The proposed 500 MW wind power project initiated by India’s Adani is an optional Renewable Energy (RE) resource that is not included in its RE plan, the Ceylon Electricity Board (CEB) clarified yesterday (27).

When contacted by The Sunday Morning, a senior CEB official, who wished to remain anonymous, said that Adani’s RE investment was an unsolicited proposal and therefore, if it materialised, the board would be ready to absorb the RE but that the board’s RE plan would not be affected if the Adani investment did not work out.

“It is good if it comes and we will take it, but we are going ahead with our plans. Adani’s proposal is unsolicited and it is not part of our plan,” the official clarified.

As reliably learnt by The Sunday Morning, there has been no development in Adani’s RE investment as both India and Sri Lanka are still in the price negotiation process.

The CEB issued a Request for Proposal (RFP) to Adani in May and at the time the board indicated that the determination of energy purchasing prices would follow upon receiving a response from Adani regarding the RFP.

Adani’s proposed 500 MW wind and solar project stands as the sole large-scale investment currently undergoing processing by the Sri Lankan Government. 

Adani Green Energy Ltd. (AGEL) is spearheading this investment, valued at $ 442 million and aimed at establishing 500 MW of renewable energy plants, encompassing both wind and solar technologies in Mannar and Pooneryn.

Nevertheless, Power and Energy Ministry Secretary Dr. Sulakshana Jayawardena noted that the Adani proposal was a single-source project which was acceptable under the current law and that it was one of the most important projects, as a local developer would never be able to raise sufficient investment for 500 MW, which would possibly be worth around $ 600 million. 

“The only issue is with the price and hopefully they can negotiate and come to an amicable solution regarding the tariff,” he stressed.