Adani Green Energy shares: Adani Green was supposed to build two wind power projects in Mannar town and Pooneryn hamlet, both in the country’s northern province, in accordance with the agreement with Sri Lanka.
At the closing bell, Adani Green Energy’s stock fell 0.76% to Rs 909.90. Its news that it was pulling out of its planned wind generating projects in Sri Lanka was the reason for the share price decline.
The action followed negotiations between the Sri Lankan government and the Adani Group to reduce the electricity prices of the $1 billion projects.
“Adani Green Energy has communicated its Board’s decision to respectfully withdraw from further engagement in the RE wind energy project and two transmission projects in Sri Lanka,” the group noted in a media statement. We are still dedicated to Sri Lanka, nevertheless, and are willing to work together in the future if the Sri Lankan government so chooses.
Adani Green was supposed to build two wind power projects in Mannar town and Pooneryn village in accordance with the agreement with Sri Lanka. According to media sources, both projects, which were situated in the country’s northern province, were anticipated to cost $1 billion.
$442 million had been set aside by the company’s renewable energy business for wind power transmission and generation projects in Sri Lanka.
In the meantime, the firm is working on a $700 million terminal project in Columbo, the biggest port in Sri Lanka.
The former Sri Lankan government concluded an agreement with an Adani wind power project in May of last year to buy electricity at a price of $0.0826 per kilowatt.
Activists criticised the decision, claiming that smaller renewable energy projects might have provided electricity at a significantly cheaper cost than Adani’s plan.
It is said that Sri Lanka experienced major fuel shortages and power outages during its economic crisis in 2022. In an effort to reduce its need on pricey imported fuel, its government has been giving renewable energy projects first priority.