1 The concept of energy security
Introduction
The concept of energy security has evolved over the last three decades. The reliance on fossil fuel as the primary source of energy generation has resulted in almost all the countries becoming insecure about their energy security. Some countries are more insecure than others due to their need and sources of supply. For example, a country like Japan has no domestic petroleum resources, while Canada has untapped oil and gas potential.1 As the global demand for petroleum resources has outpaced supply, the cost of petroleum has risen. However, the evaluation of energy security from an international perspective is difficult due to the different circumstances that each and every energy-hungry country finds itself in, causing different interpretations of the term energy security.
Assessing energy security from the supply and demand side would contain analysis of the aggregate capacity to fulfill energy demand through existing sources of supply.2 This assessment process includes evaluation of the relationship between aggregate fuel supply and demand trends either at present or in the future.3 This would also include protecting energy infrastructure from different threats including terrorism and supply disruptions due to natural calamities. This analysis would help to evaluate the supply chain risks which might enable the respective countries to make an informed choice.
Another assessment strategy for energy security could entail certainty of access to resources on a country-by-country basis in order to assess the disparities of access and supply chain risk that exist within the global supply of energy.4 This assessment would also include the availability of resources, diversity of fuel and the dependence on import.5 The relationship between the exporting country and the importing country is also crucial in this case, as any political instability might result in supply disruption. However, this type of assessment is crucial for countries supporting conventional energy services and is ready to build their energy infrastructures.
The interpretation of energy security by assessing it as a challenge of balancing availability, accessibility and affordability from an aggregate perspective is also another strategy that can be used for its evaluation.6 The three important criteria of availability, accessibility and affordability are crucial in the analysis of energy security according to some analysts.7 These three criteria are also used by the IEA as the foundation for their energy security assessment methodology.8
The threat of global warming has also resulted in the new assessment of energy security as countries are worried about their environment. The long-term reliance on fossil fuel is untenable due to the threat of global warming.9 Moreover, a balance must be found between availability, accessibility and affordability within the constraints of the global system.10
As a result, the conceptualization of energy security depends on the choices that are made in terms of the variables that should be included in its analysis and how these multiple variables are weighted.11 In fact, the assessment of energy security comes from a specific ideology-based definition of what energy security contains.12 Further, the priorities of a country also play a key role in how the energy security is assessed.
The first section of this chapter discusses the various definitions of the concept of energy security followed by an analysis of the different national energy security perspectives of policy makers. There is then a discussion on the different factors affecting the energy security policies of countries followed by the four criteria that will be used in this book to measure the energy security of the South Asian countries.
Definition of energy security
The definition of energy security varies from country to country and depends upon their energy policy. Accordingly, there are 45 different definitions of energy security and counting.13 According to some experts, energy security is the “ability of an economy to guarantee the ability of energy resource supply in a sustainable and timely manner with the energy price being at a level that will not adversely affect the economic performance of the economy”.14 Others define it as “a condition in which a nation and all, or most of its citizens and business have access to sufficient energy resources at reasonable prices for the foreseeable future from serious risk of any major disruption”.15
While some definitions of energy security focus on the energy policy and economic aspects of a country, other definitions focus on diversification. As a result, energy security is defined as “diversity, or a mix of fuel sources, stability or stable sources of reserve and technology”.16 The International Atomic Energy Agency (IAEA) defines it as “secure supply of energy fuels as well as imports, technologies that promote self-sufficiency as well as protection against disruptions, including those that hedge against price volatility, encourage diversity of technologies and sources, reduce threats to and from neighboring states”.17 Other experts focus on the environment when discussing about the t...
