Supreme Court rejects stay order on Adani Green Power Project – Adaderana Biz English

A five-judge bench of the Supreme Court (SC) appointed by the CJ to hear the Adani Wind Power case, citing the importance of this national project to the economy and sustainable energy development in Sri Lanka, today (02) dismissed the petitioners’ request for early hearing and extension of support days and informed that the court will fix the hearing date for the case in October.

“No interim measures.”

The Supreme Court did not issue any stay orders on the execution of the objections filed by Wildlife Nature Protection Society (WNPS), Dr Rohan Pethiyagoda and some scientists – challenging the Cabinet decision announced on May 6, 2024, to award the tender to the Adani group and for GoSL to enter into a PPA to purchase wind power from Adani at a rate of 8.26 cents per KW unit for the next 20 years, it was reported on Friday.

Adani Project Details and Benefits for the Country

The Adani project represents the largest renewable energy investment in Sri Lanka, amounting to over US$1 billion. This investment includes the development of the country’s largest wind farm with a capacity of 484 MW, which is expected to be implemented in record time. In addition, the project will include the longest 400 kilovolt transmission backbone line, crucial for connecting new renewable power plants with a total capacity of 1,200 MW. The wind energy generated will help Sri Lanka save around Rs. 30 billion per year, leading to a reduction in consumer tariffs by almost Rs. 17 per unit. Furthermore, the project promises to provide the lowest feasible wind tariffs in the country, positioning Sri Lanka as a competitive player in the renewable energy sector.

Potential impact of Adani withdrawal

If Adani were to withdraw from the project, Sri Lanka would lose a significant 100% foreign direct investment, signaling to the global community that the country is closing its doors to FDI in the renewable energy sector. Currently, recent investments, such as the 50 MW project, have been driven by local investors, with no international participation. This underlines Adani’s unique ability to undertake a 484 MW wind project. Moreover, Adani’s steadfast commitment, even during Sri Lanka’s economic crisis, sets a precedent that no other investor can match. The loss of Adani’s investment may discourage future international investors from considering Sri Lanka as a viable market for large-scale renewable energy projects.