Energy & Power

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Energy Independence Illusory for Developed Economies: IEA
EP Desk

The quest for energy independence by the world's top economies is illusory, and European nations in particular would be better served by developing natural gas supplies from Russia, said the head of the International Energy Agency (IEA), Claude Mandil.

Nor should Europe discourage the creation of large energy groups, he said when asked to comment on recent moves toward concentration in the European energy sector.

Energy independence "is totally inaccessible, as much for Europe and for the United States and Japan", Mandil said in an interview published in the French business daily Les Echos.

The key, he said, lay in "the flexibility of supplies", including gas from Russia, cautioning that developed economies should "not put all their eggs in one basket".

Europe's access to energy from Russia -- far from being a "catastrophe," as described by some after shortfalls in delivery provoked by Russia's standoff with Ukraine in January -- is "an exceptional opportunity", Mandil asserted.

It was also clearly in Russia's interest to open its gas sector, he added, saying that the G8 meeting slated for July in Saint Petersburg would be an excellent opportunity to convince Moscow.

"It is in their interest to open up the game because, despite high prices, Gazprom" -- which holds a state monopoly on gas exports -- "does not have sufficient means to invest in production", Mandil said.

Also, Russian President Vladimir Putin said that Russia was considering constructing a gas pipeline that will link it to the Chinese market.

"We envisage the possibility of constructing a gas pipeline system across the Russia-China border," Putin told Russian reporters.

The IEA chief, referring to controversy over a French plan to merge Gaz de France and Suez, said that he was not "among those who are worried about the idea of seeing large groups emerge" in Europe's energy sector.

"Neither a Suez-Gaz de France merger nor a Suez-Enel grouping bother me, as long as competition can develop without hindrance," Mandil said. "In other words, as long as each consumer can truly make choices about his supplier."

Madil's comments come against a backdrop of intense maneueving in Europe's energy sector.

Rome has accused France of seeking to keep Italian energy group Enel from bidding for French utilities group Suez by charging state-controlled Gaz de France to make a pre-emptive offer for the French company.

DEVELOPMENT

Bangladesh 2nd most Successful Case of Rural Electrification after US

The rural electrification initiative in Bangladesh is the second most successful case in the world after the United States, a senior USAID official said.

"The concept of ownership and hassle-free hook up are among the factors that made it a success in Bangladesh," Gene V George, Mission Director of the USAID, or US Agency for International Development, told BDNEWS.

Explaining, he said the system of subscribing electricity connections in villages through cooperatives created a sense of ownership among the people and that the recovery rate of electricity bills has been very high. It was tried in the Philippines and India, but failed, he added.

The Rural Electrification Board (REB) issues 5.5 million bills a month and nearly 95 percent of the bills are paid on time, he said, adding the remaining five percent bills are defaulted by government agencies based in villages.

George said the country witnessed tremendous growth in new connections under the REB, with the total connections growing from as low as 25,972 in 1981-82 to 5.59 million in 2003-04. The numbers of total connections were 788,962 in 1991-92 and 4.85 million in 2001-02.

He said installation of 2,000 new connections everyday in villages is a tremendous success.

The USAID is supporting the rural electrification in Bangladesh and the only problem that the initiative facing is the problem of power generation, he said, adding REB is failing to meet the electricity demand of its clients.

He said in line with the policy being pursued by the government, power generation and distribution have to be carried out by separate institutions and that REB cannot generate required power for its client and has to depend on other institutions for supply.

BDNEWS