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

1. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva, 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 2010
Tonga Energy Road Map, ICRECC
Suva, 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. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva, 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, ICRECC
Suva, 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. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
KEY: national energy polices and plans must
Energy be the principal means for achieving energy
Security in security.
the Pacific
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, 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. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
Objective
2010-2020: Ten-year road map to reduce Tonga’s
Highlight: vulnerability to oil price shocks and achieve an increase
Tonga Energy in quality access to modern energy services in an
Road Map environmentally sustainable manner.
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
Objective
• 50% decrease of reliance on
imported diesel by 2020
Highlight:
Tonga Energy • 50% electricity from renewable energy
Road Map sources by 2012
4

5. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, 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
Suva
7 December December 2010
Suva, Fiji, 7 2010
Innovation
All development partners active in energy
brought together to jointly with the
Government develop the TERM.
5

6. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, 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 country
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
E
Empowerment of the government
t f th t
• Knowledge
The Road • Control
Map benefits
 Development partners coordination
6

7. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
 Need for a long-term institutional
arrangement t
TERM  Energy efficiency improvements are cost-
conclusions effective
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
 Collect and interpret the information
 Develop a new financing mechanism
TERM
conclusions
7

8. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
 Private sector participation is important
TERM
conclusions
Key role utilities:
sharing data and delivering the implementation
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
Development partners are open to exploring
opportunities f other countries’ roadmaps, if
t iti for th ti ’ d if:
 Political will
Replication
prerequisites  Leadership, in-country champion
Strong government initiative and
appropriate institutional capacity
 Data collection
 Perseverance
 Development partner coordination
8

9. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, 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 strong
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
 Share experience
 Encourage replication of process
Tonga the  Share the process in more detail
role model?
9

10. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, 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 refrigerators
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, 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. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, 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
Suva
7 December December 2010
Suva, 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. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
Renewable Energy and Energy Efficiency Partnership
 an international partnership established at the 2002
World Summit on Sustainable Development in
Johannesburg
REEEP is …
 working primarily in developing countries and in
countries in transition
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
REEEP is facilitating the development of market
conditions for the accelerated uptake of renewable
Core 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. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
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
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
REEEP Regional REEEP Regional Office REEEP International
North America Secretariat
Secretariats and REEEP Regional Office
local partners Latin America & REEEP Regional Office
Caribbean East Asia
REEEP Local Focal Point
support the MEDREP
REEEP Regional Office
global REEEP Local Focal Point
ECOWAS ‐ ECREEE
South Asia
partnership’s
activities
REEEP Regional Office
South East Asia & Pacific
REEEP Regional Office
Africa
13

14. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, 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
world
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
14

15. 1/11/2011
Tonga Energy Road Map, ICRECC
Suva
7 December December 2010
Suva, Fiji, 7 2010
Renewable Energy & Energy Efficiency Partnership
Southeast Asia and Pacific Regional Secretariat
Thank you
18 Kavanagh St
Southbank VIC 3006
Melbourne
T: +61 3 9929 4100
www.reeep.org
daphne.barbotte@reeep.org
www.reegle.info
15