Adani Green Energy shares surge 3% amidst withdrawal from Sri Lanka project - report

Adani Green Energy shares surged 3% to INR 946 in Thursday’s intraday trade on BSE following the announcement that the company is withdrawing from its proposed wind power generation and transmission project in Sri Lanka, easing concerns over the project’s viability, Indian media reported.

Adani Green Energy Limited (AGEL) officially withdrew from its proposed $1 billion renewable wind farm and transmission project in Sri Lanka, citing prolonged discussions and new government renegotiation efforts.

In a letter to the Board of Investment of Sri Lanka, Adani Green confirmed that after two years of negotiations with the Ceylon Electricity Board (CEB) and government departments, and after 14 rounds of discussions, the company had secured most approvals. However, with a new Cabinet-appointed negotiations committee (CANC) and Project Committee (PC) being constituted to renegotiate the proposal, AGEL has decided to step away from the project.

The project aimed to establish 484 MW wind farms in Mannar and Pooneryn, alongside a 220 KV and 400 KV transmission network expansion to support Sri Lanka’s energy infrastructure. The company had already spent $5 million on pre-development activities and had made progress on clearances and land acquisitions. However, unresolved environmental approvals in Mannar and an ongoing Supreme Court case further delayed the project.

While withdrawing from this investment, Adani Green reaffirmed its willingness to consider future opportunities in Sri Lanka should the government invite the group for any new projects.

This marks a significant shift in Sri Lanka’s renewable energy landscape, as the country continues its search for sustainable energy solutions amid increasing power demands.