Power is vital for poverty reduction, yet 27 percent of the world’s population does not have access to electricity. Because rural communities situated far from the central energy grid cannot be served by this system, their best option is decentralised, community-run schemes. However, the GATS negotiations may threaten these schemes.

Access to affordable energy services is essential if the international community’s goal of reducing by half the number of people living on less than US$ 1 a day by 2015 is to be reached. Energy is needed to create employment, boost production, education and income, and reduce the daily battle just to survive. For many remote rural communities, renewable energy schemes such as micro-hydro, solar and wind power may be the most cost-effective method.

A study by the University of Greenwich’s Public Service International Research Unit and the Intermediate Technology Development Group focuses on Sri Lanka’s energy sector, undergoing reform following severe shortages of electricity. Urgent measures to increase the power output have led to a hike in rates. A recent success story in this challenge, however, is the installation of off-grid small-scale generation sources in remote communities. Micro-hydro units, for instance, have great welfare benefits and communities are able to take control of them.

Signatories to the World Trade Organisation’s Marrakech Agreement – including Sri Lanka – are obliged by the General Agreement on Trade in Services (GATS) to liberalise and open up their service sectors. However, this process is very one-sided, favouring industrialised countries. The study argues that:

• Industrialised countries can use their greater resources and political power to ensure that the GATS process works in their favour.
• Developing countries often do not have the resources to assess the consequences of opening up their markets – a usually irreversible decision.
• Decentralised power generation sources have proved to be successful, reliable and cost effective – and a quarter of Sri Lanka’s population currently without electricity could be connected via such schemes.
• Reform of the Sri Lankan electricity sector could place current and potential non-grid schemes in jeopardy, especially if public ownership comes to an end.

The report asserts that the state should take steps to protect and stimulate the development of community-based electricity schemes:

• The GATS negotiations must be opened to the public so that commitments undertaken by countries such as Sri Lanka can be scrutinised on an informed basis.
• Huge changes to the running of national economies such as Sri Lanka’s must be made with the informed consent of the public.
• The position of existing community-owned electricity schemes must be safeguarded in reforms and communities that decide to establish their own must be allowed to do so.
• Industrialised countries must be cautious when advocating models of electricity provision that are not yet proven to developing countries and whose appropriateness cannot be judged – nor should the latter bow to undue pressure to open up their electricity markets.

Source(s):
‘Turning off the lights: GATS and the threat to community electricity in Sri Lanka’, ITDG,by Stephen Thomas and Iromi Ruana Rajepakse, 2005 Full document.
'Turning off the Lights: The threat to community electricity in Sri Lanka' by Stephen Thomas and Iromi Ruana Rajepakse, ITDG Publishing, April 2005

Funded by: ITDG

id21 Research Highlight: 15 June 2005

Further Information:
Steve Thomas
Public Services International Research Unit
University of Greenwich
30 Park Row
Greenwich
London SE10 9LS
United Kingdom

Tel: 44(0) 208 331 9056
Fax: +44(0) 208 331 8665
Contact the contributor: stephen.thomas@gre.ac.uk

Public services international research unit, University of Greenwich, UK

Alison Doig
Public Affairs Officer
Intermediate Technology Development Group
Schumacher Centre for Technology Development
Bourton Hall, Bourton-on-Dunsmore
Warwickshire CV23 9QZ
UK

Tel: +44 (0)1926 634400
Fax: +44 (0)1926 634401
Contact the contributor: alisond@itdg.org.uk

Intermediate Technology Development Group, UK

Jayantha Gunasekara
Technology Programme Leader
ITDG South Asia
No. 5, Lionel Edirisinghe Mawatha
Kirulapone
Colombo 5
Sri Lanka

Tel: +94 1 829412
Fax: +94 1 856188
Contact the contributor: JayanthaG@stdg.slt.lk

Other related links:
Slow motion robbery: how the WTO is shrinking options for developing states

Can partnerships deliver electricity to boost the livelihoods of the rural poor?

What energy systems are appropriate for poor villagers?

Assessing the impacts of energy projects on rural communities