- No decision despite five months of discussion
Discussions between the Ceylon Electricity Board (CEB) and Indian investment company Adani Green Energy Ltd. (AGEL) to adopt a tariff for 500 MW of renewable energy (wind and solar) plants are continuing, with no result after five months, The Sunday Morning learns.
Industry insiders now question if the multi-million dollar project will be able to come online in 2026.
The green power plants are to be built offshore along the Mannar and Pooneryn coastline.
Highly-placed sources at the CEB told The Sunday Morning that the process was taking longer than expected.
The two entities commenced discussions on tariffs in January. However, as The Sunday Morning learns, the two parties are yet to arrive at a conclusion on tariffs.
As a result, it is reliably learnt that the project, which was said to be expedited in order to meet the country’s renewable energy plan for the generation of 2,500 MW of renewable energy by 2026, has now been stalled for nearly five months, with discussions being conducted solely on tariffs.
As previously declared by the Government, Adani’s investment totals $ 442 million and the relevant Memorandum of Understanding (MoU) with AGEL to set up the wind and solar power plants was signed last year.
The MoU was reached between AGEL and Sri Lanka’s Treasury Secretary, Ministry of Power Secretary, the CEB, the Sustainable Energy Authority (SEA), and the Board of Investment (BOI).
Following the signing of the MoU, the SEA issued a Provisional Approval for AGEL under Sections 16 and 17 of the SEA Act, having been satisfied with the technical, economic, and environmental feasibility of the project.
Following this, directions were issued to the Power and Energy Ministry Secretary to provide all facilities and approvals as permitted under the Sri Lanka Electricity Act No.20 of 2009 (as amended) to receive policy and regulatory clearances as recognised by the letter dated 25 November 2021, addressed to the Treasury Secretary by the CEB Chairman, and as per the decision taken by the Cabinet-appointed Management Committee on Investment on 26 November 2021.
At the time, the CEB had also requested the Power and Energy Ministry Secretary to make recommendations in consultation with the State Ministry of Solar, Wind, and Hydro Power Generation Projects Development Secretary to the Treasury Secretary to appoint a Cabinet-Appointed Negotiation Committee and Project Committee to develop Requests for Proposal to invite detailed technical, commercial, and financial proposals from AGEL and evaluate such proposals upon receipt.
Adani’s proposed 500 MW wind and solar project is the only large-scale investment currently being processed by the Government despite expectations of more investments following the change made to the CEB Act recently.
However, as per the SEA, the approved capacity for Adani is 234 MW.
When The Sunday Morning contacted CEB Spokesman Additional General Manager (Generation) Dhammika Navaratne, he confirmed that the project was still active and discussions were ongoing between the two parties.
When asked about the tariffs, he noted that no final decision had been made yet.