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Title: Energy Poverty: Estimating the Level of Energy Poverty in Sri Lanka

Author: Dhanushka Tennakoon - Submitted to Practical Action

Executive Summary:
This paper examines the energy poverty status of Sri Lanka by taking Practical Action’s international definition on energy poverty and by taking different variations to the definition. Quantitative thresholds using measuring energy poverty was 120kWh electricity for lighting and 35kg LPG equivalent for lighting. Two approaches and three different data sources were taken in measuring the energy poverty. Quantitative approach of measuring energy poverty was done by analyzing Sri Lanka
Central Bank’s Consumer Finances and Socio Economic Survey 2003/04 and pricing approach of measuring energy poverty was done by analyzing Department of Census and Statistics’ Household Income and Expenditure Survey 2006/07 and by analyzing Census of Population and Housing 2001. The study shows a significant level of energy poverty in Sri Lanka, pricing approach shows 83% energy poverty while quantitative approach
shows 92.1%. Quantitative approach shows a better position in energy poverty in lighting (33.5%) with respect to cooking (91.4%). Energy poverty in cooking is high due to high level of LPG consumption taken in measuring the energy poverty and due to high cook stove efficiencies. By considering average LPG consumption level of Sri Lanka, 28.3 kg, instead of 35kg LPG, the level of energy poverty decreases from 92.1% to 89.1%.
Given a scenario of cook stove efficiency is neglected with 35 kg LPG threshold, it is identified that energy poverty in cooking reduces drastically from 91.4% to 11.4% resulting an overall decrease in national energy poverty level from 92.1% to 42%.

Usage of inefficient cook stoves have been the major reason for the significant level of energy poverty in Sri Lanka. Dissemination of improved cook stoves, providing direct subsidies for the poor and improved access to energy services have identified as major interventions in dealing with energy poverty.

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