.85 percent at Rs 1,750.30. The BSE and NSE Stock Exchanges have placed the securities of Adani Green under the ASM (Additional Surveillance Measure) framework for the long term. Stock exchanges place stocks in short-term or long-term ASM frameworks to warn investors about high volatility in stock prices.
The Adani Green Energy deal comes amid a crippling electricity shortage the island nation is facing, leading to power outages and fuel shortages, amid its 2022 economic crisis. Sri Lanka is working to accelerate its renewable energy projects while trying to protect itself against the costs of imported fuels in the wake of its economic crisis.
(With inputs from Reuters)