Sri Lanka to Re-Tender Mannar, Pooneryn Wind Projects After Adani Pullout

Sri Lanka plans to call for international tenders for wind power plants in the Northern Mannar and Pooneryn regions following India’s Adani Green Energy withdrawal earlier this year, Energy Minister Kumara Jayakody confirmed.

Adani Green had pulled out of the projects in February after the new government sought to renegotiate the power purchase agreement (PPA) for a lower tariff. The previous administration had approved a unit cost of 8.26 US cents, but President Anura Kumara Dissanayake’s government aimed to reduce it below six cents per kilowatt-hour.

“Based on demand, we will go for a tender and award the project to the lowest successful bidder. Adani or any other company can participate,” Minister Jayakody said. He added that discussions had considered reducing the tariff to around five US cents, but the agreement was mutually terminated.

Under the original PPA, Adani Green was to invest $442 million to construct two wind power stations totaling 484 MW, along with associated transmission infrastructure. The projects were part of a larger $1 billion investment plan under a build-own-operate model, and the PPA included a fixed 20-year tariff.

The projects faced delays despite more than 14 rounds of negotiations with the Ceylon Electricity Board and several government departments. Environmental concerns and protests over higher tariffs also sparked legal challenges, further complicating implementation.

The government’s decision to open international bids marks a fresh effort to advance renewable energy in the Northern Province while seeking cost-effective solutions for electricity supply to consumers and industries

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