Remarks Prepared for U.S. Secretary of Energy Samuel W. Bodman
Thank you, Dr. Mitra [Amit Mitra, Secretary General of FICCI] for that kind introduction. And thank you all for being here. I'm quite pleased to be in South Asia today. And I'm particularly grateful for the fortuitous opportunity to address this forum here in India. I commend U.S. AID and its partners for organizing this event and for their good work through the SARI-E program.
This conference provides me with a chance to discuss one of the great challenges of our time. A challenge that all nations of the world - including the U.S. and all nations represented here today - share in common. And that is: providing clean, reliable and safe energy to our citizens. It is a global concern that grows more pressing with each passing day, as traditional sources of energy become more stretched and demand continues to grow.
And events like this one recognize a critically important truth: no one nation can adequately address this problem on its own. A global approach is needed - as are coordinated, regional strategies, along the lines of what you're engaged in here today.
The South Asian region is one of tremendous economic potential. Some nations of this region have seen remarkable economic growth and development in recent decades, and your governments and citizens have every reason to be proud of that success.
But, enormous challenges remain. In many cases, badly needed infrastructure advances of all types - with energy being at the forefront of our minds today - have not kept pace with rapid economic expansion. And throughout the region, extreme poverty persists, and is only exacerbated by a lack of access to electricity. We must all keep in mind that this region ranks among the lowest in the world in per capita energy consumption and overall electrification rates, with still less than 50 percent of South Asians having any access to electricity. And further, that increased access to energy is linked to higher incomes and employment levels at the local level.
And so, quite rightly, you have come together - on a bilateral and regional basis - to work toward solutions. Let me say clearly that the U.S. government - from the President right on down - acknowledges how difficult this work is. There is, to be sure, much to gain. But there is also much at stake. Each nation involved has its own set of countrywide priorities, domestic political concerns, economic conditions, and policy and regulatory frameworks, and that's not even to mention the geological and geographical challenges that you face.
The point is: in some ways an integrated, regional energy strategy for this part of the world may seem like a bit of a risk. And we all understand that. But let's also embrace this idea. The potential benefits are well worth any risk. In fact, the benefits are so significant as to demand action - the very type that you all are undertaking.
In this endeavor, the U.S. proudly stands as your partner. We strongly support your efforts to increase trade and investment, generally - and in energy, specifically - throughout the region. The way I see it, in order for this region to grow to its full economic potential, critical investments in energy infrastructure, diversification, clean energy and energy efficiency must be made. And they will be made by domestic and foreign investors.
But the type of investments needed - on the scale that is required - will only occur under certain conditions. This is true here in South Asia and around the world. In order to increase global access to energy - be it from conventional or alternative sources - we need stable regulatory frameworks, open investment climates, adherence to the rule of law, transparency in decision-making, and market-based pricing of energy resources.
As we have seen around the world, moves to restrict foreign investment and increase the reach of state-run energy industries limit access to capital and to the expertise to unlock new resources. While this type of behavior may garner some short-term advantage, in the long-run it deprives countries of productivity and prosperity. Furthermore, initiatives - new or old - which seek to control the flow of energy supplies to the market and circumvent the role of the free market to set prices are contrary to the long-term interests of both producers and consumers. History has shown that an unfettered market is the most effective and efficient way to settle issues of supply, demand, and price.
In short, an open and competitive market for energy trade and investment is essential to increasing energy security - it is the very type of regional market that you are working to establish and improve. And I would argue that you are already seeing the results of opening markets for greater investment and more rapid development. There has been recent progress on cross-border infrastructure plans - such as the MOU recently signed for transmission lines between India and Nepal, the arrangement for an interconnecting submarine electricity cable between Sri Lanka and India, and the on-going negotiations among Kyrgyzstan, Tajikistan, Afghanistan and Pakistan for a South and Central Asian electricity trade corridor. I understand that for some time, Bhutan has been exporting hydropower to India. And I also was encouraged to learn that recent discussions about possible electricity imports from India to Bangladesh have been buttressed by a SARI/E-sponsored study, which determined that such an arrangement is viable. All of these examples point to the great potential of a collaborative, regional energy marketplace.
Open and transparent market-based systems will attract not only the private sector's money to this part of the world - whether from within the region or outside of it - but also the new technologies and ideas that the private sector can provide. For, while we all recognize that governments have a strong role to play here, the world's energy challenges also require the expertise of academia and the private sector as well. In my view, all nations must recognize the absolute necessity of substantial and sustained private sector investment in innovation on a global scale, and we must put policies in place that actively encourage and support this involvement.
Here again, a regional approach makes sense. This part of the world is blessed with an extraordinarily talented pool of scientists and engineers, as well as leading corporations already hard at work on these problems. Coming together - through initiatives likes this one - will strengthen these ties and, hopefully, spread the benefits of technology advancements to all nations of the region.
This brings me to a related point. While we all work together to increase regional access to energy, we must also consider how such investments will impact our shared environment. Emerging technologies in alternative and renewable energy offer an opportunity to grow local economies and enhance living requirements while, at the same time, slowing the growth of greenhouse gas emissions and pollution.
And so I would encourage a focus on investments that both encourage global economic growth and discourage global reliance on fossil fuels and polluting, out-dated technologies. Thankfully, these 2 goals are not mutually exclusive. New and developing technologies offer the promise of not just cleaner energy - but oftentimes, more efficient and more local energy. To this end, I'm quite pleased to learn about the clean energy investments already underway - such as wind power plans in several countries, most notably India, Sri Lanka and Pakistan. And I'm also aware that under the auspices of SARI/E, the D.O.E.'s Countrywide Renewable Energy Lab is actively working to produce wind and solar maps and associated tools for Pakistan and Afghanistan. I trust that this critical data will enable the growth of these alternative power sectors.
Let me summarize this way: Fueling economic growth and development for the people of this region will require substantial investments in energy - both conventional and alternative. And this type of greatly expanded trade and investment will only occur in an open, transparent and competitive regional marketplace. It is the surest path to a secure, reliable, affordable and environmentally sustainable energy future.
Again, on behalf of President Bush and the entire U.S. government, I support and applaud your efforts here. And I look forward to the results of your growing regional energy partnerships.
Thank you.
