New Report Shines Light on Challenges of Providing Clean, Affordable Electricity in Asia

Governments must improve transparency and public participation in their electricity sectors. The governments of India, Thailand, Indonesia and the Philippines must improve transparency and public participation in their electricity sectors to provide citizens with affordable, reliable and clean energy, concludes a new report.

Empowering People: A Governance Analysis of Electricity examines the decision-making processes leading to the design of and investment in electricity infrastructure in Southeast Asia. More than $6.5 trillion of investment is needed in the sector in developing countries by 2030. But there are questions about how well efforts to privatize electricity services have supported public interests and sustainable development targets such as the Millennium Development Goals.

“More open planning and regulatory processes can help manage trade offs, and allow for more investment in clean energy at affordable prices” said Smita Nakhooda of the World Resources Institute, one of the authors of the report.

The report is part of the Electricity Governance Initiative, a global partnership of non-governmental organizations engaged in national energy policy debates. The data analyzed in the report was collected by a partnership of 20 civil society organizations in the four countries.

Shantanu Dixit of Prayas Energy Group, and a co-author of the report, noted, “The energy sector policies of today have focused on financial viability and economic growth at the cost of neglecting institutions, governance, equity and sustainability. Unless this major shortcoming is addressed by promoting transparency, accountability and public participation in the policy making and regulation, crisis in the electricity sector cannot be resolved.”

The report was released today by the World Resources Institute at a United Nations Commission on Sustainable Development side meeting, featuring Mr. Hoetomo, Indonesia’s Deputy Minister of Environmental Compliance. Indonesia is pursuing a new “crash program” to develop 10,000 MW of power by 2010. As new companies enter the playing field, good governance will be essential to prevent corruption, and ensure that viable projects result.