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The Public Utilities Commission of Sri Lanka (PUCSL) has declined to grant approval for the procurement of the 484 MW wind power plant in Mannar and Pooneryn to Adani Green Energy SL Ltd. (AGESL), reported the Sunday Times.
Mentioning a copy of a letter from the power sector regulator to the Ceylon Electricity Board (CEB) s Acting General Manager, the report said that the reason for the refusal by PUCSL is that the information submitted by the CEB was inadequate to assess the least cost and technical compatibility. It appears that even basic details, such as the full draft power purchase agreement (PPA) between the CEB and AGESL, were not provided.
The CEB has requested PUCSL permission to award the power plants to AGESL under the Sri Lanka Electricity Act. However, the schedules of the draft PPA, the signed memorandum of understanding (MoU) with the Government of India, and clearance granted by the Attorney General’s Department were missing.The environmental impact assessment (EIA) results and details of the environmental license issued by the Central Environmental Authority (CEA) were not submitted either. The PUCSL has requested additional information to process the approval.The procurement details for the construction of the 400kV transmission line from Kilinochchi to Habarana and the related cost-recovery mechanism too are missing, along with information regarding bid values received for the tender called for the 50 MW wind power plant in Mannar, situated in close proximity to the Adani project.
In February 2023, Sri Lankas Board of Investment approved the development of a $442-million wind power project by Adani Green Energy. The proposed wind power plants were to be built in Mannar and Pooneryn in Northern Sri Lanka.
Last week, the Bishop of the Diocese of Mannar, a Roman Catholic diocese for north-western Sri Lanka, and three prominent environmentalists filed a public interest litigation in the Sri Lankan Supreme Court challenging the 250 MW Mannar Wind Power Project.
This legal challenge is the first faced by the formidable Adani Group in Sri Lanka. The litigation questions the procurement process, construction, and credibility of the Projects environmental impact assessment (EIA). It names 67 respondents, including the Cabinet of Ministers, the Sri Lanka Sustainable Energy Authority (SLSEA), and the Attorney General.The negotiated tariff for Adanis wind power project is $0.0826 (8.26 cents per kilowatt-hour) for 20 years. However, independent Sri Lankan energy experts argue that Adani sells power to the Indian state at less than $0.04 per kWh. The petition challenges the basis for this tariff, expressing concerns about financial losses for Sri Lanka and consumer burden.
The petitioners highlight that data related to the project has not been made available for public scrutiny. They request the release of all files and records, including bids, deliberations, and project assessments.
The decision by the Public Utilities Commission of Sri Lanka (PUCSL) to refuse approval for the project could impact energy supply, investment, and renewable energy goals in the country.
AGESLs next steps involve addressing the PUCSLs concerns, providing additional information, and engaging with regulators.
In summary, this project faces legal challenges, tariff debates, and transparency issues. The outcome will shape Sri Lankas renewable energy landscape. |
