India's Adani Green Energy has announced its decision to withdraw from two proposed wind power projects in Sri Lanka, estimated to cost a total of $1 billion. The company, a unit of the Adani Group, communicated its decision through a letter addressed to a Sri Lankan government agency. This development follows ongoing discussions between the Sri Lankan government and the Adani Group, aimed at renegotiating the power purchase agreement to lower costs.
The wind power projects were part of Sri Lanka's strategic initiative to enhance its renewable energy capacity and reduce reliance on fossil fuels. Proposed by Adani Green Energy, the projects represented a significant investment in the country's renewable energy sector. However, the high cost associated with these projects became a contentious issue, prompting the Sri Lankan government to seek a reduction.
Adani Green Energy's withdrawal highlights the complexities involved in international energy agreements. The Sri Lankan government had expressed apprehensions regarding the financial implications of the proposed projects. In response, it had initiated talks with Adani Group, aiming to address these concerns by reducing the power costs involved.
Adani Group, renowned for its substantial presence in India's renewable energy market, had envisioned these projects as a means to bolster Sri Lanka's green energy aspirations. With several operational wind and solar power projects across India, Adani Green Energy has established itself as a formidable player in the sector.
Despite this setback, Sri Lanka remains committed to expanding its renewable energy portfolio. The government continues to explore alternative avenues to achieve its energy transition goals. Meanwhile, Adani Green Energy's decision underscores the need for careful consideration of cost factors in international energy collaborations.
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