Lighting us up

Representing seven percent of global demand, energy consumption in Southasia is considered low for a region with more than 22 percent of the world's population. However, as the Indian economy continues to grow apace, and if Pakistan and Bangladesh, with their sizeable populations, also sustain their recent economic growth, this share stands to increase significantly. Energy consumption in the region as a whole has been rising by around 5.5 percent a year over the last three years, as compared to an average annual global growth rate of 2.5 percent. The growth in demand for electricity would be over 10 percent a year in all Southasian countries, to satisfy prevailing shortfalls and the backlog of rural electrification commitments, if sufficient generation could be mobilised. The region accounts for about 5.9 percent of world commercial energy consumption.

This does not include non-commercial energy sources such as wood, animal waste and other biomass, which account for more than half of the region's total energy consumption. The import of petroleum products to meet the growing demand for energy in Southasia is on the rise, putting additional pressure on balance of payments. Indeed, the immediate energy-security concern for Southasian governments is how to finance the sustained high oil prices. None of the countries in the region have been able to pass on the full international prices of petroleum to their populations, for fear of social unrest. The Maldives and Sri Lanka, which respectively import 100 and 85 percent of their commercial energy needs, are particularly vulnerable to escalating petroleum prices. Close behind is Nepal, which imports around 55 percent of its primary commercial energy. In comparison, India, Pakistan, Afghanistan and Bangladesh, which import 20-30 percent of their overall energy imports, might seem more secure.