• Wednesday, May 29, 2024

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Government approves deal with Indian company Adani for wind power stations

Following the announcement of this venture, Adani Green’s shares surged to £6.99 each before settling at £6.89 in early trade. (Representative photo: iStock)

By: Vibhuti Pathak

The government on Tuesday (7) approved a deal with Indian billionaire Gautam Adani’s renewable energy wing Adani Green to develop wind power stations in the country.

The billionaire of India, Gautam Adani’s company, Adani Group will be developing wind power stations in Mannar in the north province and Poonerin in Jaffna Lagoon. The government cabinet has appointed a negotiation committee to evaluate the project proposal which was furnished by Adani Green Energy.

The agreement is a 20-year deal for a wind power station in the country which got approval in February 2023 and they will be investing £318.24 million toward the development of the 484 megawatts wind power plants in the two areas located in Northern Sri Lanka.

The wind power stations will be located in Mannar town and Pooneryn village, situated in Sri Lanka’s Northern province.

Adani Green shares are currently surpassing the 100-day, 150-day, and 200-day moving averages but are trading below the 5-day, 10-day, 20-day, 30-day, and 50-day moving averages.

Adani plans to allocate £318.24 million towards constructing wind power plants capable of generating 484 megawatts of electricity. These plants will be situated in Mannar and Pooneryn in Northern Sri Lanka.

Under the power purchase agreement, the compensation rate is set at 8.26 cents per kilowatt-hour.

Sri Lanka recently inked a 20-year contract with Adani Green Energy Ltd for the establishment of two wind power stations, as per a cabinet statement released on Tuesday.

The Adani Group is also engaged in a £504 million terminal initiative at Colombo’s largest port.

Struggling with economic difficulties, the country experienced severe power outages and fuel scarcity during its 2022 economic crisis. In response, the country has been expediting renewable energy projects to mitigate the rising costs of imported fuels.

Following the announcement of this venture, Adani Green’s shares surged to £6.99 each before settling at £6.89 in early trade.

The US government-backed International Development Finance Corp extended a loan of about $553 million to Adani Ports in 2023 for a container terminal project in Sri Lanka.

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