Adani Green Energy Ltd (AGEL), a key player in India’s renewable energy sector, has officially withdrawn from its ambitious wind power projects in Sri Lanka. The company made this announcement on Wednesday after facing prolonged delays and complications with local regulatory approvals. The projects, which were to involve the construction of two 484-megawatt (MW) wind farms in Sri Lanka’s Mannar and Pooneryn regions, were part of AGEL’s broader strategy to expand its renewable energy footprint in international markets.

The projects, initially proposed with the aim to significantly boost Sri Lanka's renewable energy capacity, included the construction of a dedicated transmission system. This infrastructure was designed to help transfer electricity from the wind farms to the southern parts of the island. In addition to the wind farms, the project also involved the expansion of the transmission network, including the installation of a 220 kilovolt (kV) and 400 kV transmission line, designed to accommodate the power produced by these large-scale renewable projects.

Adani Green Energy had invested around $5 million into the project during its predevelopment phase, which included a series of regulatory approvals and extensive planning. The company also worked closely with the Ceylon Electricity Board (CEB) and various Sri Lankan government ministries over two years to finalize the agreements for the wind farms. Despite these efforts, the project faced persistent hurdles in securing environmental approvals for the Mannar site, which was mired in legal challenges, including a Supreme Court case, further delaying progress.

Although Adani Green Energy had reached a milestone by securing approval for the tariff and a 20-year power purchase agreement, the latest developments signalled a shift in the Sri Lankan government’s approach. The formation of a new Cabinet-appointed negotiations committee and a Project Committee to renegotiate aspects of the project proposal led to AGEL’s decision to withdraw from the venture. The company made it clear in its statement that it fully respects Sri Lanka's sovereign rights and understands the importance of governmental decisions. However, after thoughtful deliberation, AGEL decided it was in the best interest of the company to respectfully withdraw.

While AGEL is stepping back from these specific projects, the company emphasized that it remains open to future opportunities in Sri Lanka. The statement also expressed gratitude towards the Sri Lankan government for the opportunity to engage in the project and wished the nation well in its pursuit of renewable energy development.

The withdrawal of AGEL marks a setback for Sri Lanka’s renewable energy ambitions, which were aiming to expand the role of wind power in the country’s energy mix. Adani Green Energy, however, remains a global leader in renewable energy, with a robust portfolio of over 20,000 MW of projects, including significant solar and wind initiatives. As the company continues to focus on expanding its operations across India and abroad, AGEL remains committed to driving the global shift towards clean, sustainable energy.