Regional Overview of Energy Situation in the Pacific Island Countries (PICs)
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1 Regional Overview of Energy Situation in the Pacific Island Countries (PICs) Makereta Lomaloma Economic Development Division Secretariat of the Pacific Community
2 Content The PICs - Our geography and location The challenges we face Our guidance to energy security FAESP Framework Our Energy Situation to date
3 . All PICs put together contribute to 0.4% of the total global land mass.. Population of the PICs is roughly around 0.15% of the total global population.. PICs are scattered over million km 2 in the Pacific Ocean which accounts for 44% of the worlds ocean. GLOBAL SCENARIO
4 Cultural Sub-Regions Micronesian group Melanesian Group Polynesia group 2010 estimates 22PICs Melanesian Polynesian Micronesian Land Area thousand Km % 1.4% 0.6% EEZ 2.98 mil Km % 37.2% 35.4% Population 9.8 million 87.8% 6.7% 5.5% Urban Population 2.2 million 18.7% 37.6% 66.6% Population density GDP per capita $US3,891 US$2,713 US$13,058 US11,489
5 Cultural Sub-Regions by size and resources Melanesian Countries Large, mountainous and mainly volcanic islands. Have considerable natural resources: fertile soils, large forests, and mineral deposits Rural and agricultural (about 85% of the people live in rural areas; Cultural and social diversity. More than 100 dialects are spoken in PNG, Solomon Islands and Vanuatu Mid-sized island states Polynesian & Micronesian countries have limited land resources, little or no commercial forests, and no commercial mineral deposits. Few tradable natural resources and virtually no manufacturing industry Many of these islands enjoy a high standard of living from foreign assistance and remittances from expatriate island communities Small &low island states Land and soil poor Natural resources are mostly limited to the ocean The most vulnerable places on Earth to the adverse impacts of climate change and sea level rise. Key problems: shore erosion, vulnerability to storms and droughts, fresh water scarcity, ground water pollution, solid waste disposal
6 THE CHALLENGES WE FACE IN THE REGION
7 Isolated markets Narrow range of resources Small Population base Remote locations Small market sizes Limited skills and know how low economies of scale
8 EXTREME CLIMATE CONDITION. Hurricanes Flooding tsunamis Draught Sea level rise
9 Our guidance to energy security FAESP Framework
10 Framework for Action on Energy Security in the Pacific Energy security exists when all people at all times have access to sufficient sustainable sources of clean and affordable energy and services to enhance their social and economic wellbeing
11
12 Application of FAESP IPESP Implementation Plan FAESP Baseline Security Indicators
13 Our Energy Situation to date
14 A stock of the Legislative and Policy process in the countries.
15 Cook Islands Energy Sector Act Planning and Coordination Policy/Road map Energy Institutions Yes Yes (4) Office of the Energy Commissioner (OPM) Fiji No Yes (2) Energy Department - FSM No Yes (2, 5) National Energy Office Kiribati No Yes (2) Energy Planning Office - Nauru No Yes (1,2) Energy Unit Niue No Yes (2) Ministry of Infrastructure Palau Yes Yes (2, 5) Energy Office PNG No No Energy Division RMI No Yes (2, 5) Energy Planning Division Samoa No Yes (3) Energy Policy Coordination and Management Division Solomon Is. No Yes (2,5) Energy Division Tonga No Yes (1), (2) Energy Department Tuvalu No Yes (2,4) Energy Unit Vanuatu No Yes (1) Energy Department
16 Petroleum Act Petroleum sector National Fuel Supply Contract Price Control Act Cook Islands Yes No Yes Fiji Yes No Yes FSM Yes Yes No Kiribati Yes Yes Yes Nauru Yes No Yes Niue Yes Yes Yes Palau Yes No No PNG Yes No Yes RMI No No Yes Samoa Yes Yes Yes Solomon Islands Yes Yes Yes Tonga Yes Yes Yes Tuvalu Yes No Yes Vanuatu Yes No No
17 Electricity Act Power Sector Fuel Supply Contract Feed In Tariff Cook Islands Yes Yes No Fiji Yes Yes Yes FSM Yes NA Yes Kiribati Yes NA No Nauru Yes NA No Niue Yes NA No Palau Yes Yes Yes PNG Yes Yes Yes RMI No Yes No Samoa Yes Yes Yes Solomon Islands Yes Yes Yes Tonga Yes Yes Yes Tuvalu Yes No No Vanuatu Yes Yes Yes
18 Renewable Energy Sector Renewable Act Policy Targets Net Metering Act/Policy Cook Islands No Yes 100% of inhabited islands by 2020 Yes Fiji No Yes 81% by 2020 No FSM No Yes 10% by 2020 ( urban area) 50% by 2020 ( rural areas) Kiribati No Yes 45% by 2025 ( Tarawa) 60% by 2025 ( Kiritimati) Nauru No Yes 50% by 2020 No Niue No Yes 100% by 2020 No Palau No Yes 20% by 2020 Yes PNG No Yes 50% by 2030 ( GHG reduction) No RMI No Yes 20% by 2020 No Samoa No Yes 10% by 2016 No Solomon Is. No Yes 50% by 2015 No Tonga Yes Yes 50% by 2020 Yes Tuvalu No Yes 100% by 2020 No Vanuatu No Yes 65% by 2020 Yes No No
19 Monetary Policies CKI FIJ FSM KIR NAU NIU PA L PN G RMI SA M SOL TO N TU V VAN Lifelines Tariff Yes Yes Yes No Yes Yes Yes Yes Yes Yes No No Yes Yes Energy Loans No Yes No No No No Yes No No No No No No No Petroleum pricing control Electricity tariff control Freight levy to outer islands Yes Yes No Yes Yes No No Yes No Yes Yes Yes Yes No Yes Yes No No No No No Yes No Yes No Yes No Yes Yes Yes No Yes NA NA No Yes No NA Yes No Yes No
20 Exemption/Reduced on Import/Excise Duty Fiscal Incentives CKI FIJ FSM KIR NAU NIU PAL PNG RMI SAM SOL TON TUV VAN Diesel for power generation exemption Diesel for biofuel or Coconut Oil production Renewable Energy Technologies [1 Energy efficient (energy star) rated appliances Efficient vehicles (increased seat capacity and lower fuel cylinder capacity Fuel efficient vehicles (LPG and hybrid cars) Yes No No Yes Yes Yes Yes ND Yes Yes No Yes Yes Yes NA Yes NA NA NA NA NA ND NA No No NA NA No No No No No No No No ND Yes No No Yes No Yes No Yes No No No No No No Yes No No No No No Yes Yes No Yes Yes Yes No No No Yes No Yes No No No Yes No No No No No No No No No No No No Kerosene for NA Yes No Yes No NA No Yes NA No No Yes Yes No household use Aviation fuel Yes No No No Yes Yes No No No No No Yes Yes Yes
21 Fiscal Incentives Exemption on tax ( VAT,Consumption Tax, VAGST, Service Tax) CKI FIJ FSM KIR NAU NIU PAL PNG RM I Electricity Yes No No No NA No No ND Yes No No No No No cost RESCOs NA Yes No No NA NA No No No No No No No No (biofuel, solar etc) Kerosene for NA Yes No Yes NA NA No Yes No No No Yes No No households Aviation Fuel No No No NA Yes No ND No No No Yes No No LPG No No No NA No No ND Yes No No No No No No No No NA No No ND No No No No No No Mogas (petrol, gasoline) and ADO SA M SO L TO N TU V VAN NA Not Applicable ND No Data
22 Some Energy Indicator Comparison
23 100% 90% Electrification level median - 93% 80% 70% 60% 50% 40% 98% 93% 84% 97% 92% 100% 99% 98% 99% 30% 65% 62% mean - 30% 20% 10% 20% 21% 33% 0% estimates from other sources - DHS, HIES, Energy Office estimates. Latest census records ( )
24 100% Grid Connected Electrification 90% 80% 70% 60% Median - 67% 50% 40% 30% 55% 97% 62% Mean - 25% 72% 96% 89% 99% 95% 95% 20% 43% 10% 0% 17% 12% 28% 0% Estimates from other sources - DHS, HIES, Energy Office estimates. Latest census records ( )
25 35% Off-grid electrification 30% 25% 20% 15% 31% 10% 19% 5% 9% 9% 12% Mean - 4.4% 0% 1% 3% 5% 0.3% 4% 1% 0% 3% 5% Latest census records ( ) Estimates from other sources - DHS, HIES, Energy Office estimates.
26 120.0% HH Access to Modern Cooking - National 100.0% 80.0% 95.9% 92.50% 96.1% 91.00% 60.0% 40.0% 20.0% 41.7% 65.6% 32.6% 52.00% 30.0% 54.5% 59.30% 0.0% 12.10% 6.7% 13.6%
27 120% HH Access to Modern Lighting - National 100% 98.8% 97.6% 93.7% 97.8% 96.3% 99% 92% 96.7% 97.8% 100% 99.3% 96.00% 99.6% 80% 69.70% 60% 40% 20% 0%
28
29 30.0% Macro-economic affordability % 25.8% 20.0% 18.2% 18.5% 15.0% 15.3% 14.4% 10.0% 10.5% 11.0% 9.8% 5.0% 5.6% 6.8% 0.0%
30
31 Average Electricity Tariff in PICs
32 30.00% 25.00% 22.72% Household Energy Expenditure 23.83% 27.75% 26.76% 20.00% 15.00% 13.76% 16.23% 16.67% 10.00% 7.82% 9.30% 9.84% 6.98% 7.64% 5.00% 1.18% 0.00%
33
34 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 8.81% Renewable energy share % 5.60% 1.00% 0.00% 0.03% 0.04% 0.11% 0.05% 0.33% 0.05% 0.02% 0.04% 0.03% 0.20% 0.03% Contribution from traditional use of biomass such as household cooking is excluded in analysis
35 Source : 2011 PPA Benchmarking
36
37 Source : 2011 PPA Benchmarking
38 Clean Electricity Contribution 2.00% 1.50% 1.85% 1.64% 1.00% 0.50% 0.29% 0.26% 0.65% 0.31% 0.30% 0.22% 0.64% 0.29% 0.00% Cook Islands - TAU FSM - ave. Kiribati - PUB Nauru - NUA Niue - NPC Palau - PPUC RMI - MEC Excluding - Fiji, PNG, Samoa & Vanuatu Solomon - SIEA Tonga - TPL Tuvalu - TEC
39 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Clean Electricity Contribution - Melanesian countries Fiji - FEA PNG - PPL Solomon - SIEA Vanuatu - UNELCO 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Clean Electricity Contribution - Polynesian Countries Cook Islands - TAU Niue - NPC Samoa - EPC Tonga - TPL Tuvalu - TEC 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Clean Electricity Contribution - Micronesian countries FSM - ave. Kiribati - PUB Nauru - NUA Palau - PPUC RMI - MEC Tuvalu - TEC
40 Clean electricity contribution 2011 Source: 2011 PP Benchmarking report
41 Source: Pacific Fuel Price Monitor
42 Thank You
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