Expenditure on oil is an obstacle to development: President

President Dr Mohamed Waheed Hassan Manik has said that the increase in the expenditure on oil has become an obstacle to economic growth and development in the Maldives.

The President said this while speaking at the World Energy Forum which commenced yesterday in Dubai.

The President said that today, we spend the equivalent of 20 percent of our GDP on diesel for electricity and transportation.

“This is unaffordable especially to rural communities,” he said.

The President stressed the importance of a sound energy policy for a small island nation such as Maldives, and said that the Maldives has now embarked on an ambitious programme for achieving a low carbon economy.

“We believe that transformation of our energy sector through renewable energy and greater energy efficiency as a necessary process for achieving a sustainable future,” he said.

The President said that the Maldives’ strategy is to transform the energy sector based on three important pillars.

“Firstly [we will] develop the capacity of public utility companies and private service providers. The second pillar is a strong and convincing business model to attract and integrate the private and public sector behind a future oriented growth model. Thirdly we intend to strengthen the necessary legislative instruments in order to provide the regulatory framework for investors and stakeholders in the renewable energy sector,” the President said.

He said that as a small island developing state, the Maldives faces enormous challenges in achieving its goals of low carbon development, and that the country has embarked on this mission with little technical knowhow of renewable energy technologies.

“This is why I am taking the necessary steps to create an investor friendly environment to facilitate private sector investment in renewable energy technology and build the national capacity. My country also welcomes all the support we receive from friendly nation states and our international partners towards achieving our goal,” he said in conclusion of his speech.