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The Tonga Energy Road Map

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The Tonga Energy Road Map 2010-2012, Daphné Barbotte …

The Tonga Energy Road Map 2010-2012, Daphné Barbotte
Southeast Asia & Pacific Regional Secretariat
Renewable Energy and Energy Efficiency Partnership (REEEP)


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  • 1. 1/11/2011Tonga 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 Barbotte Southeast Asia & Pacific Regional Secretariat Renewable Energy and Energy Efficiency Partnership (REEEP)ICRECC, Suva, 7 December 2010Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010 Improved energy security for the Pacific is a priority 120 100 US$ a barrel. 80 60 40 20 0 2001 2002 2003 2004 2005 2006 2007 2008 to May Fossil fuels currently account for 95% of fuel use in the Pacific. 1
  • 2. 1/11/2011Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010 Changes in availability, quality and cost of fossil fuels have a significant impact on small island economies g p 30% 2002 25% 2008 20% 15% 10% 5% 0% ti ds ji s M u u a u oa Fi ba nd ng at la l FS va an m Pa nu ir i la To Tu Sa l Is Is K Va on k oo m C lo So Petroleum products will remain the major source of energy for the region for a long time to come.Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010 Regional response from the PICs through the Framework for Action on Energy Security in Energy the Pacific (FAESP) Security in the Pacific  new approach to improving energy security region in the Pacific region g 2
  • 3. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 KEY: national energy polices and plans must Energy be the principal means for achieving energy Security in security. the PacificTonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 • Goal: Secure supply, efficient production and use of energy for sustainable Energy development. Security in the Pacific • Outcomes: Access to clean and affordable energy + optimal and productive use of energy. 3
  • 4. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 Objective 2010-2020: Ten-year road map to reduce Tonga’sHighlight: vulnerability to oil price shocks and achieve an increaseTonga Energy in quality access to modern energy services in anRoad Map environmentally sustainable manner.Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 Objective • 50% decrease of reliance on imported diesel by 2020Highlight:Tonga Energy • 50% electricity from renewable energyRoad Map sources by 2012 4
  • 5. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 Innovation Prime Minister’s office manages all divisions linked to energy in order to take effective action regarding energy issues.Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 Innovation All development partners active in energy brought together to jointly with the Government develop the TERM. 5
  • 6. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010  Efficient whole-of-sector approach • energy sector as a whole rather th t h l th than fragmented: RE, EE, Petroleum, Rural electrification efficiently managed together The Road Map benefits • means to aggressively implement renewable energy options in a countryTonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 E Empowerment of the government t f th t • Knowledge The Road • Control Map benefits  Development partners coordination 6
  • 7. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010  Need for a long-term institutional arrangement tTERM  Energy efficiency improvements are cost-conclusions effectiveTonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010  Collect and interpret the information  Develop a new financing mechanismTERMconclusions 7
  • 8. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010  Private sector participation is importantTERMconclusions Key role utilities: sharing data and delivering the implementationTonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 Development partners are open to exploring opportunities f other countries’ roadmaps, if t iti for th ti ’ d if:  Political willReplicationprerequisites  Leadership, in-country champion Strong government initiative and appropriate institutional capacity  Data collection  Perseverance  Development partner coordination 8
  • 9. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010  Learn to say NO  Learn to decline separate offers for Other development projects in favour of a recommen- cohesive outcome dations  Accept delays in one-off project p y p j implementation in favour of long-term benefits Stay strongTonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010  Share experience  Encourage replication of process Tonga the  Share the process in more detail role model? 9
  • 10. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010  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 refrigeratorsTonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 Progress thus far:  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 TERM: more approval. They are expected to be submitted to Cabinet in than just a September 2010. piece of paper on the  A draft Purchase Price Agreement has been completed shelve 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. 10
  • 11. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010  A site has been chosen at Popua and the preparatory Geotech drilling of 10 holes has been completed. TERM: more  Meridian has published a request for information with than just a five pre-qualified panel suppliers in regards to the Solar piece of Panels needed. A full international tender process under EIB paper on the regulations has been instigated which will lead to shelve expression of interests and a request for proposal in October from the two preferred tenders; ultimately confirming the project cost.Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 Financial details Mr Waipara, the Meridian Project Manager of the Tonga Venture is due to present a final draft financial model in TERM: more Tonga in late September. The CEO of Meridian Mr Lusk has than just a confirmed European Investment Bank (EIB) funding for piece of Meridian and they have received a Loan Term sheet from paper on the the bank which had a range of lending from 50 - 75% of shelve the project with an interest rate of 2.5% over 20 years. Final Fi l EIB f di approval is expected by late N funding li t d b l t Novemberb 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. 11
  • 12. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 Renewable Energy and Energy Efficiency Partnership  an international partnership established at the 2002 World Summit on Sustainable Development in JohannesburgREEEP is …  working primarily in developing countries and in countries in transitionTonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 REEEP is facilitating the development of market conditions for the accelerated uptake of renewableCore themes energy and energy efficient technologies through:  structuring policy and regulatory initiatives for clean energy, and  facilitating financing for clean energy projects Unique role of bringing the private sector to the table 12
  • 13. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010REEEP 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 Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010REEEP Regional REEEP Regional Office  REEEP International  North America SecretariatSecretariats and REEEP Regional Office local partners Latin America &  REEEP Regional Office  Caribbean East Asia REEEP Local Focal Point support the MEDREP REEEP Regional Officeglobal REEEP Local Focal Point  ECOWAS ‐ ECREEE South Asiapartnership’sactivities REEEP Regional Office South East Asia & Pacific REEEP Regional Office  Africa 13
  • 14. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 REEEP’s goals: i increase th sustainability of d the t i bilit f demand and supply side d d l id 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  improve energy access for the poor through reliable and clean energy services  replicate success across the developed and developing worldTonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 14
  • 15. 1/11/2011Tonga Energy Road Map, ICRECC Suva7 December December 2010Suva, Fiji, 7 2010 Renewable Energy & Energy Efficiency Partnership Southeast Asia and Pacific Regional SecretariatThank you 18 Kavanagh St Southbank VIC 3006 Melbourne T: +61 3 9929 4100 www.reeep.org daphne.barbotte@reeep.org www.reegle.info 15

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