The Adani Green Energy Ltd, the renewable energy unit of the Adani Group, has signed a power purchase agreement with Sri Lanka.
About the agreement
It is a 20-year power agreement for the development of two 484 megawatt wind power stations in Mannar town and Pooneryn village, situated in Sri Lanka’s northern province.
Adani Green Energy Limited is an Indian renewable energy company led by billionaire Gautam Adani, who won the approval in February last year to invest $442 million.
After the approval of an agreement with Adani Green Energy Limited of India, the Cabinet of Ministers appointed a negotiation committee to evaluate the company’s project proposal.
The Sri Lankan government has approved the resolution forwarded by the Minister of Power and Energy Kanchana Wijesekera to accept the last price of USD $8.26 cents per KW for the electricity generated under the proposed project.
Approval was granted yesterday by the Cabinet of Ministers to enter in to a 20 year power purchase agreement with Adani Green Energy for the development of 484 MW of Wind power stations in Mannar & Poonaryn.
The negotiated tariff rate of USD 0.0826 per kWh, is to be paid in LKR…
— Kanchana Wijesekera (@kanchana_wij) May 7, 2024
Thus, the Indian company will be paid 8.26 cents per kilowatt-hour (kWh) as per the agreement.
The Adani Group is also building a $700 million terminal project at Sri Lanka’s largest port, Colombo.
Following the announcement of this venture, Adani Green’s shares surged to Rs 1,790, and the market closed on Thursday with an almost 4% increase in the share price.
The share currently stands at 1,788 as against 1,770, the price before the announcement. 
Why does Sri Lanka need the agreement?
In 2022, the Asian Island faced power blackouts and fuel shortages due to the economic crisis that occurred in the same year. Sri Lanka since then has been trying to revive itself by fast-tracking renewable energy projects to safeguard against surges in imported fuel costs.
