Our Vision is spearheaded by the National Energy Policy and Strategies of Sri Lanka. Our aim is to achieve energy security by improving energy efficiency and increasing the usage of indigenous energy resources."
Energy security is a question of national strategy since the conversion to oil from coal. However, the concept of energy security has changed in a way to less reliance on uncertain oil supplies which has socio-economic and environmental consequences as well. Moreover, large reliance on imported energy would result in large foreign exchange expenditures, expensive energy, high cost of production, less competitiveness, high CO2 emissions, psychological cost and much more. Reducing dependence on imported fuels and diversifying energy sources for production of electricity is an important policy direction to enhance energy security which also leads to reduction in emissions and promote economic development. Implementation at small and medium scale is an important feature of renewables which can also be adopted as off-grid solution. Having this perspective in mind, the SLSEA has changed its focus from imported expensive energy sources to cheaper renewable resources, bringing socio-economic and environmental sustainability in the country.
Ensuring energy security largely depends on the formulation of strong policies, the effective management of knowledge and the transformation of market and systems. With the effective implementation of these policies SLEA expects Sri Lanka to transition to the usage of modern energy sources in the near future.
Economies around the globe are facing high energy demand to achieve sustained economic growth. However, the challenge is not only to meet the rising demand but also to put less reliance on the depleting fossil fuels which cause damaging environmental effects. Volatile price dynamics of fossil fuels and widening demand-supply gap of electricity calls for cost effective, environment friendly and reliable energy resources. These factors result in an increasing interest in developing renewable resources.
We envisage developing indigenous renewable energy resources to generate 70% of the power generation by 2030.
From a consumption perspective, energy demand in Sri Lanka has continued to rise - showing a considerable increase over the past 20 years. Research conducted has led us to believe an increasing share of renewable energy in the energy mix of a country can help meet the growing future demand for energy while influencing economic development. As well as reducing the environmental impact associated with fossil fuels, renewable energy resources can increase diversity of energy resources and, potentially, contribute to energy security and to the long-term availability of energy supply. Renewable energy resources can also promote development as they can be used in less developed areas without conventional energy resources and could reduce costs associated with climate change.
Keeping in mind the forecasts of rapid industrial growth and associated energy demand in Sri Lanka, we aim to manage the energy intensity of economy at 500toe/XDRM in the future.