Sri Lanka Energy Supply Status and Cross Border Energy Trade

Energy supply in Sri Lanka is mainly based on three primary sources, namely hydroelectricity, biomass and petroleum. The supply from each of these sources is such that 11percent is attributable to hydroelectricity, 55 percent to biomass and 34 percent to petroleum oil products. Fuel-wood and other biomass such as coconut residues, paddy husks and sawdust are largely used for domestic cooking accounting for about 85 percent of the biomass usage. In the absence of locally available fossil fuel resources all the future petroleum and other fossil fuel requirements such as coal will have to be imported. A submarine cable link between Sri Lanka and India for power transfer is likely to be beneficial once the economic viability is established mainly due to possibility of accessing cheaper electricity generation options both in India and other countries in the long term. The constraints such as the electricity supply deficit over demand in the region and the security concerns, which will have a negative impact on such development, will also have to be carefully examined. 1. SRI LANKA ENERGY SUPPLY Energy supply in Sri Lanka is mainly based on three primary sources, namely hydroelectricity, biomass and petroleum. In 1997, Hydro-electricity and biomass accounted for approximately 827 thousand Tonnes of Oil Equivalent (TOE) and 4030 thousand TOE respectively. Approximately 2,539 thousand TOE came from petroleum crude and oil products giving an aggregate primary energy supply of approximately 7396 thousand TOE. These correspond to 11percent from hydroelectricity 55 percent from biomass and 34 percent from petroleum oil products (Figure 1) [1]. The use of other renewable energy sources such as wind power and solar electricity is estimated to be insignificant in comparison to energy from the above three major sources while the use of coal is also negligible at present [2]. Source: Sri Lanka Energy Balance-1997, Energy Conservation Fund, Sri Lanka Figure 1: Primary Energy Supply in Sri Lanka (1997) The energy supply is expected to increase approximately to 11.500 million TOE by the year Hydro 11% Biomass 55% Petroleum 34%