REP-5 Niue - Project Outcomes

1

PACIFIC ISLANDS FORUM SECRETARIAT

EUROPEAN COMMISSION – 9TH EDF Support to the Energy Sector in Five

ACP Pacific Islands (REP-5)

Programme Management Unit

NIUE – Project Monitoring report

__________________

November 2009 ITP/0921

9th EDF

2

Pacific Islands Forum Secretariat & European Commission

Client contract No.: 9328/REG (EDF IX - REG/7001/000)

IT Power reference: 0921

Report title: Niue – Project Monitoring Report

Date: November 2009

Contractor: IT Power Grove House, Lutyens Close, Chineham, RG24 8AG, United Kingdom. Tel. +44 1256 392700 Fax. +44 1256 392701 E-mail: [email protected] http://www.itpower.co.uk

Document control

File path & name C:\0 work\0 IT POWER Pacific\Niue - 9 ACP NIU 002\2 Mission Reports\13 MTG Oct09 Niue\REP5 - Niue activities - Follow up v15.doc

Author Marc Torra Griso with contributions from Katerina Syngellakis

Project Manager Marc Torra Griso

Programme Manager Katerina Syngellakis

Approved Katerina Syngellakis

Date 31st January 2010

Distribution level Public domain

Template: ITP REPORT Form 005 Issue: 02; Date: 27/08/04

3

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY........................................................................... 4

2 INTRODUCTION ................................................................................... 8

3 CONTEXT ............................................................................................. 9

4 REP-5 PROJECT OBJECTIVES ................................................................. 10

4.1. Background ................................................................................... 10

4.1.1 Quantitative objectives ........................................................ 10

4.1.2 Qualitative objectives .......................................................... 11

4.2 Project Stakeholders ........................................................................ 12

5 RESULTS.............................................................................................. 14

5.1 Activity 1: Installation of solar water heaters and LPG stoves .......... 14

5.1.1. Reversing a long term trend ............................................... 14

5.1.2. Introduction of a progressive tariff ...................................... 16

5.1.3 Energy efficiency resulting from the introduction of the LPG stoves.................................................................................. 17

5.1.4 Estimated savings in diesel consumption............................... 18

5.1.5 Change in peak demand...................................................... 20

5.1.6 Increase in LPG consumption ............................................... 20

5.1.7 Expected future savings in diesel and CO2 emissions.............. 22

5.2 Activity 2: Securing LPG supply......................................................... 24

5.2.1 A more reliable supply......................................................... 24

5.2.2 Cheaper to the consumer .................................................... 24

4.3.3. Safer transport and use...................................................... 24

5.3 Activity 3: Installation of three grid connected solar arrays ................. 28

5.3.1 Results............................................................................... 28

5.3.2 Reply to comments by AusAid Technical assistance................ 29

5.4 Support activities............................................................................. 31

6 CONCLUSIONS...................................................................................... 32

7 THE PMU TEAM .................................................................................... 35

REP5 – Niue Project Monitoring Report

Page 4 of 35

1 EXECUTIVE SUMMARY

1.1. Context

The residents of the small, single island country of Niue have universal access to electricity from the national grid. Total electricity consumption has been increasing despite the static population levels, meaning that per capita the people of Niue are steadily using more.

In a list of 208 countries ranked by oil consumption, Niue is ranked last, with a consumption of 20 barrels a day1 or 2.12 litres per person per day.

Up to 60% of this fuel consumption is Automotive Diesel Fuel (ADO) used by Niue Power Corporation (NPC), the state-owned utility, to generate around 3,000 MWh a year2.

1.2. Project objective

Niue’s EDF-9 Financing Agreement states that the overall objective of the activities to be implemented in Niue was “to improve the overall efficiency of the energy sector (….) Efficiency improvements can be expected to reduce the countries’ energy bill, thus contributing to fiscal balance.3”

The strategic approach was to reverse a long term trend of rising oil consumption by reducing electricity consumption and introducing renewable energy technologies for electricity generation. The rationale for this approach was:

a. environmental: to reduce CO2 emissions;

b. economic: to reduce dependency on imported fuel and improve the balance of trade, thus improving fiscal balance; and

c. geopolitical: to inspire other countries, and in particular to set an example for the larger countries, to urgently search for solutions to reduce their own demand for oil.

1.3. Nature of the project work:

The project combined energy efficiency and renewable energy activities in order to:

1. Tackle the steady increase in electricity consumption by providing 378 LPG stoves at a subsidised price to 70% of the households and thus move from cooking with electricity to cooking with LPG. Savings in total power consumption and CO2 emissions were predicted because of the higher efficiency of LPG as compared to electricity for thermal applications4.

1 The CIA World Factbook 2 Source Niue Bulk Fuel (oil importer) and Niue Power Corporation. 3 Financial Agreement N9328/REG Annex II. 2.1. Objectives of the project 4 Heating two litres of water to boiling point emits 362 grams of CO2 if diesel generated electricity is used, and only 82 grams if LPG is used. To heat up the two litres with electricity requires 0.4381 kWh, which at the typical efficiency of medium size gensets of 3.5 kWh per litre means 0.1252 litres of diesel. With a density of 0.85 kg per litre and emissions of 3.4 kg of CO2 per kg of diesel burnt, this is


Page 5 of 35

2. Reduce dependency on diesel generated electricity by installing three grid-connected solar PV systems for a total capacity of 52 kWp, on a grid that up to that point was completely reliant on diesel generated electricity. This is the first step towards fulfilling the memorandum of understanding signed with Greenpeace to become the first country to produce 100% of their electricity through renewable energy sources.

3. Increase awareness of renewable energy for heating applications by providing 234 solar water heaters to households at a subsidised price. This activity was not predicted to have a noticeable impact on electricity consumption but would raise awareness of using renewable energy for water heating applications, which is much more environmentally friendly than using electricity.

1.4. Benefits and beneficiaries

The energy efficiency activities offered the LPG stoves and solar water heaters at a rebated price, reducing electricity consumption, increasing the security of the supply of LPG to the island and making import, transport, storage, transfer and usage of LPG safer for LPG workers and the end-users alike. The activities benefited 70% of the Niuean population.

The renewable energy activities installed three grid connected solar systems, the largest one next to the hospital, a second one on the roof of one of the secondary school buildings, and the smallest one on the roof of Niue Power Corporation. The activity benefited Niue Power Corporation.

1.5. Major challenges and barriers to overcome

The major challenge was to define a transparent way to set the price of LPG to be paid by Niue Bulk Fuel to the international supplier (Lava Gas Ltd.) in a market in which both supply of energy and international transport are under monopoly.

Another challenge was to get the project equipment and supplies to Niue as there is limited international shipping to Niue. This created delays in the PV installations as the ship carrying the PV equipment to Niue was delayed for over two months.

1.6. Project outcomes:

From the energy efficiency activities:

1. 90,000 litres of diesel were saved in the first year of implementation of the project (2008 to 2009)5, with 46,000 litres of diesel savings directly attributed to the installation of the LPG cook stoves under the REP-5 project.

362 g of CO2 emitted. On the other hand, to heat up the same two litres to boiling point requires 0.0535 litres of LPG. With a density of 0.51 kg per litre and emissions of 3 kg of CO2 per kg of LPG consumed, this is 82 g of CO2 emitted. The 0.4381 kWh and 0.0535litres figures are from South African Utility Eskom. The test was performed by Integrated Energy Solutions (Pty) Ltd. 5 Between Nov 07 and Oct 08 Niue Power Corporation consumed 851,920 litres of diesel; while

between Nov 08 and Oct 09 it consumed 760,209 litres. Reduction in consumption was therefore approximately 90,000 litres between 2008 and 2009.


Page 6 of 35

2. The potential savings are 220,000 litres, assuming LPG demand peaks at 60 tons a year.

3. The project savings of 46,000 litres of diesel have reduced CO2 emissions by 124.2 tons in 2009, while the increase in LPG consumption of 19,600 litres has increased CO2 emissions by 31.4 tons, giving a net saving of 92.8 tons of CO2 in 2009. This is in addition to the reduction in CO, NOx, sulfates and particulates.

4. LPG consumption is estimated to peak at 5 tons a month. This will create savings in CO2 emissions from the reduction in diesel use of 600 tons. The level of emissions related to the LPG stoves distributed by the project will be 150 tons. Therefore the net savings related to the LPG activity will be 450 tons of CO2 a year.

5. Peak electricity demand has been reduced from 600 kW to 500 kW. Peak demand in Niue takes place at 7pm when families start turning their lights on and cooking dinner.

6. The trend in rising electricity consumption has been reversed with household electricity consumption reduced by 18% in 2009.

7. LPG is safer in terms of import (by using special vented containers instead of importing it as normal cargo), transfer (using a pneumatic pump instead of transferring it by decantation), distribution (using a specialised vehicle instead of a pick-up), storage (replacing old cylinders and implementing a procedure for inspecting them), and installation (all LPG stoves have been installed according to AS/NZS 5601:2004).

8. Security of the supply of LPG has been improved by replacing a previous system that resulted in frequent disruptions, with the island going without LPG for weeks, with a negotiated agreement in which LPG is shipped more regularly.

9. The retail price for LPG is cheaper, from the original NZD 65 per 9 kg cylinder to a projected NZD 45 in first quarter 2010, thanks to the agreement recently signed by the supplier that defines a new formula for setting the price. This is amongst the cheapest prices paid by any Pacific Island Country for LPG, and has been achieved on behalf of a market with a population of only 1,500 with an existing monopoly.

10. Hot water has been provided to 42% of the households by using renewable energy, thus without increasing electricity consumption.

From the renewable energy activities:

1. The expected savings on diesel fuel at NPC are 18,000 litres a year from the installation of 52kWp of solar PV systems. To gauge the exact savings the electricity output must be metered from each genset at NPC on a five minute basis, so that interaction between the grid connected PV and the diesel engine can be analysed, and savings measured.


Page 7 of 35

2. All the equipment has been installed by staff from Niue Power Corporation, who have been properly trained on its operation and maintenance.

3. The project selected equipment that maximises system reliability, due to the exposure to a marine environment and Niue’s remoteness from service centres.

4. The installation of a grid-connected PV system at the High School is an opportunity to raise awareness amongst the young people of Niue of renewable energy technologies and how they work.

1.7 Project implementation and data collection

Project implementation started in June 2008 (installation of solar water heaters) and October 2008 (installation of LPG stoves). Neither the solar water heater nor LPG cook stove installations were completed when data was collected for the writing of this report in October 2009. It is expected that installations will finish in the first quarter of 2010.

The PV system installations were only completed in September 2009 so limited data is available on their performance to date. As mentioned above, although the PV systems are functioning as expected and delivering the expected kWh into the grid, the only way to gauge the exact effect on diesel consumption at NPC is to install meters on each diesel genset. Until this is done, diesel savings thanks to the PV system can only be estimated.

For these reasons, it is difficult at this stage to confirm that the trends experienced during 2009, the first year after installation of the LPG, SWH and PV equipment, will continue in the future. More data will be required to confirm the continuity of the positive outcomes attained during this first year.


Page 8 of 35

2 INTRODUCTION

The REP-5 programme “Support to the Energy Sector in 5 ACP Pacific Islands” is being implemented by the Pacific Islands Forum Secretariat and is funded by the 9th European Development Fund (EDF 9). The programme focuses on renewable energy and energy efficiency activities. A Programme Management Unit (PMU) for the REP-5 programme was established in January 2006 based in Suva with a sub-office in Pohnpei. There are five countries participating in the REP-5 programme. These are:

• The Federated States of Micronesia (FSM)

• Nauru

• Niue

• Palau

• The Republic of the Marshall islands (RMI)

This report concerns the monitoring of the energy efficiency and renewable energy activities carried out in Niue between January 2006 and November 2009.

Mr. Marc Torra Griso, Project manager for Niue for the PMU, travelled to Niue between the 24th and the 31st October 2009 to carry out a project monitoring mission, which included gathering LPG and electricity data from Niue Bulk Fuel and Niue Power Corporation and doing a final check on the number of solar water heaters and LPG stoves installed by October 2009.

The report analyses the data gathered during this mission. It compares the objectives at the start of the project with the results achieved and draws conclusions on the effectiveness of the implemented activities.


Page 9 of 35

3 CONTEXT

Niue is a small, single island country with a population of approximately 1,500. Niue is fully electrified and electricity generation and distribution are managed by Niue Power Corporation (NPC), a state-owned power utility.

Due to the decreasing population of Niue over the last decade, the NPC power station is not faced with the expansion problems of most other Pacific Island Countries (PICs). A devastating tropical cyclone struck the island in early 2004 and destroyed most of the government buildings and structures in the main village, although the damage to the electricity infrastructure was minor since most distribution was underground and the powerhouse was located well inland. Since 2004 electricity consumption has been steadily rising as the island was rebuilt.

In a list of 208 countries ranked by oil consumption, Niue is ranked last, with a consumption of 20 barrels a day6. This equates to 3,180 litres a day or 2.12 litres per person per day. Up to 60% of this fuel consumption is Automotive Diesel Oil (ADO) used by NPC to generate around 3,000 MWh a year7. The rest is gasoline used for land and sea transport around the island.

6 The CIA World Factbook 7 Source: Niue Bulk Fuel (oil importer) and Niue Power Corporation.


Page 10 of 35

4 REP-5 PROJECT OBJECTIVES

4.1. Background

The financial agreement and terms of reference of REP-5 have a specific objective for Niue:

“To improve the overall efficiency of the energy sector (….) Efficiency improvements can be expected to reduce the countries’ energy bill, thus contributing to fiscal balance.”

The REP-5 project plan for Niue (July 2007) defined the following project mission for the energy efficiency component:

“To equip every household in Niue with energy efficient and more environmentally friendly thermal appliances.”

And the following project objectives:

4.1.1 Quantitative objectives

a. To remove from the country 80% of the electric cook tops, stoves and ovens (excluding microwaves).

The project has provided the expertise and required draft regulation to apply Extended Producer Responsibility (EPR) to the import of white-ware electrical appliances. Once the Department of Environment provides Cabinet with the reports required and the legislation is passed, it will be possible to start removing the electric cook tops, stoves and ovens. By then most of them would have become redundant because families will use LPG, and the EPR will provide a legal incentive for their disposal as a one-time payment.

b. To reduce electricity consumption between 25% and 40% (between 870,000 kWh/year and 1,370,000 kWh/year)

Electricity consumption has started to decrease, with the potential of a 20% reduction if, as estimated, demand of LPG peaks at 5 tons a month.

c. To reduce diesel consumption by 250,000 to 390,000 litres a year

A 220,000 litre reduction in diesel consumption is expected when LPG consumption peaks at 5 tons a month.

d. To save between NZ$ 200,000 and NZ$ 300,000 in annual electricity generation subsidies (see Table 1 below).

Table 1. Electricity generation subsidies 2006 - 2009

Source: Niue Power Corporation and Niue Power Tariff 2007 (Manswell Limited)


Page 11 of 35

The implementation of energy saving activities started in November 2008, therefore the savings to Government in subsidies due to the project can be seen between year 2 and year 3. There has been a reduction of NZ$ 817,000. This savings can be explained as a result of a number of factors – not all attributable to REP-5 project activities. The factors are:

1. cheaper diesel: $1.55 average cost per litre for year 2 as compared to $1.48 in year 3.

2. higher genset efficiency: average efficiency has increased from 3.5 to 4 kWh per litre as a result of replacing the gensets in mid 2007.

3. higher average price per kWh: from $0.50 in year 2 to $0.63 in year 3. The project assist in this measure by providing a report suggesting billing electricity using thresholds.

4. lower consumption: from 3,900 MWh to 3,401 MWh. This is where project activities contributed by introducing electricity saving LPG appliances.

e. To improve trade balance by at least NZ$ 300,000

In year 3 NPC paid NZ$ 195,000 less for diesel, as compared to year 2. This decrease is the combined result of a lower price per litre of diesel, a lower consumption of electricity and a slightly higher efficiency of the gensets installed in 2007. Table 2 shows diesel consumption and prices.

Table 2. Diesel consumption and prices 2007-2009

Source: Niue Power Corporation

4.1.2 Qualitative objectives

f. To make sure that all the Niuean population becomes fully aware of the inefficiencies of electrical appliances for thermal applications (e.g. electric stove, electric jug, water heater, etc.)

The awareness campaign was successful in educating Niue’s population about the inefficiency of using diesel-generated electricity for heating. Nevertheless, until the retail price per 9 kg cylinder of LPG is brought down to $45, the Niuean population will still view cooking with LPG as being more expensive than cooking with electricity. With the new supply contract signed in November 2009, it will be possible to bring the retail price to this level in early 2010.

g. To bring Niue one step closer to the objective set up in the “Eco-Nation” memorandum of understanding (MoU) signed between Greenpeace and the Government of Niue. The agreement aims at making Niue the first country to produce 100% of its electricity through renewable energy sources.


Page 12 of 35

With improved efficiency thanks to the introduction of LPG stoves, and with 2%8 of electricity being generated by grid connected solar PV systems, it can be said that Niue has advanced one step towards achieving this goal.

h. To improve the quality of the Niuean environment by reducing the total amount of fossil fuels burnt and replacing liquid fossil fuels (diesel and petrol) by LPG, which is less damaging for the environment.

Emissions savings in 2009 are 98.2 tons of CO2. Potential savings thanks to the projects activities are 450 tons CO2 (energy efficiency) and 50 tons CO2 (renewable energy).

i. To apply demand-side measures to reduce and shape electricity load via energy efficiency, improved control and fuel substitution before supply-side options are fully optimised.

Load shape has been improved by the increase in LPG cooking, with peak demand reduced from 600 kW to 500 kW.

4.2 Project Stakeholders

The project also aimed at merging the interests of five different groups:

• Niue Power Corporation and their plans to implement demand-side measures to reduce and shape daily load through the development of energy efficient activities.

NPC direct operational costs have been reduced as a result of a lower consumption of diesel, while it has increased revenues thanks to the higher tariff per kWh. Their interests have therefore been met.

• Niue Government and their plans to

1. reduce total import of diesel (especially ADO),

Achieved by 90,000 litres for year 3 with potential for 220,000 by the end of 2010.

2. raise the standard of living of the Niuean population,

Achieved thanks to the solar water heaters.

3. implement a project that improves the trade balance,

Achieved.

4. preserve the environment and decrease carbon emissions.

Achieved.

• Householders and their wish to reduce their power bills and to have the use of better appliances

Power bills have increased as a result of an increase in the fee which is higher than the savings in electricity consumption. Savings will be higher

8 A total of 52 kW of installed capacity are expected to generate 72,800 kWh a year (1,400 kWh per 1 kW of installed capacity). With 3,4 MWh units consumed, this is just above 2%.


Page 13 of 35

once the price per 9 kg cylinder is brought down to $45 and cooking shifts from electricity to LPG. Households are currently using more energy efficient appliances than before REP-5.

• Importers of the appliances and their plans to take part in the project and not to see it as a rival project that will reduce their potential sales

Importers of appliances were involved in the project as installers and therefore they did not perceive it as a threat to future sales.

• European Union and their vision to provide effective aid.

As a result of achieving the project objectives, it can be said that aid was effective.


Page 14 of 35

5 RESULTS

5.1 Activity 1: Installation of solar water heaters and LPG stoves

This activity aimed to procure and install 234 solar water heaters and 378 LPG stoves and cook tops. By October 2009, 226 solar water heaters and 340 LPG stoves and cook tops were installed. The remainder will be installed in late 2009 and early 2010.

Photo 1. Installed solar water heater Photo 2. Installed LPG stove

5.1.1. Reversing a long term trend

It is still too soon to evaluate the total project impact on electricity consumption because the LPG stoves and cook tops, which have a large potential for reducing electricity consumption, started being installed in November 2008, with installations not expected to be completed until 2010.

Nevertheless there is a noticeable decrease in household consumption from pre-LPG stove installation (2007-2008) to post-LPG stove installation (2008-2009). The average household consumption dropped by 18% during this period (see Table 3).

Table 3. Household and other accounts electricity consumption 2006-2009

Period Units consumed households

Change %

Units consumed remaining accounts

Change %

Year 1. Nov 06 to Oct 07 1,316,848 1,787,407

Year 2. Nov 07 to Oct 08 1,381,944 +5% 2,523,252 +41%

Year 3. Nov 08 to Oct 09 1,132,658 -18% 2,268,577 -10% Source: NPC spreadsheets of monthly billing to customers

Figure 2 and Figure 8 show the trend for diesel consumption for electricity production for 2008 and 2009. This clear shows a downward trend beginning in November 2008, when the installation of LPG stoves began.


Page 15 of 35

0

50,000

100,000

150,000

200,000

250,000

300,000

Feb Mar Apr May Jun Jul Aug Sep Oct Nov

kWh

2008

Electricity consumption - before project

Figure 1. Electricity units consumed before the project


0

50,000

100,000

150,000

200,000

250,000

300,000

Nov Dec Jan Feb Mar April May June July Aug Sept Oct

kWh

2008 - 2009

Electricity consumption - after project

Figure 2. Electricity units consumed after the project Source: Niue Power Corporation

The reduction in household consumption cannot be the result of a reduction in population, because according to the data provided by the Department of Statistics the population between November 2006 and October 2009 remained the same or even experienced a slight increase9. Therefore, the reduction in consumption is the combined effect of:

1. The introduction of a progressive tariff on electricity; and

2. The energy efficiency resulting from the introduction of the LPG stoves.

9 The population was: 1,497 inhabitants in 2007, 1,500 in 2008 and 1,507 in 2009. Source: Niue Department of Statistics.


Page 16 of 35

It is not expected that the installation of solar water heaters has reduced electricity consumption, because the equipment replaced just a few existing electric water heaters, while in some cases households decided to connect their SWH to the electricity grid, causing an increase in electricity consumption that counteracts the expected savings. The use of electric jugs to heat the water will also continue, although the LPG stoves may also be used.

5.1.2. Introduction of a progressive tariff

Billing electricity using consumption thresholds was already advised in the Project Plan written by the PMU in July 2007. In section: “12. Suggested Policies” it says:

a. Introduction of a progressive tariff on electricity

The introduction of a progressive tariff to keep electricity consumption below a certain limit would persuade users that consume above a certain threshold to replace their existing electrical appliances for non-electrical ones. Such a tariff could be easily implemented by the NPC and if it was announced at the same time that households apply for the appliances, would provide a strong incentive for them to apply for LPG stoves.

The consultant, after conversations with NPC on normal consumption levels in Niue, recommends the introduction of the following three levels in residential consumption:

• Subsidized fee for the first 216 kWh month10. Current tariff for the subsidized fee would be NZ$0.38

• Real cost of diesel (direct operating costs) for any kWh/month consumed between 216 and 537 kWh month11. At the current prices of diesel and energy efficiency of the generators, diesel cost per kWh is NZ$0.60

• Real cost of production (all costs) for any kWh/month above 537 which is currently NZ$0.8012

In 2007, the price per kWh was NZ$0.38, with a special rate of NZ$0.70 for air conditioning that required the installation of a second meter.

In August 2007 the price per unit was increased to NZ$0.48 following the advice given in a report written by a New Zealand consultant and funded by the New Zealand High Commission13.

10 The figure is the result of doubling the 1,300 kWh year considered as an efficient consumption level, and dividing it by 12 months. 11 The figure is the result of doubling the 3,223 kWh year currently consumed by a Niuean households, and dividing it by 12 months. 12 Source: Niue Project Plan for REP5. July 2007. Marc Torra Griso. 13 Niue Power Tariff, Guenter Wabnitz, Maunsell/AECOM


Page 17 of 35

In March 2009 a progressive tariff was introduced. The progressive tariff removed the air conditioning rate and charged power at the following thresholds:

• 1 to 100 kWh – NZ$0.50 per unit

• 101 to 300 – NZ$0.60 per unit

• 301 and more – NZ$0.70 per unit

It seems that this increase has not caused a reduction in the units consumed by businesses and government, something that in economic terms is explained as possessing a rigid elasticity of demand14. Nevertheless, it is expected that it has encouraged households to reduce the amount of electricity they consume.

Since the tariff was introduced in March 2009, its full effect is not yet taken into account in the reduction of electricity consumption experienced in 2009. The full effect of the tariff change will likely be felt more clearly in 2010.

5.1.3 Energy efficiency resulting from the introduction of the LPG stoves

The reduction in household electricity consumption has been 18% between years 2 and 3. Some of this reduction is the result from the increase in tariff, but the remaining reduction can be only attributed to the project activities, especially to the installation of LPG stoves.

When considering the non-household accounts (see Table 3), between years 1 and 2 consumption increased by 41% and then between years 2 and 3 it diminished by 10%. It should be taken into account that the 39th Pacific Islands Forum held in Niue in August 2008 caused an increase in the electricity consumed by government and commercial businesses. This explains not only the increase by 41% in year 2, but the subsequent decrease by 10% in year 3, once the event was over. To avoid the distortion caused by the Forum meeting, it is better to compare year 1 with year 3. When comparing these two years the increase in non household consumption has been 27%, while household consumption has decreased by 14%. This increase by 27% is well above the overall 8% increase a year (comparing the “normal” years 1 and year 3), although more years of data will be required in order to confirm this as a long-term trend.

This means that household consumption of electricity has fallen over the last two years while government, public services and private businesses are increasing their consumption.

Considering that the project activities related to energy efficiency were targeting household consumption only, it can be said that the project has been able to reverse the trend of rising household electricity consumption.

14 Rigid elasticity of demand occurs when consumer demand remains constant despite changes in price.


Page 18 of 35

5.1.4 Estimated savings in diesel consumption

Without the project the projected amount of kWh consumed by all the households for year 3 would have been 1,381,944 kWh x 1.08 = 1,492,599 kWh (see also Table 3), using an 8% growth rate in consumption.

Considering that actual consumption was 1,132,658 kWh, the estimated amount of units saved is 359,8941 kWh. Considering the average efficiency of 4 kWh per litre consumed15, this means savings of 90,000 litres of diesel a year.

The same figure is obtained if we take into account that in year 2 the diesel consumed by NPC was 851,920 litres, and in year 3 it was 760,209 litres, which gives a difference of 91,710 litres.

The consumption for year 1 was 838,506 litres, with savings of 78,297 litres when compared with year 3. As can be observed in Figure 3 below, fuel consumption in year 2 tends to increase slightly.

Fuel consumtion (Before installation of LPG stoves)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Sep

-07

Oct

-07

Nov

-07

Dec

-07

Jan-

08

Feb-

08

Mar

-08

Apr

-08

May

-08

Jun-

08

Jul-0

8

Aug

-08

Sep

-08

Oct

-08

litre

s

Figure 3. Fuel consumption before installation of LPG stoves


While the increase in units generated is higher as can be seen in Figure 4 below. This higher increase in units generated is the result of increasing the efficiency of the gensets from an average of 3.4 kWh per litre, to 4 kWh per litre as a result of replacing the old gensets with new ones.

15 This is the average efficiency since January 2008. Source: Niue Power Corporation.


Page 19 of 35

Units generated (year 2)

240,000

250,000

260,000

270,000

280,000

290,000

300,000

Jan-

08

Feb-

08

Mar

-08

Apr

-08

May

-08

Jun-

08

Jul-0

8

Aug

-08

Sep

-08

Oct

-08

Units generated

Linear (Units generated)

Figure 4. Electricity units generated before installation of LPG stoves


On the other hand, in year 3, once the LPG stoves start to be installed, fuel consumption starts diminishing as shown in Figure 5, together with the units generated as seen in Figure 6.

Fuel consumtion (After installation of LPG stoves started)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr

-09

May

-09

Jun-

09

Jul-0

9

Aug

-09

Sep

-09

Oct

-09

litre

s

Figure 5. Fuel consumption after installation of LPG stoves started



Page 20 of 35

Units generated (year 3)

210,000

220,000

230,000

240,000

250,000

260,000

270,000

280,000

290,000

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr

-09

May

-09

Jun-

09

Jul-0

9

Aug

-09

Sep

-09

Units generated

Linear (Units generated)

Figure 6. Electricity units generated after installation of LPG stoves started


5.1.5 Change in peak demand

As can be observed in Figure 7 below, the peak demand is dropping. Peak demand takes place at 19:00, when households turn the lights on and use the electric stoves to cook dinner. Therefore it can be said that the use of LPG stoves has caused a reduction in the peak demand.

Figure 7. Change in peak demand between 2008 and 2009 Source: Niue Power Corporation

5.1.6 Increase in LPG consumption

As mentioned previously, the full impact of changing from cooking with electricity to cooking with LPG has yet to take effect, and further reductions in electricity consumption are expected in the future. The reasons for this are:


Page 21 of 35

1. The LPG stove installation started in November 2008. One year later (November 2009) 10% of the stoves (35 stoves) have not yet been installed. Installations are expected to be complete in early 2010.

2. Some households with the stoves installed are not using them yet because:

• The price of the 9 kg cylinder remains relatively high (NZ$60), causing the perception that cooking with LPG is as expensive as cooking with electricity; although at current prices the cost of cooking with electricity is 50% higher16. The price of the cylinder is expected to fall to NZ$45 (GST included) in 2010.

• Some families are keeping the stoves unused waiting for their electric stove to become old and be disposed. This behaviour was expected, and this is why the original work plan established as a condition for a household to receive a stove “that the recipient agrees to dispose of all the electrical cooktops, stoves and ovens (excluding microwaves) according to the specified procedure17.” Later on government decided to waive this requirement.

Nevertheless, it is possible to estimate how much of the 90,000 litres a year reduction in diesel consumption resulted from the implementation of the LPG stoves activity by analysing the parallel increase in LPG consumption.

When the first LPG stove was installed, in November 2008, the monthly consumption of LPG was around 1 ton or 23,000 litres a year, a figure that had remained almost unchanged for the previous few years.

In September 2009 monthly consumption of LPG was 3.24 ton18 with a total consumption from December 2008 to September 2009 of 22 tons. This figure is 10 tons above the previous average of 12 tons a year, equivalent to 19,600 litres19 extra. Table 4 below gives an index that estimates the amount of diesel saved as a result of this increase in LPG.

Table 4. Comparison of LPG and Electricity to boil water

Source: Eskom (South African Power Utility) and Niue Power Corporation

16 Heating up two litres of water to boiling point using electricity costs NZ$0.27, while it costs $NZ0.18 using LPG. This has been calculated taking into account that it takes 0.0535 litres of LPG and 0.4381 kWh of electricity to heat two litres of water to boiling point. 17 Work Plan for Niue, 2007, Marc Torra Griso, REP-5 PMU, p11. 18 Source: Niue Bulk Fuel, October 2009 19 This results from applying a density of 0.51 kg/l


Page 22 of 35

Therefore, an increase in LPG consumption of 19,600 litres in 2009 has contributed to a decrease in diesel consumption of 46,000 litres20. This means that half of the 90,000 litres of diesel saved in 2009 results directly from the installation of the LPG stoves, with the remaining reduction attributed to the increase in the unit price of the kWh.

Figure 8. Comparison of diesel and LPG consumption 2008 & 2009

Source: Niue Power Corporation and Niue Bulk Fuel

5.1.7 Expected future savings in diesel and CO2 emissions

LPG consumption is estimated to reach 5 tons a month or 118,000 litres (60 tons) a year by the end of 201021. This is 95,000 litres more LPG than was being used on average per year before the project was undertaken. These 95,000 litres of LPG equate to a yearly substitution of approx. 220,000 litres of diesel attributed to the LPG stoves installed by the project22.

20 This figure results from multiplying 19,600 litres by 2.34. 21 This figure has been estimated by assuming that: 1) on average a 9 kg cylinder will last for

three weeks; 2) the remaining units are installed bringing the total number of new units to 378; 3) The number of units installed before the project was 148. This would give us a theoretical total of 526. However, it is also assumed that at least 50 old units will be replaced by the new ones. Therefore, (378+148)-50 = 476 working stoves by the end of installations; 4) the price of LPG will drop from $NZ65 to NZ$45 per 9kg cylinder in 2010; and 5) over 50 households who are still believed to be using electricity for cooking will switch to LPG once the price drops to NZ$45.

22 118,000 litres - 23,000 litre average that the country was consuming before the project = 95,000 extra litres of LPG consumption. At the rate of 2.34 litres of diesel saved by each litre of LPG consumed, this is 220,000 litres a year.


Page 23 of 35

Taking into account: • CO2 emissions of 2.7 kg CO2 per litre of diesel burnt, and • CO2 emission of 1.6 kg CO2 per litre of LPG burnt23.

The following CO2 savings can be calculated:

1. The 90,000 litres of diesel saved in 2009 have reduced CO2 emissions by 243 tons.

2. 46,000 of these avoided diesel litres or 124.2 tons of CO2 are directly attributed to the LPG stove installations.

3. The increase in LPG consumption of 19,600 litres in 2009 produced an extra 31.4 tons of CO2

4. Therefore, the project made a net saving of CO2 emissions of 124.2 – 31.4 = 92.8 tons.

5. The net avoided CO2 emissions for Niue were 243 – 31.4 = 211.6 tons in 2009.

This is in addition to the reduction in CO, NOx, sulfates and particulates.

Further, once consumption of LPG peaks at 5 tons a month, the CO2 savings from the reduction in diesel consumption will be 600 tons of CO2

24. The level of emissions related to the LPG stoves installed by the project will be 150 tons of CO2.

Therefore, in the future, the net savings related to the LPG activity will be 450 tons of CO2 a year.

-200

-100

0

100

200

300

400

500

600

700

Current Future

Project CO2 emission savings / tonnes

Diesel savings

LPG emissions

Net savings

Figure 9. Expected CO2 savings - current and future

23 Both figures from the PIREP Reports, 2004. 24 95,000 litres of LPG substitute for (95,000 x 2.34) = 220,000 litres of diesel, creating a CO2 saving of (220,000 x 2.7) = 600 tons of CO2.


Page 24 of 35

5.2 Activity 2: Securing LPG supply

5.2.1 A more reliable supply

The project has used a similar structure to the one already used for the import of petrol and diesel to Niue. This includes:

• Signature of a long term contract with an NZ gas exporter; • Involving Niue Bulk Fuel (a state-owned company) in the import and local

delivery, plus defining a new brand image for their LPG business line; and • Involving current service stations as retailers.

5.2.2 Cheaper to the consumer

The price of a 9 kg cylinder before project implementation was NZ$65. The price during project implementation is NZ$60, and the price expected from first quarter 2010 onwards, once the new supply agreement is put in place, is NZ$45.

Problems encountered: Because of the small size of the market and the requirement to have a supplier who could comply with the necessary safety standards when transporting LPG in cylinders, it was not possible to encourage free market competition. Solution: The only possible solution was by working out a transparent way to define the price and to make sure that the price was reasonable. The formula that was finally agreed upon was devised by adding a fixed component to the international price of LPG (Saudi price), at the average exchange rate between NZD and USD for that given month, with the fixed component being revised every year according to three indexes published by the NZ statistics department. In this way, the price to be paid in every shipment can be easily checked out by just visiting the following two web sites: http://www.statistics.govt.nz, for the average exchange rate and the three indexes to be applied to the mark-up, and http://www.lpgaustralia.com.au for the Saudi price of the month. The recently signed agreement with Lava Gas represents a 46% saving on the existing supply agreement. Project outcomes will be enhanced further when this cheaper price enters the market

4.3.3. Safer transport and use

This means achieving higher safety standards are going to be achieved in terms of: • Import: before the project import of cylinders was done in containers as normal

cargo, which involves a high hazard.

Results: After the project implementation import is being done in specialised containers and as hazardous cargo – see Photo 3 below.


Page 25 of 35

Photo 3. Containers used for the import of LPG cylinders

• Transfer: previously LPG was transferred from 45 kg cylinders to 9 kg cylinders

by decantation, which posed a serious hazard.

Results: After project implementation, the LPG is transferred using specialised pneumatic pumps –see Photo 4.

Photo 4. Transfer pump

Problems encountered: The pumps were supplied without a filter and the liquid withdrawal cylinders have some solid particles resulting from their galvanization. These particles tend to damage the seals.


Page 26 of 35

Solution: The solution has been the installation of three filters at the unit cost of NZ$ 600 plus installation. The supplier of the cylinders (Gameco Ltd of Australia) and the manufacturer of the cylinders (Manchester Tanks Ltd) agreed to finance this cost in equal parts.

• Storage: previously 9 kg cylinders were owned by the end-users, without any

measures to guarantee their safety. In a marine environment such as the one found in Niue, cylinders can rust quickly, making it unsafe to store high pressurized gas.

Results: The cylinders distributed by the project are new, of very good quality, and personnel at service stations have been trained to visually recognise when a cylinder needs to be replaced, something that is their responsibility.

Photo 5. Bottle swap storage

Problems encountered: The project suggested for cylinders to be owned by service stations and swapped to users (see Photo 5), but it seems that there has been opposition by the service stations to apply this formula.

• Delivery: before project implementation delivery from the port to the storage

area took place in normal vehicles, which is again a safety hazard. Results: The project bought a special vehicle for the delivery of the cylinders from the port to the two service stations – see Photo 6 below.


Page 27 of 35

Photo 6. Truck purchased by the project for LPG distribution

• Usage: before project implementation LPG equipment was installed without

following any standards. In New Zealand the standard for installation of LPG appliances is AS/NZS 5601:2004.

Results: A certified gas appliance installer trained local tradesmen in the installation of LPG equipment according to AS/NZS 5601:2004. Problems encountered: The project encountered problems related to the parts supplied by Reece NZ. Some of the parts supplied by this company did not fit together, causing a delay in the starting date of the installation. Solution: Reece NZ were contacted and asked to replace the parts that did not fit together. The installations then proceeded.


Page 28 of 35

5.3 Activity 3: Installation of three grid connected solar arrays

The aim of this activity was to install three grid-connected PV systems with a total capacity of 52 kWp. These systems were to be distributed as follows:

• 1.7 kWp system on the NPC Office roof

• 20 kWp system on roof of one of the High School buildings

• 30 kWp system on a ground-mounted array at the Hospital

As a result of this activity it was expected a combined annual power output of 73 MWh, equivalent to 2.4% of the current demand. Net savings were expected at 18,000 litres of diesel a year or 48,600 kg of CO2.

5.3.1 Results

The three arrays were installed in July 2009 in conjunction with a regional workshop organised in partnership with PIGGAREP.

The grid connected PV systems at NPC and secondary school started being operational right after installation and have been feeding electricity into the grid since August 2009.

The ground mounted system installed next to the hospital was installed at the same time (July 2009) but there was not enough cable to connect it to the grid. Once the cable had been shipped from New Zealand, the grid-connection was finished and the system became operational on September 23rd 2009 (see Photo 7).

Photo 7. Grid-connected PV system at the Hospital - array and inverters

Data is being recorded from all the inverters, but NPC needs a system that can import the data from the current log files and process it. Furthermore it needs to connect data loggers to each of the two gensets in order to record energy generated from them and analyse the interaction between the PV panels and the gensets. Only then it will be possible to calculate the actual amount of diesel that is being saved.


Page 29 of 35

5.3.2 Reply to comments by AusAid Technical assistance

The AusAid technical assistance (Paul Johnson) to the Niue Power Corporation made the following comments during the final steering committee in Suva from 2nd to 4th November 2009:

1. Australian and New Zealand Standards were not required in the tender and in Niue these are the standards that apply.

Reply: The standards were required in the tender. Article 3 Special Conditions defines an order of preference to the documents. This order includes the Electric Power Supply Act - Grid Connected Renewable Energy Regulations (currently under draft format) as Annex VIII. The act specifies the AS/NZS standards relevant to the installation and indicates that the contractor must follow them.

2. He disagreed with the design of the grid connected systems, saying that it would have been preferable to have an industrial type of system instead of a domestic one scaled up.

Reply: The technical design was drawn up according to the requirements of NPC and working in collaboration with the previous AusAid technical assistance (Phil McGill) at the time. In messages to the PMU, Mr McGill expressed his requirements for the PV supply as follows and after consultation with PV experts the system design was agreed to be a good one. Specifically, Mr. McGill requested:

• low voltage per array

message from 30/04/08:

“we need to keep string voltages as low as practical.”

• no industrial system

message from 12/01/08:

“I always prefer distributed, redundant systems for here, not one big complex industrial type solar power plant that will be hard to support and offer little supply redundancy.”

• small inverters

message from 27/10/08

“We should also remember that NPC would probably prefer a system that had many smaller inverters rather than one big inverter (for reliability/redundancy).”

The PV experts contracted by the PMU (Dr. Herb Wade and Mr. Heinz-W. Boehnke) agreed to the suggested design because:

“the only problem is that it takes a lot of room, while the following advantages occur:

a. If an inverter fails only a small loss to the system input occurs,

b. Shipping of a failed inverter is much less as the weight of the enclosed transformer goes up as the inverter size goes up.

c. This multiple inverter approach is commonly used in commercial


Page 30 of 35

systems in Europe. I absolutely would not recommend a inverter approach that has one single inverter for each phase. That is what was done in Asor and Fadrai and it has been a continuing problem because the failure of one inverter essentially puts the system out of service and it costs thousands of dollars to send a whole inverter back to the factory.

d. Because the heat sinks are spread out over a large area, no fans (that use power and can break down) are needed. A single large inverter always has problems getting rid of the heat and often has resulted in the use of an air conditioner to keep the inverter at an acceptable temperature (the case in Tuvalu and Tokelau where single large inverters are used).”

-- Message from Herb Wade (01/11/2009)

Therefore while the PMU accepts Mr. Johnson’s comments, it is clear that there is more than one way to design a good PV system. The systems in Niue were designed by experts with considerable experience in the PV field and due care was taken to agree the design with NPC staff at the time and design systems appropriate for Niue.

3. He expressed concern on the foundations of the ground mounted array at the hospital and the lack of enough documentation to support the design. He put as an example that the need to orientate the array north was not written in the design.

Reply: The PMU agrees that this area could have been improved and greatly appreciates the assistance given by Paul Johnson during installation to make sure that the orientation was correct, the foundations strong enough and the fact that he has commented on the design of the supporting structure that was finally assembled. The design of the structure was in fact checked and approved by a civil engineer in Fiji (Robert Pole of Ian McCallan&Co) and a structural drawing was produced to guide the installers in Niue. The structure was then installed using the materials locally available. The PMU would like to point out here that the best solution to avoid complications with ground structures is to mount the PV arrays on a roof wherever possible.

4. He expressed concern on how neatly the cables were laid out.

Reply: The PMU considers that one of the key elements to secure future sustainability is to have locals installing the equipment. If an installation team is sent from overseas to install all the equipment so that the project is completed well, the project’s future sustainability is compromised because the locals will not know how the equipment was installed. The installation of all the three arrays was carried out by locals under supervision from the two experts engaged by the PMU (Herb Wade and Heinz-W. Boehnke) and by the AusAid TA (Paul Johnson), and although the cables could had been laid out more neatly, the performance of the equipment is not compromised and its future sustainability is maximised.


Page 31 of 35

5.4 Support activities

The project had a strategy in mind for the removal of 80% of the existing electric stoves, but as described below, the outcome was not achieved because it was not possible to implement the strategy. The strategy was based on:

• Setting up a site for the proper recycling of the equipment

Results: The project has set the site, provided it with electricity and made sure that they have the tools for the proper recycling of the equipment. The only outstanding item is for the site to be connected to the water supply. Funds have been set aside for this since the beginning of 2009 but the work has not yet been carried out by the Water Department in Niue.

• Improving the current Extended Producer Responsibility system (EPR) by assisting a regulation to be passed that extends the system from cans to other items such as white ware, e.g. electric stoves

Results: The PMU (Short term expert, Alice Leney) drafted a regulation to be passed by Cabinet in June 2008. Cabinet requested a report from the Department of Environment on the current status of the EPR system applied to the aluminium cans. The Department of Environment, has submitted the report but further clarifications are needed. The Department of Environment also wanted to make modifications to the regulation. As a result the regulation has not been passed. However, it would be relatively simple for this work to be carried out by the Department of Environment in 2010 if they so wish.

• Recycling the existing cylinders: the privately owned cylinders that are considered unsafe will be sent to New Zealand for disposal.

Results: Some cylinders have been removed from the circuit by the service stations and recycled. This will be a slow process that will take time as householders switch to newer cylinders.

• Disposal of existing electric stoves: households that applied for the gas stoves will be given incentives for disposing of their existing electric stove.

Results: For the disposal of the existing electric appliances it was necessary (1) to set up the site, and (2) pass the required legislation. The site has been set up, but because the legislation has not been passed, the appliances have not been disposed of. In addition, households are reluctant to give away their old electric stoves even after receiving the new LPG stove, probably because they are wary from past experience of LPG running out. It will take time so that people can become more confident of LPG supply and feel secure enough to get rid of their old electric stoves. This also gives time for the legislation to be passed through Cabinet.

Lessons learned:

There was a significant delay when the Cabinet asked the Department of Environment for a report on the existing EPR and then the Department of Environment asked for additions to the regulation too late in the project implementation. Funding and timing of activities did not allow for the recycling specialist to spend additional time in Niue to follow up on the recycling activities.


Page 32 of 35

6 CONCLUSIONS

The energy efficiency activities benefited 70% of the Niuean population by providing LPG stoves and solar water heaters at a rebated price, increasing the security of the supply of LPG to the island and making import, transport, storage, transfer and usage of LPG safer for LPG workers and the end-users alike. The energy efficiency activities benefited NPC by reducing electricity consumption and thus reducing diesel (ADO) consumption for power generation.

The renewable energy activities benefited Niue Power Corporation by reducing diesel consumption for electricity generation through the installation of three grid connected solar systems, the largest one next to the hospital, a second one next to the secondary school, and the smallest one on the roof of Niue Power Corporation.

There were a number of small and big challenges encountered during the project. One major challenge was to define a transparent way to set the price of LPG to be paid by Niue Bulk Fuel to the international supplier (Lava Gas Ltd.) in a market in which both supply of energy and international transport are under monopoly. This was eventually achieved in November 2009.

Another challenge was to get the project equipment and supplies to Niue as there is limited international shipping to Niue. This created delays in the PV installations as the ship carrying the PV equipment to Niue was delayed for over two months and installation was delayed from March to July 2009.

The outcomes from the project can be summarised as follows:

From the energy efficiency activities:

1. 90,000 litres of diesel were saved in the first year of implementation of the project (2008 to 2009)25, with 46,000 litres of diesel savings directly attributed to the installation of the LPG cook stoves under the REP-5 project.

2. The potential savings are 220,000 litres, assuming LPG demand peaks at 60 tons a year.

3. The project savings of 46,000 litres of diesel have reduced CO2 emissions by 124.2 tons in 2009, while the increase in LPG consumption of 19,600 litres has increased CO2 emissions by 31.4 tons, giving a net saving of 92.8 tons of CO2 in 2009. This is in addition to the reduction in CO, NOx, Sulfates and Particulates.

4. LPG consumption is estimated to peak at 5 tons a month. When this happens, the savings in CO2 from the reduction in diesel use will be 600 tons. The level of emissions related to the LPG stoves distributed by the project will be 150 tons. Therefore the net savings related to the LPG activity will be 450 tons of CO2 a year.

5. Peak electricity demand has been reduced from 600 kW to 500 kW. Peak demand in Niue takes place at 7pm when families start turning their lights on and cooking dinner.

25 Between Nov 07 and Oct 08 Niue Power Corporation consumed 851,920 litres of diesel; while

between Nov 08 and Oct 09 it consumed 760,209 litres. Reduction in consumption was therefore approximately 90,000 litres between 2008 and 2009.


Page 33 of 35

6. The trend in rising electricity consumption has been reversed with household electricity consumption reduced by 18% in 2009.

7. LPG is safer in terms of import (by using special vented containers instead of importing it as normal cargo), transfer (using a pneumatic pump instead of transferring it by decantation), distribution (using a specialised vehicle instead of a pick-up), storage (replacing old cylinders and implementing a procedure for inspecting them), and installation (all LPG stoves have been installed according to AS/NZS 5601:2004).

8. Security of the supply of LPG has been improved, by replacing a previous system that resulted in frequent disruptions, with the island going without LPG for weeks with a negotiated agreement which should improve the regularity of LPG shipping.

9. The retail price for LPG is cheaper, from the original NZD 65 per 9 kg cylinder to a projected NZD 45 in first quarter 2010 thanks to the agreement recently signed by the supplier that defines a new formula for setting up the price. This is amongst the cheapest prices paid by any Pacific Island Country for LPG, and this has been achieved on behalf of a market with a population of only 1,500 and with an existing monopoly.

10. Hot water has been provided to 42% of the households using renewable energy and thus without increasing electricity consumption.

From the renewable energy activities:

1. Expected savings of 18,000 litres a year from the installation of 52kWp of solar PV systems. To gauge the exact savings the electricity output must be metered from each genset at NPC on a five minute basis, so that interaction between the grid connected PV and the diesel engine can be analysed, and savings measured.

2. All the equipment has been installed by staff from Niue Power Corporation, who have been properly trained on its operation and maintenance.

3. The project selected equipment that maximises system reliability, due to the exposure to a marine environment and Niue’s remoteness from service centres.

4. The installation of a grid-connected PV system at the High School is an opportunity to raise awareness amongst the young people of Niue of renewable energy technologies and how they work.

There are some limitations to the conclusions of this report. Project implementation started in June 2008 (installation of solar water heaters) and October 2008 (installation of LPG stoves). Neither the solar water heater nor LPG cook stove installations were completed when data was collected for the writing of this report in October 2009. It is expected that installations will finish in the first quarter of 2010.

The PV systems installations were only completed in September 2009 so limited data is available on their performance to date. As mentioned above, although the PV systems are functioning as expected and delivering the expected kWh into the grid, the only way to gauge the exact effect on diesel consumption at NPC is to install meters on each diesel genset. Until this is done, diesel savings thanks to the PV system can only be estimated.


Page 34 of 35

For these reasons, it is difficult at this stage to confirm that the trends experienced during 2009, the first year after the installation of the LPG, SWH and PV equipment, will continue in the future. More data will be required to confirm the continuity of the positive outcomes attained during this first year.


Page 35 of 35

7 THE PMU TEAM

• Marc Torra Griso ([email protected]) was project manager for all the activities implemented in Niue. He designed the different project activities, and advised Government of Niue to add the LPG stove component as the one with the potential of saving energy, and to replace the installation of a wind turbine by the grid connected PV.

• Katerina Syngellakis ([email protected]) was the overall Programme Manager for the REP-5 Programme and provided technical support and guidance from the PMU Suva office.

• Herbert Wade ([email protected]) was a short term expert for the PMU and assisted in the technical design and installation of the grid connected PV systems.

• Robert Cross ([email protected]) was a short term expert for the PMU and assisted in securing the LPG supply and in making it safer.

• Alice Leney ([email protected]) was a short term expert for the PMU and assisted with the recycling activities.

Documents

REP-5 Niue - Project Outcomes