Adani's Wind Energy Project To Offer Lowest Unit Price In Sri Lanka
Date
12/23/2023 7:14:33 PM
(MENAFN- Colombo Gazette) By Chanaka de Silva
Indian businessman Gautam Adani's wind energy project is to offer the lowest energy unit price in Sri Lanka.
Sri Lanka is grappling with rising electricity generation costs, lacking the benefits seen in neighbouring countries with Independent Power Producers (IPPs).
Inadequate transmission planning revealed by grid failures contrasts with advanced private setups in India, emphasizing technology-driven customer empowerment. To advance, Sri Lanka's CEB-dominated sector requires reforms, inviting private players under robust oversight to balance growth and consumer needs.
Internal sources close to the project revealed, IPPs like Adanifor example could offer a substantial 30% cost reduction, dropping unit costs below $0.10 giving a much-required relief to the public at large.
The wind power project alone promises annual savings of USD 50 million to the Sri Lankan economy according to internal project contrary to the costs the country has to pay an extra Rs. 20 billion in non-renewable energy costs annually sources say. However, utility-scale renewable projects are stalled due to opposition from certain CEB officials, causing a loss of 3,200 GWh annually coined as a 'mafia' within the CEB, posing a threat to both economic growth and renewable energy targetssources close to the project reveal. The recent grid failure emphasizes the urgency for change to encourage competition and enhance reliability in the power sector.
Companies have unveiled intentions to invest a total of $25 billion in the renewable energy sector in the country by 2030, as disclosed by the Board of Investment.
Over the next 3-4 years, potential private investments via Foreign Direct Investment (FDI) could reach up to $3 billion, earmarked for utility-scale wind, solar, and battery storage projects.
Sun Power is set to lead with a commitment of $1.5 billion, followed by Adani Green with $900 million, Orbital Energy with $200 million, WindForce PLC with $150 million, and the remaining portion covered by a consortium of private developers, according to recent news reports. (Colombo Gazette)
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