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PETROLEUM AS PART OF THE PACFIC ISLANDS ENERGY MIX
SPC Petroleum Workshop Solomone Fifita
1st December 2014
2
FAESP
1. Leadership, Governance, Coordination and Partnerships
2. Energy planning, policy / regulatory frameworks and capacity building
3. Energy Production and Supply
• 3.1 Petroleum and alternative liquid fuels
• 3.2 Renewable energy
4. Energy Conversion
• 4.1 Electric power
5. End-use Energy Consumption
• 5.1 Transportation
• 5.2 Energy efficiency
6. Energy data and information
7. Financing, monitoring and evaluation
7 THEMES
34%
45%
80%
95%
99%
0% 20% 40% 60% 80% 100% 120%
World
Asia Pacific
Caribbean
Pacific Islands Countries
PICs exlcuding PNG & Fiji
Extreme Petroleum Dependency
Source: International Energy Agency (2009) & ADB Report (2009)
75%
25%
0% 20% 40% 60% 80%
Transport
Electricity
Petroleum Fuel end-use in PICs
LAND, AIR & SEA
DIESEL GENERATOR
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
Fuel Imports in USD (2009)
TOTAL = USD 873 million / 1.3 B litres
TOTAL IMPORTS = 1.3 billion litres
0
50,000
100,000
150,000
200,000
250,000
Vo
lum
e (
kl)
Fuel Consumed for Power Generation
TOTAL for electricity = 204 million
litres (16%)
0 100 200 300 400 500 600 700
Cook Islands
Fiji
FSM
Kiribati
Nauru
Niue
Palau
PNG
RMI
Samoa
Solomon
Tonga
Tuvalu
Vanuatu
Fuel Supply Security (Days)
Fuel Supply Security…
0.03%
8.81%
0.04% 0.11% 0.05% 0.33%
0.05%
9.01%
0.02%
5.60%
0.04% 0.03% 0.20% 0.03% 0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
Contribution from traditional use of biomass such as household cooking is excluded in analysis
Renewable energy share - 2009
0.29% 0.26%
0.65%
0.31%
1.85%
0.30% 0.22%
0.64%
0.29%
1.64%
0.00%
0.50%
1.00%
1.50%
2.00%
CookIslands -
TAU
FSM -ave.
Kiribati -PUB
Nauru -NUA
Niue -NPC
Palau -PPUC
RMI -MEC
Solomon -SIEA
Tonga -TPL
Tuvalu -TEC
Excluding - Fiji, PNG, Samoa & Vanuatu
Clean Electricity Contribution
The current fuel price decrease and
possible implications on the RE
drive
0.80
0.85
0.90
0.95
1.00
1.05
1.10
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Mogas Diesel Kerosene
Fuel Prices in Fiji (USD/litre and excluding tax and duty)
Fuel Prices in Tonga (USD/litre and excluding tax and duty)
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Mogas Diesel Kerosene
With international crude oil prices declining further in the month of November, the cost of diesel in Tonga has decreased accordingly by 2.47 seniti per litre, as announced by Government for October-November from $1.8029 to $1.7781 seniti per litre.
A power tariff drop effective today (1/12/14) of 3.34 seniti or 3.31%
The pioneering renewable energy
projects with some co-relation to
fuel prices
Monasavu Hydro (FJ - 80MW)
Wailoa Hydro (FJ - 20 MW)
Afulilo Hydro (Sam – 4 MW)
The follow up renewable energy
projects with some weak co-relation
to fuel prices
0
Nadarivatu Hydro (FJ - 42 MW)
Maama Mai Solar (TON - 1 MW)
Faleata Solar (SAM - 2 MW)
Devils Point Wind (VAN – 2.75 MW)
Devils Point Wind – Vanuatu
Faleata Solar – Samoa
Pacific Energy Summit
(REG – NZD 635 M) UAE-Pacific Partnership Fund
(REG – USD 50 M)
PEC Fund (REG – USD 66 M)
Nadarivatu Hydro (FJ – USD 150 M)
Very strong political commitments to
Renewable Energy
Country Energy Target Timeframe
Cook Islands
50% of inhabited islands electricity needs to be provided
by renewable energy
2015
100% of inhabited islands electricity needs to be provided
by renewable
2020
Fiji 90% renewables in power generation 2015
FSM
Decrease the import and use of imported petroleum fuels
by 50%
2020
10% of electricity in urban centres and 50% in rural areas
will be generated using renewable energy sources
2020
Kiribati
Fuel reduction target for electricity generation in
Kiribati by 2025:
1. South Tarawa: 45%
2. Kiritimati: 60%
3. Rural public infrastructure: 60%
4. Rural public and private institutions: 100%
2025
Marshall Islands
Electrification of 100% of urban households and
95% of rural outer atoll households by
2015
The provision of 20% of energy through
indigenous renewable resources by
2020
Improved efficiency of energy use in 50% of
households and businesses, and 75% of
government buildings by
2020
A 20% efficiency improvement in transportation sector
fuel use by
2020
Nauru 50% of electricity generation to be provided by
renewables
2020
Niue 100% of electricity generation from renewables 2020
Palau
20% contribution of renewable energy to the energy
mix 2020
30% reduction in energy consumption though
energy efficiency and conservation
2020
PNG Decrease GHG emissions by at least 50% before 2030
Become carbon neutral before 2050
Samoa
To reduce the growth rate in the volume of imported
fossil fuels by 10% by
2016
a. Energy Sector Plan launched and implemented
with at least 75% of targets achieved by
2016
b. Increase in the contribution of RE to total energy
consumption by 10% by
2016
c. Increase in the supply of RE for energy services by
10% by
2016
Solomon
Islands
100% replacement of imported fossil fuel for electricity
generation
2030
Increase access to reliable, affordable and stable electricity grid
by 50% from the current 12%
2030
Reduce the price of electricity by half the present tariff rate 2020
Increase access to Solar-Home-Systems by remote rural
dwellers located far from electricity grid from current 8.7% to
30%
2020
Tonga
50% renewable energy in power generation 2020
improve efficiency of electricity supply and demand by 18% 2020
Tuvalu
100% of power generation from renewable 2020
Energy Efficiency improvements of 30% at Funafuti 2020
Vanuatu
100% of energy from renewables & 40% of power generation
through renewables 2015
65% of power generation through renewables 2020
Source: Majuro Declaration for Climate Leadership
• Cook Is Election – July
• Fiji – Sept
• Solomone Is – 19th Nov
• Tonga – 27th Nov
Key election campaign message
“lower the electricity tariff”
• Continuous reliance on grant aid
• Move to more business and
commercial arrangements
China is willing to deepen cooperation with the island countries in trade,
agriculture and fishery, marine industry, energy and resources,
infrastructure construction and other sectors, said Xi, adding that China
will offer zero-tariff preference for 97 percent of tax items imported from
the least developed countries.
China will continue to provide support for the island countries' major
projects, infrastructure construction and projects involving people's
livelihoods, Xi said.
“Development assistance in the sectors of agriculture, education, health and
energy are priority areas of economic cooperation that Tonga seeks to pursue
with India, stated the Lord Prime Minister.”
• He reaffirmed that France would push for a percentage of contributions from the Green Climate Fund to be allocated to the Pacific region and would endeavour to mobilise funds
from the European Union and the World Bank so climate change response efforts in the Pacific could be as
novel and effective as possible.
ADB Funds Major Solar Power Project In Cook Islands $24 million effort to install renewable systems on six islands
The Cook Islands' dependence on fossil fuels should be slashed by a project to
build solar-powered plants on six of its islands.
• The systems are being paid for by the ADB, the EU and the Cook Islands
government. An ADB official, Woo Yul Lee, says lowering the country's
reliance on fossil fuels will help free up government funds for other needs
while improving national energy security and sustainability. He says it
will help the Cooks fulfill its goal of delivering renewable
energy to all its islands by 2020.
• The 24 million US dollar project will install systems on the southern
islands and give total installed power generation capacity of about 3
megawatts, which should save more than a million litres of diesel fuel.
• The project complements ongoing support for solar power in the Cook
Islands from New Zealand.
Would this price change the
perception of policy makers?
• No major change in perception
on Energy Security
/Sustainable Energy for All
What to propose?
• Make hay while the sun shines
• Generate some extra revenue
• Get the enabling fiscal and
monetary instruments in place
Words of Caution
• If we don’t watch our fuel
pricing practices, contracts and
methodologies now, gains in
RE installations can be easily
lost (and not enjoyed by our
communities).
Thank You
