Developing nations like Sri Lanka face significant challenges when it comes to the energy transition. On one hand, these nations (excluding China) only account for approximately 25% of global electricity generation and appear unlikely to meet the growing demand of their populations for electricity. While electricity consumption in these countries has only been growing at an average of 3% per year over the last five years, projected population and economic growth, higher electricity intensity of economic activities, and the transition to e-mobility means that electricity demand is expected to grow by approximately 6% per annum over the next 25 years.
On the other hand, most of these developing nations have access to considerable renewable energy resources in the form of wind, solar, and hydropower, offering both a level of energy security and significant potential for export revenue while promoting the decarbonization of their economies. A greater shift to such renewable resources will also reduce the risk of a decline in market access for the goods and services exported from these nations on account of emerging carbon border tariffs, largely being implemented across the developed world. Developing these renewable resources would lead to further economic resilience, independence, and reduced vulnerability to fossil fuel geo-politics and carbon lock-in, giving these nations greater economic and political freedom at a global level.
Read the full article, originally published on Foreign Policy, here.
