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Sri Lanka's power sector reforms were undertaken as part of a larger overall economic recovery effort and much-needed reconstruction program following a 30-year civil war. The power sector's restructuring, primarily geared toward encouraging more competition and improved regulation, has brought about wider access to the grid, lower transmission and distribution losses, and a more efficient generation system; but it was met with limited success in unbundling the power system and in making electricity tariffs cost-based and more efficient. This country report by the Asian Development Bank assesses Sri Lanka's experience in reforming its power sector for lessons and insights that other economies could find useful when pursuing their own power sector planning and policy and strategy formulation.
This report examines three economies in different parts of Asia---Georgia, Sri Lanka, and Viet Nam---that introduced power sector reforms in recent years to create a commercially viable and efficient power sector. Each took a different route in moving away from a monopoly state-owned utility toward the common goal of a competitive, market-based, and better-regulated power sector. This report documents the broad spectrum of their power sector reform efforts, experiences, and relative successes as well as shortfalls, then uses international standard indicators to assess their economic, social, and environmental outcomes. Other economies should be able to draw valuable lessons and insights from this report for their own power-sector planning and policy and strategy formulation.
During the 1990s, a new paradigm for power sector reform was put forward emphasizing the restructuring of utilities, the creation of regulators, the participation of the private sector, and the establishment of competitive power markets. Twenty-five years later, only a handful of developing countries have fully implemented these Washington Consensus policies. Across the developing world, reforms were adopted rather selectively, resulting in a hybrid model, in which elements of market orientation coexist with continued state dominance of the sector. This book aims to revisit and refresh thinking on power sector reform approaches for developing countries. The approach relies heavily on evidence from the past, drawing both on broad global trends and deep case material from 15 developing countries. It is also forward looking, considering the implications of new social and environmental policy goals, as well as the emerging technological disruptions. A nuanced picture emerges. Although regulation has been widely adopted, practice often falls well short of theory, and cost recovery remains an elusive goal. The private sector has financed a substantial expansion of generation capacity; yet, its contribution to power distribution has been much more limited, with efficiency levels that can sometimes be matched by well-governed public utilities. Restructuring and liberalization have been beneficial in a handful of larger middle-income nations but have proved too complex for most countries to implement. Based on these findings, the report points to three major policy implications. First, reform efforts need to be shaped by the political and economic context of the country. The 1990s reform model was most successful in countries that had reached certain minimum conditions of power sector development and offered a supportive political environment. Second, countries found alternative institutional pathways to achieving good power sector outcomes, making a case for greater pluralism. Among the top performers, some pursued the full set of market-oriented reforms, while others retained a more important role for the state. Third, reform efforts should be driven and tailored to desired policy outcomes and less preoccupied with following a predetermined process, particularly since the twenty-first-century century agenda has added decarbonization and universal access to power sector outcomes. The Washington Consensus reforms, while supportive of the twenty-first-century century agenda, will not be able to deliver on them alone and will require complementary policy measures
This sector directional guide describes the context and rationale that will guide the agenda of the Asian Development Bank (ADB) in supporting developing member countries with financing, knowledge, convening ability, and technical assistance to ensure improved the coherence, relevance, efficiency, and effectiveness of ADB’s energy sector investments. It outlines the priorities and focus for the energy sector in line with Strategy 2023. The guide is designed to be a living document, to be updated as needed to remain relevant to the dynamic development context of Asia and the Pacifi c. A midterm review will be conducted following the expected review of the Energy Policy in 2025.
Viet Nam envisions a completely competitive power sector in the long term, including full wholesale and retail competition. To attain this goal, it unbundled its power sector's monopoly structure and instituted institutional, regulatory, and pricing reforms. Although considerable progress has been made, implementation has not been expeditious, with the government still retaining a strong vested ownership and management interest in the power sector. Further restructuring is needed to ensure complete independence of the system players and to attain pricing transparency. In this country report, the Asian Development Bank assesses Viet Nam's experience in reforming its power sector for insights that other Asian developing economies could find useful when pursuing their own power sector planning and policy and strategy formulation.
This report highlights Sri Lanka's energy sector structure, government strategy, policy, and development plans, and complements the Sri Lanka-ADB country partnership strategy for 2018-2022. It outlines ADB's experience and strategy in the country's energy sector and provides background information about investment and technical assistance operations. The report also reviews previous support from ADB and other development partners.
This book presents an integrated approach to sustainably fulfilling energy requirements, considering various energy-usage sectors and applicable technologies in those sectors. It discusses smart cities, focusing on the design of urban transport systems and sources of energy for mobility. It also shares thoughts on individual consumption for ensuring the sustainability of energy resources and technologies for emission reductions for both mobility and stationary applications. For the latter, it examines case studies related to energy consumption in the manufacturing sector as well as domestic energy requirements. In addition it explores various distribution and policy aspects related to the power sector and sources of energy such as coal and biomass. This book will serve as a valuable resource for researchers, practitioners, and policymakers alike.
The Case Study Workshop was organized with the objective of obtaining the necessary input the experts on different subject areas of water resources, subject those views and discussion among the stakeholder agencies, and synthesize the information to a report on the case study. The outcome of the Workshop would eventually transform into the contribution of Sri Lanka to the forst WWDR
This study examines how Sri Lanka achieved countrywide electrification by 2016 and looks at its socioeconomic impact. It notes that electrification helped raise living standards and triggered rapid development in rural areas, creating new investment opportunities at the national level. The study was initiated by Sri Lanka’s Ministry of Power and Renewable Energy with support from the Asian Development Bank.
This book explores how, in the wake of the Anthropocene, the growing call for urgent decarbonisation and accelerated energy transitions might have unintended consequences for energy poverty, justice and democracy, especially in the global South. Dilemmas of Energy Transitions in the Global South brings together theoretical and empirical contributions focused on rethinking energy transitions conceptually from and for the global South, and highlights issues of justice and inclusivity. It argues that while urgency is critical for energy transitions in a climate-changed world, we must be wary of conflating goals and processes, and enquire what urgency means for due process. Drawing from a range of authors with expertise spanning environmental justice, design theory, ethics of technology, conflict and gender, it examines case studies from countries including Bolivia, Sri Lanka, India, The Gambia and Lebanon in order to expand our understanding of what energy transitions are, and how just energy transitions can be done in different parts of the world. Overall, driven by a postcolonial and decolonial sensibility, this book brings to the fore new concepts and ideas to help balance the demands of justice and urgency, to flag relevant but often overlooked issues, and to provide new pathways forward. This volume will be of great interest to students and scholars of energy transitions, environmental justice, climate change and developing countries. The Open Access version of this book, available at https://www.taylorfrancis.com/books/oa-edit/10.4324/9781003052821 has been made available under a Creative Commons Attribution-Non Commercial-No Derivatives 4.0 license.