Sri Lanka to incur staggering $ 1.26 b loss via Adani’s wind power proposal
- CNL Reporter
- February 17, 2025
- Power and energy
- Sri Lanka to incur staggering $ 1.26 b loss via Adani’s wind power proposal
- 0 Comments
With Indian giant Adani last week withdrawing from the proposed $ 1 billion 500 MW wind power project in Sri Lanka, analysts were quick to provide a comparative financial analysis.
They claimed that if Adani’s venture went ahead, Sri Lanka would stand to lose a staggering $ 1.26 billion over the span of the project, which is 20 years.
Adani originally proposed to supply electricity at a rate of $ 0.0822 per kilowatt-hour (kWh). In contrast, local investors have come forward with a more economical offer of $ 0.0465 per kWh.
This results in a price difference of $ 0.0357 per kWh. Given the 500 MW capacity operating at 40% efficiency, this price gap leads to a substantial financial burden for the Sri Lankan Government.
With Adani’s plant operating at 40% capacity, the total power generation per year amounts to 1,752,000 MWh (or 1.752 billion kWh).
However, due to the higher price at which Adani was intending to sell electricity compared to local suppliers, the Government is expected to incur a significant financial burden
