Nuclear energy discrimination in Asia?

By Cheranka Mendis

Asian economies must face the rising issues of energy by getting their act together and moving forward even though the countries in the region seem to be facing discrimination from the West in the area of using nuclear power as an alternative source to non-replaceable oil sources.

Independent Power Producers Association of India (IPPAI) Director General Harry Dhaul said that the fundamental issue faced by the region is the nuclear situation playing out in various parts of Asia. “The question is whether the countries can do without nuclear,” Dhaul said yesterday at the second Asia Energy Security Summit 2012 held at Taj Samudra Colombo.

“What I do not understand is how nuclear generation in Asia is a problem when the French are quite comfortable having 80% of power from nuclear sources,” he expressed.

“It seems that we in Asia are facing discrimination in the sense that when other countries in the West got nuclear weapons, nobody said anything, but when we try to use it for electricity purposes, there is a big hullabaloo.”

If certain energy sources like nuclear should not be used, legacy players should then find alternatives for such situations, Dhaul said. “The situation is very clear now. We in Asia need to start getting our act together and figure out a method for buyers, sellers, market and suppliers to work much together in a much closer manner.”

He noted that the SAARC initiative in this regard is the beginning of a closer network within the regional players. The initiative is best expanded to other countries as well to strike a balance in the overall picture.

“Energy needs must be met. I do not think we can wait for policymakers to decide on things. Economies are itching to grow and you cannot stop these countries from wanting energy to fuel the development.”

He admitted that while there are major concerns on energy security in the gulf, the practicality of high balance of payment countries such as Sri Lanka, Pakistan and Bangladesh spending so much money on non-renewable energy is questionable.

With the new mantra being ‘linking to markets,’ which according to Dhaul has similar effects of that of a virus, the situation has only worsened. Extraordinary profits coming into the picture and gas being linked to a basket that had nothing to do with gas resulted in what is called an ‘Asian cocktail’ which affected the price and caused an escalation in energy prices. The new phenomena also affect coal prices, negatively.

“There is price escalation, coal prices are linked to the international market. In this regard, how do you plan your industries? What is viable yesterday is not what is viable today. Invariably we are getting into bigger messes.”

Delivering Power and Energy Minister Patali Champika Ranawaka’s speech, Sri Lanka Sustainable Energy Authority Chairman Dr. Kithsiri Dissanayake said that the current energy scenario both baffles and frightens the Minister. With fossil fuel still recognised as one of the most important raw material used in the production of electricity and energy, industry leaders must find fuel and technology that could replace fossil fuel.

“Difficult times are on the way,” he read. “To make matters worse, burning of fossil fuel is one of the main causes of global warming and responsible for rising sea levels and draught in the world. At the end of the day, all indicators point that the era of oil is coming to an end. We must look for alternatives. We must look for more viable and environmentally friendly sustainable options.”

With self reliance in energy being the emphasis in the future energy mix of the world, one must seek answers to overall energy policy strategy of economic viability, competitiveness and environmental compatibility.

“We in Sri Lanka are trying to achieve at least 20% of our electricity generation to be from non conventional renewable energy sources by 2020. Of course one could argue that this could be too ambitious, yet it is good to have an ambitious target rather than none at all.”