Sri Lanka's utility regulator refuses approval for Adani wind power project in North-East

by Biranavan
Jun 25, 2024

The Public Utilities Commission of Sri Lanka (PUCSL) has refused approval to award procurement of the 484 MW wind power plant in Mannar and Pooneryn to Adani Green Energy.

The PUSCSL stated that the information submitted for approval by  Adani Green Energy SL Ltd. (AGESL),did not adequately assess the least cost and technical compatibility. 

A letter from the power sector regulator to the CEB’s Acting General Manager, a copy of which was obtained by the Sunday Times, shows that even basic information—such as the full draft power purchase agreement (PPA) between the CEB and AGESL—has not been handed over.

The CEB has requested PUCSL permission to award the power plants to AGESL under the Sri Lanka Electricity Act. However, it has failed to submit the schedules of the draft PPA, the signed memorandum of understanding (MoU) with the Government of India, and clearance granted by the Attorney General’s Department to sign such an MoU following Cabinet approval in March last year. Cabinet approval was given on March 7, 2022. The MoU was signed four days later, on March 11.

Recently, two fundamental rights petitions have been filed in Sri Lanka’s Supreme Court challenging the Adani Green Energy Wind power project proposed for Mannar. This is the third such petition to be filed against the project in less than a month. 

Opposition to the Adanis group involvement in the wind plant was also evident in parliament as he drew comparisons 

A member of the opposition party Kabir Hashim, leveled accusations against the government for intentionally obstructing the process of opening financial bid proposals from companies vying for a contract to construct a separate 50-megawatt wind power plant. 

According to Hashim, this obstruction was an attempt to conceal the potentially lower electricity prices that could result from an open and competitive bidding process.

The opposition MP contrasted this situation to a previous 484MW wind plant project awarded to India's Adani Group through an inter-government agreement, bypassing a competitive tender process.

India's ventures on the island have been dogged with opposition from within Sri Lanka and allegations of cronyism in India, particularly with the involvement of the Adani group. 

Earlier this year, speaking to EconomyNext a Sri Lankan cabinet minister said that Sri Lankan officials disgruntled with India's involvement in Infrastrucutre projects had delayed the fast tracking of the Mannar Wind farm. 

“Some officials are stubborn and not helping to fast track the project,” a cabinet minister told EconomyNext when asked the reasons for the delay.

“Most of them are still living in the past and do not trust India despite this project has direct benefit to the country,” the Minister said referring to anti-Indian sentiment among Sri Lankan bureaucrats following India’s role in Sri Lanka’s 26-year armed conflict.

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un_spcial

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