IPP Initiatives & Opportunities for Private Sector in Fiji

Transcription

1 IPP Initiatives & Opportunities for Private Sector in Fiji Seymour Singh Deputy Chief Executive Officer Fijian Competition & Consumer Commission 11 October 2017

2 Outline FCCC Overview Renewable Energy/Energy Efficiency Targets Renewable Energy Developments and IPPs

3 About Fijian Competition & Consumer Commission ( FCCC ) Commerce Commission Dept. of Fair Trading Fiji Commerce Commission FCCC Prices & Incomes Board Before 1/7/2010 1/7/2010 1/8/2017

4 Our Law- FCCC Act 2010 Subsidiary laws are made under FCCC Act 2010 namely Price Control Orders

5 The Order Last revision in electricity tariff was carried by FCCC in New rates came into from 1 Jan The Order controls all Grades and Classes of Electricity at Retail Level The review of the Tariff is based on submissions by all interested party for FCCC to consider

6 Electricity Tariffs Last revision in electricity tariff was carried by FCCC in New rates came into from 1 Jan 2013.

7 FCCC Act 2010 Renewable Energy Access Agreements Dispute Resolution IPP Rates

8 Renewable Energy Targets Fiji has made steady progress towards universal electricity access and utilization of renewable energy resources for power production. The Government of Fiji seeks to extend these gains to: Achieve 100% electrification; and 81% share of electricity generated from renewable resources by 2020, rising to 99% by 2030

9 FEA Renewable Energy/Non-Renewable Mix Source: FEA 2016 Annual Report

10 Current Mix for Energy Generation in Fiji In 2016: FEA renewable power stations generated million units of electricity (53%), Thermal power stations generated million units of electricity (45%) and Independent Power Producers (IPPs) generated million units of electricity (2%).

11 Expectations from Energy Suppliers Reliable and the supply is balanced between supply and demand in real time. This include but not limited to; Generation Forced outages Transmission & distribution Line outages Sudden load changes Managing risks - as risks differ in each different sources from which Energy is produced.

12 Expectation from Utility Providers One of major issues globally is rising prices for fuel. Hence Energy Providers are expected to look at: Look into substitutes for bringing fuel to generate electricity, Keep the cost of generation affordable and reasonable, Continue to engage with FCCC and other stakeholders to to create an enabling environment for investors to continue investing in renewable energy in Fiji

13 Expectation from Utility Providers FCCC notes that a number of potential Independent Power Producers have expressed interest in setting various forms of power generation plants in Fiji with the aim of supplying electricity to the national grid.

14 Renewable Energy Developments and IPPs Biomass Projects FSC Labasa and Lautoka The Fiji Sugar Corporation has been supplying electricity from its power stations in Labasa and Lautoka to the FEA grid during the crushing season only. Nabou Green Energy Limited (NGEL) (initially known as Tropik GIMCO) NGEL is a joint venture project between Tropik Wood Industries Limited & Korean investors. A PPA was signed between FEA and NGEL on the 8th of December, 2014 for the development of a 10MW Biomass Plant in Nabou, (between Sigatoka and Nadi). The project has been completed by mid of 2017 and has been commissioned in July Output from this power plant will be fed into the FEA western grid. Tropik Wood Industries Limited (TWIL), Lautoka The 9.3MW TWIL biomass power plant was out of operation during 2016 and was expected to be back on-line in 2017 after completion of repairs to the power plant.

15 Investments in Energy Sector Biomass power project under construction by an Independent Power Producer, Nabou Green Energy Limited (NGEL) at Nabou between Sigatoka and Nadi

16 Renewable Energy Developments and IPPs Hydro Projects A proposal was received by FEA from a potential Independent Power Producer (IPP), for the development of three run of river hydro-electricity projects in South East Viti Levu at Namosi. Discussions are continuing with this IPP with the objective of signing a Power Purchase Agreement by The IPP will also be responsible for evacuating the energy output from these three hydro power stations to Wailekutu in Suva which will involve the construction of high voltage substations and 33kV and 132kV transmission lines. Expressions of Interest also called by FEA: Solar Project at Qeleloa, Nadi Waste to Energy Project at Naboro

17 Concluding Remarks While there are challenges with electricity regulation, FCCC tries to adopt the best methodology and practices while reviewing the prices. FCCC believes that there needs to be more such forum where all the Pacific Island can gather and deliberate on sector specific issues such as this. Development of renewable sources will be encouraged and energy and fuel efficiency standards enforced to promote private sector participation and raise efficiency and service delivery.

18 The End. Thank You