By Why Sri Lanka Should Prioritize Renewable Energy Over Naphtha
Sri Lanka is at a crucial crossroads when it comes to shaping its energy future. While the Ceylon Electricity Board (CEB) is considering expanding the use of naphtha-fired thermal power as a way to reduce energy costs, this approach is not a long-term solution for the country’s growing energy needs. There are several compelling reasons why renewable energy should be prioritized over naphtha, despite the apparent short-term benefits.
The Short-Term Appeal of Naphtha
Officials have argued that using naphtha, a byproduct of local petroleum refining, will help reduce reliance on expensive fuel imports and save foreign exchange. Ministry of Energy Secretary Prof. Udayanga Hemapala highlighted that naphtha is sourced from the Ceylon Petroleum Corporation (CPC) and using it would avoid the need for foreign currency expenditure on imported fuels. Additionally, the government has submitted a proposal to remove VAT on naphtha to further lower costs for consumers.
However, this approach raises several important questions about its long-term viability and overall cost-effectiveness.
The Limits of Naphtha as a Sustainable Energy Solution
While naphtha may seem like a solution to reduce foreign currency spending, it has significant drawbacks:
1. Cost Uncertainty
Though naphtha may be a byproduct of Sri Lanka’s local petroleum refinery, its cost is still tied to global oil market fluctuations. This means that, over time, naphtha could become more expensive as oil prices rise, leading to higher electricity costs for consumers. CEB spokesperson Dhammike Wimalaratne confirmed that while there is enough naphtha for current energy needs, there is no surplus beyond that, and price hikes in the future are still possible.
2. Limited Domestic Supply
Sri Lanka has limited naphtha production capacity, and the country does not have crude oil reserves to significantly expand refining. Thus, the country remains dependent on imports, leaving its energy security vulnerable to external factors, such as global oil supply disruptions. This limits the effectiveness of using naphtha for long-term energy generation.
3. Environmental Impact
Burning naphtha for power generation releases harmful emissions like CO₂, which contribute to climate change and air pollution. Given Sri Lanka’s commitment to reducing carbon emissions, continuing to rely on fossil fuels like naphtha contradicts these environmental goals.
Why Renewable Energy is the Better Option for Sri Lanka
In contrast to naphtha, renewable energy sources like solar, wind, and hydro offer numerous benefits that make them a far superior choice for Sri Lanka’s energy future.
1. Abundant and Clean Resources
Sri Lanka is blessed with abundant sunlight and strong winds, making it an ideal location for solar and wind power. These sources provide free, sustainable energy without the environmental risks of fossil fuels. Additionally, hydropower already accounts for a significant portion of the country’s energy production and can be expanded further.
2. Stability and Cost-Effectiveness
Unlike naphtha, which depends on oil price fluctuations, renewable energy prices are stable and continue to fall. Solar and wind energy are cheaper than fossil fuels in many regions, and as technology improves, the cost of installing and maintaining renewable energy infrastructure continues to decrease. Investing in renewables means lower electricity costs for consumers in the long run, reducing reliance on fuel imports and improving energy security.
3. Energy Independence and Security
By transitioning to renewable energy, Sri Lanka can reduce its dependency on imported fuels, which will safeguard the country from external supply chain disruptions and price hikes. Investing in local renewable resources ensures long-term energy security and stability.
4. Environmental and Health Benefits
Renewable energy sources produce no harmful emissions, contributing to cleaner air and a healthier environment. This aligns with Sri Lanka’s commitment to global climate goals and provides a cleaner, safer future for generations to come.
The Role of Profits and Industry Influence
It is crucial to recognize that the push for naphtha-based power generation is influenced by the petroleum industry, which has a vested interest in keeping the country reliant on fossil fuels. Many of those promoting the use of naphtha profit from the continued use of petroleum-based solutions. This conflict of interest must be taken into account when deciding the future of Sri Lanka’s energy strategy. By continuing to prioritize naphtha, these industries benefit at the expense of the public good and the environment.
On the other hand, renewable energy serves the public interest, creates local jobs, and reduces long-term costs, breaking free from the cycle of dependency on foreign oil. Investing in solar, wind, and hydropower allows Sri Lanka to build an energy system that benefits all citizens rather than a select few industries.
A Path Forward for Sri Lanka: Renewables First
It’s clear that naphtha is a temporary solution with significant drawbacks, while renewable energy offers a sustainable, cost-effective, and environmentally friendly path forward. Instead of relying on fossil fuels, Sri Lanka should focus on expanding its renewable energy capacity, investing in solar and wind power, and modernizing the energy grid to handle more clean energy. This will reduce energy costs, create jobs, and ensure energy security, all while moving toward a greener and more sustainable future.
By prioritizing renewable energy, Sri Lanka can break free from the influence of petroleum-based industries and chart a path toward a cleaner, more prosperous, and independent energy future.
Ravindra Lochana
