ECONOMYNEXT- Sri Lanka hopes to conclude hopes to conclude price negotiations for the wind power plant by India’s Adani group by May, Minister of Power and Energy, Kanchana Wijesekara said.
A Cabinet Appointed Procurement Committee and Technical Evaluation Committee are working on the matter.
“There are certain parameters that they are negotiating,” he told reporters in Colombo.
“But I am hopeful that there will be a decision by the Cabinet Appointed Procurement Committee and the TEC and with the Adani group. May be by May we hope to conclude the negotiations.”
The last discussed price for a unit of electricity from the plants to be set up in Mannar and Pooneryn was 8.85 US cents, which was lowered from the original proposal.
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According to data in an Environmental Impact Assessment the Adani 250MW plant in Mannar would cost 420 million US dollars with 147 million dollars of equity (35 percent) and 273 million (65 percent) in debt.
A 100MW existing wind plant has a levellized cost of 4.6 US cents a unit over its lifetime, according to publicly disclosed data, based on an Asian Development Bank loan for the project.
Mannar has high wind potential giving 40 percent or above plant factor, pushing costs per unit down, according to industry analysts, though following a external default Sri Lanka’s risk premiums have gone up. (Colombo/Apr22/2024)