Adani Group Withdraws From Disputed SL Wind Power Project

Indian industrialist Gautam Adani’s Green Energy Limited (AGEL) has withdrawn from the second phase of a proposed wind power project in northern Sri Lanka. The project, which was planned to generate 250 MW through the installation of 52 wind turbines in Mannar in the island country’s north, faced strong opposition since the beginning due to serious environmental implications and allegations of financial irregularities.

While renewable energy is a crucial need in the era of climate change, Sri Lankan environmentalists opposed the project, citing potential ecological damage to the sensitive Mannar region. Additionally, concerns arose over the way the contract was awarded, without a competitive bidding process.

The former government, led by President Ranil Wickremesinghe, had inked an agreement with AGEL, setting the power purchase price at $0.82 per unit for 20 years. This rate was significantly higher than rates typically offered by local companies. “This is an increase of about 70%, a scandalous deal that should be investigated,” said Rohan Pethiyagoda, a globally recognised taxonomist and former deputy chair of the IUCN’s Species Survival Commission.

Legal battles

Five lawsuits were filed against this project by local environmental organisations, including the Wildlife and Nature Protection Society, the Centre for Environmental Justice and the Environmental Foundation Ltd. In January, the newly elected government expressed its desire to cancel the initial agreement and to renegotiate its terms and conditions, citing the high electricity tariff. Environmentalists welcomed the decision, believing the project would be scrapped entirely. However, their relief was short-lived when AGEL clarified that the project itself was not cancelled, only the tariff agreement.

Government spokesperson Nalinda Jayatissa later confirmed that the project would proceed after renegotiating a lower power purchase rate. However, two weeks later, AGEL announced its complete withdrawal from the project, a decision widely believed to be influenced by the government’s stance.

Wind energy potential 

Sri Lanka has been exploring wind energy potential for more than two decades, with the first large-scale wind farm in Mannar, named Thambapavani, commissioned in 2020. This facility, comprising 30 wind turbines, currently generates 100 MW of power. With an additional 20 turbines planned, the Mannar wind sector would have surpassed 100 towers.

The Adani Group had pledged an investment totalling $442 million, and already, $5 million has been spent in predevelopment activities. On February 15, the Adani Group formally announced its decision to leave the project. In a statement, the group stated: “We would respectfully withdraw from the said project. As we bow out, we wish to reaffirm that we would always be available for the Sri Lankan government to have us undertake any development opportunity.”

Environmentalists argue that Mannar, a fragile peninsula connected to the mainland by a narrow land strip, cannot sustain such extensive development. “If built, this project would exceed the carrying capacity of the island,” Pethiyagoda noted.

Mannar is not only a growing tourism hub, known for its pristine beaches and archaeological sites, but also Sri Lanka’s most important bird migration corridor. As the last landmass along the Central Asian Flyway, the region hosts millions of migratory birds, including 20 globally threatened species, he added.

Sampath Seneviratne of the University of Colombo, who has conducted satellite tracking research on migratory birds, highlighted the global importance of Mannar. “Some birds that winter here have home ranges as far as the Arctic Circle,” he said. His research has shown how extensively these birds rely on the Mannar Peninsula.

Although mitigation measures such as bird monitoring radar have been proposed to reduce turbine collisions, power lines distributing electricity remain a significant threat, particularly to species like flamingos, a major attraction in Mannar. The power lines distributing electricity from the already established wind farm near the Vankalai Ramsar Wetland are already proven to be a death trap for the unsuspecting feathered kind.

Nature-based tourism

Given Mannar’s ecological significance, conservationists say the region has greater potential as a destination for ecotourism rather than large-scale industrial projects. “Mannar’s rich biodiversity and historical value make it ideal for nature-friendly tourism, which would also benefit the local community,” Pethiyagoda added.

With AGEL’s withdrawal, Sri Lanka now faces the challenge of balancing its renewable energy ambitions with environmental conservation. However, there are other sites in Sri Lanka having more wind power potential, and Sri Lankan environmentalists hope ecologically-rich Mannar will be spared unsustainable wind farm projects.

(Published under Creative Commons from Mongabay-India. Read the original article here)