In an interview with Maritime Fairtrade, Gaurav Bhatiani, director (research and commercial programs), RTI International, and former chief of party, South Asia Regional Energy Partnership (SAREP), expressed high hopes for South Asia (Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka) as it is one of the fastest rising regions in energy investments and development. 

SAREP serves as a flagship program to advance objectives of the U.S. government’s Clean Asia Enhancing Development and Growth through Energy (Clean EDGE) initiative. SAREP improves access to affordable, secure, reliable, and sustainable energy in the above six countries to strengthen systems and processes, in line with the economic and energy-security priorities of these countries.

This program furthers the U.S. government’s Indo-Pacific vision of facilitating collaboration among the six countries, to operate and accelerate the transition to clean energy, mitigate climate change, and promote energy security, economic development, self-reliance, livelihood, health, and productivity.

Gaurav Bhatiani, director (research and commercial programs), RTI International, and former chief of party, South Asia Regional Energy Partnership. Photo credit: Gaurav Bhatiani

Why are regional bodies like SARAP important to decarbonization and how can they be even more effective?

These organizations provide an excellent platform for countries to collaborate. Given the pace of technological evolution and the gravity of the climate challenge, regional institutions have a critical role in sharing knowledge, enabling adoption of common standards, expanding the market for clean technologies, and providing technical assistance to policymakers, regulators, and utilities. 

These bodies also collate and analyze data at regional level to enable optimization of resources and to accelerate development.

To further enhance their role, regional bodies should focus on expanding technical work and enabling business-to-business partnerships. In addition, increasing capacity development activities is crucial for accelerating the clean energy transition. Finally, building trust by enabling people to connect will enhance the confidence of the policymakers and foster greater co-operation.  

What makes South Asia important from an energy perspective? 

South Asia is the fastest growing region of the world. It also has very low per capita energy consumption. Therefore, energy demand is expected to grow rapidly and quadruple over the next two decades or so. 

Furthermore, South Asian countries import more than half of their energy requirement from outside the region. So, the trajectory of the energy sector in South Asia will have a large global impact, both in terms of trade and for managing the environment and climate challenges.

Given the long maturity and asset life of energy projects, decisions taken now will have an impact over several decades.  It is hence crucial that South Asia adopt a clean energy pathway for development. 

Fortunately, solar, hydro and wind resources are abundantly available and the price of electricity from these sources has declined significantly. Developed economies need to ramp up support by way of financing and technical assistance to accelerate adoption and transition.

Among the six South Asian countries, how do you think their sustainable energy progress is affecting their maritime sector?

Adoption of sustainable energy technologies and practices has gained momentum across the region. Political actors and economic drivers have supported and nudged various stakeholders, including utilities and consumers to actively participate. The focus traditionally has been on energy efficiency and renewable electricity production. 

In the last couple of years, policies, roadmaps, and programs for the hard-to-abate sectors are coming to the foreground, including steel, transport, cement, and related sectors.  The maritime sector will benefit from these initiatives but will come under pressure to align with the international targets. 

Therefore, it is crucial for the industry to plan and prepare to optimize investments, enhance efficiency, and increase competitiveness. A proactive approach will be to the advantage of the industry as well as growth and development in the region. 

Is it harder for the maritime sector to adapt to net-zero emissions?

Maritime industry accounts for about three percent of greenhouse gases (GHGs) and an even higher proportion of SOx and NOx emissions.   

The state of technology, including the diversity, for example the type and size of vessels used, makes it difficult for the maritime sector to decarbonize. Additional constraints at ports, shipping channels, regulatory issues and the highly competitive nature of the market make it even more challenging.

Nevertheless, efforts have been initiated over the last decade to encourage and mandate decarbonization. Energy efficiency is the low hanging fruit and IMO’s mandate has enabled some progress in this direction.

Hydrogen powered vehicles and marine electric vehicles (including hybrids) offer significant potential in the medium to long term. Technological evolution and cost reduction will be the key to accelerating the transition. It is likely that both options will co-exist, for different use cases and with varying business models. 

How do you think global influences in 2025 will affect the outlook of the energy sector in the six South Asian countries?

Energy sector is increasingly integrated, and the market reacts to developments across the globe. We will witness significant geopolitical and economic developments over the coming months and the energy markets will need to adjust. These adjustments can cause sharp spikes and create social and political pressures in the South Asian countries. 

Furthermore, major international conventions, such as COP 29, are coming up and countries need to prepare their submissions and strategies. Technological developments such as GenAI, deployment of drones and robotics are likely to gain pace in 2025.

Overall, the energy sector is in the midst of a transition globally and this will present some opportunities for South Asia to take advantage by leapfrogging. Newer challenges such as increasing risk to energy assets from more frequent extreme weather events will also require attention. Improved standards, construction practices and retrofitting will be called for to enhance resilience and ensure reliability of supplies.

A lot of activity is planned, and the policy makers and utilities will need to remain agile, but at the same time focused on the clean energy transition.

Top photo credit: iStock/ undefined undefined