Adani Wind Power Deal! Purchase price of a wind power plant in Mannar, Sri Lanka built by India’s Adani has now been lowered to 8.85 US cents in the latest negotiations, Energy Minister Kanchana Wijesekera said. Adani - US cents 8.26 Windforce - US cents 4.88 Corruption $c3.38

Power and Energy Minister Kanchana Wijesekera says negotiated tariff rate of $ 8.26 cents is to be paid in rupees on prevailing exchange rate GoSL has approved a 20 year power purchase agreement (PPA) with Adani Green Energy for wind power stations 484 MW in Mannar and Poonaryn.

Larger sized scale, in drier areas more preferential areas in Mannar where the wind regime is higher, then the price should be going down. That is why we simply must do competitive tenders because then the price will go down eventually,” he explained.

Adani has to bring its price to below US cent 4.50!! If not, @anuradisanayake @BimalRathnayake @NPPSLOfficial @AKD100Days_ should not take it

@gautam_adani @AdaniOnline @rangaba @anuradisanayake @tisrilanka Can @AdaniGreen give below US$4.88? Nothing to renegotiate unless competitive and below $4.50 @murtazajaff @advocatalk

Adani unsolicited price US Cents 8.26 cents? “On the current exchange rate considered as, USD 1 = Rs. 300, the cost of energy will be Rs. 24.78 per kWh. The current average cost of energy in Sri Lanka is Rs. 39.02 per kWh,” Power and Energy Minister noted via ‘X’.

This is a great example of a competitive tender, there are many naysayers who are against competitive tenders for obvious reasons. In a market economy the best way to allocate scarce resources is through the pricing mechanism that has been formed through competitive market forces. As a next step we should introduce multiple round reverse auctions (all government tenders are ONLY SINGLE round). The NPP government made election promises to cancel the Adani wind project for it is unsolicited, it did not happen. If the government is under pressure from the Indian government NOT to cancel it in spite of violating our own old electricity act, procurement guidelines and even Indian government tender conditions, factoring in the large size (10x the size of the mentioned tender) and superior wind resource due to its advantaged location on Mannar Island, the tariff should be closer to USD 4 cents (for a similar sized project in Gujrat which has a lesser wind resource than Mannar Adani's price is USD 3.3 cents equivalent in INR). Further, we should not agree to USD based tariffs, it should be LKR based tariffs (Pakistan willy nilly agreed to USD tariffs and the power companies got into serious trouble). It is a myth that we need foreign capital to do these projects, our local banks are sitting on excess of USD 2 bn of USD liquidity that is parked with the Federal reserve at 4.25-4.5%, they would gladly redirect some of these USD to such projects as debt financing at a premium to what they are currently getting. Hayleys Fentons to develop 50 MW wind power facility in Mannar - Business News | Daily Mirror