DATA SOURCE: Ceylon Electricity Board, 2002 Photo credit   Energy Sector Development Objectives Energy development priorities Electric Power Sector Development Hydro options Thermal options Renewable sources Environmental implications Objectives The mission of the Ministry of Power and Energy of meeting the demand for energy services with affordable, reliable, diverse, safe and environmentally acceptable choices for the people of Sri Lanka in the most efficient manner derives from an overarching vision aiming to promote the socio-economic development of the country, giving due regard to global sustainable development needs. Targeting urban as well as rural areas, its program coverage of diverse but interrelated activities impinges on a broad spectrum of energy development. Key elements of the vision such as availability of efficient, modern, reliable and affordable energy, and strengthening household, commercial, and service sectors to support and supplement the competitiveness of the economy, were integral to policy directions and the planning process, though which the programmes and projects have been drawn up. The broad policy consideration of the country in relation to energy is that, given proper institutional frameworks, pricing signals and regulatory regimes, markets can efficiently deliver the economic development objectives. This is, however, supplemented by the premise that markets alone cannot be expected to meet the needs of the most vulnerable energy consumers and protect the environment. Where markets appear to fail to protect these and other important public benefits, targeted government policies and consistent regulatory approaches are given due consideration in the country’s policy directions. Policy directives in support of energy development are focused on widening access to energy, encouraging energy efficiency, increasing energy production capacity including expanding the use of advanced clean fossil fuel technologies, and accelerating renewable energy diffusion. The past 5-6 years have been characterized by specifically identifiable policy thrusts, which mainly included complementing energy development with sector restructuring activities and mobilizing investments towards an array of diversified energy development activities (e.g., petroleum gas exploration, petroleum storage expansion, private sector participation in thermal power generation, and renewable energy development). Current energy development thinking of the country acknowledges that the overall development of the country including alleviation of poverty will not be possible without greater use of modern forms of energy. It is noticeably contended that socio-economic conditions of the country improve considerably as energy consumption per capita increases. Energy services in suitable forms are essential ingredients of future growth and development. Under this policy framework and the energy supply and consumption patterns of the country, the main issues addressed in the current energy development efforts include: Modern fuels and electricity are not accessible country-wide; The current energy system is adequate and sufficiently reliable to support widespread economic growth; Negative social and environmental impacts of energy production and consumption can threat the well being of the country. The consequent energy development objectives are: Ensuring efficiency and adequacy in the supply and use of all forms of commercial energy services, while aiming at both growth and equity, specifically aiming at: - Providing 80 per cent of households with at least minimally adequate amounts of electricity by the year 2005; - Providing appropriately affordable electricity to support industrial activity both in urban and rural areas; - Ensuring installation and maintenance of necessary and adequate infrastructure required to meet increasing demands for petroleum products of household, industrial, commercial and service sectors; and - Ensuring and implementing a transparent regulatory process safeguarding the interests of consumers, investors, environment, and the wider society. Energy conservation and elimination of wasteful consumption, saving scarce foreign exchange; Raising sufficient revenues within the sector to finance future developments with increased private sector involvement; Diversifying supply sources and alternative, cost efficient and less emitting energy developments; Meeting basic energy needs of disadvantaged communities and regions; Harmonising energy and environment. Energy development priorities Identification of key thrust areas in the light of the objectives for energy sector development has enabled devising a focussed and priority driven resource efficient approach. Important crosscutting issues that need involvement of other stakeholders have been identified to allow concerted collective efforts towards common goals. Issues of environment, conservation and sustainability underpin all energy development strategies and activities, which are under constant review as the rapidly diminishing environmental conditions call for the need for more enlightened energy development and management approaches. In regard to the power sector, the key thrust areas are: Restructuring of the power sector by unbundling monopolies into separate entities for generation, transmission and distribution; Increased energy efficiency including demand side management; Economic pricing and loss reduction; Improvement of transmission; Rural electrification and system expansion; Electricity generation including fuel diversification and renewable energy. Concomitant emphasis in the petroleum sub-sector dwells on: Expansion of storage and refinery, and improvements to port facilities and service outlets; Increased fuel use efficiency and demand side management; Increased efficiency in petroleum pricing; Upstreaming the petroleum industry towards oil and gas exploration; Cleaner fuels and emission reduction as part of environmental concerns. Accordingly, the key elements of the electricity sector strategic plan are: Development of hydropower to full potential (additional 600 MW) with large hydro generation under state control; Encouragement of private sector investment in mini-hydro and thermal generation through Power Purchase Agreements. Consumer services through distribution franchises operating in designated areas; While thermal generation using fossil fuels appear to be the mainstay in increasing supplies, environmentally cleaner sources such as wind, solar, fuel cells, and others, are expected to contribute as the technologies become commercially viable; Accelerated socio-economic development and improvement of quality of life in rural areas through electrification will be pursued vigorously, especially in areas that have hitherto not been adequately served.   Back to top UNESCAP Home | Energy Resources Section Home Calendar of Meeting | Newsletter | Search | Contact Us | Legal Notice Energy Resources Section, Environment and Development Division, United Nations Economic and Social Commission for Asia and the Pacific