http://ekh.unep.org

Raw energy supply to the Maldives is a major import item with a share of 13% of the total import bill of USD 475 million. Petroleum products are imported mostly to be transformed into electricity supply. All inhabited and resort islands plus a number of the uninhabited island used for agricultural and industrial purposes have one or more electricity generating units. The distribution of raw energy is a costly activity. To this extent, the cost of energy is a supply-side constraint to the competitiveness of the economy.

Production and distribution is the responsibility of the State Electricity Company (STELCO). In many cases, ownership and responsibility for the production and distribution of electricity in the islands have been turned over to the communities. The same is the case for the resort islands.

The Government is in the process of compiling energy balances for the years 2001-2004. Small scale experiments have been carried using permanent energy sources as wind and sun, but on-going research indicates that the wind regimes prevalent for the archipelago are not favorable. Sun energy is seen to mostly useful for heating of water and hence immense scope for benefitting from investments made towards the government envisaged Carbon Neutral Maldives.