The Tonga Energy Road Map
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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
Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010
Improved energy security for the Pacific is a priority
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2001 2002 2003 2004 2005 2006 2007 2008 toMay
Fossil fuels currently account for 95% of fuel use in the Pacific.
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010
Changes in availability, quality and cost of fossil fuels have a significant impact on small island economiesg p
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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 the Pacific (FAESP)
new approach to improving energy security in the Pacific region
Energy Security in the Pacific region g
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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.
Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
• 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.
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
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
Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
Objective
Highlight: Tonga Energy Road Map
• 50% decrease of reliance on imported diesel by 2020
• 50% electricity from renewable energy sources by 2012
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 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, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
Innovation
All development partners active in energy brought together to jointly with the
Government develop the TERM.
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
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
Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
E t f th t
The Road Map benefits
Empowerment of the government
• Knowledge
• Control
Development partners coordination Development partners coordination
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
Need for a long-term institutional tarrangement
Energy efficiency improvements are cost-effective
TERM conclusions
Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
Collect and interpret the information
Develop a new financing mechanismTERM conclusions
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
Private sector participation is important
TERM conclusions
Key role utilities: sharing data and delivering the implementation
Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
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
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
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
Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
Share experience
Tonga the role model?
Encourage replication of process
Share the process in more detail
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 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, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
Progress thus far:
Draft changes necessary to Legislation for the successful
TERM: more than just a piece of paper on the shelve
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.
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
A site has been chosen at Popua and the preparatory
TERM: more than just a piece of paper on the shelve
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.
Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
Financial details
TERM: more than just a piece of paper on the shelve
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.
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
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 …
Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
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
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 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, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
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
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
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
Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
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Tonga Energy Road Map, ICRECCSuva, Fiji, 7 December 2010Tonga Energy Road Map, Suva7 December 2010
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
daphne.barbotte@reeep.org
www.reegle.info
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