Cannot justify energy projects at ‘excessive tariffs’, says Sri Lankan president

Sri Lankan President Anura Kumara Dissanayake on Monday said that his government cannot justify awarding green energy projects at “excessive tariffs”, The Hindu reported.

The comment came five days after the Adani Group withdrew from two proposed wind power projects in the country.

During his first Budget speech in Parliament on Monday, Dissanayake said without naming the Adani Group or India, that his government will welcome investments into the energy sector based on competitive tariffs, and not by favouring a company or a country.

“We awarded a tender to a 50MW wind power project at $4.65 cents for a unit of electricity,” The Hindu quoted Dissanayake as saying. “In that context, awarding projects at an excessive tariff around $8.26 cents cannot be justified.”

The Sri Lankan president further said that no company or country will get “preferential treatment” as his government’s aim is to provide electricity to industries, exporters and consumers at competitive prices by encouraging investments that offer the lowest tariff.

On February 12, Adani Green Energy, a subsidiary of the conglomerate, conveyed to the Sri Lankan investment board its decision to withdraw from “further engagement in the RE [renewable] wind energy project and two transmission projects” in the island nation.

“However, we remain committed to Sri Lanka and are open to future collaboration if the Government of Sri Lanka so desires,” the…

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