Adani Green Energy Ltd‘s share price rose 2% on Tuesday, 13 February, after a news report suggested that the company may withdraw from its proposed wind power generating and transmission project in Sri Lanka, possibly resolving the uncertainty surrounding the project’s viability.

The company has opted not to move on with the development of two wind power projects in Sri Lanka after the new government demanded decreased pricing last month, according to a letter from Adani Green Energy that Bloomberg published.

After the $442 million, 484 megawatt (MW) wind farm project near Mannar and Poonerin was approved by Sri Lanka’s Board of Investment in early 2023, a 20-year power supply agreement was negotiated for 8.26 cents per kWh. In an apparent attempt to reduce the fee to less than 6 cents per unit, the current Sri Lankan administration has reportedly tried to renegotiate the power purchase agreement.

Sri Lanka’s cancellation of Adani Green’s project in January 2025 was described by the Adani Group as “false and misleading.” However, the government refused to go ahead with the purchase price agreed upon by the previous administration.

Aruna Kulatunga, head of the EOI Project Developers Association, a consortium of 47 companies that evaluate bids for energy projects in Sri Lanka, said Adani Green’s rate was too high compared to local competitors.

However, at 3:30 pm, the shares of Adani Green Energy closed 0.76% lower at Rs 909.90 on NSE.

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