Five-year Project to Accelerate Climate Response for Sri Lankan Industries

Sri Lanka relies heavily on imported fossil fuel to meet its growing energy demand, which has put an extra heavy burden on dwindling forex reserves. In 2019, imported fossil fuels, such as petroleum (43.9 percent) and coal (11.5 percent), supplied more than half of the demand. As a result, Sri Lanka has one of the highest average power generation costs among countries in the region and has become more exposed to the volatility of international energy prices and markets.

The International Energy Agency calculates, that by using energy efficiency policies, the world can achieve more than 40 percent of the emissions cuts needed to reach international climate goals, using cost-effective technologies which are already available.

When it comes to the environment, the widespread adoption of energy efficiency measures could reduce industrial energy use by over 25 percent. This potential is a significant reduction of 8 percent in global energy use and 12.4 percent in global CO2 emissions.

In a bid to educate and embrace these globally accepted standards to Sri Lankan industries, the National Cleaner Production Centre and two leading United Nations Industrial Development Organization (UNIDO) trainers would guide the first group of around 70 energy savers comprising of the most significant industrial energy users including energy consultants and relevant government departments, through an internationally recognized training course on Energy Management Systems (EnMS).

Energy Management System (EnMS) is a framework for energy consumers, including industrial, commercial, and public sector organizations, to manage their energy use.

UNIDO’s comprehensive 18-month training program plans to take participants beyond the classroom and provide a hands-on process of action planning, implementation, and continuous energy-saving improvements.

This effort is said to have the potential to improve national energy security and help Sri Lanka meet its climate goals in the coming years.

The Inauguration ceremony of the training program, which would kick start a 5-year project to introduce Energy Management Systems (EnMS) to Sri Lankan industries, was held at Waters Edge Hotel, Colombo, on the 17th of October, 2022. The European Union funds this Project, and United Nations Industrial Development Organization (UNIDO) has committed to providing technical support in this venture.

Giving the welcome address, Mr. Priyanka Ratmalala, Director General of the Industrial Development Board said that this project would contribute to Climate Change mitigation through the 7 Nationally Determined Contributions (NDCs) to be implemented in the local industries. He also mentioned that the manufacturing industries are the key driver of the Sri Lankan Economy, and their resilience in the country is vital. Compared to other countries, Sri Lanka’s industrial productivity is far behind; however, we’re also 80% reliant on fossil fuels for our energy consumption. Mr. Ratmalala added that this program is timely and forward-looking, especially during the current hard-economic crisis Sri Lanka faces.

“Energy is the prime requirement for the economic development of any country. However, the world is facing daunting arrays of energy and environmental-related issues, and therefore there is deep global concern towards mitigating those challenges. The possible solutions are switching to renewable energy and introducing EnMS, which Sri Lanka is currently embarking upon” Mr. Ratmalala stated.

During the opening remarks, Mr. Mahesh Abeysekera mentioned that the most alarming environmental crisis that the global community has ever faced is Climate Change. Global, national and organizational measures are needed to mitigate GHG emissions and adapt to the adverse effects of climate change. He added that Sri Lanka is facing the worst economic crisis in history, impacting the local industries’ usage of fossil fuels, electricity supply, and raw materials. The cost of production has increased, and demand for products has decreased. Mr. Mahesh highlighted that the manufacturing sector provides income for 30% of the nation’s workforce and that the recent energy crisis and the global climate crisis have forced us to move away from fossil fuels.

Industrial and commercial sectors account for around 60% of the national electricity requirement and a considerable part of the oil used in the country. As far as the electricity consumption in these sectors is concerned, 80% of the consumption is by large-scale establishments. Introducing proper energy management systems, mainly to these establishments, will significantly support the reduction of the country’s energy requirements, and the estimated energy saving is 240 GWh per annum. Savings achieved through improved energy systems will support particular establishments to reduce their cost of production. Through that, it will help the sustainability of production on a long-term basis.

The event concluded with the final remarks of Mrs. Jenny Correia-Nunes, from the European Union delegation of Sri Lanka and the Maldives. She stated that in the run-up to COP27 in Sharm el-Sheikh, Egypt, to raise awareness and ensure an ambitious global response to climate change, the European Union had launched the Climate Diplomacy Weeks between September and October.

The central themes for the 2022 Climate Diplomacy Weeks are energy savings, energy efficiency, and acceleration of renewables. She added that saving energy is the quickest and cheapest way to address the current energy crisis. In contrast, scaling-up renewable energy and energy efficiency will boost the green transition and reduce greenhouse gases while improving energy security. Mrs. Jenny also said the EU looks forward to joining forces with all partner countries to promote such an approach worldwide, in line with the European Union’s new External Energy Strategy.

Not long ago, the country was crippled by long power cuts after being unable to import the fuel needed to generate electricity. The situation has slightly improved as monsoon rains have bolstered hydropower generation. The industrial sector of Sri Lanka encumbered significant losses due to the crisis. However, the country remains hopeful as UNIDO and the EU have offered their support in reviving from this calamity.

Accordingly, by the end of the training, host companies and participating organizations are expected to gain an energy management system, uniquely tailored to their needs. This includes specialized tools developed by UNIDO, a dedicated energy policy, and baseline metrics and data, which would help energy management teams stay on track and ultimately achieve their energy-saving targets long into the future.