Adani Green Energy Ltd. has exited a controversial wind power project in Sri Lanka’s Mannar district, which faced strong environmental challenges. Local groups raised concerns over ecological damage and financial irregularities tied to the project. The withdrawal follows a push by the new government to renegotiate power purchase prices amid local opposition, leaving the future of ecological preservation in Mannar uncertain.
Indian billionaire Gautam Adani’s company, Adani Green Energy Ltd. (AGEL), has withdrawn from a controversial wind power project in northern Sri Lanka that intended to install 52 turbines to produce 250 MW. The project faced strong opposition from environmental groups due to potential ecological impacts on the region’s wildlife, particularly migratory bird species. Local organizations filed five lawsuits, contesting the environmental ramifications and the lack of competitive bidding.
Despite the growing need for renewable energy in the face of climate change, environmentalists criticized the project for its potential damage to the sensitive Mannar district. The region is vital for bird migration and nature-based tourism but the former government’s agreement with AGEL set an unusually high power purchase price of $0.82 per unit, prompting concerns about financial impropriety.
After the newly elected government expressed interest in renegotiating the terms of the project, AGEL clarified that it would not cancel the project but rather adjust the agreement. However, on February 12, AGEL officially withdrawn from the project, attributing their decision to “financial nonviability” influenced by the government’s position that sought a lower tariff.
The potential for wind energy in Sri Lanka has been explored for over twenty years, and the Mannar district has a history of wind farm development, including Thambapavani, which produces 100 MW. The Adani Group had proposed a total investment of $442 million for the project, with $5 million already spent on preliminary activities. On February 15, AGEL confirmed its withdrawal citing ongoing environmental concerns and their commitment not to further pursue the project.
Mannar’s ecological significance raises alarms about its capacity to sustain large industrial developments. Rohan Pethiyagoda, a recognized taxonomist, expressed that the wind project would exceed the area’s carrying capacity, potentially harming its fragile ecosystems. The region serves as an essential corridor for migratory birds, hosting millions of birds, including twenty globally threatened species.
Research has shown the global importance of Mannar as a winter habitat for birds ranging from the Arctic Circle, emphasizing its ecological role. While there are proposals for mitigation measures, like bird monitoring radar, risks remain high due to power lines affecting local bird populations, including flamingos.
Environmentalists advocate for focusing efforts on ecotourism, highlighting Mannar’s biodiversity and historical significance, which could benefit local communities. With AGEL’s exit, Sri Lanka must strategize its renewable energy goals while prioritizing conservation, keeping in mind other potential wind farm locations that could be less damaging to the environment.
AGEL’s withdrawal from the Sri Lankan wind project underscores the conflict between renewable energy development and environmental conservation. Despite strong demand for clean energy, the adverse ecological impacts and the revealed concerns regarding bidding processes have led to significant opposition. As Mannar’s biodiversity faces potential threats, the decision opens a dialogue on the importance of sustainable approaches to energy production and tourism in ecologically rich regions.
Original Source: news.mongabay.com
