Sri Lanka’s Wind Energy Dilemma — A Deeper Look Beyond the Media Narrative

The recent shift in Sri Lanka’s wind energy project from India’s Adani Group to the local conglomerate Hayleys has sparked widespread public enthusiasm. Many believe that the Hayleys project offers electricity at a lower cost per unit than Adani’s, but the real picture is more complex. A deeper analysis raises crucial questions about energy security, grid stability, and long-term economic implications.

1. Battery Backup and Grid Stability

One of the most pressing questions is whether both Adani and Hayleys included battery storage in their projects. Wind energy is intermittent, meaning that without a proper battery backup system, the generated power cannot be efficiently stored and utilized when needed.

• If Adani’s project had battery storage and Hayleys’ does not, then the cost per unit comparison is misleading. A system with storage capability ensures power availability during low-wind periods, reducing dependency on fossil-fuel-based backup power.
• What parameters were used to calculate the per-unit cost? Did Hayleys factor in the additional infrastructure needed for battery storage, or are we looking at a short-term price reduction that does not account for long-term reliability?

Sri Lanka’s national grid already struggles with fluctuating supply due to its reliance on unstable solar power (approximately 500 MW). Without a robust battery storage solution, adding large-scale wind energy to the grid could lead to further instability.

2. Off-Peak Energy Sales and Grid Connectivity

Another critical factor is how Hayleys plans to manage excess electricity generation during off-peak hours. Since Sri Lanka does not yet have strong regional interconnectivity for electricity trading, surplus power often goes to waste or needs to be curtailed.

• If Adani had been allowed to proceed, it could have leveraged India’s power grid, selling excess energy to India during off-peak hours. This would have ensured better utilization of generated power and possibly stabilized energy prices.
• Hayleys, however, does not have an international grid connection option. Will the government introduce policies to purchase and store excess power, or will it simply be discarded?

This issue ties into the broader question of Sri Lanka’s energy policy. Are we building an energy system that prioritizes sustainability and efficiency, or are we making politically motivated decisions that do not align with long-term national interests?

3. The Investment Factor: $1 Billion Lost?

The Adani project was set to bring in $1 billion in foreign direct investment (FDI), a crucial boost to Sri Lanka’s struggling economy. Given the country’s ongoing financial crisis, such an investment would have provided multiple benefits, including:

• Job creation and technology transfer.
• Strengthening economic ties with India, a key regional partner.
• Faster implementation, as Adani has the expertise and resources to complete the project in a shorter timeframe.

By shifting the project to Hayleys, Sri Lanka is now delaying the wind power project by another 1–3 years. This means lost opportunities in terms of energy security and economic growth. Can the country afford to wait, given its ongoing power shortages and rising electricity costs?

4. The Role of Politics in Energy Decisions

Energy projects should ideally be decided based on technical feasibility, cost-effectiveness, and national interest. However, Sri Lanka’s recent decision appears to be influenced by political considerations rather than strategic planning. The government’s shift away from Adani aligns with its broader political stance, but the long-term consequences for the country remain uncertain.

Some key questions the public should ask:

1. Was this decision based on a comprehensive energy strategy, or was it simply a reaction to political pressure
2. How does this impact Sri Lanka’s foreign investor confidence? Will other international companies hesitate to invest in Sri Lanka due to political unpredictability?
3. Is there a long-term plan to integrate wind energy efficiently into the grid, or is this just another short-term policy shift?

While the idea of a locally managed wind power project is appealing, the Sri Lankan public must look beyond the media narratives and ask critical questions. Without proper grid integration, battery storage, and a clear off-peak energy management plan, the cost per unit is not the only factor that matters. Additionally, losing a $1 billion investment and delaying the project could have lasting consequences for the country’s energy and economic stability.

Sri Lanka’s transition to renewable energy must be based on pragmatic, data-driven decisions rather than political optics. Otherwise, the country risks making energy policies that look good on paper but fail in execution.