national energy policy_p

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NATIONALENERGYPOLICYANDSTRATEGIESOFSRILANKA

GOVERNMENTOFSRILANKA

1. INTRODUCTION

TheNationalEnergyPolicyandStrategiesofSriLankaiselaboratedinthreesections. EnergyPolicyElements consistsofthefundamentalprinciplesthatguidethedevelopmentandfuturedirectionofp p g pSriLankasEnergySector.

ImplementingStrategiesstatestheimplementationframeworktoachieveeachpolicyelement.

SpecificTargets,MilestonesandInstitutionalResponsibilitiesstatethenationaltargets,andtheplanningandinstitutionalresponsibilitiestoimplementthestrategies.

2. ENERGYPOLICYELEMENTS2.1ProvidingBasicEnergyNeeds

Energy requirements to fulfill the basic needsof the people, and to enhance their livingof the people, and to enhance their livingstandards and opportunities for gainfuleconomic activity will be adequately andcontinually satisfied at the lowest possible costto the economy.

2. ENERGYPOLICYELEMENTS2.2EnsuringEnergySecurity

Energyresourcesusedinthecountrywillbediversifiedandthefutureenergymixwillberationalizedrationalized.

2. ENERGYPOLICYELEMENTS2.3 PromotingEnergyEfficiencyand Conservation

Energy supply systems will be efficiently managedand operated while also ensuring efficientutilisation and conservation of energy.

2. ENERGYPOLICYELEMENTS

2.4PromotingIndigenousResourcesIndigenous energy resources will be developed

h i l l i i i d dto the optimum levels to minimise dependenceon nonindigenous resources, subject toresolving economic, environmental and socialconstraints.

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2. ENERGYPOLICYELEMENTS2.5AdoptinganAppropriatePricingPolicyAn appropriate pricing policy for the energysector will be adopted considering importantsector will be adopted considering importantfactors such as cost reflectivity, need for targetedsubsidies, and competitiveness of locallyproduced goods and services in the regional andworld markets.

2. ENERGYPOLICYELEMENTS2.6 EnhancingEnergySectorManagement

Capacity

All measures will be taken to continually enhancethe local capacity to develop and manage theenergy sector effectively, giving due emphasis tothe technological developments and goodgovernance in the energy sector.

2. ENERGYPOLICYELEMENTS2.7 ConsumerProtectionandEnsuringa LevelPlayingFieldNecessary measures will be taken to safeguardy ginterests of both present and future consumerswhile ensuring a level playing field for all thestakeholders in the energy sector.


2.8EnhancingtheQualityofEnergyServices

Thequalityofenergyserviceswillbeensuredthroughimpositionofappropriatequalitystandardsandregulatoryinterventions.


2.9 ProtectionfromAdverseEnvironmentalImpactsofEnergyFacilities

Necessary steps will be taken to minimiseadverse environmental and social impactscaused by energy supply development andoperational activities.

3. IMPLEMENTINGSTRATEGIES3.1ProvidingBasicEnergyNeeds

Biomass availability for household use will be ensured byprotecting and enhancing existing resources.

Priority will be given to improving access by rural areas toPriority will be given to improving access by rural areas tocommercial forms of energy such as electricity andpetroleumbased fuels.

Current modalities of providing basic electricityrequirements of the entire population either through gridextension or offgrid systems will be expanded, and asystematic actionplan will be prepared and implementedto meet those requirements.

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3. IMPLEMENTINGSTRATEGIES3.1ProvidingBasicEnergyNeeds

Dedicatedenergyplantationswillbeencouraged.

A transparent mechanism will be established to providesubsidies to the deserving groups to ensure that suchsubsidies to the deserving groups to ensure that suchgroups have access to their basic energy needs ataffordable prices. This includes providing low coststandardised electricity connections to consumers onlifeline tariffs both in urban and rural areas. It alsoincludes improving the availability of petroleumbasedfuels in rural areas at standard retail prices, whileproviding kerosene subsidies to deserving lowincomegroups in both urban and rural areas.

3IMPLEMENTINGSTRATEGIES3.2EnsuringEnergySecurity

The use of biomass will be promoted by elevating its statusto a modern, convenient energy source.

Fuel diversity in electricity generation will be ensuredy y gthrough diversifying into generation technologies that do notuse oil or fuels of which the price is indexed to oil prices.

Fuel diversification in the transport sector will be encouragedthrough rail and road transport systems based on offpeakelectricity supply, and the promotion of biofuels as a highpriority research and development need. Development ofbiofuels for transport will be encouraged.

3IMPLEMENTINGSTRATEGIES3.2EnsuringEnergySecurity

Regional cooperation will be promoted in differentforms including viable crossborder energy transferwith neighbouring countries.

Expansion of the local crude oil refining capacity tooptimally satisfy the country's demand for petroleumproducts will be pursued.

Maintenance of a strategic fuel reserve by everyplayer in the retail business will be ensured.

3. IMPLEMENTINGSTRATEGIES3.3PromotingEnergyEfficiencyandConservation

Supply side and enduse energy efficiency will be encouragedthrough financial and other incentives/disincentives inrespect of energy enduse and mandatory measures such asappliance energy labelling, building codes and energy audits.

Private sector participation in providing expert services onenergy efficiency will be promoted and facilitated.

Financial resources required to continuously improveefficiency in energy conversion, transmission, distribution andutilisation will be acquired from within and outside theenergy sector by levying appropriate energy charges andformulating long term funding programmes with financiers.

3IMPLEMENTINGSTRATEGIES3.3PromotingEnergyEfficiencyandConservation

The Energy Conservation Fund (ECF) will be entrusted tocoordinate all the activities relating to energy conservationand management, and the Energy Conservation Fund Actwill be amended to accommodate these new

ibilitiresponsibilities.

An aggressive public education and awareness program onenergy efficiency and conservation will be carried out on apriority and a sustainable basis.

Technologies such as efficient stoves will be widelydisseminated in the household and informalcommercial/industrial sectors.

3IMPLEMENTINGSTRATEGIES3.3PromotingEnergyEfficiencyandConservation

The use of existing petroleum distribution infrastructurewill be optimised.

Power generation and network losses will be brought downt th l t ibl l l d it ill b i dto the lowest possible levels and capacity will be improvedthrough necessary generation, transmission anddistribution investments and efficient management of thesupply systems.

Efforts will be made to encourage electrification of viablesectors of the railway network and intermodal shift inpassenger and goods transport towards more energyefficient systems.

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3IMPLEMENTINGSTRATEGIES3.3 Promoting Energy Efficiency and Conservation

A modal shift towards largercapacity vehicular transportmodes, which are less energy intensive per passengerkilometre or freighttonne kilometre, will be promoted.Railway transportation will receive priority over roadtransportation.

Better coordination of road and rail transport will bepromoted as a key implementation strategy of achievinggreater efficiency of the transport sector.

A strategic plan for street lighting will be formulated for thecountry to ensure proper management of street lighting,which will enhance the safety of motorists and pedestrians,and also contribute to energy conservation with a betteraesthetic sense.

3IMPLEMENTINGSTRATEGIES3.4PromotingIndigenousResources

Theuseofeconomicallyviable,environmentfriendly,nonconventionalrenewableenergyresourceswillbegypromotedbyprovidingalevelplayingfieldfordevelopersofnonconventionalenergyresourcestocompeteandsupplyenergyatthebestpricethroughtransparentprocurementprocesses.


Concessionary financing will be sought to implement theremaining medium scale hydroelectric projects, which areeconomically, environmentally and socially viable, but not viableunder normal commercial terms. Pricing of electricity generatedwould however be on commercial terms Necessary incentiveswould, however, be on commercial terms. Necessary incentiveswill be provided and access to green funding including CleanDevelopment Mechanism (CDM) will be facilitated to developnonconventional renewable energy resources to ensure theircontribution to the energy supply in special situations, even iftheir economic viability is marginal.

A facilitation agency dedicated to the systematic planning andpromotion of nonconventional renewable energy resources willbe established.


Oil and natural gas resources will be explored andcommercially exploited; both public and privatesector investment will be promoted in this regard.

Biomassbased energy projects will be developed inareas where land resources are available, enablingnew industrial activities in such areas, emphasisingon creating rural income generation avenues.

3IMPLEMENTINGSTRATEGIES3.5AdoptinganAppropriatePricingPolicy

ThePUCSLwillbeempoweredtoregulatetheenergysectorincludingelectricityandpetroleumsubsectors,toensureeffectiveimplementationofthepricingpolicy.

AppropriatepricingstrategieswillbeformulatedandimplementedbyPUCSL,whichwillprepareandregularlyupdateplanstoachieveacostreflectivepricingpolicyforallcommercialenergyproducts(electricity,petroleumproducts,LPG)andimplementthem.Thesepriceswillincludeelementssuchasareasonablereturnonequity,internalcashgenerationforcapitalinvestmentanddebtservice.

3IMPLEMENTINGSTRATEGIES3.5AdoptinganAppropriatePricingPolicy

Necessary steps will be taken by PUCSL to ensure thatthe optimal energy supply expansion plans areimplemented in time so that the cost reflective priceswill be based on these optimal plans.

A mechanism will be established by PUCSL to identifytarget groups of consumers that deserve specialconsideration owing to social needs or commercialrealities.

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3IMPLEMENTINGSTRATEGIES3.6EnhancingEnergySectorManagementCapacity

Capacity of the ministry in charge of the subject ofenergy will be developed and strengthened to developenergy will be developed and strengthened to developintegrated longterm energy plans and conduct policyanalyses in the energy sector, as a sustainablecontinuing activity.

Capacity within the Provincial Councils will bedeveloped to enhance and expand their contributionto offgrid electricity supply development.

3IMPLEMENTINGSTRATEGIES3.6EnhancingEnergySectorManagementCapacity

The national energy database will be expanded,improved and managed The management capabilityimproved and managed. The management capabilityof the energy sector institutions will be enhancedthrough appropriate training, empowerment andproper delegation of authority.

3IMPLEMENTINGSTRATEGIES3.7 ConsumerProtectionandEnsuringaLevel

PlayingField

PUCSL will be fully empowered and supported to PUCSLwillbefullyempoweredandsupportedtoensurefairnesstotheconsumersofvariousenergyproductsandservices.

AconduciveenvironmentwillbecreatedforthePUCSLtoensurealevelplayingfieldforallthestakeholdersintheenergysector.

3. IMPLEMENTINGSTRATEGIES

3.8EnhancingtheQualityofSupply

The energy sector utilities will be compelled by PUCSLThe energy sector utilities will be compelled by PUCSLto maintain a minimum quality of supply of productsand services.

Enhanced quality will be encouraged by permittingreasonable increases in allowed returns to the utilityconcerned.

3IMPLEMENTINGSTRATEGIES3.9 ProtectionfromAdverseEnvironmentalImpactsof

EnergyFacilities Energy sector utilities will be compelled to comply with safetystandards issued by PUCSL as well as environmental standardsstipulated by the state.

A scheme of compensation to victims of accidents and hazardsattributed to energy sector utilities will be established with theparticipation of all stakeholders.

Every energy sector utility will establish an environmental divisionwith staff qualified to conduct environmental safety audits ofexisting and new facilities to comply with the standards andregulations under the National Environment Act.

3IMPLEMENTINGSTRATEGIES3.10GeneralStrategies Theenergysectorwillbereformedandrestructuredtoenablebothstateandprivatesectorinvestmentsinitsdevelopment.Whilethesectorspolicymakingandregulationwillremaininthestatesector,itsoperationandmanagement will be open to both the state and the privatemanagementwillbeopentoboththestateandtheprivatesectors.

TheelectricitysubsectorwillbereformedbyunbundlingtheCEBinaccordancewiththeElectricityReform(Amendment)ActandCeylonElectricityBoard(Amendment)Act.AllassistancewillbeprovidedtothePUCSLtoestablishitselfasanindependentandautonomousregulatorybody.

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3IMPLEMENTINGSTRATEGIES3.10GeneralStrategies

Necessary measures will be taken to establishi k i hi l i i dappropriate market structures within electricity and

petroleum subsectors by attracting investments frompublic and private sectors.

Necessary legislation for restructuring the petroleumsubsector will be enacted and PUCSL will beempowered to carry out regulation of that subsector.


Measures will be taken to obtain maximum benefitsfrom international arrangements such as the Cleanfrom international arrangements such as the CleanDevelopment Mechanism, which would benefit theglobal environment and in the process facilitate thefinancing of energy efficiency improvement as well asrenewable energy development projects in the country.

PUCSL will be empowered to formulate project selectionprinciples for energy sector supply side investments.


A central agency will be empowered to ensure that theprescribed policy measures are implemented in respectof energy efficiency and nonconventional renewableenergy development.

Research and development addressing energy sectorissues will be encouraged and promoted. Existingresearch institutions will be supported to undertakeresearch and development on energy, with a view tocreating a specialised national centre for energy studies.

4.SPECIFICTARGETS,MILESTONESANDINSTITUTIONALRESPONSIBILITIES

This section deals with specific targets andmilestones to be achieved whenimplementing the energy sector strategiesidentifiedidentified.

Further, the institutions responsible forimplementation of these strategies are alsoidentified in this section against each activity.


4.1ElectrificationofHouseholds Electricity will be made available to all feasible areas byextending the national grid and focussed rural energyinitiatives using offgrid technologies. Capital subsidiesavailable for gridconnected households will be extended toavailable for grid connected households will be extended tohouseholds seeking offgrid electricity, through theProvincial Authorities.Institutional responsibility:Ministry of Power and Energy shall prepare a longtermelectrification plan, updated every year. PUCSL would beresponsible for its implementation, with the support of theelectricity utilities, ECF, Provincial Councils and otherstakeholders.


4.1ElectrificationofHouseholdsMediumtermtargetsforelectrificationofhouseholdsthroughgridextension.

2003 65%(actual)2006 75%2010 80%2015 85%

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4.1ElectrificationofHouseholds

MediumtermTargetsforoffgridelectrificationofhouseholdshouseholds.2003 2%(actual)2006 4%2010 6%2015 8%


4.2TargetedSubsidies.Generalsubsidiesonelectricityandkeroseneshallbephasedoutby2007.Subsidised electricityandkeroseneshallbeprovidedfor onlytotheSamurdhi beneficiariesfromyear2007.Institutionalresponsibility:MinistryofPowerandEnergytoprovidePUCSLwithanyfurtherpolicyguidelines.PUCSLshallprepareplansandimplementthemtoprovidethetargetedsubsidies.


4.3FuelDiversityandSecurity Theelectricitysubsectorshallrapidlymovefromthepresenttwoenergyresource(hydropowerandoil)statustoa multiple resource status.amultipleresourcestatus.

TheGovernmentshallnotinitiateorentertainanyproposaleitherbytheelectricityutilitiesorprivatedeveloperstobuildpowerplantsthatwilluseoil,oilbasedproductsorfuelsofwhichthepriceisindexedtotheoilprice,unlesstheyarerequiredtobeincludedinthegenerationexpansionplanduetotechnicallimitationsinotherplanttypes.


Year Hydro Oil Coal NCRE1995 94% 6% 0% 0%Actual

4.3FuelDiversityandSecurity

2000 45% 54% 0% 1%Actual

2005 36% 61% 0% 3%

2010 42% 31% 20% 7%

2015 28% 8% 54% 10%


Institutional responsibility:To implement this fuel diversity and security

4.3FuelDiversityandSecurity

To implement this fuel diversity and securitypolicy, and to achieve targets will lie with thePUCSL, electricity utilities and petroleum subsector downstream players. The LongTermGeneration Expansion Plan (LTGEP) shall reflectthe above strategy and milestones. LTGEP shall bea 20year plan, updated at least once in twoyears.


4.4 NonconventionalRenewableEnergy(NCRE)BasedElectricityintheGrid

NCREResourcesincludesmallscalehydropower,biomassincludingdendro power,biogasandwaste,solarpowerandwindpower.Thesearetheleadingsustainable,nonconventionalformsofrenewableenergypromotedinSrigy pLankaforelectricitygenerationintothegrid.Inaddition,otherNCREresourcessuchaswaveenergyandoceanthermalenergyarealsoencouragedwhereappropriate.

Commercialdevelopmentofbiomasswillbeencouragedandfacilitatedasanewruralindustry,allowingruralpoortoengageinfuelwood farmingandparticipateinthemainstreameconomicactivitybysupplyingelectricitytourbanloadcentres.

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4.4 NonconventionalRenewableEnergy(NCRE) Based Electricityin theGrid The Government will endeavour to reach a minimum level of 10% of electricalenergy supplied to the grid to be from NCRE by a process of facilitation,including access to green funding such as CDM. The target year to reach thislevel of NCRE penetration is 2015level of NCRE penetration is 2015.

A costoptimal Longterm Nonconventional Renewable Energy Plan(LTNCREP), which shall provide interim targets for specific NCRE technologies,upper thresholds of pricing, and resource costing will be prepared. TheLTNCREP shall be a 20year plan, updated at least once in two years.

A review of technical limits and financial constraints of absorbing NCRE will becarried out and will be followed by a technical and financial barrier removalexercise, with external support and expertise where necessary.



TheNCREstrategyshallnotcauseanyadditionalburdenontheendusecustomertariffs.Ifjustified,theGovernmentmaysubsidizetheenergyutilitiesforthispurpose.

TheGovernmentrecognises thatcertainNCREtechnologieswouldrequireincentivestoensuretheircapacitybuilduptocontributetothenationalNCREtarget.Theseincentivesshallbeprovidedonacompetitivebasis,inwhichtheNCREdevelopersshallbidforashareoftheNCREtarget,subjecttoapriceceiling.NCREincentivesshallbetechnologyspecificandbasedonactualenergysuppliedtothegrid.


4.4 NonconventionalRenewableEnergy(NCRE)BasedElectricityin theGrid

To make available the incentives for NCRE technologies, theGovernment will create an Energy Fund, which will be managed by theECF. This fund will be strengthened through an energy cess, grantsreceived from donors and well wishers, as well as any funds receivedunder CDM. This fund will be used to provide incentives for thepromotion of NCRE technologies and strengthen the transmissionnetwork to absorb the NCRE technologies into the grid.

NCRE developments will not be charged any resource cost (royalty) fora period of 15 years from the commercial operation date. Resourcecosts charged from selected NCRE technologies after the 15th year ofcommercial operation shall be used to finance incentives for furtherNCRE development, through the Energy Fund.



Institutionalresponsibility:ToimplementthisNCREstrategyandtoachievetargetsshallliewiththePUCSLandECF.TheECFshallprepareacostoptimalLongtermNonconventionalRenewableEnergyPlan(LTNCREP).ImplementationoftheLTNCREPshallbepromotedandfacilitatedbyECF.


4.5ElectricityPricing Averageelectricitypricetoeachcategoryofconsumerswillbegraduallymadecostreflective.AconduciveenvironmentwillbecreatedtofullyutilisetheDemandSid M (DSM) i i i i f hiSideManagement(DSM)opportunitiesarisingfromthischange.

ThelifelinetarifftodomesticconsumerswillbelimitedtoSamurdhibeneficiariesandtoamonthlyhouseholdconsumptionof30kWh.Therelatedsubsidycomponentestimatedat50%ofthecostofsupplywillbefullyfinancedthroughGovernmentgrants.


4.5ElectricityPricing Electricity generation prices at bulk purchase points will be asstated in the Power Purchase Agreements, and the cost oftransmission, distribution and supply will be regulated ensuringfairness to both consumers and electricity utilities. Consumersd ll h k h ld ill b i i iand all other stakeholders will be given opportunities to present

their views at a public hearing.

Institutional responsibility:To implement the electricity pricing policy lies with the Ministryof Power and Energy, PUCSL, electricity utilities and the GeneralTreasury. Electricity distribution utilities shall prepare tariffproposals for the approval of PUCSL, which will seekconcurrence of the Treasury on Government subsidy.

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4.6PetroleumSubSectorRegulationandProductPricing PricesofpetroleumbasedfuelswillbedeterminedusinganagreedpriceformulabetweentheGovernmentandthepetroleumsubsectorutilitiesregulatedbythePUCSL.

Price regulation will apply only to petroleumbased fuelsPriceregulationwillapplyonlytopetroleum basedfuelsmarketedinanoncompetitiveenvironment.Petroleumproductimportsandtheircountrywidedistributionwillbecarriedoutthroughthecommonuserfacilities,whichwillalsoberegulatedbythePUCSL.

Nogeneralsubsidywillbeprovidedtoanyoftheproductsandthemarketingcompanieswillbeallowedtodecideontheirretailconsumerpriceswithinthespecifiedmaximumretailconsumerpricesfortheperiod.


4.6PetroleumSubSectorRegulationandProductPricing Targeted subsidies will be made available to low incomehouseholds (Samurdhi beneficiaries) for kerosene usage.Subsidies provided for other petroleumbased fuels will beremoved by 2007.

Institutional responsibility :To implement this lies with Ministry of Petroleum and PetroleumResource Development, PUCSL, petroleum subsector utilities andthe Treasury. Petroleum distributors shall prepare the productpricing proposals according to the agreed formula for theapproval of the PUCSL, which will seek concurrence of theTreasury on the Government subsidy.


4.7OilandGasExploration Comprehensive seismic acquisition in the Gulf of MannarBasin was carried out in mid 2005. Announcement of a firstlicensing round will be made in 2006 to offer blocks forexploration. More detailed 2D seismic and 3D seismicpinvestigations will be carried out in the Cauvery basin and inthe southern area in 2006/2007.

Institutional responsibility :To implement all steps to ensure that exploration andexploitation of petroleum resources are carried out withappropriate investor participation adopting internationallyrecognised practices and proven technology lies with theMinistry of Petroleum and Petroleu Resources Development.


4.8Bunkering The Strategic geographical location of Sri Lankaplaces it in a very favourable situation to become aleader in the bunkering business in South Asia.g

Institutional responsibility :To implement this lies with the Ministry ofPetroleum and Petroleum Resources Development,Ministry of Finance and the Board of Investment ofSri Lanka.


4.9SupplysideEnergyEfficiency Transmissionanddistributionenergylosses(thesumoftechnicalandcommercial

losses)intheelectricitysubsectorwillbegraduallybroughtdowntoamaximumof13.5%netgenerationbyend2009.Everyeffortwillbemadetoexpeditethelossreductionprogramme andexceedtheseexpectations.

Present system control procedures towards optimal operation of the integrated Presentsystemcontrolprocedurestowardsoptimaloperationoftheintegratedhydrothermalpowersystemwillbeimprovedbyend2007toensuremaximumenergyoutputfromthehydropowersystem.

Informedrehabilitation/newinvestmentdecisionswillbemadeinthenationalinterest,toimproveelectricitygeneration,transmissionanddistributionefficiency,guidedbyinformationgatheredfromcontinuousmeasurementofenergyenteringandleavingspecificpowersystemcomponents.Institutionalresponsibility:ToimplementthisstrategyandtoachievetargetslieswiththeelectricityutilitiesandthePUCSL.


4.10DemandsideEnergyEfficiency Allapplianceswhichsubstantiallycontributetowardselectricitydemandwillbe

identifiedandlabelled basedontheirenergyefficiencybyend2010,allowingconsumerstomakeinformedpurchasedecisions.Labelling willbealsousedtolaymoreemphasisonappliancelifecyclecostratherthanthecostofacquisition,andtherebyguidingfiscalpolicy,especiallyindecidingimportdutyonappliances.

Continuousrefinementofthelabelling programme willbeusedtointroduceefficienttechnologiesandtograduallyphaseouttheimportandmanufactureofinefficientappliances.Theappliancelabelling programme willbemademandatorytoidentifiedappliancesbymid2007.

Deliveryofenergyefficiencyserviceswillbeacceleratedbyfurtherdevelopingthecapacityofprivateandpublicsectorenergyserviceproviders.Newentrantstoprovideenergyefficiencyserviceswillbeencouragedandsupportedbyinterventionssuchasprovisionofexpensiveinstrumentsonloanbasisandanalyticalinformationrelevanttolocalcircumstances.

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4.10DemandsideEnergyEfficiency TheEnergyEfficiencyBuildingCodewillbeupdatedandmademandatorytostatesectorentitiesbyend2007.Indirectmeasuresthroughpermitissuingagencieswillbeimplementedtoencouragethepracticeofthecodebyotherentities,withinthesametimeframe.

Information pertaining to ways and means of energy efficiency Informationpertainingtowaysandmeansofenergyefficiencyimprovementwillbecollectedanddisseminatedthroughmassmediaandothersuitablechannels,facilitatingconsumerstoundertakeenergyefficiencyimprovementprogrammes.InstitutionalResponsibility:ToimplementthesestrategiestoreachthetargetsspecifiedlieswiththeECF,andshallbeassistedbyelectricityandpetroleumutilities,thePUCSLandotherstakeholders.


4.11NationalEnergyDatabaseandIntegratedNationalEnergyPlanning MinistryofPowerandEnergyshallimmediatelyestablishanationalenergyplanningteam,toaddressthepolicyissues,interlinkagesbetweensubsectors,andtoinvestigateimportantissuessuchaspricingpolicyinconsultationwithpublic,privateandcivilsocietygroups

Theplanningteamshall,byendof2007,establishimprovedmethodologyifnecessary,todevelopdemandforecasts,simulatedevelopmentscenarios,integratesubsectoral plans,conductsensitivitystudies,analyse policyoptions,anddevelopanIntegratedNationalEnergyPlan.

TheNationalEnergyDatabaseandtheanalysisonEnergySectorPerformanceinclusiveofenvironmentalemissionsshallbeupdatedandpublishedeveryyear.Summaryinformationoftheseshallbeavailableonawebsite,anddetailedinformationwillbeprovidedonrequest.Thefirstpublicationshallbeforenergydataupdateduntilyear2004,tobepublishedbyend2006.


4.11NationalEnergyDatabaseandIntegratedNationalEnergyPlanning The National Energy Database and the analysis on Energy SectorPerformance inclusive of environmental emissions shall be updated andpublished every year. Summary information of these shall be available on awebsite, and detailed information will be provided on request. The first

bli i h ll b f d d d il 2004 b bli h dpublication shall be for energy data updated until year 2004, to be publishedby end 2006.

Implementation Responsibility:An integrated national energy plan to cover 25 years into the future shall beprepared by the National Energy Planning Team of the Ministry of Power andEnergy, and published at least once in two years. The National EnergyBalance and Energy Sector Performance shall be published annually.


4.12RuralElectrification A special fund will be created for the purpose of funding the RuralElectrification (RE) programs. All donor funds, government contributionsand contributions from the future electricity distribution utilities, (as wouldbe decided by the PUCSL) will be the main sources of funds. The practicehi h f ll d i RE ill b l l i d I hihitherto followed in RE programmes will be closely examined. In thiscontext, the government will study the policies/programs adopted by otherdeveloping countries. The government will also seriously considerentrusting the management of RE schemes to consumer cooperatives, apolicy successfully implemented by some developing countries.

InstitutionalResponsibility:ToimplementthislieswiththeMinistryofPowerandEnergyandtheMinistryofFinance,assistedbythePUCSL.

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