TERMS OF REFERENCE for the Kiribati Integrated Energy Roadmap (KIER)

Transcription

1 TERMS OF REFERENCE fr the Kiribati Integrated Energy Radmap (KIER) Backgrund Kiribati, like ther small islands develping states (SIDS), depends n imprted il prducts t meet the vast majrity f it energy needs. This dependency makes Kiribati extremely vulnerable t il price vlatility and leads t high energy csts that place a burden n lcal develpment. As a cllectin f lw-lying, islated islands, Kiribati is als vulnerable t the impacts f climate change, including rising sea level, increased strm strength and frequency, and disruptins t rainfall patterns, where rain remains the main surce f fresh water in Kiribati. T address these challenges and supprt ecnmic and scial develpment, the Gvernment f Kiribati (GK) is dedicated t finding energy slutins and climate change mitigatin and adaptatin measures that are sustainable, reliable and affrdable. The imprtance f sustainable energy in unlcking ecnmic pprtunities and elevating living standards has been widely recgnized, including by the United Natins Sustainable Energy fr All initiative (SE4ALL). The SE4ALL initiative aims t mbilize urgent glbal actin n three cmplementary bjectives t be achieved by 2030: Ensure universal access t mdern energy services Duble the rate f imprvement in energy efficiency Duble the share f renewable energy in the glbal energy mix At the natinal level, the GK currently has a 2009 Natinal Energy Plicy with a visin f Access t Sustainable, Reliable and Affrdable Energy Services. Despite cntinuus wrk and the glbal, reginal and natinal level t create awareness f the need fr sustainable energy, a variety f technical, regulatry, and financial barriers cntinue t prevent the gvernment frm increasing access t affrdable mdern energy services in many parts f Kiribati. In 2011, Kiribati jined Pacific Islands Leaders in cllectively agreeing n the value f develping credible, cmprehensive plans, such as energy radmaps, t imprve energy security, reduce dependency n fssil fuels and increase access t electricity. In its three-year Strategic Plan ( ), the Ministry f Public Wrks and Utilities (MPWU) highlighted the need t have a lng term plan (radmap) fr the energy sectr. In respnse t these calls fr actin, this Terms f Reference (TR) has been drafted t initiate the develpment f the Kiribati Integrated Energy Radmap (KIER). The KIER will be cmprised f a plicy framewrk with specific targets and a set f pririty actins, with assciated cst estimates and specific timelines. The KIER will present a packaged plan f institutinal, plicy, regulatry, technical, financial and capacity building actins that cllectively will enable the GK t achieve its energy bjectives. The KIER will give a cmprehensive and interrelated verview f the Kiribati energy sectr including: Renewable Energy ptins fr pwer generatin (incl. slar, wind, bimass, cean) Energy efficiency in electricity supply, including supply side management (SSM) Energy efficiency in electricity cnsumptin, including demand side management (DSM) Supply f petrleum prducts 1

2 Bienergy, including slid bimass, liquid bifuels and bigas Renewable energy fr transprt (incl. rad and sea) Energy efficiency and cnservatin fr transprt (incl. rad and sea) Renewable energy-pwered seawater desalinatin Cleaner cking fuels and efficient cking technlgies The KIER will fcus n the affrdability f energy services in Kiribati thrugh an integrated apprach t energy sectr develpment. In additin, the KIER will be aligned t the SE4ALL bjectives f access t mdern energy, accelerated deplyment f renewable energy and energy efficiency. The GK has already taken initial actins t develp the KIER. With the supprt f IRENA, it has cperatively cnducted a Renewable Readiness Assessment (RRA) that examined the status and prspects f renewable energy deplyment in the cuntry, identified issues that need urgent attentin r prmtin, and defined cncrete actins. When defining renewable energy targets, the RRA cnsidered the large differences between the energy systems f the three majr island grups (Suth Tarawa, Kiritimati and uter islands). The gal fr Tarawa is a 45% reductin in energy cming frm fssil fuels fr electricity generatin by 2025 cmpared t Business As Usual (BAU) 1. This gal will be met thrugh a 23% reductin f fuel use fr pwer generatin and a 22% reductin frm imprvements t energy efficiency n bth the supply and demand side. The gal fr Kiritimati is a 60% reductin in energy cming frm fssil fuels fr electricity generatin by 2025 cmpared t BAU. It is anticipated that 40% f this reductin will cme frm slar energy and bifuels while the remaining 20% will cme frm imprvement t energy efficiency n bth the supply and demand side. Fr the uter islands, it is prpsed that any expansins in electricity generatin be met thrugh renewable energy and that existing diesel generatin used by Island Cuncils (IC), gvernment and schls must be cnverted t renewable energy by The gal is t have at least 60% renewable energy by 2025 in rural public infrastructures (e.g. the Tabiteuea Nrth Hspital and ice plants) and 100% RE fr rural public and private institutins. The GK has adpted the RE targets prpsed in the RRA as parts f its internatinal cmmitments twards reducing greenhuse gas emissins by turning t alternative, sustainable energy surces, as stated in the Majur Declaratin fr Climate Leadership. These renewable energy targets and the actins fr achieving them will be reviewed during the radmap develpment t ensure that they are aggressive and achievable. In September 2014, Kiribati jined the IRENA Lighthuses initiative, which will enable Kiribati t have a cmprehensive assessment f the enabling cnditins fr the accelerated deplyment f renewables and will help t match the identified needs t supprt frm develpment partners. 1 The radmap will define the BAU scenari and determine the grwth f fssil fuel cnsumptin fr electricity. 2

3 In additin t the gals identified abve, the MPWU has supprted develpment f the Kiribati Cking fr Life (CFL) strategy, which aims t prmte the use f cleaner and mre efficient cking fuels and technlgies. The CFL strategy has prpsed three interrelated gals that are yet t be adpted by gvernment: 1. 75% husehlds in urban centres have access t LPG fr cking 2 by % husehlds in urban centres use imprved cking stves (ICS) BY % f uter island husehlds replace kersene use fr lighting with slar LED lights by 2020 Energy Sectr in Kiribati As a small Pacific Island Cuntry with n fssil fuel resurces, Kiribati is extremely dependent n imprted petrleum fuels fr electricity generatin, transprt and cking. Petrleum imprts are cmpsed f diesel fr pwer generatin and transprt, gasline t perate land transprt vehicles and utbard pwered bats, kersene and LPG fr lighting and cking respectively. Bimass is estimated t cnstitute arund 43% 3 f the grss natinal energy supply and is used fr cking and cpra drying. Slar PV is used in the uter islands, but accunts fr less than 1% f natinal energy cnsumptin. On the uter islands the per capita energy use is very lw, and energy is ften slely used fr lighting and cking with slar and bimass as the main surces. The Gvernment f Kiribati (GK) struggles with the high cst f imprting fssil fuels and delivering fuel t the uter islands as well as maintaining adequate industry standards relating t health, safety and envirnmental issues related t petrleum handling, strage and transprtatin. In rder t reduce the vlume f imprted fssil fuels, the GK has lng had a plicy f utilising renewable energy and lcal resurces fr electrificatin and assciated develpment when pssible. Outer Islands and Rural Electrificatin Kiribati currently has a lw rate f access t electricity, with nly 44% 4 f the ttal ppulatin cnnected t the natinal grid. In additin, 36% f the rural uter islands ppulatin have access t rural energy services such as slar hme systems and small diesel generatrs. There is wide disparity between the ecnmic cnditins in the capital, Tarawa, and the uter islands, where a lack f ecnmic pprtunities and persistently lwer standards f service delivery, particularly in health, educatin, water and sanitatin is causing urban migratin. Accrding t the 2010 census arund 49% f the ttal ppulatin is nw cncentrated in the urban centre f Suth Tarawa, leading t vercrwding. Due t the better standard f living and ecnmic pprtunities that electricity brings, migratin t the capital may be reduced by increasing access t electricity in the uter islands. T date rughly 34% f uter island hmes have slar lighting and this will increase significantly when the slar lighting prject financed by the Eurpean Unin is cncluded in The Island Cuncils in all f the uter islands run the electricity system fr its gvernment wrkers while the Ministry f Lines and Phenix Islands Develpment (MLPID) prvides and manages the 2 The 2010 Kiribati census reprt shwed that nly 25% f husehlds in the targeted areas use LPG fr cking Kiribati Supply Demand Database Kiribati Energy Security Indicatrs 3

4 electricity services in Kiritimati Island. Other islands in the Lines and Phenix grups are serviced thrugh private diesel generatr and slar hme systems. Urban Electricity Electricity is prvided primarily by the Public Utilities Bard (PUB) n Tarawa. The Ministry f Line and Phenix manages the Kiritimati Islands pwer supply. Table 1 shws the PUB electricity generatin alng with electricity cnsumptin and tariffs per custmer categry fr the years 2010 t The average annual generatin during this perid was 22.3 GWh, requiring arund 5.9 millin liters f autmtive diesel il per year. In 2011, running the generatrs cst PUB ca. AUD 8 millin while AUD 9.14 millin was recvered frm the sale f electricity. Table 1: Electricity Statistics fr Suth Tarawa and Beti Electricity generatin Electricity cnsumptin (MWh) per sectr Dmestic Cmmercial Gvernment and Industries Year Fuel Used (kl) Electricity generated (MWh) Electricity tarrifs (AUD cents/kwh) Surce: EPU Plicy Planning and Crdinatin The Kiribati Natinal Energy Plicy (KNEP) endrsed by Cabinet in 2009 was frmulated and aligned with the Kiribati Develpment Plan The primary gal f the KNEP is t develp the fllwing areas: human capacity, the energy sectr, livelihds, energy security and energy access. The guiding principles are sustainability, gender equity, envirnmental cmpatibility, stakehlder participatin, gd gvernance and cultural/traditinal cmpatibility. Hwever, targeted plicy is required t address specific areas t better serve the emerging needs f Kiribati as a whle. Energy Efficiency and Cnservatin One f the mst cst-effective and efficient strategies t reduce electricity demand is demand side management, in particular energy appliance labelling and adpting minimum energy perfrmance standards (MEPS). MEPS prevent the least efficient appliances frm entering the cuntry and labelling allws buyers t seek ut the mst efficient prducts n the market. These prgrammes d nt have t increase the price f prducts efficient appliances d nt necessarily cst mre t buy, but they will certainly cst less t run. As nted in the PUB Benchmarking reprt cnducted in 2011 significant imprvements in energy efficiency can als be achieved thrugh supply-side management (SSM). As such, there is a need t prvide supprt t imprve perfrmance f the PUB thrugh reductin in delivery lsses and increased fuel efficiency. 4

5 Transprt Energy use The transprt sectr energy use fr land, aviatin and sea transprtatin is very much dependent n imprted petrleum prducts. The Kiribati energy balance fr the year 2009 shwed the trend in fuel use by sectr as shwn in the graph belw. Gvernment f Kiribati, Energy Statistics Yearbk 2013 In terms f land transprtatin, the number f vehicles imprted t Kiribati has increased fr all types f vehicles such as buses, saln cars, trucks and mtrcycles frm 606 in 2003 t 1370 in Similarly, the number f registered vessels by categry and fuel type fr sea transprtatin has als increased frm 22 in 2003 t 36 in July The increased uses f different mdes f transprtatin have cnsequently increased the demand n petrleum prducts mainly autmtive diesel il (ADO) and mgas. Ratinale fr develpment f the KIER In 2011, Kiribati jined leaders frm arund the Pacific in agreeing t the value f credible whle-fsectr plans, such as energy radmaps, energy audits and structures that imprve energy security, reduce dependency n fssil fuel fr electricity generatin and imprve access t electricity. In 2013, Kiribati adpted the 2025 renewable energy (RE) and energy efficiency targets (EE) prpsed in the IRENA Renewables Readiness Assessment (RRA). The targets were presented as natinal targets during the Develpment Frum Partners meeting held in Tarawa in April A summary f the actins needed t meet the natinal RE and EE targets were identified, hwever, the cst f these actins was nt determined and there is currently n clear set f milestnes and necessary actins fr their achievement. In additin, the EPU des nt have existing prgrammed interrelated activities with clear timeframes and past and current energy prjects have been delivered thrugh ad-hc supprt frm develpment partners. On 8 May 2014, GK submitted an expressin f interest t IRENA fr the develpment f a radmap, frmally requesting its assistance n the renewable energy cmpnents f the KIER. On 26 June 2014, 5

6 the GK requested SPC assistance in partnering with IRENA t develp the KIER, with a fcus n energy efficiency and petrleum cmpnents. The KIER will be develped in partnership by IRENA and SPC. The crdinatin f the KIER lies with the GK, in particular with the MPWU. It is prpsed that the develpment f the KIER be verseen and guided by a KIER Steering Cmmittee (SC). IRENA as the agency respnsible fr the RE sectins (incl. pwer generatin as a whle) f the KIER and will reprt t the prpsed KIER-SC t be chaired by the Permanent Secretary f the Ministry f Public Wrks and Utilities. SPC, as the agency respnsible fr the nn-re sectins f the KIER, as described in the utline presented later in this dcument, will reprt t the KIER-SC n the sectins f its cmpetence. Cherence in terms f cntent amng the sectins drafted by SPC and thse drafted by IRENA will be ensured by peer-review f each ther s sectins, and by the verall guidance and review prvided by the steering cmmittee. Unifrm frmat and language fr the radmap will be ensured by prfessinal editing and layut f the final reprt, t be funded by IRENA. The KIER will be divided in wrk packages, each f which will be sle respnsibility f either SPC r IRENA. Synergies and cherence amng the different wrk packages will be ensured by a clear definitin f rles, by regular cmmunicatin, and by the verall guidance f the steering cmmittee. It is envisined, as per request f the GK in the EOI that IRENA will fcus n: 1) Pwer sectr develpment, with an emphasis f achieving the plicy targets fr renewable energy. 2) Renewable energy slutins fr transprtatin While SPC will fcus n: 1) Energy efficiency targets settings and demand frecast fr different electricity cnsumers and the different transprt sectr mediums (land, sea and air) 2) Prcurement, distributin and handling f petrleum prducts and the develpment and deplyment f alternative fuels 3) Prmting cleaner and mre efficient cking fuels and technlgies The KIER will prvide a summary f crdinated, realistic, achievable and integrated institutinal, plicy, regulatry, technical, financial and capacity building actins t meeting the natinal RE & EE targets. It will als assist with setting natinal targets fr ther energy sectrs including rad, air and sea transprt, petrleum and ther interrelated energy issues. The KIER will be used as an implementatin plan fr the Kiribati Natinal Energy Plicy that was endrsed in In additin, the GK will benefit frm having the KIER as it culd be used as a tl t fcus funding fr the energy sectr, and pssibly leverage additinal supprt fr the deplyment f the pririty activities identified. OBJECTIVES The bjective f the KEIR is t develp a realistic radmap that supprts the achievement f Kiribati s Natinal Energy Targets. The fllwing prpsed KIER utcmes will be discussed further with stakehlders: Increased access t secure and affrdable mdern energy services in urban and rural areas 6

7 Significant increases in renewable energy deplyment int urban and rural areas Imprved energy efficiency thrugh supply and demand side management DELIVERABLES The key deliverable will be an agreed cmprehensive, realistic radmap that will guide the GK and develpment partners twards the achievement f the fficial energy targets. The wrk n develping the KIER is anticipated t start in February 2015 and t be cmpleted by Nvember METHODOLOGY T be effective, the frmulatin f the KIER requires strng cmmitment frm GK thrugh the allcatin f the right level f resurces and the establishment f rganisatinal and institutinal mechanisms t supprt its develpment and implementatin. The Natinal Sustainable Develpment Strategy (NSDS) is a key reference dcument when develping sectrial plans, and can be used als t guide the develpment f the KIER. The link t the NSDS and its assciated budgetary prcess is crucial because it ensures that the activities identified in the KIER are linked t the budgetary allcatins since the develpment partners resurces are usually allcated twards achieving the NSDS. The invlvement f all key stakehlders in the develpment f KIER ensures wider acceptance and wnership. It is imperative that the KIER is nt frmulated in islatin f ther sectr plicies including the NSDS due t the fact that energy is a critical input t ther sectr develpment prgrammes. The methdlgies t be used in develping the KIER will include but nt limited t the fllwing: i. Scping Missin: A jint SPC-IRENA cuntry visit t initially undertake a situatinal analysis, including face t face cnsultatins and a Natinal Wrkshp. The purpse f the initial cnsultatins are t: Create awareness f the KIER and get supprt and buy-ins frm relevant stakehlders Verify prgress in the implementatin f the RRA recmmendatins Identify energy sectr challenges, pririties and linkages t ther develpment sectrs including educatin, health, agriculture, fisheries, climate change, financing that need t be addressed by the KIER Identify and cllate data n past and nging and future energy prjects and gaps identified in terms f energy related technical assessments and the issues pertaining t readily available energy sectr data Identify data n petrleum imprts and supply, electricity generatin, end use cnsumptin f land and sea transprt and husehld electricity cnsumptin. Investigate issues and targets that have been identified and map ut the chart fr achieving these targets Map ut the energy stakehlders identificatin f primary and secndary stakehlders and their respective rle Establishment f a KIER Natinal Steering Cmmittee, membership and terms f references and their cntributins t the KIER planning, frmulatin and implementatin ii. Develpment f Technical, Scial, Ecnmic, Finance, Plicy and Regulatry analyses 7

8 Cnduct a technical assessment f renewable resurces such as wind, slar, bimass and ther cnventinal and cleaner fuels such as LPG and LNG. The technical assessments will include a thrugh scping and analysis f existing studies that have been cnducted and als highlight infrmatin gaps relating t new technlgies. The Scial and ecnmic analysis will fcus n the uptake f renewable energy technlgies, assciated cst mitigatins frm reducing the negative effects f fssil fuels and the significant sciecnmic benefits f renewables. The methdlgy t be used is based n IRENA RE csting data, using cuntry-specific data t get the mst accurate results pssible. Fr pwer generatin ptimizatin, HOMER 5 will be used as main tl. The analysis includes health and envirnmental csts f electricity generatin emissins CO2, SOx, NOx, and particulate matter. The LCOE analysis shuld effectively cmmunicate the real csts assciated with varius pwer generatin systems designs and prvide plicymakers with a mre cmprehensive assessment f the lng-term csts and benefits assciated with different systems cnfiguratins (e.g. lw, medium and highpenetratin PV-diesel hybrid systems, slar hme systems, etc.). It will be f particular imprtance t define the ptimal level f penetratin f renewable energy t reach least-cst pwer generatin, based n existing assets, estimated available funding and cst f capital. Energy strage will als need t be explicitly cnsidered t allw fr high levels f penetratin f variable renewables (e.g. slar PV and wind). Finally, the finance, plicy and regulatry assessment is t prvide an in-depth analysis f the existing regulatry and plicy and investment framewrks in rder t identify majr barriers t renewable energy and energy efficiency develpment and deplyment. Discussins with develpment partners active in the energy sectr f Kiribati (e.g. Wrld Bank, Asian Develpment Bank, Eurpean Unin, New Zealand, Japan, United Arab Emirates) will be crucial t ensure that the radmap will represent the leading dcument fr future energy prject implementatin in Kiribati. A Cnsultatin Validatin Wrkshp t present the draft KIER t Kiribati gvernment, KIER-SC,PUB, KSEC and key develpment partners, t firm up the KIER plicy framewrk, time-scales, gals, strategies, activities and indicatrs, and the subsequent steps t initiate deplyment. The Mnitring and Evaluatin plan fr the KIER is t be develped. 5 HOMER - the Hybrid Optimizatin Mdel fr Multiple Energy Resurces. Originally develped at the Natinal Renewable Energy Labratry and enhanced and distributed by HOMER Energy, HOMER is the glbal standard fr ptimizing micrgrid design in all sectrs, frm village pwer and island utilities t grid-cnnected campuses and military bases. HOMER nests three pwerful tls in ne prduct, s that engineering and ecnmics wrk side by side. Fr mre infrmatin, see 8

9 Review the peratin f the current fuel imprtatin and distributin industry t identify pprtunities fr achieving imprvement and cmpliance with internatinally accepted industry standards, Identify pprtunities fr the develpment and deplyment f alternative fuels including thse that can be prduced thrugh the applicatin f new and innvative technlgies. iii. Submissin f final KIER reprt t Cabinet fr endrsement by end f These reprts and assessments have been develped fr the energy sectr in the past 5 years ( ) and shuld be taken int accunt while develping the KIER: Agenda Item 5: Twards an Energy Secure, Kiribati at the Develpment Partners Frum held in March 2014 (GK, 2014) An Ecnmics Analysis f kersene subsidy fr plicy refrm (SPC, 2014) Analysis f Energy Cnsumptin At Gvernment Buildings(EPU, 2012) Bifuel Feasibility Study in Kiritimati(PIGGAREP, 2011) Cking fr Life Strategy (GK, 2014) Draft Petrleum Industry Review (SPC, 2014) EDF10 and EDF11 Energy related Prject prpsal and prgress reprts Energy Statistics Yearbk fr , (GOK 2012) Kiribati Energy Security Indicatrs (SPC, 2010) Kiribati Grid cnnected Slar PV Pwer Statin Prject Envirnmental Impact Assessment (Trama Tecnambiental TTA, 2012) Kiribati Infrastructure Sectr Review(ADB, 2012) Kiribati Natinal Energy Plicy (GOK, 2009) Kiribati Renewable Energy Assessment(IRENA, 2012) 6 Least Cst Analysis f electricity generatin ptins fr Kiritimati Island(April, 2013) Pacific Lighthuses: Renewable Energy Rad mapping fr Islands (IRENA, 2013) 7 Renewable Energy Cuntry Prfile Kiribati (IRENA, 2012) 8 Renewable energy pprtunities and challenges in the Pacific Islands regin: Kiribati (IRENA, 2013) 9 Request fr Tenders Supply f the Bifuel Mill and the Bifuel pwer generatin systems fr Abemama Island, Kiribati (January 2015) Stck take summary reprt f the plicies, regulatins and fiscal incentives (SPC, Draft 2014) Water-Energy-Land nexus analysis in Tarawa: A case study (IRENA, 2012) Wind Feasibility Study fr Kiritimati (Garrad Hassan Pacific Pty Ltd, 2012)

10 The methdlgy will include regular cmmunicatin between the primary stakehlders, the EPU, SPC, IRENA and ther develpment partners, under the guidance f the KIER-SC. This will be applicable als t the preparatin and endrsement f Terms f References fr cnsultants, drafting f the radmap reprt and disseminatin f infrmatin. REPORTING All dcumentatin will be filed in a lgical manner n the SPC Pacific Reginal Data Repsitry prtal and an nline shared flder t be created and made available t all members f the TA team. All infrmatin gathered will remain available t the GK, as well as SPC and IRENA. Infrmal prgress reprting may be mre regular between the TA team and EPU via telecnference, etc. A mre frmal reprting structure will be thrugh the KIER SC, t which IRENA and SPC reprt t. The KIER SC will be supprted by IRENA and SPC, with cntributins frm the Pacific Pwer Assciatin (PPA). A specific TOR fr the SC has been develped t guide the wrk f the SC, as well as participating stakehlders. LOGISTICS SPC will prvide staff time t engage in develping the KIER specifically fr the Petrleum, Transprt and Energy Efficiency sub sectrs as well as in the crdinatin and facilitatin f meetings and wrkshps and in cuntry visits. SPC will cver cst f staff travel t Kiribati where necessary (and agreed with the EPU) and EPU will cver the lcal cst f wrkshps, prviding venue and lgistics fr the face t face cnsultatins and wrkshps t be cnducted as part f develping the KIER. IRENA will cver csts f its staff and fr any cnsultants required fr cmpletin f renewable energy cmpnents f the radmap. EPU in cllabratin with SPC and IRENA will invlve ther reginal and internatinal rganizatins that are actively supprting the strengthening f the energy sectr f Kiribati. GOVERNANCE The prject will be guided by a KIER-SC, based n the cmpsitin f the existing Energy Sectr Wrking Grup f the GK and ther relevant ministries and stakehlders, and will see the participatin f representatives f IRENA and SPC. The KIER - SC will perfrm the fllwing functins: Revising and apprving this TOR Participate in the visining and develpment f KIER Identificatin f visin, lng term gals and desired utcmes Mnitring prgress against the apprved timeline Reviewing and apprving any changes recmmended t the TOR based n new develpments Apprve interim deliverables Reviewing and suggesting slutins fr the issues critical t prject success Radmap implementatin and revisin 10

11 Apprving the final deliverable and recmmending it fr submissin t cabinet fr endrsement thrugh the apprpriate Ministry Biannual Review and evaluatin f the KIER implementatin prgress The SC will be cmpsed f representatives f the fllwing Ministries and State Owned enterprises: Ministry f Public Wrks and Utilities Office f the President Kiribati Slar Energy Cmpany Kiribati Oil Cmpany Public Utilities Cmpany Plant and Vehicle Unit Kiribati Cpra Mill Cmpany Ministry f Educatin Ministry f Finance and Ecnmic Planning Ministry f Internal Affairs Ministry f Fisheries and Marine Resurces Develpment Ministry f Health and Medical Services Ministry f Cmmerce, Industry and Cperatives Ministry f Envirnment, Lands and Agricultural Develpment The KIER - SC will be supprted by an Internatinal and Reginal Technical Supprt Team cmprising f the Internatinal Renewable Energy Assciatin (IRENA), Secretariat f the Pacific Cmmunity (SPC) in cllabratins with Wrld Bank, Eurpean Unin, NZ Internatinal Develpment Grup and Pacific Pwer Assciatin (PPA) COORDINATION T ensure crdinatin with ther interventins currently nging in the energy sectr f Kiribati, cnsultatins with all the invlved parties will be necessary. In particular, the fllwing develpment partners are currently active in Kiribati, as per discussins with EPU, and this TOR shuld be shared with them fr cmments befre finalizatin and endrsement by the SC, and an update n the status f the relevant activities shuld be sught. The same wuld apply t any ther party nt listed here: Wrld Bank: 500 kwp slar PV in Suth Tarawa UAE Pacific Partnership Fund: 500 kwp slar PV in Suth Tarawa JICA PEC Fund: 400 kwp slar PV in Suth Tarawa Eurpean Unin: slar hme systems in the Line and Phenix islands grups and uter islands NZ and EU funded prject: Kiritimati Island Energy Sectr Prgramme (KIESP) Chinese Taipei: slar hme systems t all nn-electrified uter islands Suth Krea: OTEC pilt study USP: sustainable sea transprt ADB: water supply and sanitatin ROADMAP OUTLINE Fr each f the sectrs, the KIER will be structured alng the fllwing key steps: 11

12 (1) Definitin f the targets (either frm the existing plicy framewrk, r t be suggested t the SC fr endrsement based n analysis cnducted) (2) A least-cst pathway describing key milestnes leading t the achievement f the target (3) Actins by relevant stakehlders assciated with each milestne (4) Prcedures, indicatrs and means f verificatin fr mnitring and verifying prgress (5) Crrective actins t ensure implementatin and pssible revisin f targets t reflect evlving cnditins The final radmap reprt will be structured alng the fllwing chapters: 1. Current status f Kiribati energy sectr (based n IRENA Pacific Lighthuses prfile 10 and SPC Energy Security indicatrs prfile 11 ) [SPC] 2. Key recmmendatins frm the IRENA RRA 12 and prgress n their implementatin [IRENA] 3. SIDS Lighthuses quick scan assessments f the necessary cnditins t enable deplyment [IRENA] 4. Sectr analysis a. Buildings electricity analysis disaggregated t residential, gvernment ministries, cmmercial, turism, health, educatin (schls) [SPC] b. Industry in uter islands(fcus n Outer Island Fish Centers and ice making) [IRENA] c. Pwer sectr i. On-grid RE fr Suth Tarawa, Kiritimati, ther existing grids [IRENA] ii. Netwrk Perfrmance Imprvement and RE Integratin fr Suth Tarawa [PPA] iii. SHS fr uter islands [IRENA] iv. Public Infrastructure fr uter islands Island cuncils, Secndary Schls, Suthern Kiribati Hspital, Health centers and Clinics, and ther public Institutins [IRENA] v. Supply-side energy efficiency[ppa] d. Water supply: RE slutins fr desalinatin and nexus issues [IRENA] e. Sustainable transprtatin (rad and sea) aligned t the Kiribati Transprt Strategy i. Optins fr fuel cnsumptin reductin[spc] ii. Renewable energy ptins[irena] f. Cking Energy Needs and Efficiency [SPC] aligned t the Cking fr Life Strategy g. Fuel prcurement, handling and distributin [SPC] 5. Crss-cutting issues a. Renewable energy resurces [IRENA] b. Opprtunities fr the develpment and deplyment f alternatives t liquid petrleum fuels [SPC] c. Capacity needs assessment [SPC] d. Institutinal framewrk [IRENA] e. Energy Data and Infrmatin [SPC] f. Climate Change and Envirnment [SPC]

13 6. Actin matrix with csts, respnsible parties, M&E indicatrs and funding surce fr each actin [EPU based n chapter 3 milestnes] 7. Key messages fr plicy makers [EPU with inputs frm IRENA and SPC] TIMELINE It is expected that the prcess invlved fr develping the KIER including writing up f the TOR fr bth the Steering Cmmittee and the Technical Assistance will start frm December 2014 t end f Octber 2015 when the final draft f the KIER is presented t GK. 13

14 KIER WORKPLAN Activities Stakehlders 13 Dec Jan Feb Mar Apr May June July Augus t Apprval f TOR with respective partners Jint Scping Missin t undertake a Situatinal Analysis thrugh Face t Face Cnsultatin and a Natinal Wrkshp. Carry ut Technical, Scial Ecnmics and Finance, Plicy and Regulatry Assessments thrugh literature review and cuntry visits Assessment f the current Pwer Systems Radmap fr the Electricity Sectr in urban and uter islands, with a fcus n RE Petrleum Industry Review and alternative Fuels (LPG, LNG, Bifuel) fr use fr electricity and transprt KIER SC, EPU, SPC & IRENA SPC, IRENA & EPU SPC, IRENA & EPU IRENA PPA & PUB IRENA, PUB, KSEC & EPU SPC & KOIL Energy Efficiency Assessments SPC & EPU Sept Oct 13 The partners listed are primary stakehlders, there are ther stakehlders (lcal and reginal and internatinal) nt included but will be identified during the scping missin. 14

15 Land and Sea Transprt Assessment Financial, Plicy and Regulatry Assessment Natinal Energy Frum Identificatin f the KIER framewrk, visin, gals, targets and activities and csting Cmpilatin f KIER frm all technical, scial and ecnmic assessments, circulate and cmments A Cnsultatin and Validatin Wrkshp Finalizatin f the reprt based n the feedback frm the wrkshp KIER submitted t KIER SC fr gvernment endrsement SPC, EPU, Ministry f Cmmunicatin, Transprt and Cmmunicatin, KOIL, IRENA fr RE ptins EPU, SPC & IRENA KIER SC, IRENA, SPC, GK, Develpment partners, Lcal stakehlders SPC, IRENA & EPU SPC, IRENA & EPU, KIER SC SPC, IRENA & EPU SPC, IRENA & EPU 15

16 ESTIMATED BUDGET Activities Organizatin N. f persns and days in cuntry Details f Csts A Jint Scping Missin t undertake a Situatinal Analysis thrugh Face t Face Cnsultatin and a Natinal Wrkshp. Travel t Kiribati t carry ut a face t face cnsultatin and ne day wrkshp. One week in Tarawa and ne week in Kiritimati SPC IRENA EPU PPA Technical, Scial Ecnmics and Finance, Plicy and Regulatry Assessments Renewable Energy Assessments fr Electricity Sectr in urban and uter islands 1 x 7 days 1 x 14days 1 x 7 days 1 x 3 days Travel Csts Travel Csts Travel and Lcal Csts Travel cst Estimated Csts (USD) 7, , , , IRENA 1 x 7 days Travel csts 4, Grid stability assessment fr Suth Tarawa PPA 14 1 x 14 days Travel csts 6, Supply-side energy efficiency assessment Petrleum Industry Review and alternative Fuels (LNG, Bifuel,) fr use fr electricity and transprt SPC 1x 7 days Travel csts 6, Demand side energy efficiency assessment SPC 1 x 7 days Travel csts 6, Renewable Energy Assessments fr Transprt IRENA 1 x 7 days Travel csts 4, Financial, Plicy and Regulatry Assessment SPC 1 x 7 days Travel csts 3, Nte that any wrk n grid stability studies including data cllectin and mdeling will take a lt lnger than 7 days. PPA with IRENA has identified tw studies t be cnducted in Sama and Ck Islands and therefre Kiribati will be included as part f the Prject Agreement between PPA and IRENA. 16

17 Cnvene a Natinal Energy Frum : TAs frm IRENA and SPC SPC IRENA Cmpilatin f KIER frm wrkshp reprts, technical, scial and ecnmics assessments Technical Assistant csts and times 15 Editing and layut A Cnsultatin and Validatin Wrkshp t endrse the KIER and its Mnitring Plan (Presentatin f main findings t the Steering Cmmittee) SPC staff EPU IRENA/ TA/Cnsultants PPA IRENA cnsultants SPC SPC IRENA EPU 1 x 7 days Travel cst 2 peple x 60 days 1 staff x 80 days 1 staff x 30 days Travel csts Lcal csts Cnsultancy cst Cnsultancy cst Cnsultancy 3, , , , , , days Cnsultancy cst 5, days Cnsultancy cst 2, x 7 days 1 x 7 days Travel csts Travel csts Lcal Csts 3, , , Ttal Csts 191, These are in-kind cntributins frm relevant agencies twards the develpment f the KIER 17