South Asian energy activists hail Sri Lanka govt for strict measures that 'forced' Adani to cancel Wind Power Project

South Asia's climate and energy activists have welcomed a decision by the Sri Lankan government to take strict measures that reportedly forced Adani Group to cancel its 482MW controversial wind power project from Mannar and Pooneryn in the Northern Province of Sri Lanka.

Adani Green Energy Limited (AGEL), a subsidiary of Adani Group, signed a Power Purchase Agreement (PPA) in May 2024 to build and operate the wind power project for 20 years, reads a press statement issued by the South Asia Just Transition Alliance today (14 February).

Local people and environmental activists vehemently opposed the project due to its adverse environmental and social impacts, it says.

The Centre for Environmental Justice (CEJ) and the Wildlife and Nature Protection Society (WNPS), and two other groups of concerned environmental experts, filed separate cases in the Supreme Court of Sri Lanka challenging the Environmental Impact Assessment (EIA) and expressing concerns about the energy sovereignty and severe impact on migratory birds.

According to a study, 'Neither Clean Nor Green', jointly conducted by the South Asia Just Transition Alliance (SAJTA) and CEJ, 15 million migratory birds take refuge in Sri Lanka's coastal zones.

The study also found that faulty power plant design may increase floods and affect the 72,000 inhabitants of Mannar Island. The project might also affect the economy of Sri Lanka. According to the PPA, Adani was to supply electricity at $0.0826 per kWh, 192% higher than the tariff for Indian wind power ($0.043).

The Sri Lankan government started reviewing the project in response to criticism, protests and a court case. Finally, the Ministry of Energy revoked the agreement and formed a committee to review the entire project again.

Meeting the hurdle, AGEL informed the Sri Lankan Board of Investment on 12 February that it would withdraw the project.

Hemantha Withanage, chairperson of the Centre for Environmental Justice, stated that this is a significant achievement for environmentally concerned citizens of the country. The project poses a threat to migratory birds and could increase flood damage to the local population. This decision sends a message that we should not entertain environmentally harmful and socially destructive projects, even if they carry a renewable label.  

Quoting the Sri Lankan example, Hasan Mehedi, member secretary of SAJTA, said, "The Bangladesh Government should take similar actions on Adani's Godda coal power plant as the unsolicited agreement signed by the previous government contained many flaws."

He mentioned that Adani had already violated the agreement by hiding the tax exemption information in India.