Energy Security in the Pacific Islands. Renewable Energy and Energy Efficiency Partnership (REEEP)

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1 Energy Security in the Pacific Islands Renewable Energy and Energy Efficiency Partnership (REEEP) Clean Energy Expo Asia 2010 Singapore 3 November 2010 Eva Oberender Regional Director REEEP South East Asia & Pacific

2 Overview The story of Palau Global energy security A picture of the Pacific region Energy overview and energy security issues Policy settings REEEP s response to the region s changing priorities

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19 Security of supply: 2/3 of oil comes from politically sensitive areas of the world

20 Fossil fuels currently account for 95% of fuel use in the Pacific - improved energy security for the Pacific is a priority US$ a barrel to May The PICs are highly vulnerable to interruptions in supply and to rising fuel costs.

21 Changes in availability, quality and cost of fossil fuels have a significant impact on the Pacific island economies 30% 25% % 15% 10% 5% 0% Kiribati Palau Tonga FSM Solomon Islands Tuvalu Samoa Fiji Cook Islands Vanuatu Petroleum products will remain the major source of energy for the region for a long time to come.

22 The vulnerability of exposure to high oil prices is far greater for Pacific Island Countries 1/3 of the planet 15 countries 9 million people 30% access to energy

23 The cost of energy provision in the PICs is high compared to other economies Geographic conditions vary widely. The PICs energy markets are very thin, difficult to serve, and lack economies of scale. The PICs comprise a wide range of ecosystems, predominantly influenced by marine systems that make infrastructure development expensive to establish and maintain and can have significant environmental impacts.

24 The cost of energy provision in the PICs is high compared to other economies The PICs have limited capacity to devise and implement suitable energy policies. The PICs are exposed to extreme weather events. The PICs, except PNG, do not have indigenous fossil fuels resources of note and are heavily reliant on imported petroleum.

25 As a result, access to energy varies widely Some countries have achieved close to 100% electrification, some as little as 10% Quality of power and reliability of service varies Many rural areas remain substantially unelectrified

26 Investment in clean and affordable energy needs to be stepped up to diversify the sources of energy in the region The PICs abundant indigenous renewable energy sources are currently underutilised at around 10% of the energy mix on average. Available renewable sources of energy include solar, hydro, biomass, geothermal and wind. Leaders agreed (2009) that renewable energy has an important role to play in providing secure, accessible and reliable energy to the region.

27 Efforts underway to increase the share of renewable energy in the region s energy supply National Tuvalu 100% RE Target Tonga Energy Roadmap Regional Framework for Action on Energy Security for the Pacific and Implementation Plan

28 Islands are becoming leaders in Renewable Energy Tuvalu has set a 100% renewable energy target by 2020 It will cost $20m to generate all electricity from solar and wind and end dependence on diesel. We look forward to the day when our nation offers an example to all powered entirely by natural resources such as the sun and the wind, Kausea Natano, Tuvalu Minister for Public Utilities and Industries

29 Tonga Energy Roadmap (TERM) National whole-sector plan to become 50% less reliant on fossil fuels Strong Government leadership Active development partner cooperation Consideration of the whole electricity sector, including petroleum, efficiency improvements and RE Update as data improves and technology, costs evolve In-country champion a key success element in the initial phases

30 Framework for Action on Energy Security for the Pacific outlines a new approach to improving energy security in the Pacific region designed to provide guidance to PICs to enhance their national efforts to achieve energy security promotes a whole of sector approach clarifies how regional services can assist countries to develop and implement their national plans sovereignty of PICs is paramount - acknowledges that national energy policies and plans must be the principal means for achieving energy security

31 Framework for Action on Energy Security for the Pacific recognises that numerous stakeholders contribute to energy security in the region and accepts them as equal partners based on the concept of many partners - one team

32 Recommendation for policy frameworks in small islands address distributed institutional responsibility for the energy sector, instigate cross-departmental cooperation & centralised management build capacity and skills of energy officers gather data simplify regulatory and oversight processes address gaps and inconsistencies in policy and legal framework involve the utilities and the private sector as they will deliver the change on the ground work collaboratively with development partners

33 REEEP was established to accelerate RE/EE focusing on underdeveloped and emerging economies REEEP acts as a market facilitator by reducing market barriers for renewables and energy efficiency systems REEEP accelerates market development through a focus on: policy/regulation development and improvement finance and business models REEEP is driven by a bottom-up approach to meet the real needs on the ground REEEP works with governments as well as with the private sector

34 REEEP s response to the region s changing priorities

35 Establishment of the Pacific Islands Sustainable Energy Association & Certification Scheme Project outputs: An active industry association for sustainable energy industry companies active in the PICs Establishment of a certification scheme for auditors, installers and designers which will consequently increase the quality of RE installations Project partners: Global Sustainable Energy Solutions Pty Ltd (Australia) and Pacific Islands Greenhouse Gas Abatement through Renewable Energy Project (PIGGAREP)

36 Pacific Renewable Energy and Microfinance (PREM) Project Innovative & sustainable microfinance loan products for renewables & energy efficiency Project Outputs Baseline survey of microfinance Development of training materials and training on basic awareness on RE and EE Assessment of environmental risks and needs Continuous mentoring of institutions involved

37 Low-carbon Tourism Programme Creating a model to adopt a stakeholder approach to a low-carbon tourism sector in Fiji Promoting a range of energy efficiency and small-scale renewable energy technologies available to the hotel & resort sector in Fiji Raising awareness of related carbon financing opportunities Project outputs: Reduce GHG emissions through demand-side abatement initiatives in Fiji s hotel and resort sector. Enhance Fiji s ecotourism credential.

38 RE & EE regulatory frameworks in Kingdom of Tonga Strengthening regulatory framework in Tonga Project Outputs Implementation of the revised RE Act through endorsed RE regulations Development and adoption of energy efficiency policy

39 Pacific Island Countries (PICs) Energy Efficiency, Auditing and Appliance Labelling Project aim: To progress the implementation of PIC national energy action plans including Energy Efficiency and Energy Conservation strategies to ultimately enhance energy security in the Pacific. Project outputs: Output 1 Appliance labeling & standards (Samoa, Tonga & Vanuatu) Output 2 Energy Auditing (RMI, Palau & Vanuatu) Output 3 EE & EC Awareness Output 4 Project evaluation & Assessment Project partner: SPC

40 Emerging lessons RE & EE policy solutions have to be tailor-made to best fit into national circumstances there is no best solution Activities only deliver sustainable results if they are part of the whole energy value chain The public sector role as a major energy consumer and investor must be mobilised RE & EE have to be an integrated part of energy planning and legislature this is also true for Low carbon Plan The greatest barrier for Energy Efficiency is lack of information, institutional support and not technology Standards and labels are the most effective policy for end-use EE Rural energy programmes must address the thermal energy needs and generate income to ensure success Local funds are available but cannot be utilised due the lack of instruments

41 Provide access to reliable and affordable modern energy services to 100 million people in Asia and the Pacific by 2015 REEEP member of SC & Chairs Pacific WG

42 Project Portfolio Capacity building

43 REEEP tools

44 thank you

45 REEEP questions? Eva Oberender Regional Director, REEEP Southeast Asia & Pacific T: E: Supported by