Compiled by:
Ms. Sandini Dheerarathna, Manager Communications and Marketing, Janathakshan GTE Ltd.
Overview:
Regional energy cooperation has been on the cards of the energy stakeholders of the south Asian countries as well as multilateral and bilateral agencies operating in the region. The South Asia Energy Transition Platform facilitates a process of capturing expert perspectives on regional energy cooperation, technological trends, and policy challenges in South Asia, with a focus on Sri Lanka’s renewable energy trajectory.
The discussion explored the evolution of the regional energy cooperation concept, particularly in the context of South Asia’s transition from fossil fuels to renewable energy. Mr. Abeygunawardana, with his extensive policy experience, reflected on the historical and geopolitical dimensions of energy collaboration, the relevance of the regional grid concept in the current renewable landscape, and the potential areas for partnership in technology, research, and investment.
Interview:
- Regional cooperation has traditionally been driven by energy security and geopolitical concerns rather than purely energy needs.Â
- Historically, during the fossil fuel era, the regional grid was conceived as a mechanism to ensure supply stability for large, centralized power plants such as coal and gas.
- However, the global energy system has now shifted toward a decentralized, digital, and renewable-based model, reducing the necessity for a centralized regional grid.Â
- The cooperation should now focus more on knowledge exchange, technological innovation, and mutual policy learning among South Asian countries.
- Sri Lanka’s bilateral engagement with India has included memoranda of understanding on regional grid connectivity and wind power development. However, these initiatives have not advanced beyond preliminary discussions.
- It is observed that such projects were often politically motivated rather than energy-driven, with limited tangible outcomes.Â
- For example, the Sampur and Norochcholai power projects, and the Indian management of the Trincomalee oil tank farms, demonstrated geopolitical influence rather than energy cooperation. While agreements exist on paper, practical cooperation remains minimal due to lack of transparency, political sensitivities, and differing national priorities.
- Most promising areas for collaboration are technology transfer, renewable energy research, and joint development of ocean-based energy solutions such as wave and thermal energy.
- Sri Lanka’s unique position as an island nation within the Indian Ocean, offering significant potential for marine energy exploration.
- I propose India and Sri Lanka could jointly invest in research and development for Ocean Thermal Energy Conversion (OTEC), hydrogen fuel, and renewable-powered maritime infrastructure. Such collaboration would be mutually beneficial and forward-looking, given that fossil-based regional grid models are no longer viable in the renewable era.
- Platforms such as SAARC and BIMSTEC have not succeeded in advancing concrete energy cooperation projects in the region. While they have facilitated consultations and feasibility studies, notably through the USAID SARI Energy Program in the early 2000s, no major projects have materialized.
- The concept of a South Asian regional grid has lost relevance in the renewable energy era, where power generation is increasingly decentralized and digitally managed. Instead, cooperation should focus on policy harmonization and shared innovation ecosystems.
- The main challenges identified include:
- Geopolitical tensions between regional powers such as India, China, and other actors influencing national energy policies
- Lack of transparency and competitive processes in cross-border projects
- Policy inconsistencies and weak institutional frameworks in Sri Lanka
- Limited national research capacity in emerging renewable technologies
- The regional cooperation efforts motivated primarily by politics rather than mutual benefit could lead to instability or public distrust. To address these issues, prioritizing transparent joint ventures and government-to-government agreements with open bidding to ensure fair competition and public confidence is essential.
- The private investment and international partnerships are crucial for scaling renewable development, as Sri Lanka alone lacks sufficient capital. The current investments, such as the Adani wind power proposal, lack transparency and public trust.
- The countries in the region should establish transparent, competitive frameworks for foreign investment and explore joint R&D ventures to attract green finance.
- Sri Lanka’s untapped potential in marine renewables as an area that could attract significant international investment with appropriate regulatory backing.
- USAID, ADB, and the World Bank had previously supported feasibility studies and transmission infrastructure development but observed that their current role has diminished due to shifts in global energy priorities. These organizations should refocus their efforts toward enabling renewable transition readiness, for example, battery storage systems, smart grids, and capacity building.
- The large investments in transmission infrastructure for fossil-based power projects such as the USD 500 million project in Habarana could have been better allocated to renewable storage or grid modernization.
- There is a great potential and need for cross-country research partnerships and professional exchanges to enhance knowledge sharing on renewable technologies, energy management, and policy frameworks.
- Creating a regional renewable innovation hub to share research outcomes, training programs, and data across South Asia would be greatly beneficial to enhance tapping renewable energy sources to benefit countries. Cooperative technical programs are more effective than political dialogues in ensuring practical progress.
- The immediate steps should be:
- Developing joint renewable research and development programs, particularly in offshore and marine energy
- Promoting transparent investment processes and competitive bidding systems
- Formulating clear national energy policies aligned with regional cooperation objectives
- Ensuring policy stability and depoliticization of the energy sector.
- The trust and mutual respect between countries are essential for meaningful cooperation. Energy collaboration should serve both economic and geopolitical balance, ensuring that no single country dominates or influences another’s energy sovereignty.
In summary, the concept of regional energy cooperation must evolve beyond traditional grid interconnections and fossil-based frameworks. In the context of decentralized renewables and smart technologies, South Asian countries should focus on joint innovation, technology transfer, and transparent partnerships. The energy cooperation must be mutually beneficial, depoliticized, and innovation-driven, positioning Sri Lanka as a proactive partner in the regional transition toward sustainable and resilient energy systems.