The Tonga Energy Road Map

1/11/2011

1

Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010

Renewable Energy and Energy Efficiency Partnership gy gy y p(REEEP)

The Tonga Energy Road Map

Daphné BarbotteSoutheast Asia & Pacific Regional Secretariat

Renewable Energy and Energy Efficiency Partnership (REEEP)

ICRECC, Suva, 7 December 2010


Improved energy security for the Pacific is a priority

120

40

60

80

100

120

US

$ a

ba

rre

l.

0

20

2001 2002 2003 2004 2005 2006 2007 2008 toMay

Fossil fuels currently account for 95% of fuel use in the Pacific.

1/11/2011

2


Changes in availability, quality and cost of fossil fuels have a significant impact on small island economiesg p

0%

5%

10%

15%

20%

25%

30% 2002

2008

0%

Kiribat

i

Palau

Tonga

FSM

Solom

on Isla

nds

Tuvalu

Samoa Fiji

Cook Isla

nds

Vanua

tu

Petroleum products will remain the major source of energy for the region for a long time to come.


Regional response from the PICs through the

Framework for Action on Energy Security in the Pacific (FAESP)

new approach to improving energy security in the Pacific region

Energy Security in the Pacific region g

1/11/2011

3

Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010

Energy Security in the Pacific

KEY: national energy polices and plans must be the principal means for achieving energy security.


• Goal: Secure supply, efficient production and use of energy for sustainable development.

• Outcomes: Access to clean and affordable

Energy Security in the Pacific

energy + optimal and productive use of energy.

1/11/2011

4


Objective

2010-2020: Ten-year road map to reduce Tonga’s vulnerability to oil price shocks and achieve an increase in quality access to modern energy services in an environmentally sustainable manner.

Highlight: Tonga Energy Road Map


Objective

Highlight: Tonga Energy Road Map

• 50% decrease of reliance on imported diesel by 2020

• 50% electricity from renewable energy sources by 2012

1/11/2011

5


Innovation

Prime Minister’s office manages all divisions linked to energy in order to take effective action regarding energy issues.


Innovation

All development partners active in energy brought together to jointly with the

Government develop the TERM.

1/11/2011

6


Efficient whole-of-sector approach

t h l th th • energy sector as a whole rather than fragmented: RE, EE, Petroleum, Rural electrification efficiently managed together

The Road Map benefits

• means to aggressively implement renewable energy options in a country


E t f th t

The Road Map benefits

Empowerment of the government

• Knowledge

• Control

Development partners coordination Development partners coordination

1/11/2011

7


Need for a long-term institutional tarrangement

Energy efficiency improvements are cost-effective

TERM conclusions


Collect and interpret the information

Develop a new financing mechanismTERM conclusions

1/11/2011

8


Private sector participation is important

TERM conclusions

Key role utilities: sharing data and delivering the implementation


Development partners are open to exploring t iti f th t i ’ d if

Replication prerequisites

Political will

Leadership, in-country champion

Strong government initiative and appropriate institutional capacity

opportunities for other countries’ roadmaps, if:

appropriate institutional capacity

Data collection

Perseverance

Development partner coordination

1/11/2011

9


Learn to say NO

Other recommen-dations

Learn to say NO

Learn to decline separate offers for development projects in favour of acohesive outcome

Accept delays in one-off project p y p jimplementation in favour of long-term benefits

Stay strong


Share experience

Tonga the role model?

Encourage replication of process

Share the process in more detail

1/11/2011

10


1.5 MW Centralised Solar PV Project

TERM: more than just a piece of paper on the shelve

REEEP’s response: Energy Efficiency policy Implementation of the revised RE Act MEPS and labelling for refrigerators


Progress thus far:

Draft changes necessary to Legislation for the successful


Draft changes necessary to Legislation for the successful operation of the on grid RE power station have been submitted to the Minister of Public Enterprises for approval. They are expected to be submitted to Cabinet in September 2010.

A draft Purchase Price Agreement has been completed by Meridian and TPL. Key details of the PPA are that pricing will be “return to equity” based (rather than linked to the landed price of diesel) and that the agreed price will be lower than the current electricity tariff and fixed for the 20 year life of the project. There is consensus among commentators that oil prices will continue to rise over the next 20 years, meaning that the savings from the project will rise over time.

1/11/2011

11


A site has been chosen at Popua and the preparatory


A site has been chosen at Popua and the preparatory Geotech drilling of 10 holes has been completed.

Meridian has published a 'request for information' with five pre-qualified panel suppliers in regards to the Solar Panels needed. A full international tender process under EIB regulations has been instigated which will lead to 'expression of interests' and a request for proposal in October from the two preferred tenders; ultimately confirming the project cost.


Financial details


Mr Waipara, the Meridian Project Manager of the Tonga Venture is due to present a final draft financial model in Tonga in late September. The CEO of Meridian Mr Lusk has confirmed European Investment Bank (EIB) funding for Meridian and they have received a Loan Term sheet from the bank which had a range of lending from 50 - 75% of the project with an interest rate of 2.5% over 20 years. Fi l EIB f di l i t d b l t N b Final EIB funding approval is expected by late November 2010. The Prime Minister of Tonga has stated that the GoT is prepared to invest NZD$2m as a grant to show their appreciation and commitment to the project.

The plant will be commissioned in July 2011.

1/11/2011

12


Renewable Energy and Energy Efficiency Partnership

an international partnership established at the 2002 an international partnership established at the 2002 World Summit on Sustainable Development in Johannesburg

working primarily in developing countries and in countries in transition

REEEP is …


REEEP is facilitating the development of market conditions for the accelerated uptake of renewable energy and energy efficient technologies through:

structuring policy and regulatory initiatives for clean energy, and

facilitating financing for clean energy projects

Core themes

Unique role of bringing the private sector to the table

1/11/2011

13


REEEP partners- businesses- G8 countries- developing

countries- NGOs

REEEP Partners include 45 governments –

• all the G7 countries and South Africa, Brazil, Mexico )

• States and key agencies from China and India (NDRC, IREDA )

• Development Banks and other International Organisations


REEEP Regional Office East Asia

REEEP Regional Office Latin America &

Caribbean

REEEP Regional Office North America

REEEP Local Focal Point MEDREP

REEEP Regional OfficeSouth Asia

REEEP International Secretariat

REEEP Local Focal Point ECOWAS ‐ ECREEE

REEEP Regional Secretariats and local partners support the global partnership’s

REEEP Regional Office Africa

REEEP Regional OfficeSouth East Asia & Pacific

activities

1/11/2011

14


REEEP’s goals:

i th t i bilit f d d d l id increase the sustainability of demand and supply side of energy systems

reduce market barriers and financial obstacles for renewables and energy efficiency systems

establish on-the-ground project activities that are targeting policy improvements and innovative finance mechanisms mechanisms

improve energy access for the poor through reliable and clean energy services

replicate success across the developed and developing world


1/11/2011

15


Renewable Energy & Energy Efficiency Partnership

Thank you

Southeast Asia and Pacific Regional Secretariat

18 Kavanagh St

Southbank VIC 3006

Melbourne

T: +61 3 9929 4100

www.reeep.org

[email protected]

www.reegle.info

The Tonga Energy Road Map

Documents

Transcript of The Tonga Energy Road Map