India and Sri Lanka have signed a MoU to establish hybrid power plants in the island nation. The announcement comes after the Sri Lankan government recently ousted the Chinese company that had been cleared for these projects in 2021. The projects call for the development of three wind turbine farms in the Palk Strait, on the small islets of Nainativu, Analaitivu, and Delft.
In 2019, a Chinese enterprise, Sinosar-Etechwin, was awarded $12 million for hybrid power projects, with the necessary money coming from the Asian Development Bank (ADB). However, after India lodged concerns with the Sri Lankan government, the work was never started, and it was eventually abandoned. The sites, India claimed, brought the Chinese too close to the Indian state of Tamil Nadu.
In June 2021, India provided Sri Lanka with a line of credit for solar power projects. Recently, India’s NTPC struck a deal with the Ceylon Electricity Board to build a 50 MW solar power project in Trincomalee’s Sampur district. Following that, the Adani Group signed a MoU with the Sri Lankan government to build two 500 MW renewable power plants at Mannar and Pooneryn in the Northern Province, with a $500 million investment.