In a significant development for Sri Lanka’s renewable energy sector, the Supreme Court of Sri Lanka has refused an early hearing on petitions challenging the Adani Group’s wind power projects in the country. The Court, citing the project’s national importance to the economy and energy sustainability, has appointed a fuller five-member senior bench to hear the case.
The petitions, filed by the Wildlife Nature Protection Society (WNPS), Dr. Rohan Pethiyagoda and some scientists, contest the cabinet decision announced on May 6, 2024. The decision awarded the tender to the Adani Group and authorized the Government of Sri Lanka to enter into a Power Purchase Agreement (PPA) with Adani at 8.26 US cents per KW unit for the next 20 years.
Senior advocates Sanjeewa Jayawardena and Senani Dayaratna, representing the petitioners, sought an early hearing date. However, the Court firmly decided to list the case for October 14th and 29th, 2024. The Bench emphasized that forcing an early hearing could push dates further into March 2025, making it clear that no interim relief would be granted at this stage.
The Adani wind power project, if implemented, would mark the largest renewable energy investment in Sri Lanka, valued at US$1 billion. It promises to be the country’s largest wind power plant with a capacity of 484 MW, to be completed in record time. The project also includes the country’s longest 400 kV transmission backbone line, potentially enabling the connection of new renewable energy plants up to 1200 MW.
Proponents of the project highlight its potential benefits, including annual savings of about LKR 30 billion for the country and a reduction in consumer tariffs by almost 17 LKR per unit. They also emphasize that the project offers the lowest implementable wind tariffs in the country.
Supporters warn that if Adani withdraws, Sri Lanka could miss out on significant foreign direct investment and potentially send a negative message to international investors in the renewable energy sector. They argue that no other investor has shown the capability or commitment to undertake a project of this scale.
The Adani Group’s continued involvement, even during challenging economic times in Sri Lanka, demonstrates a steadfast commitment to the country’s development. The project’s success is seen as significantly impacting Sri Lanka’s renewable energy landscape and foreign investment climate.