Access to electricity:
Lanka on par with developed nations
by K.M.H.C.B. Kulatunga
At a time the electricity tariff revision in Sri Lanka has come into sharp
focus, it is important to take a closer look at the energy crisis that has
affected all other countries in South Asia.
The Government’s heavy investments on power generation projects such as the
Norochcholai coal power station, Kerawalapitiya thermal power station and Upper
Kotmale Hydropower Station has enabled Sri Lanka to stand tall at a time all its
South Asian neighbours are badly affected and experience long power cuts, up to
20 hours a day.
None of the Opposition politicians here, who try to gain
petty political mileage, ever talk of Sri Lanka’s ability to face the power
crisis with confidence. Once Phase Three of the Norochcholai coal power station
is completed by the end of this year, and the entry of the Sampur power station
to the national grid in two years, Sri Lanka will be in an even better position.
Sri Lanka is the only country in the South Asian region to offer an
uninterrupted power supply from the national grid while all other countries in
the region impose power cuts for a major part of every day.
Only 65 percent of Sri Lanka’s households had access to electricity in 2005.
It has now gone up to nearly 98 percent due to President Mahinda Rajapaksa’s
strong belief that the rural masses too should have access to electricity.
Undoubtedly, Sri Lanka has the highest percentage of population with access
to electricity in South Asia while comparative figures, according to last year’s
World Bank report, were: Bangladesh 41 percent, India 66.3 percent, Nepal 43.6
percent and Pakistan 66.24 percent. Moreover, all these countries currently
impose daily power cuts while Sri Lanka maintains an uninterrupted power supply
for the 98 percent of its population.
Generating capacity
Though one-third of India’s population is still in the ‘dark’, the balance
two-third which has access to electricity too experience daily power cuts and
regular interruptions. The July 2012 India blackout was the largest power outage
in its history, occurring as two separate events on July 30 and 31. The outage
affected over 620 million people, about nine percent of the world population -
exactly half of India’s population, spread across 22 states in the Northern,
Eastern and North Eastern India. An estimated 32GW of generating capacity was
taken offline in the outage.
Chaos from power cuts is not limited to India; across South Asia, energy
security is a policy challenge. Growing demand, with limited supply expansion,
are likely to compound the problem. Although no easy task, regional integration
and co-operation will be fundamental to resolving the issue, which could
simultaneously be the catalyst for closer economic relations.
The power cut that hit India in July highlights the significant energy
challenges that the region must face.
Apart from India, Pakistan is another country that has been badly affected.
Except in Sri Lanka, the energy crisis exists right across South Asia. Chronic
under-investment, lack of strategic planning and entrenched graft has led to
similar situations across the region, albeit not so well documented.
The Pakistan Prime Minister suggested last year that energy was a policy
priority of his government and that blackouts have reached a peak of up to 16
hours a day in Islamabad. In rural areas, shortages are even more severe, with
reports suggesting that as a result of power failures, residents could only
expect about two hours of power daily. Additionally, the rate of access to
electricity in South Asia, except for Sri Lanka, is among the lowest in the
world.
Energy wealthy nations
Paradoxically, South Asia is energy wealthy. Fossil fuels are plentiful,
including coal in Pakistan and India, and gas in Bangladesh and Burma. Renewable
potential, such as hydropower, could be exploited to a greater extent across the
region. Similarly, analysts suggest Pakistan holds substantial wind power
potential.
The catalysts for energy shortages are unique for each
state, although commonality exists in projections about the future.
Undoubtedly, demand across the region will rise, with national governments
suggesting demand growth of four percent on average.
Yet, across South Asia, there is collective anxiety as to how this demand
will be met.
The implications are significant. Power cuts and shortages in energy supplies
are proving an inhibitor to economic growth, with Pakistan’s Planning Commission
arguing that the power crisis shaved three to four percent off its GDP in
2010-11.
In India, industry has vocalised its concerns, which may result in decreased
foreign investment, further contracting the country’s already slowing economy.
Energy shortages and resulting economic factors may create socio-political
issues, with protests already taking place in Pakistan and India.
As with security issues and continuing economic development, regionalism is
the key to greater energy security.
A regional, inter-connected grid could allow South Asia to diversify its
energy mix, reducing the growing gap between supply and demand. Some early
trends suggest scope for such co-operation exists, with Bhutan supplying
hydro-electricity to India. Correspondingly, India is working on a project to
supply 55 megawatts of power to Bangladesh and a cross-border power transmission
line to Nepal.
Undeniably, as with all aspects of multi-lateral relations, particularly in
South Asia, obstacles remain. For all states, however, a secure energy supply is
vital and would remove the current ceiling of economic growth that constrains
the region.
Allied to this issue, greater energy co-operation may also promote
opportunities to not only improve relations, but also expand regional economic
links. The lack of these connections is another key factor, limiting South
Asia’s economic potential.
Crippling power cuts
Last year’s colossal collapse of India’s power grid, twice in successive
days, highlighted how severe the consequences can be if nations do not address
their energy demand and supply situation. Hundreds of millions of people were
without electricity, there were massive traffic jams on the roads as signals
broke down, and factories and businesses came to a standstill.
It is not just India that is struggling with a massive gap in power demand
and supply. Crippling power cuts and shortage of energy supply are hurting
growth in other South Asian nations such as Pakistan, Bangladesh and Nepal. The
situation is likely to get worse as the demand for energy increases in these
countries.
India’s annual energy demand is growing at a rate of nearly four percent.
Official figures show shortages of about 10 percent during peak hours. With
diversity of these energy resources, cross-border trade could be a game changer
to reduce the gap between demand and supply.
In contrast, Sri Lanka has come out of its 1993 gloomy period during which
the Government gave up investing on new power generation projects. However, the
situation has changed drastically since President Rajapaksa assumed office in
2005.
Sri Lanka had a vision to increase the strength of its national grid to meet
the 300MW annual increase of demand for power.
Phase Two and Three of the Norochcholai coal power plant will add a further
600MW of power to the national grid by the end of this year.
Pakistan’s power crisis is going from bad to worse, with demand projected to
reach 50,000 megawatts (MW) by 2030 - three times more than the supply currently
available in its system.
Nepal has up to 20 hours of power cuts per day during the dry season, which
is when most snow-fed rivers run at their lowest.
Reports said that more than half of Bangladesh’s total population still have
no access to electricity. The World Bank says about 30 percent of the rural
households in Bangladesh have access to grid electricity.
The government insists it has already reached its target of 7,000 MW capacity
by 2013. While these nations have unveiled ambitious plans to overcome the
situation, some analysts say the solution may actually lie in them pooling
together their resources and supplies through a cross-border network.
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A traffic jam following power outages in New Delhi in July
2012
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At the same time, South Asian nations must look for alternate energy sources
to meet future challenges. Some Pakistani coastal areas have also been
identified as having the potential to harness wind power. Availability of bright
sunshine almost every month of the year makes South Asia an ideal location to
generate solar power.
Energy experts say all these resources pooled together through an
inter-connected grid could help South Asia secure its energy supplies. With
diversity of energy resources, cross-border trade could be a game changer to
reduce the gap between demand and supply.
Nepal alone has 200,000 MW of hydropower potential, India’s is around 150,000
MW and Bhutan and Myanmar have 30,000 MW each.
The vast hydroelectric potential apart, experts say, the region’s abundant
solar and wind power could help its countries, mainly India, to gradually reduce
the use of dirty fossil fuels such as coal and oil.
Collaborative efforts
However, the idea of combining resources has not gained traction in the
region.
The efforts for such a collaboration have been slow, mainly because of
geopolitics and the lack of infrastructure such as cross-border transmission
lines.
There have been calls for South Asian nations to pool their energy resources.
Hydropower development entails using water resources, a sensitive subject in
South Asia’s national and regional politics.
Nepal and India have signed agreements to build various hydropower projects
on Nepalese rivers, but those have never been implemented because of
controversies on water-sharing, the environment and population displacement.
Despite these issues, some key developments have started to take place.
Experts point to the increasing amount of hydropower Bhutan is supplying to
India. Three Bhutanese hydro-electric projects contribute a significant chunk of
power to India’s national grid.
The Himalayan kingdom has also begun work on new hydropower projects
totalling more than 11,000 MW. Most of it is said to be meant for the Indian
market. Unless South Asian nations iron out their differences, the region’s
power crisis looks set to become perennial.
Fortunately, Sri Lanka is making its own headway, thanks to the visionary
projects implemented under the Rajapaksa administration.
Sri Lanka is on par with almost all developed nations as far as the
population’s access to electricity is concerned. Uninterrupted power supply from
the national grid singles out Sri Lanka from all other countries in the region.
Hence, people should learn to use that facility carefully and save energy,
instead of talking about the increase of electricity tariffs.
Though the Opposition attempts to project a gloomy picture, that electricity
prices have been doubled, the electricity bills of more than 70 percent of
households would be increased between Rs. 75 to Rs. 460.
The Government could even reduce the electricity tariff if it introduces
15-20 hour power cuts as experienced by all other countries in the region.
Even after next month’s tariff revision, the Government continues to
subsidise electricity.
The masses should not be misled by the Opposition’s campaign and take a
closer look at these ground realities.
