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RENEWABLES READINESS ASSESSMENT 2012

KIRIBATI

About IRENA

The International Renewable Energy Agency (IRENA)promotes the accelerated adoption and sustainable use of allforms of renewable energy. IRENA’s founding members wereinspired by the opportunities offered by renewable energy toenable sustainable development while addressing issues ofenergy access, security and volatility. Established in 2009, theinter-governmental organisation provides a global networkinghub, advisory resource and unified voice for renewable energy.

www.irena.org

The designations employed and the presentation of materials hereindo not imply the expression of any opinion whatsoever on the partof the Secretariat of the International Renewable Energy Agencyconcerning the legal status of any country, territory, city or area orof its authorities, or concerning the delimitation of its frontiers orboundaries. The term “country” as used in this material also refers,as appropriate, to territories or areas.

RENEWABLES READINESS ASSESSMENT 2012Exploring sustainable andsecure pathways towardsenergy independence

KIRIBATI

Table of Contents

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LIST OF ACRONYMS 6ACKNOWLEDGEMENTS 8FOREWORD 9PREFACE 10EXECUTIVE SUMMARY 12

I. INTRODUCTION 18Country Profile 18Renewables Readiness Assessment 20Objective 22

II. ENERGY AND RENEWABLE ENERGY 23Regional Context 23Overview of the Energy Sector 23Renewable Energy Sources and Potentials 27Key Energy Stakeholders and Legal Structure of the Energy Sector 35Energy Policy and Regulatory Framework 36Financing and Investment 37Human Capacity 37

III. DEVELOPMENT OF THE RENEWABLE ENERGY MARKET 38Service-Resource I: Grid-connected Solar PVs 38Service-Resource II: CNO biofuels for PUB power generation 42Service-Resource III: Off-grid Solar PVs 42Service-Resource IV: Off-grid CNO-based biofuels for power generation 46Service-Resource V: CNO-based biofuels for transportation 47Service-Resource VI: Legislation and policy 48

R E N E WA B L E S R E A D I N E S S A S S E S S M E N T

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IV. SUMMARY OF THE RECOMMENDED ACTIONS 52

V. BEST PRACTICES IN KIRIBATI 53

VI. FUTURE CO-OPERATION 57

VII. REFERENCES AND BIBLIOGRAPHY 59

VIII. ANNEX 62

Action1: Improve policies, legislation and regulations to 62support the use of renewable energyAction 2: Achieve high penetration of grid-connected 64solar photovoltaic (PV) installationsAction 3: Develop a strategy for partly substituting 66diesel fuel with coconut oil biofuel (CNO)Action 4: Strengthen and promote off-grid solar applications 68Action 5: Determine the best roles for the available renewable 70energies in Kiritimati’s power development.

K I R I B AT I

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ADB Asian Development BankADO Automotive Diesel OilAUD Australian Dollar (currency)CIA USA Central Intelligence AgencyCNO Coconut OilDC/DC Direct Current to Direct CurrentEEZ Exclusive Economic ZoneENSO El Niño/El Niña Oscillation CycleEPU Energy Planning UnitEU European UnionGDP Gross Domestic ProductGWh Gigawatt-hours (thousands of MWh)IC Island CouncilIRENA International Renewable Energy AgencyJICA Japan International Cooperation AgencyKCMCL Kiribati Copra Mill Company Ltd.KIT Kiribati Institute of TechnologyKOIL Kiribati Oil CompanyKSEC Kiribati Solar Energy CompanykWh Kilowatt Hours (thousands of Watt hours)kWp Kilowatt-peakLDC Least Developed Countries (UN Designation)LPG Liquefied Petroleum GasML Megalitre (Millions of litres)MLPID Ministry of Line and Phoenix Islands DevelopmentMPWU Ministry of Public Works and UtilitiesMT Metric TonnesMW Megawatts (millions of Watts)MWh Megawatt-hours (thousands of kWh)NASA USA National Aeronautics and Space Agency

List of Acronyms


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O and M Operation and MaintenanceOTEC Ocean Thermal Energy ConversionPEC Pacific Environment CommunityPIC Pacific Islands CountryPIREP Pacific Islands Renewable Energy ProjectPWM Pulse Width ModulationPRIF Pacific Regional Infrastructure FacilityPUB Public Utilities BoardPVs Solar PhotovoltaicsPWD Public Works DepartmentRD&D Research, Development and DemonstrationRE Renewable EnergyRERF Revenue Equalisation Fund RESCO Renewable Energy Service CompanyRET Renewable Energy TechnologyRRA Renewables Readiness AssessmentSPIRE South Pacific Institute for Renewable Energy (Tahiti)SHS Solar Home SystemsSOPAC South Pacific Applied Geoscience CommissionSPC Secretariat of the Pacific CommunitySPREP Secretariat of the Pacific Regional Environment ProgrammeUNDP United Nations Development ProgrammeUSAID United States Agency for International DevelopmentUSD United States Dollars (Currency)USP University of the South PacificV Volt (Electrical Measure)WB World BankWp Watts peak (Solar Photovoltaics)

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Acknowledgements

The International Renewable Energy Agency would like to thank thefollowing reviewers for their constructive comments and valuable inputs tothe RRA report.

Apisake Soakai Consultant of IRENA based in Suva Fiji

Grilles Vaitilingom Energy Expert, Agricultural Research for Development, France

Kireua Bureimoa Energy Planner, Ministry of Public Works and Utilities of Kiribati

Kamlesh Khelawan Senior Energy Specialist, the World Bank (Sydney)

Katerina Syngellaki Sustainable Energy Advisor at GIZ based in SPC, Fiji

Koin Etuati Project Officer, Secretariat of the Pacific Community

Mirei Isaka Project Officer, IRENA Innovation and Technology Center based in Bonn, Germany

Paul Hattle Energy Specialist, Asian Development Bank

Tiaon Aukitino Former Acting Energy Planner, Ministry of Public Works and Utilities of Kiribati

Comments or questions about this Renewable ReadinessAssessment report can be sent to [email protected] or [email protected].


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Energy independence has been a dream we have been pursuing for decades, as it is thefoundation to our vision of providing “available, accessible, reliable, affordable, clean andsustainable energy options for the enhancement of economic growth and improvement oflivelihoods in Kiribati.” The recent surge in prices of energy commodities has onlystrengthened the need for energy independence and the link between secure supply ofaffordable energy for Kiribati and economic development. To achieve that, it is undeniablethat renewable energy sources should have a major role to play.

The Renewables Readiness Assessment (RRA) process has been instrumental in identifyingthe gap that must be narrowed if the goal of being energy independent to be achieved. Evenmore importantly, the RRA can facilitate constructive discussions with bilateral and multi-lateral co-operation agencies, financial institutions and the private sector, leading to a trulyjoint effort to narrow the gap through actions developed and owned by Kiribati. The assess-ment can also provide directional guidance for all relevant stakeholders, in particular ourdevelopment partners, to direct their efforts towards a common target.

Already, the impact of the intervention through the RRA has been felt within Kiribati.Following a recent RRA workshop, fossil fuel reduction targets were proposed for Tarawa,Kiritimati and the outer islands respectively. The proposed targets have been submitted tothe Kiribati Cabinet for review and approval. If these targets are put in place, this will be asignificant step for Kiribati’s move towards energy independence.

I am confident that, with the concerted effort from the Kiribati government and people, andthe co-ordinated support from the international development community, our dream ofbeing an energy independent nation in the Pacific will soon come true. I am also personallyproud to be part of the team contributing to the realisation of an energy-independentRepublic of Kiribati.

Honourable Mr. Kirabuke Teiaua

Minister of Public Works and Utilities Republic of Kiribati

Foreword

K I R I B AT I

Most islands around the world today are dependent on imported fossil fuels for the majorityof their energy needs, especially for transport and electricity generation. For reasons of scaleand isolation, energy infrastructure costs are higher, and the impact of oil price and supplyvolatility has been severe.

Kiribati is not an exception. The small island state has realised that its economic growth anddevelopment goals cannot be achieved if business continues as usual. A transition to a self-contained energy system, fuelled by indigenous resources, is needed with great urgency.With this goal in mind, Kiribati in 2012 conducted the Renewables Readiness Assessment(RRA) process laid out by the International Renewable Energy Agency (IRENA). This is asignificant step in the long journey to energy independence.

The RRA is a central pillar of IRENA’s work – a country-driven process aimed at providingthe opportunity to initiate a national dialogue with all relevant stakeholders in order topinpoint renewable energy drivers, comparative advantages, and areas requiringimprovement, in order to determine the concerted actions needed to enable thedevelopment and scale-up of renewable energy. IRENA, with a mandate from its globalmembership to promote the adoption and sustainable use of all forms of renewable energy,is proud to support the RRA process for Kiribati by facilitating the country’s dialogue withkey international stakeholders such as the World Bank, Asian Development Bank, Secretariatof the Pacific Community and international research institutions.

As with all countries, this RRA reveals examples of good practices that could be shared withother countries, areas where readiness is high and other areas where readiness could beimproved in the short- to medium-term, under initiatives led by Kiribati. The report nowpresented focuses on these actions. I hope that completing the RRA will enable the countryto increase its deployment of renewables. We offer our continuing support, across all ourfunctions and work programmes, to Kiribati in implementing the actions identified.

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Preface


K I R I B AT I 11

Last but not least, I would like to express my gratitude for the strong and solid supportreceived from Ministry of the Public Works and Utilities of Kiribati over the course ofconducting the RRA pilot project in Kiribati. I am also encouraged to see that the RRAprocess succeeded in mobilising active participation and contributions from the internationalcommunity, including the World Bank Group, the Asian Development Bank, Secretariat ofthe Pacific Community and Germany’s Agency for International Cooperation (GIZ). Inaddition, various stakeholders within Kiribati provided enthusiastic and serious engagement,without which the process could not have delivered the desired results. I therefore expressmy appreciation to all participants in the process and encourage them to continue theirvaluable work.

Adnan Z. Amin

Director General, IRENA

BACKGROUND

Kiribati is a Pacific Island country in the central Pacific Ocean. In 2011 itspopulation was recorded at 103 058 persons on a land area of slightlymore than 800 km2 spread over 32 atolls and one raised coral island.Kiribati is one of the UN-designated Least Developed Countries and hasan annual per capita gross domestic product (GDP) of around USD 1 730. About 44% of the population lives on densely populatedTarawa, the capital island. They participate fully in the money economy.On most other islands a subsistence economy dominates with onlylimited participation in the money economy. The national economydepends on income from the Banaban Trust Fund, established throughrevenue gained by the mining of phosphate from Banaba, licensing offoreign fisheries, remittances from workers overseas, and internationaldevelop-ment partner donations. High imported fuel prices have beena major burden on the economy with over 21 million litres of annuallyimported fuel, accounting for the bulk of the national import budget.This has led to a government decision to reduce imported fueldependency through the increased use of renewable energy for powergeneration and transport.

The National Energy Policy of 2009 is the primary reference documentfor energy in Kiribati. Tarawa is urbanised with grid-delivered electricityavailable to most residences, with a substantial public and private landtransport component of energy end use. Tarawa uses the bulk of theenergy imported to Kiribati. Kiritimati is the largest island in Kiribati, buthas little land transport. Instead, most residents are connected to oneof the small diesel powered electricity grids located on the island. Otherouter islands, where about half of the population resides, have no publicelectricity grids and electricity access is mostly through small-scale solarenergy harvesting systems on houses known as solar home systems(SHS) and public meeting facilities.

Executive Summary

The report serves to document the process of applying the RRA methodology to Kiribati. It includes reviewing the energy sector in relation to the development of renewable energy sources in the country, describing how the RRA workshop in Kiribati contributes to the development of an action plan to scale up the deployment of renewable energy sources in Kiribati, and articulating the actions identified into a structured portfolio.

R E N E W A B L E R E A D I N E S S A S S E S S M E N T12

RENEWABLE ENERGY SOURCES

Solar photovoltaic (PV) energy is the mostcommonly used renewable resource inKiribati, with over 2 500 solar installationsof various types deployed around thecountry. The solar resources are good, ataround 5.5-6 kWh/ m2/day, with only mildseasonal variation. With a high percentageof the islands covered by a coconut treecanopy, the possibility of using coconut oil(CNO) to replace imported diesel fuel isalso very good. Wind energy appears to bea useable resource as well, although it is atthe low end of the useful wind speedspectrum for economic energy develop-ment. For the future, ocean energy – bothwave and ocean thermal energy conversion(OTEC) – may become useful but currentlytapping those resources remains at thetechnical development stage.

Kiribati has been successfully using solarPV for outer island electrification for over20 years. The government owned KiribatiSolar Energy Company (KSEC) has a poolof technicians skilled in the installation andmaintenance of off-grid solar power sys-tems. The KSEC is currently managing over2 000 solar home installations and publicbuilding solar installations on 18 islands.Solar pumping for village water supply isalso a major use of renewables on outerislands.

POLICY AND PLANNINGBACKGROUND

In Kiribati, the Ministry of Public Works andUtilities (MPWU) and the agencies underits management have primary respons-ibility for the energy sector. Other primarystakeholders include the Ministry of

Finance, the Ministry of Line and PhoenixIsland Development (MLPID) responsiblefor all government services on Kiritimati,the Kiribati Copra Mill Company Ltd.(KCMCL) that produces CNO and theKiribati Copra Cooperative Society (KCCS)that produces copra.

To help develop solid goals and an actionplan to maximise the economic use ofKiribati’s renewable energy resources,IRENA was requested to assist through aRenewables Readiness Assessment (RRA).The RRA was carried out in October 2012and its key issues and results are presentedin the table on facing page.

STRATEGY FOR FUTUREDEVELOPMENT

The initial approach for renewable energyto offset fossil fuels will be through grid-connected solar PV systems. Two projectsare in the pipeline:

(i) 516 kWp of solar funded through theWB;

(ii) approximately 400 kWp of solar fun-ded through the PEC Fund.

The combination of these two installationswill bring the solar input close to thepractical limit of acceptance by the Tarawagrid. Unless storage or special control sys-tems are incorporated in later installations,there will be an increasing risk of inducinggrid instability and power outages due tothe rapidly varying input from the solar,should more solar PVs systems be installed.Included in the projects will be initialsupport for operation and maintenanceand capacity building as needed to support

K I R I B A T I 13

w Coordinate Kiribati’s on-going solar initiatives supported by theWorld Bank (WB) and the Pacific Environment Community(PEC) Fund, so both take responsibility for their combinedprojects to prevent endangering grid stability. (This isunderway with the WB, PEC Fund and Kiribati governmentworking together to co-ordinate the projects).

w Develop standards and guidelines for future solar PVgrid-connected systems (underway with the assistance of theWB).

w Investigate the appropriateness of privately-ownedgrid-connected solar PV.

w Build capacity to manage grid stability with high levels of solarpenetration (initial capacity building steps are expected to becomponents of both the WB and PEC Fund projects).

w Prepare a CNO implementation plan for Kiribati’s CNO biofueldevelopment to determine the specific actions and timelinesnecessary to develop CNO as an acceptable diesel fuelreplacement.

w Establish fuel standards and a testing facility for CNO-basedbiofuel to be used for power generation and transport.

w Develop mobile copra mills for use on Kiritimati and outerislands.

w Have the Public Utilities Board (PUB) procure an electric powergenerator (genset), designed for use with CNO for base loadgeneration.

w Develop KCMCL testing facilities of biofuel for powergeneration.

w Trial of shipboard use of CNO through the use of a dual tanksystem.

w Trials of blends of CNO and kerosene or diesel fuel for landtransport.

w Prepare an outer islands electrification implementation planthat only uses renewable energy.

w Prepare a standard modular design and installation guidelinesfor solar powered mini-grids.

w Develop a local off-grid electrification capacity building facilityat the Kiribati Institute of Technology (KIT).

w Provide for rehabilitation of existing outer island solarinstallations.

w Determine how the KSEC can be institutionally strengthened.

w Establish a Kiribati National Energy Coordinating Committee(KNECC).

w Review existing incentives, regulations, and policies relating toenergy and propose changes where there are disincentives forrenewable energy.

w Prepare an "Energy Act" that fills the gaps in currentlegislations.

w Review the KSEC business model.

Maintain the stabilityof the grid whileallowing a high levelof solar PV input

Develop CNO as abiofuel for powergeneration

Use of CNO as a landand sea transport fuel

Off-gridelectrification

Policy, legislation andregulation development tosupport renewable energy

Issues discussed at the RRA and proposed actions are summarised in the following table:

Issues Proposed Actions


the projects. To properly implement grid-connected solar, standards and regulationsare being formulated with the support ofthe WB. IRENA offers to assist in themodelling of the grid to help plan for theintegration of future grid connected solar.

For solar-based outer island electrification,an institutional structure like that of aconventional utility has been usedsuccessfully. This includes ownership of thecapital equipment by the KSEC, a staff oftechnicians on the outer islands employedby the KSEC for all maintenance, and feescollected from customers based on thelevel of service rendered. This approachwas instituted because individual solarequipment purchasers failed to properlyinstall and maintain the solar equipment.The utility approach provided Kiribati withunparalleled levels of SHS reliability andlong life during the first decade of its use.

Lessons learned through this process include:

1. A continuing training process is nece-ssary.

2. Middle-aged persons generally do bestas local technicians.

3. High quality equipment specificallydesigned to work in the difficultenvironment of Kiribati is essential.

4. Simplicity of maintenance is vital. 5. Spare parts inventory control is very

important. 6. Fees need to keep up with inflation. 7. Centralised administration does not

work well when all activities are onouter islands.

8. Clear work guidelines are needed forthe administration and technical acti-vities of the KSEC.

Another success that Kiribati can claim is

the local manufacture of SHS chargecontrollers and direct current to direct cur-rent (DC/DC) converters to operate radiofrom SHS batteries. No commercial chargecontrollers were available that weresuitable for the difficult atoll environmentof Kiribati that could be locally tested andrepaired. Therefore Kiribati chose to manu-facture its own charge/discharge con-trollers based on a French design that wasdeveloped specifically for atoll island use.The 300 units manufactured and installedin Kiribati in 1994 provided highly reliableservice. Their proper charge/discharge co-ntrol task implementation is evidenced bythe more than 10 years of average batterylife for those installations.

Lessons learned in this process include:

1. High reliability charge controllers andDC/DC converters for SHS can be costeffectively manufactured by localtechnicians in the Pacific Islands.

2. Training for the manufacture of thedevices need not be complex orexpensive.

3. It is best not to use only one qualitycontrol step in manufacturing elec-tronic devices and instead use at leasttwo with an initial setting by onetechnician and a check by a secondtechnician.

4. By using a design specifically createdfor the atoll environment and the enduse, much longer service life and hig-her reliability can be achieved.

5. High reliability controllers result in lon-ger battery life and lower life cyclecosts.

The second major renewable energy sourcethat is proposed for development is CNOfor biofuel use. Kiribati remains one of thefew Pacific countries still producing and

K I R I B A T I 15

1 The RRA brought in technical expertise provided by CNO expert Dr. Gilles Vaitilingom of AgriculturalResearch for Development, France. On the markets, there are a number of well-known manufacturers,including mainstream power generation engine manufacturers.

exporting copra and coconut oil, thoughexports are much lower today than 20years ago. To use CNO for power gen-eration it was recommended by the RRA1

that the new engine scheduled to bepurchased by the PUB be of a type that isdesigned for dual fuel operation and canburn 100% CNO without problems. Alsoproposed is to convert inter-island ships tobe able to use CNO when cruising yetswitch to diesel fuel when the engine is atlow loading. By blending with diesel fuel orkerosene, CNO can be used in unmodifieddiesel engines though there will need to besome additional refining beyond what isnow the norm for the local mill product. Forcoconut production to increase to the levelneeds for a major reduction in fuel imports,a major replanting programme to replacesenile low-productivity trees will be nee-ded. The plans developed by Kiribati’s Mini-stry of Agriculture are in place for startingreplanting but funding is needed to carryout the plans.

Kiritimati Island is a special case withmultiple small grids providing electricity toits approximately 5 000 residents. A powerdevelopment plan for Kiritimati has justbeen proposed. It will connect most of thesmall grids that now exist into a single gridwith generation support expected to befrom solar, CNO and possibly wind.

Looking forward, the RRA is just the firststep towards a comprehensive action planto reach the goals of renewable energy setby the Kiribati government. As the leadagency in assisting Kiribati to reach theirrenewable energy goals, IRENA plans toassist in co-ordinating donor agencies andin attaining funding for projects. Further-

more, IRENA aims to aid in co-ordinatingthe efforts of the WB and the PacificEnvironment Community (PEC) Fund toimplement Kiribati’s grid-connected PVprojects in a way that will not adverselyaffect grid stability, drawing on experiencesfrom other parts of the world and supp-orting Kiribati leaders’ attendance of meet-ings and workshops where high level pers-ons from around the world discuss thefuture of renewable energy and its imple-mentation today.

In addition, IRENA sees many other areasto be effectively engaged. One example isin capacity building in Kiribati. This is anarea where IRENA’s support can be impact-ful if it is done well and where IRENA hasthe capacity to make a difference. IRENAhopes to work further with Kiribati to helpdevelop the capacity to carry out theplanning, implementation and manage-ment of the programmes that will be nee-ded to reach its renewable energy goals.IRENA would work with partners oncapacity building, as it has been doing in2012, including the Secretariat of thePacific Community (SPC), GIZ, PacificPower Association (PPA) and SustainableEnergy Association of the Pacific Islands(SEIAPI). These organisations would facili-tate a presence on the ground and providelong-term experience in the Pacific whilecomplementing IRENA's technical and org-anisational capabilities.

Another important follow-up lies in settingtargets for reducing fuel import depen-dence. Following the RRA, the KiribatiEnergy Planning Unit (EPU) has prepareddetailed targets for renewable energydevelopment. Since the EPU also considers


energy efficiency an important measure toreduce the consumption of imported fuels,the MPWU took advantage of the momen-tum from the RRA workshop and funded athird workshop day in order to begindevelopment of an action plan for energyefficiency in Kiribati. From that effort, targ-ets for energy efficiency improvementswere also prepared. At present, the propo-sed targets have been submitted to theKiribati Cabinet for final approval. It isexpected that the national targets will soonbe approved.

In order to reach the targets that are set,energy planning is crucial. It is a process

requiring multi-stakeholder consultationand co-ordination, the capability ofdeveloping different energy scenarios, thehuman resources to develop a concertedplan and to implement it effectively, and allareas that can be assisted by IRENA.Kiribati will need to establish a nationalinstitution responsible to co-ordinate thedifferent governmental agencies on energyrelated issues and strategy making. Thismay also present an opportunity for IRENAto provide support to Kiribati in terms ofsharing the best practices of energyplanning and also facilitating the set-up ofsuch a co-ordinating entity.

K I R I B A T I 17

COUNTRY PROFILE

Geographically, Kiribati is an island country in the middle of the PacificOcean. It is spread over an area of 4 200 km by 2 000 km, with 32 atollsand one raised coral island (Banaba). The country straddles both theEquator and the 180° Meridian, making it the only country in the worldto fall into all four hemispheres, i.e. northern, southern, eastern, and wes-tern2. However that huge area includes only about 800 km2 of land area;the remainder is the vastness of the Pacific Ocean. This makes Kiribatinot only far away from the nearest continents but also a widely scatterednation clustered into three groups of islands, as seen in Figure 1.

The principal island groups include: the Gilbert group to the west whereover 90% of the population resides; the almost unpopulated Phoenixgroup to the south; and the sparsely-populated but growing Line groupto the east. In 2010, about half of Kiribati’s total population of 103 058(2010 Census) lived on the capital island of Tarawa, in the Gilbert group.The dense and growing population of Tarawa has resulted in manyproblems with the supply of water, sanitation and energy. It is for thisreason that the government has set a goal to both reduce the flow ofpeople from the rural islands to the urban area of Tarawa and toencourage emigration to Kiritimati in the Line group, which is Kiribati’ssecond largest population centre of around 5 000 people.

Since its independence in 1979, political stability has been a significantadvantage of the country. The government is organised according to theWestminster format, with the president as the head of state. Aunicameral legislature has 46 seats with 44 elected to four-year termsby popular vote. The attorney general is an ex-officio member, onerepresentative is app-ointed to represent Rabi (the island in Fiji wheremost Banaba residents relocated after their island was mined out) and

I. Introduction

2 https://www.cia.gov/library/publications/the-world-factbook/geos/kr.html

This section presents a snapshot of Kiribati’s country profile, not only serving as an overall background in which the RRA was conducted, but more importantly, acting as an initial justification for why an RRA is necessary for Kiribati. With that, the objectives for the RRA pilot project in Kiribati were defined.


one other member is appointed. Todaytraditional authority remains a strong force,parti-cularly on the outer islands. On eachof the outer islands, power is vested in anIsland Council (IC), where typically eldermen who represent the villages on theisland govern through custom and traditionwithin the legal structure of the country.

Economically, Kiribati is listed as one of theworld’s Least Developed Countries by theUN. Since 1979 when the country’s mostmarketable natural resource of phosphatefrom Banaba was mined out, the country’seconomy has been dependent on threemajor sources of income. These include theearnings from the Revenue EqualisationReserve Fund (RERF) established in 1956and funded by the revenue from phosphatemining; the licensing of foreign fisheries inKiribati’s huge Exclusive Economic Zone(EEZ); and remittances from overseasworkers, who are mainly seamen on Euro-pean vessels. Tourism is negligible due tothe high cost of access and the lack ofvisitor facilities. Another contribution to

Kiribati’s GDP is from foreign financial aidprovided by countries and regional organi-sations such as the European Union (EU),United Kingdom (UK), United States (US),Japan, Australia, New Zealand, Canada,and UN agencies. According to figuresfrom the Ministry of Finance and EconomicDevelopment of Kiribati, the country’s ave-rage trade deficit is in the range of USD 95million per year with the deficit covered bythe main sources of income, some agricul-tural exports and donations. In recentyears, particularly since 2002, the real GDPgrowth has been low, estimated at 1.75% in2011 (IMF) with a total 2011 GDP of aroundUSD 178 million (WB), which works out tobe about USD 1 730 per capita, one of thelowest in Micronesia and Polynesia.

According to an EU Country Strategy Paperand National Indicative Program for 2008-2013, in response to economic pressures,Kiribati cut its expenditures to reduce theoverall deficit from 41.3% of 2004 GDP to15% of the 2006 GDP. However, in a publicsector dominant economy, the cut in public

Figure 1 Map of Kiribati and its principal group islands

Source: CIA World Factbook

K I R I B A T I 19

expenditure also meant less GDP to begenerated. In Kiribati, nearly 80% of paidemployment is provided by the govern-ment or through government ownedenterprises. More than half of its GDP isgenerated from public sector expenditure,making the government not only thebiggest employer but also the chiefeconomic growth driver (ADB, 2009). Withthe underdeveloped private sector and lowlevel of economic activities, it is difficult toattract private investment to escape fromthis scenario. This economic structure hasput the country in a vulnerable position ina rapidly changing and increasinglyglobalised world.

The effect of high fuel prices is noticeable.Kiribati relies almost entirely on importedfuels for its power generation and trans-portation. Therefore the surge in fuel pricesin the global energy commodity markethas, in recent years, made fuel approx-imately 25% of the cost of all imports,meaning that less of Kiribati’s nationalbudget is available for non-fuel expen-ditures. As a result, fuel price increaseshave reduced resources needed for publicservices such as education, health andinfrastructure development. It has alsopushed electricity prices to a level amongthe highest in the region, ranging from USD 0.42/kWh to USD 0.73/kWh (MPWU,2009). In this way Kiribati has been caughtin a vicious cycle - a cycle that needs to bedisrupted in order for the country’seconomy as well as its energy supply todevelop in a sustainable fashion.

What alternative does Kiribati have then toimported fuels? The answer appears to beobvious, as the country has been utilisingrenewable energy resources for more thanthree decades with the continued supportof the donor community. Nevertheless, toachieve the ambitious ultimate goal of

being an energy independent country,there is a need for Kiribati to look carefullyat where it is now and how it can reach thepoint at which it needs to be. To achievethis, a portfolio of actionable initiativesneeds to be identified, developed and imp-lemented in a clearly articulated way. Thisrequires strategic thinking, which cannotbe applied without a comprehensive ass-essment of the conditions for renewableenergy deployment and development inKiribati and in-depth multi-stakeholderdiscussions that pertain to the actionsnecessary to improve these conditions.

RENEWABLES READINESSASSESSMENT

IRENA’s RRA is designed to define adetailed list of criteria considered nece-ssary for the on-going operation of existingrenewable energy facilities and for furtherrenewable energy development. Applyingthis framework to individual countriesprovides a comprehensive analysis of thepresence or absence of enabling conditionsfor the development of renewables.Crucially, this analysis needs to take intoaccount how the renewables policy of thecountry contributes to its national policyobjectives. The RRA process also facilitatescomparisons and case studies and enablesthe useful matching of attributes ofrenewable energy with opportunities for itsdeployment.

The RRA comprises a process andmethodology that includes completing aset of templates and a final report. TheRRA methodology covers all forms ofenergy services (transport, heat, electricityand motive power), and all renewableenergy sources, with each country selec-ting those of particular relevance. The RRAalso makes the applicant country’s govern-ment a stakeholder in the process, as it is


designed to be conducted by nationalgovernments, thereby allowing them toobtain a comprehensive overview of theconditions for renewable energy from theirown national perspective. Under the RRAall processes and documentation are led bythe country and derive inputs fromdiscussions with stakeholders facilitated bythe country focal point, with the assistanceof IRENA and other development partners,for example, in Kiribati’s case the WB, theAsian Development Bank (ADB), andSPC/GIZ. The resulting report is thereforea national one, developed and owned bythe country. This sets the process and met-hodology of the RRA apart from other ass-essment processes led by internationalorganisations. IRENA offers its supportduring the RRA, but it is the actions andinsights that are developed throughcountry-owned process that provide thekey to rapid deployment of renewableenergies.

The RRA facilitates a co-ordinated appr-oach and the setting of priorities that canfacilitate discussions with bilateral andmultilateral co-operation agencies, finan-cial institutions and the private sectorregarding the implementation of actionsand initiatives emerging out of the RRA.IRENA’s backing of the RRA process offerscountries access to a global network withthe capacity to follow up on actions andfacilitate an exchange of experiences.IRENA can also facilitate implementation ofthe follow-up actions, where necessary,after the specific request from the countryor regional entity.

The key features of RRA include:

w Comprehensiveness: By reviewing theexisting knowledge and studies withinthe country, the RRA ensures

assessment of conditions forrenewable energy deployment in acountry is wide-ranging.

w Country-led process: Designed to beconducted by national governments,the RRA allows countries to obtain acomprehensive overview of theconditions for renewable energy fromtheir national perspective. All theprocesses and documentation are ledby the country and derive inputs fromthe discussions with stakeholders, asfacilitated by the country focal point.The resultant report is a national one,developed and owned by the country.

w Process oriented: The RRA contains aprocess to build partnerships andgather key stakeholders to ensureconsensus on the actions identifiedand their implementation.

w Facilitation of discussion and trans-parent consensus-building: The actionsand background materials of the RRAare discussed openly and a wide rangeof viewpoints are reflected.

w Supporting stakeholder development:Through the RRA national govern-ments initiate and take the lead incompleting the assessment and theactions identified as a result of theprocess.

w Laying the foundation for futurecollaboration: A co-ordinated approachis used and there is setting of prioritiesthat can generate discussions withfunding agencies and the privatesector regarding implementation ofactions and initiatives emerging fromthe RRA.

K I R I B A T I 21

OBJECTIVE

An overall objective of this country reportis to highlight the significant results of theRRA that can help in formulating Kiribati’srenewable energy development actionplan, mobilising all resources necessary tocarry out the actions identified and flag-ging the potential issues that need to befurther addressed.

More specifically, the RRA aims to:

(a) Identify the critical and emergingissues associated with and arising fromthe development of Kiribati’s energysector in general and the utilisation ofrenewable energy resources inparticular;

(b) Put forth a portfolio of articulatedactionable initiatives that can capitaliseon the opportunities revealed throughthe examination of Kiribati’s energysector and the extensive discussionswith multiple stakeholders in terms ofhow to turn potential of resources intoenergy sources;

(c) Outline the follow-up activities toensure the actions identified areactionable in the near- and mid-termtimeframe.

Lastly, the report serves to document theprocess of applying the RRA methodologyto Kiribati. It includes reviewing the energysector in relation to the development ofrenewable energy sources in the country,describing how the RRA workshop inKiribati contributes to the development ofan action plan to scale up the deploymentof renewable energy sources in Kiribati,and articulating the actions identified intoa structured portfolio. This not only ensuressynergies, but more significantly facilitatesharmonisation among the stakeholdersinvolved to help deliver Kiribati’s goals.

A photo of Kiribati (fishing boat)Source: Herb Wade


II. Energy and Renewable Energy

THE REGIONAL CONTEXT

As with all Pacific Island Countries (PICs), with the exception of PapuaNew Guinea, Kiribati has no domestic fossil energy resource of any kind.Engagements with the other Pacific countries exists at two fronts:

1. Importation of energy fuels for power and transportation in Kiribati,which is carried out by the Kiribati Oil Company (KOIL) fromsuppliers in Fiji.

2. Technology sharing and co-operation through many regionalplatforms and programmes including the Pacific Power Association(PPA), the University of South Pacific (USP), the Secretariat of thePacific Regional Environment Programme (SPREP), the Secretariatof the Pacific Community (SPC), the PEC, and others.

OVERVIEW OF THE ENERGY SECTOR

The energy profile for Tarawa and Kiritimati are very different from theouter islands. Electrical and petroleum energy use are dominant inTarawa and Kiritimati, while in the outer islands most energy is suppliedby biomass.

Supply of electric power is provided primarily by the Public UtilitiesBoard (PUB) on Tarawa, though there are small grids on Kiritimati andat some boarding schools and IC facilities on other outer islands. Theon-grid access to electricity is about 44% by the PUB plus another 3%by the multiple small grids on Kiritimati and other outer islands. Off-gridaccess is estimated at about 17% through the KSEC and private solar

This section provides an overview of Kiribati’s energy sector with a special focuson renewable energies. A historical perspective is included to highlight therenewable energy competence and knowledge that are already existent inKiribati. It also indicates the stakeholders involved and the regulatory frame-worksfor renewables that have been put in place. The focus for financial investments ison how the donor community has provided support in using renewable energysources in Kiribati. The last sub-section highlights the need to enhance humancapacity to support the expansion of renewable energy applications.

K I R I B A T I 23

home systems on outer islands, thoughabout a third of those are currently notworking. The Energy Planning Unit (EPU)within the MPWU reported that the PUBhad 2 064 residential meters, 574 comm-ercial meters and 290 government meterson its grid in 2011, plus there are about 150public streetlights on Tarawa that are notmetered. Electricity is also suppliedthrough small grids on Kiritimati Island andin the vicinity of IC Offices on the outerislands but customer numbers are small.

As with many Pacific utilities, there are twoload peaks during the work week: adaytime peak that corresponds with airconditioning loads for government officesand a smaller evening peak that corres-ponds with residential lighting and entert-ainment use.

Weekend load patterns show only theevening peak. This has implications forlarge scale solar use since the noontime

load on the weekend is around 2.3 MW,while during the work week it is around 1.5times higher at 3.4 MW. Thus any problemswith integration of solar PV into the gridare most likely to occur on the weekends.This will need to be considered in thedesign of grid-connected solar instal-lations, to reduce the likelihood of gridinstability on Saturday, Sunday and holi-days when the air conditioning load forgovernment is not present. As seen in Table1, Tarawa electricity demand in 2011 wasabout 6.6 GWh for government, 7 GWh fordomestic and 3 GWh for commercial. Sincethere is no significant tourism or otherindustry, commercial uses are mostly forstores and offices. In recent years there hasbeen little growth in demand.

As seen in Table 1, the 2011 sale of gene-rated electricity on Tarawa was approx-imately 17.3 GWh, requiring a use of around5.8 megalitres (ML) of automotive diesel oil(ADO). Notably, the electrical units gener-

Figure 2: Tarawa Load Curves (kW Load)

Source: PUB


ated on Tarawa increased to 21.8 GWh for2011, as compared to 21.6 GWh in 2010,though the total billed GWh for these yearsindicates a significant electricity loss for2011. Recent production figures for Kiriti-mati were not available but it is estimatedthat its electricity generation is a smallfraction of that of Tarawa.

Although residential electricity use onTarawa fell more than 11% from 7 893 MWhin 2005 to 7 060 MWh in 2011 and comme-rcial usage fell 40% from 5 093 MWh in2005 to 3 052 MWh in 2011, the usage forgovernment experienced a significantsurge over the years, rising to around 96%from 3 376 MWh in 2005 to 6 629 MWh in2011. In recent years total demand haslevelled off and there are no pressuresother than population growth expected toincrease electricity use.

For the outer islands, the per-capita energyuse is low and is mostly in the form ofbiomass combustion for cooking and copradrying5, where coconut husks, coconut sh-ells, coconut fronds and mangrove woodserve as the traditional energy sources forKiribati. In the outer islands, use of petro-leum product is mainly in the form of kero-sene used for lighting and petrol (gasoline)to operate some motorcycles, outboardpowered boats and a truck and/or tractorowned by the IC for island transport use.Traditional sailing canoes are used exten-sively for subsistence fishing, thereby keep-ing petrol use low on the outer islands. By2011, more than 2 100 rural householdswere powered by solar energy, which acco-unts for around 20% of the outer islandhouseholds, though a significant number ofthose systems are not presently working6 .

Table 1: Electricity Statistics 2005-2011 (MWh)

2005 7 893.00 5 093.00 3 376.00 568.09 23.48 16 953.57 5 913.732006 6 864.00 4 500.00 4 458.00 568.09 3.13 16 393.21 6 235.662007 7 562.00 2 854.00 8 331.00 568.09 10.50 19 325.58 6 293.072008 7 197.00 3 073.00 7 335.00 568.09 8.52 18 181.61 5 881.872009 7 395.58 2 826.61 7 170.05 568.09 44.94 18 005.27 5 812.712010 7 111.00 3 086.00 7 029.00 568.09 2'0.32 17 814.41 5 744.972011 7 060.00 3 051.00 6 629.00 568.09 14.03 173 22.11 5 791.26

Year Domestic Commercial

Billed Not Metered TotalFuel

Govt. Water & Sewer3

PUB4 TotalMWh

Used atPUB [kl]

Source: PUB

3 Water and sewerage is estimated to be the same every year, however it could less or more for some years.

4 PUB is for all PUB's premises' consumption except the Power house consumption which is around 4% to 5%.

5 Open solar drying is sometimes used but is much slower, less controllable and simply does not work when it iscloudy. Also there are more problems with mould since it takes longer time to dry copra. Enclosed solar dryersachieve better performance but they are expensive and require substantial maintenance which is difficult forusers to arrange. All commercial copra producers use direct heat or steam heat for drying in Kiribati simplybecause it is the most cost effective and provides the best quality product.

6 KSEC /EPU

K I R I B A T I 25

Electricity in rural areas comes from solarhome systems except for the IC Offices andsome housing immediately around the ICcompounds, where a small generatortypically is operated a few hours a day.Those generators serve a total of about 3%of Kiribati residences.

Due to the fact that Kiribati has no fossilfuels, the demand for petroleum products,mainly diesel, gasoline and kerosene, is metsolely by fuel imports though CNO isproduced locally and there is potential forit to replace a portion of petroleum imp-orts. With the recent increase in energyprices at the international markets, Kiri-bati’s annual spending on fuels is at therange of USD 8-9 million. This in turn haspushed electricity prices up to a level am-ong the highest in the region, ranging fromUSD 0.42/kWh to USD 0.73/kWh, acco-rding to the MPWU.

Petroleum-based fuel is imported by the

KOIL from suppliers in Fiji. Both Tarawa andKiritimati Island have storage tanks thatmeet international standards for safety andconstruction. Fuel to the outer islands isshipped in 200 litre drums, which are typi-cally stored in a fenced in compound at theKOIL agency facility on each atoll. Leaksare common and contamination by dirt andwater also can be a problem.

LPG use is growing on Tarawa to replacekerosene for cooking. The government-owned corporation KOIL and Kirigas, a pri-vate company that is a subsidiary of TarawaMotors, both import LPG. Until 2008, KOILand Kirigas imports were both about thesame, with KOIL importing 111 145 kg andKirigas 104 036 kg in 2008, according tothe records in the Kiribati Customs. How-ever in 2009, KOIL imported 138 858 kgand Kirigas only 29 462 kg. Unfortunately2010 and 2011 data are not available7 .

Fuels used for the PUB and for aviation are

Table 2: Kiribati Fuel Imports 2007-2011 (litres)

Fuel 2007 2008 2009 2010 2011TARAWA FUEL IMPORTSUnleaded Petrol 5 230 500 5 131 471 5 258 870 5 364 063 5 856 928Automotive diesel oil 12 625 887 12 890 915 12 109 923 12 225 730 11 155 939Kerosene (Jet fuel) 2 793 527 2 727 099 2 538 534 3 664 506 3 290 651TOTAL 20 649 914 20 749 485 19 907 327 21 254 299 20 303 518

KIRITIMATI FUEL IMPORTUnleaded Petrol 450 133 996 382 271 836 855 318 587 104Automotive diesel oil 1 665 006 2 388 615 980 082 2 031 901 1 202 125Kerosene (Jet fuel) 867 615 713 017 283 231 1 065 665 775 776TOTAL 2 982 754 4 098 014 1,535 149 3 952 884 2 565 005

Source: KOIL

7 EPU


not subject to tax, so there would be noloss of tax revenue to government if PUBshifted to locally produced biofuel.

Kerosene is price controlled and is thesame price on the outer islands as on Tar-awa. According to 2010 census, about 34%of all Kiribati homes use kerosene forlighting.

RENEWABLE ENERGY SOURCES AND POTENTIALS

Kiribati is resource poor in general but doeshave good solar energy resource. How-ever, thus far the share of solar in the ene-rgy balance accounts for no more than 1%of the total energy consumption, as it hasbeen used almost exclusively for outer is-land lighting and basic electrification withlittle grid-based generation. This is soon tochange with large grid-connected solar ins-tallations planned in co-operation with theWB and the PEC Fund. Biomass is by farthe largest renewable energy use, withcoconut husks, shells and fronds being thedominant energy source for cooking andcopra drying in Kiribati due to itsabundance8. Biomass is estimated to sup-ply about 25% of the gross national energyuse, according to Kiribati’s 2009 NationalEnergy Policy. Other renewable energysources, such as wind and biofuel, remainnegligible sources, though there is subs-tantial development potential.

SOLAR ENERGY

Although the solar resource varies to someextent from north to south, in general Kiri-bati is endowed with an excellent solar res-ource. According to NASA surface met-eorology and Solar Energy Database, theaverage daily solar radiation (horizontal) is

about 6 kWh/m2/day in Tarawa and 5.7 kWh/m2/day in Kiritimati.

Due to Kiribati being close to the equator,seasonal variations in solar energy are notgreat, though there are seasonal cloudcover differences that have to be consi-dered. Longer term variations also mayexist due to the El Niño/El Niña OscillationCycle and the long term effects of climatechange on cloudiness are yet to bedetermined.

Since the 1980s, the Kiribati governmenthas had as its unwritten but effective policythat only renewable energy should be usedfor outer island electrification. For the pastthree decades, donors in particular theJapanese International CooperationAgency (JICA) and the EU, have beenproviding SHS for households and largersolar installations for community buildings,schools and health centres on the outerislands. Half the population of around 10 000 could potentially have SHS electri-fication. Since 1984, Kiribati has installedover 2 200 SHS using donor funding. Some98% of those serve the rural population,providing basic electrical services toaround 20% of Kiribati’s rural householdsincluding the northern part of the Tarawa,as shown in the photo, while the southernpart of it is serviced by the grid.

SHS IN KIRIBATI

Solar PV for home lighting in the Kiribatiouter islands was first introduced in theearly 1980s by overseas workers, mostlyseamen, who purchased the panels andcontrols overseas and brought them hometo help out their rural families. In 1984,using United States Agency for Intern-ational Development (USAID) funding, the

8 Due to higher population density in South Tarawa, coconut husks and shells have to be imported fromNorth Tarawa for cooking. Thus people also use kerosene for cooking. Also the South Tarawa economy iscash oriented (mostly government employees) and people have cash to buy kerosene. Certainly there isno lack of husks and shells for cooking or drying on the outer islands.

K I R I B A T I 27

KSEC was established as a non-gover-nment corporation mostly owned by aninternational non-governmental organ-isation Foundation for the Peoples of theSouth Pacific (FSP), to sell PV systems andappliances to individual households andprovide solar PV installation and mainte-nance services when customers werewilling to pay the cost of getting thetechnicians to the installation site. However,this business model based on private saleof systems did not survive long due largelyto the poor quality of the installationscarried out by the owners of the systems(who rarely took advantage of theinstallation services offered at cost by theKSEC) and the lack of post-sale maint-enance, which resulted in about a 90%failure rate within a year or two ofinstallation. This caused the outer islandpopulations to lose confidence in solar andthe sales from KSEC fell just as rapidly asthey had increased. As a result the KSECwas essentially bankrupt by 1989.

Majority of the ownership was turned overto the government in 1986 and the rest ofthe FSP shares and shares held by the Bankof Kiribati were later turned over to govern-ment, so it is now classed as a government-owned corporation.

The business model of the KSEC was thenchanged from a sales company to today’ssolar utility whereby the KSEC owns theSHS and does all maintenance and repairson the systems using well trainedtechnician employees. The operations andmaintenance (O and M) costs were thenintended to be recovered through userspaying a periodic fee paid by users, whichwas originally at AUD 9 per month perbasic SHS installed. In 1992, with initialsupport for the hardware for 57 installa-tions on North Tarawa coming from Japan,the KSEC was able to provide reliable and

cost effective solar services to its ruralusers. The overall operation was a successas measured by a high percentage of feecollections, customer satisfaction andtechnical performance. In 1994, furtherfunding support from the EU enabled theKSEC to not only electrify larger rural areasby adding Nonouti and Maiana islands tothe utility coverage area, but the KSEC alsobecame an exporter of technical goods bymanufacturing controllers for Tonga, Fiji,Tuvalu and PNG, who were alsoparticipating in the EU project.

The success of the existing JICA and EUprojects prompted funding of many solarproject proposals by donors. Canadian aidprovided funding for outer island healthcentre installations that included lightingand solar refrigeration. The UNDP andother donors funded a series of solar pum-ping projects, and solar installations wereordered by private institutions in ruralareas, mostly schools and churches. Thesesolar system sales, which in most casesincluded installation contracts as well,

A maneaba solar PV system in North TarawaSource: Herb Wade


provided the additional funds necessary tomaintain a positive cash flow for the KSECin the 1990s, since the number of solarutility customers, about 325, remainedbelow the break-even point for the KSEC.Also, the KSEC continued manufacturingtheir highly reliable controller for saleinternationally, with orders coming fromTonga, Fiji and Bhutan.

A second round of EU funding starting in1999 added over 1 700 solar installationsand brought solar to all the islands of theGilbert group. This jump from 325 installa-tions covering three islands to over 2 000installations covering 18 islands was verydifficult for the KSEC to manage and therehave been a number of problems andmanagement issues as a result.

At the start of the 2000s another challengeto the KSEC that emerged was the result ofmonetary inflation over the years. This incr-eased operational deficits, as the servicefee of 9 AUD per SHS had remained uncha-nged since 1992. The KSEC Board and the

Ministry of Finance agreed in 2008 to grad-ually increase the fee over a period of yearsin order to catch up with the inflation thathad occurred since 1992, when the fee wasinitially set. However in 2009 the KiribatiCabinet decided that the KSEC should con-tinue to charge the same monthly fee ofAUD 9 per month and the governmentwould pay the unrecovered costs throughan annual subsidy. Although the subsidywas initially paid as promised, the KSECBoard and KSEC management chose to all-ocate the subsidy elsewhere instead of theexpected battery replacements. As a resultthere have been increasing problems withbattery failures and non-payment of fees.After the first year no further subsidieswere received and the KSEC is now facingserious financial issues. The current estim-ate is that over one-third of the outer islandsolar installations are no longer working todesign specifications due to a need for bat-tery replacement. This has had a cascadingeffect on the KSEC income, since peoplewho had been paying the fee for years withthe expectation of receiving proper main-tenance of their systems have been withoutpower due to battery failures for longperiods. They now doubt the promise ofmaintenance in return for the fees paid.

As a result, those remaining householdswhose systems continue now often fail topay their monthly fee since, as they too areunder the assumption that they will notreceive reliable services in exchange for feepayment. This has resulted not only in areduction in fee collections due to non-operational systems but also a reduction inthe percentage of receipts of payments forworking systems, making the cash flowsituation at the KSEC even worse.

As noted in the 2004 Kiribati nationalreport from Pacific Islands Renewable Ene-rgy Project (PIREP) report, a number of les-

Installing a solar panel in a Kiribati homeSource: Herb Wade

K I R I B A T I 29

sons were learned through the KSEC ruralelectrification projects including:

w 100 Wp is the minimum acceptablepanel capacity for SHS in most homesin rural Kiribati.

w Good quality batteries can provide co-ntinuous service for 10 years and moreif reliable charge controllers and ade-quate panel capacity are included inthe system design and batteries are notexposed to excessive heat.

w Rainwater can be used for batterywater replacement if carefully collectedand stored.

w The South Pacific Institute for Renew-able Energy (SPIRE) Pacific controllerdesign can be successfully manu-factured in Kiribati and can providesubstantially higher reliability and lon-ger battery life than off-the-shelf com-mercial controllers.

w A majority of rural households inKiribati can and will pay AUD 9-10 permonth for basic lighting and radioservices.

w The fee collection rate depends mainlyon the confidence of users that theywill receive the promised services theyagreed to pay for.

w Field technicians need to be suffi-ciently mature to have the respect ofthe community and to be able to fullyunderstand their responsibility forfunds management.

w One field technician can successfullymanage 100-120 household systemsfor maintenance and fee collection.

w Development of reliable energy servicecompany operations increases the op-portunity for the sale of PV systemsand for the maintenance of privateinstallations.

w Management of personnel is the mostdifficult part of solar utility companyoperations.

w Good quality accounting and recordsmanagement are essential tosuccessful energy service companyoperations.

SOLAR WATER HEATERS

There have been few solar water heatersinstalled in Kiribati and several have hadtechnical failures due to mineral deposits inthe solar collector tubes, a typical issuewhen using the “hard” water of the atolls(PIREP, 2004). The Chinese manufacturedvacuum tube “heat pipe” type of waterheaters have apparently worked well inKiribati, though there are still only a fewinstalled in Kiribati, as the demand forwater heating is low.

GRID-CONNECTED SOLAR POWER

In recent years as the cost of importedfuels has dramatically increased while thecosts of PV panels have significantlydropped, the economics of utility-scalesolar PV system look attractive. A feasibilitystudy on the potential for grid-connectedsolar PV on the South Tarawa grid systemhas been undertaken under the assistanceof the WB. The study finds that 900 kWp(STC) and 800 kWp (AC) of solar PVs canbe connected to the grid without the needfor enhancements to the grid systems andoperations provided the installations areappropriately sized, specified and locatedand there are controls to cut back on solar


input on weekends and holidays to ensuregrid stability can be maintained duringthose lower load periods. Kiribati, with thesupport of the WB, has agreed on four siteswhere an initial 516 kWp (STC) of solar PVsare to be installed with funding fromAusAID through the Pacific RegionalInfrastructure Facility and the Global Envir-onment Facility. According to the WB,design and specifications for the insta-llations have been completed and the proj-ect is ready for negotiation of agreementsso implementation can commence. Inaddition, Kiribati is working with the PECFund to explore the feasibility to installadditional solar PV capacity to take thetotal installed capacity to the technicallyfeasible limit of 900 kWp of grid-connected solar PV systems.

On Kiritimati Island, there is already an 18kWp grid-connected installation privatelyinstalled on the ANZ Bank building onKiritimati Island, as shown here.

SOLAR PUMPING

There have been several solar pumpingprojects both for villages and for schoolsinstalled over the last 20 years. The initialUNDP project for village water supply

installed positive displacement pumps,which mostly failed during the first fewyears of operation. Given the shallownessof Kiribati’s wells and the coral dust in thewater that is very hard on pumps, laterprojects have used mostly centrifugalpumps that have survived much longer.Unfortunately the villages and schools thatreceived the earlier projects failed toperform proper maintenance and repairson the pumps and almost none survived forthe long term. In recent years most havebeen rehabilitated, with the water divisionof the Public Works Department (PWD)arranging maintenance.

OTHER SOLAR ENERGY APPLICATIONS

Another application of solar power is solarstreet lighting, which since 1998 has beenused with success on South Tarawa alongthe 2 km of causeway between Betio andBairiki. The fluorescent street lights arepowered by an 80 Wp panel and a sealedbattery that is placed underground to avoidbeing overheated by the sun. By keepingthe battery cool, the batteries have lastedup to 10 years.

In addition, several solar lighting and solarrefrigeration projects were purchased andinstalled at private schools, churches andother private facilities. Telecommunicationson outer islands are also all solar powered.

BIO-ENERGY

As in many of the Pacific Islands, coconutpalms are very common and cover about70-80% of Kiribati’s land area. The GilbertGroup of islands has about 190 km2 of landunder coconut tree growth, while the Lineand Phoenix groups have around 330 km2

(mostly Kiritimati Island). This representsaround 6.1 million trees. Of these treesaround 2.8 million are considered senile

Roof-top solar on ANZ, Kiritimati IslandSource: Bruce Clay

K I R I B A T I 31

with low production and are due forreplacement if the demand for copra incre-ases. Copra production is the key agro-forestry activity in the outer islands,making it the main source of income for therural population through exportation ofcopra to the oil mill on Tarawa. To aid theouter islands’ economy and to reduce emi-gration to the already overcrowded capitalisland of Tarawa, the government has acopra price stabilisation programme that ineffect has provided a subsidy to copraproducers with a current fixed price of AUD600 per tonne.

The coconut husks and shells that are thewaste from copra production have trad-itionally been the primary cooking andcrop drying fuels for the islands, even inSouth Tarawa. As shown in Figure 2, copraproduction has fluctuated significantlyfrom 1970-2008. This was partly climatedriven but also due to market factors.

Although the copra production on theouter islands has provided more than eno-ugh biomass for cooking, the high popul-ation density of Tarawa has made biomassfuel scarce and expensive, causing most

households to add kerosene or liquefiedpetroleum gas (LPG) to their list of cookingfuels.

BIOFUEL

In May 2001, the Kiribati Copra MillCompany Ltd (KCMCL) was founded as awholly-owned corporation by the gove-rnment of Kiribati. It was designed toproduce mainly CNO for export, whichearns a premium compared to copra in theinternational marketplace, as well as forlocal consumption. The mill can crushabout 35 tonnes/day of copra with amaximum oil extraction yield of about 15-20 tonnes/day, which also producesaround 10 tonnes of dry copra cake pershift. Due to the limited processingcapacity, only about 20% of producedcopra is able to be consumed locally toproduce CNO and CNO products (Tarakia2009). The remaining copra must still beexported to overseas markets. In 2010 themill crushed 4 062 tonnes and produced 2 293 tonnes of oil. In 2011 it crushed 7 980tonnes and produced 4 325 tonnes of oil ata price of AUD 1 080 per tonne CostInsurance Freight (EPU 2012).

Source: Kiribati National Statistics Office

Figure 3: Copra Production in Kiribati(Metric Tonnes, 1970-2008)


In recent years, the international marketprice for CNO has generally been low whilediesel prices have moved upwards. From apurely economic perspective, CNO-basedbiofuel looks promising as a substitute forpetroleum-based diesel that would other-wise have to be imported. The graph inFigure 4 shows how the internationalmarket price fluctuated relative to the fixedprice set by government at AUD 600 pertonne.

The KCMCL understands the possibilities ofusing its produced CNO as biofuel and hasbeen refining coconut oil for mixing withdiesel fuel or kerosene to make a form ofbiofuel. The refining process includes somereduction in fatty acid content and 5micron filtering. In 2006 the plant boilersuccessfully used diesel for start-up andbiofuel for its operation. Tests of variousblends of CNO and diesel fuel or kerosenehave been carried out and it was found that

at above 20% CNO mixed with diesel fuelthe boiler was hard to fire up but withkerosene trials up to 40% kerosene and60% CNO was satisfactory. Tests also havebeen carried out on the plant backupgenerator and vehicles. Tests were stoppedwhen engine problems occurred, mostly inthe form of fuel filter clogs and carbonbuild up in the engine cylinders (Cloin2007).

A South Pacific Applied Geoscience Com-mission (SOPAC) study published in 2006estimated that the annual production ofCNO in Kiribati could be sustained at 3-4million litres per year and could be used forbiofuel without impacting traditional uses,including pig feed and human consum-ption. If the coconut resource is rehabil-itated in order to increase the productionof copra to meet an increased demand forCNO for biofuel, a major replanting prog-ramme will be necessary to replace some

Source: The Kiribati Copra Cooperative Society (KCCS)

Figure 4: Copra Export Prices9

(1990-2004)

9. Exchange rates for the AUD; 1993 1 USD = 1.48 AUD;‘94=1.35;’95=1.40;’96=1.25;’97=1.31;’98=1.62;’99=1.55;2000=1.74; ‘01=1.97;’02=1.76;’03=1.53;’04=1.40;’05=1.32;’06=1.32

K I R I B A T I 33

of the 2.8 million senile coconut trees. Atpresent, Kiribati’s Ministry of Agriculturehas prepared a pilot plan to replant andreplace senile coconut trees. This plan willbe implemented once funding is available.The plan is to make high quality seedlingsavailable at a subsidized price and arrangefor either the purchase or disposal of thetree that is cut. In a scenario where thedemand for coconuts increases, farmerswould want to replace low production treesin order to increase productivity from theiracreage so no special incentives would beneeded. Such replanting projects wereused in the 70’s when coconuts were amajor agricultural product and high produ-ctivity hybrids (mostly from the Philip-pines) replaced the lower productivityspecies that grow naturally in the islands.

As a result of replanting, a significantamount of biomass would be made avail-able in the form of the senile trees that arecut down, though it may be more econ-omically appropriate to use the coconutwood as an export product or for local usefor construction, furniture and decorativewood products than as an energy source.

There is also modest potential for biogasproduction if community pigs were keptpenned in small areas and their manurecollected for biogas generation. However,there are no commercial piggeries or cattlefarms in Kiribati and the traditionalapproach to pig farming is having freeranging, family-owned pigs. Additionally,the trials of biogas throughout the Pacifichave not been well accepted except in afew large -scale piggeries and cattle farms,where the value of the biogas plants is seento be as much for the processing of wasteas for the production of gas. Since thepotential for saving fuel is small and thesocial and financial investment needed to

make it practical appears high, it is unlikelythat agriculture-based biogas will be asignificant resource in the near-term. How-ever, should Tarawa construct a sewagetreatment facility, as has been proposed,then providing for biogas production fromsewage (and burning of said gas forelectricity production) to offset the energyuse of the plant could be appropriate.

WIND ENERGY

Wind power has been used to pump waterin the past but has been replaced by solarpumping in the Pacific, as it is consideredmore reliable. It is clear that wind energyresource is seasonal but in general the windenergy resource is poorly understood andgood quality resource surveys need to becarried out before there is any consi-deration of wind power generation invest-ment. Wind installations are particularlydifficult for atoll islands due to their lack ofsignificant elevation and the dominance oftall coconut trees over most land areas.Installation of wind machines in shallowlagoons or on the reef well away from treesmay be required if wind power is to bepractical for most of Kiribati. However, thiscould have significant environmentalimpacts for the lagoon or reef. Fortunately,cyclones are rarely a problem in Kiribatidue to its proximity to the equator.

A wind energy assessment has beencarried out on Kiritimati Island, since it hasa much larger and more open land areathan the other islands and can support asmall wind farm. The assessment foundthat wind energy can be economical forpower generation in Kiritimati and windpower will therefore be considered as apotential energy source when a powerdevelopment plan for Kiritimati is prepared.


OCEAN ENERGY, A RESOURCE FOR THE FUTURE?

The great hope for all the Pacific Islands,particularly the resource poor atolls such asthe islands of Kiribati, is that the vastenergy in the surrounding ocean can betapped for electricity generation. Thus far,there has been no commercially acceptablemeans of converting wave, current, tidal orocean thermal energy for use in Kiribati.Trials of wave energy conversion in Tongaand of OTEC around the world have beenproposed and should be monitored byKiribati. If the trials of any of these tech-nologies show promise for Kiribati, a reso-urce survey for that technology should becarried out in preparation for a possiblefuture installation.

KEY ENERGY STAKEHOLDERS AND LEGAL STRUCTURE OF THEENERGY SECTOR

The MPWU has primary responsibility forthe planning, management and co-ordination of the energy sector. Other enti-ties with energy sector responsibilities are:

w The EPU within the MPWU co-ordinates the implementation ofenergy policies and provides adviceand assistance on all energy relatedmatters and activities.

w The PUB is a government-owned bodyresponsible for provision of power,water supply and sewage services forSouth Tarawa.

w The KSEC is a government-ownedcompany responsible for the provisionof electrical services for rural areasthrough the operation andmaintenance of solar PV systems. It

currently manages around 224 kWp ofsolar for outer island residences, 47.6kWp of solar for community buildings,7.5 kWp for streetlights and 6.4 kWpfor communications (National EnergyPolicy, 2009). In the past it has alsobeen contracted for the maintenanceof solar pumps for the Public WorksDepartment, health centre solarinstallations, school solar systems forthe Ministry of Education and solarinstallations for schools of variouschurch groups.

w The Public Works Department (PWD)maintains a number of solar pumpsthroughout Kiribati that are used atschools, villages and IC facilities.

w The KOIL is a government-ownedcompany involved in the import anddistribution of petroleum productsthroughout Kiribati.

w The MLPID is responsible for allgovernment services, includingelectricity supply, on Kiritimati Islandand the populated Line and Phoenixislands.

LEGAL STRUCTURE OF THE ENERGY SECTOR

The Public Utilities Ordinance (CAP 83 of1977 revised 1998 and 2010) provides thelegislative basis for the formation of thePUB. It also provides for the MPWU todeclare electricity supply and/or watersupply areas as exclusive to the PUB for theprovision of services. The ordinance wasamended to provide more autonomy to thePUB and it is currently acting as aparastatal body with its own terms ofservice and tariff management.

K I R I B A T I 35

w Prices Ordinance (Cap 1975 and revisedin 1981) - Includes price controls forpetrol and kerosene. Diesel is not underprice control.

w Petroleum Act (Cap 69) - This actregulates safety, storage, rationing, andcustoms inspections.

w Environment Act (Act 9 of 1999amended in 2007) - Provides for theprotection, improvement andconservation of the Kiribatienvironment, Supplemented by Enviro-nmental Regulations 2001.

The three key local suppliers of energyservices are all state-owned entities. TheKOIL imports and distributes petroleumproducts (except for some private impor-ting and distribution of LPG), the KSEC isresponsible for more rural electrificationand the PUB provides electricity, water andsewage services on most of Tarawa. Due tothe total dependence of the modernsegment of the Kiribati economy onimported fuels, the increasing cost of thosefuels has created serious economicproblems for the Kiribati government.

ENERGY POLICY AND REGULATORYFRAMEWORK

ENERGY POLICY OF 2009

The National Energy Policy was establishedin association with the KiribatiDevelopment Plan 2008-2011 and has as itsprimary goals human resourcedevelopment in the energy sector,development of livelihoods, energysecurity and energy access. The guidingprinciples are sustainability, gender equity,environmental compatibility, stakeholderparticipation, good governance andcultural/traditional compatibility.

With regards to renewable energy thepolicies include:

w Promoting sustainable renewableenergy access;

w Ensuring that the limited biomassresources are used in an economically,environmentally and culturallysustainable manner;

w Strengthening collaboration withdevelopment partners for theadvancement of renewable energyprogrammes;

w Promoting and encouraging the use ofappropriate renewable energytechnologies;

w Expediting the replication of successfulsolar programmes; and

w Introducing appropriate incentivepackages including taxes, duties andtariffs to encourage the use ofrenewable energy technologies.

The policy requires the MPWU to establisha regulatory framework for the energysector, facilitate co-ordination for theimplementation of climate changemitigation activities in the utilisation ofrenewable energy resources and ensure theco-ordination of energy requirements forany major infrastructure development.

REGULATION

The PUB, KSEC and KOIL all operate undera Board of Directors appointed by theKiribati government and are essentiallyself-regulating, though the MPWU has ove-rsight responsibility. All are required to sub-mit auditable financial statements annuallyand the government carries out an audit.Although in theory tariffs for the PUB and


KSEC are set by their respective boards,higher levels of government have in thepast overruled those board decisions andset tariffs directly. Prices for petroleumproducts from the KOIL (except for dieselfuel) are regulated under the PricesOrdinance.

FINANCING AND INVESTMENT

The government of Kiribati plays a key rolein providing financial resources to theenergy sector as the PUB is a state-ownedenterprise. Almost 25% of the AUD 90million (approximately USD 94 million)national import expenditure goes topurchasing fuels for power generation andtransportation. Most of the capital invest-ment in the energy sector comes from thedonor community, including the EU, theWorld Bank, JICA and the PEC Fundamong others.

Private sector investments are extremelylimited. Investment in the energy sector islow in Kiribati, as it is considered to beunattractive and few enterprises have anyactivity relating to energy development.

HUMAN CAPACITY

Human capacity enhancement is neededwithin the PUB, KSEC, KCMCL and KOILwith regards to business management,record keeping and business planning.Kiribati’s skilled and well-trained engineersoften find themselves better positionsoutside of the country, and migrate to

another country. This leaves those who stayin Kiribati with the need to upgrade theirskill sets.

There is lack of education and training inrenewable energy systems. For the O andM and management of the various types ofsolar installations planned for Kiribati,particularly for the O and M of the gridconnected solar PV systems, capacitybuilding for the responsible technical staffneeds to be provided. As noted elsewhere,the Kiribati Institute of Technology (KIT)and the University of the South Pacific localcampus can be developed into localtraining facilities to support the renewableenergy technologies used in Kiribati.

CNO biofuel development will requirecapacity building for quality control,testing and processing of CNO for use asbiofuel is needed at the KCMCL andcapacity building for CNO biofuel testing isneeded for the PUB. The technical issuesexperienced in using CNO biofuels in thepast were much associated with a lack ofinformation about the specificationsrequired of the product and the type ofequipment needed for its refining andquality control.

Realistic summary information regardingthe use, management, cost and capabilitiesof renewable energies being developed foruse in Kiribati needs to be provided togovernment decision makers on a regularbasis.

K I R I B A T I 37

SERVICE-RESOURCE I: GRID-CONNECTED SOLAR PVS

STATUS OF THE SECTOR

In a strict sense, there is only one power grid available in Kiribati, whichis the South Tarawa power grid, serving nearly half of the national popu-lation. It is owned and operated by the PUB with a total power gener-ation capacity of about 5.45 MW and is entirely fuelled by importeddiesel. At present, there are no on-grid solar PV systems in South Tarawa.

Kiritimati has several hybrid powered micro-grids, which include one 18 kWp grid-connected solar installation, to provide electricity to indivi-dual villages. The cost of solar generation is now lower than the cost ofoperating these small generators and conversion of the small Kiritimatigrids to solar power with diesel backup is a reasonable consideration.The village of Poland is already confirmed for EU funding to add solarto the existing grid. The villages of Tabwakea, Tennessee and Bananamay be further candidates for solar conversion. Also solar power for theSpivey Secondary College and the San Francis Secondary Collegeappear possible. The relatively large grid serving London has a 200 kWpevening peak and includes the 18 kWp of rooftop grid connected solar.It could probably accept more than an additional 20 kWp of PVinstallations without stability problems following the completion of the

III. Development of the Renewable Energy Market

Opportunities to develop the renewables sector in Kiribati are discussed in this section. As the segmentation of the market is largely subject to whatresources are available and useable and by way of what technologies they canbe converted into energy sources to provide energy services for Kiribati, thissection is divided into different sub-sections focusing on different resources andconversion technologies, known here as service-resource pairs. In each sub-section, the status of each particular sub-sector is reviewed, followed by theissues that need to be addressed and then concluded with a list of actions thatwere recommended by the RRA.


recently announced power consolidationproject that will connect the existing smallgrids from London to Tabwakea.

However, for South Tarawa, to address thechallenges stemming from over-dependence on imported fuels, the gover-nment of Kiribati has over the past yearsbeen stepping up efforts to investigateoptions to integrate utility-scale renewableelectricity generation into the SouthTarawa grid. This was motivated by twofactors: the cost of imported fuels drama-tically increasing over the past years andthe cost of PV panels significantly decre-asing. The combined effect contributes tothe improved economics of utility-scalesolar PV systems. In addition, fuel importreduction could also enhance energysecurity by reducing the impact of dieselsupply disruptions caused by political,climatic and other issues.

ISSUES

At present, there is no grid-connected solarPV installation in the grid of South Tarawa.But the on-going solar initiatives with thesupport from the WB and the PEC Fundwill put about 900 kWp of solar PVgeneration capacity into the grid – a levelconsidered safe10 according to the WB-funded feasibility study. However, one keyissue affecting grid stability is the muchlower daytime load on the weekends, whengovernment air conditioning is notoperating. The noontime load during theweek is around 3.5 MW (see Figure 2) and900 kWp represents 26% of that load. On

the weekends the noontime load is around2.4 MW. Thus 900 kWp represents over37% of the load, an amount considered bymany experts to put the associated grid atrisk for stability problems from the rapidvariations of output from the solar powergeneration systems. This indicates thatunder special conditions some solar PVthrottling may be required, but not withoutan economic trade-off. The proposedmodular design has to provide a solutionas to how best to manage the “throttlingback” and also consider to what extent thistechnique can be combined with asophisticated solution to maintain the gridstability.

w Future grid stability is a major concernof the PUB. The WB’s feasibility studyindicates the grid’s ability to absorb900 kWp variable energy sources. ThePUB, the governmental body respo-nsible for power system reliability, ishowever concerned about grid stabilityissues in a scenario where capacitygoes above 900kWp with additionalgrid-connected solar PV installations –as the 900kWp is close to the limit thatthe grid can take if no measure toenhance the grid stability is taken11.

Since 900 kWp is considered the technicallimit, additional solar will require some sortof stabilising storage and/or controlsystems to prevent de-stabilising vitiationsfrom occurring, once the 900 kWp of solarhas been installed through funding fromthe WB and the PEC Fund. In this situation,what additional grid-connected project

10 If each location of the installations does not exceed 300kWp and stay 2-3 kilometres apart.

11 This is because in the current circumstance the problem is only going to be manifested on theweekends but if another sizeable amount of kWp of solar is added then “throttling back” probablybecomes a daily operation and for every kW added the economic benefits would be less and less and the decision as to whether or not to “throttle back” becomes more and more difficult.

K I R I B A T I 39

concepts make sense for Kiribati, if any?Since additional scale grid-connected solarappears necessary to meet the goals setfor reducing dependency on fossil fuels,should Kiribati seek donor funding for largeinstallations on the ground or should itcontinue to focus on roof top solar? ShouldKiribati seek outside investors to build andoperate solar arrays and sell power to thePUB? Should the PUB seek many small gridconnected solar installations that are easyto maintain and can be operated by thePUB itself, as has been considered in thepast? These questions need to beconsidered early in the development ofgrid-connected solar in Kiribati andincluded in the action plan that is preparedto attain the national goals for renewableenergy integration.

PUB management and technical staffneeds to be supported in their preparationsfor such problems through the use of gridmodelling software to determine at whatpoint energy storage and solar outputvariation controls should be introducedinto the grid infrastructure so thatadditional solar installations include designfeature so that they do not introducestability problems for the grid. So, they canbe familiar with different approaches toaddressing the grid stability issues whenthe problems are still manageable.

w The grid stability issue can betechnically addressed but the greaterlong term challenges lie in how to bringall the key stakeholders together todiscuss the stability issue and addressit with a joint effort. Non-technicalissues include: (a) how to effectivelyco-ordinate multiple donors who willbe proposing grid-connected solar interms of sharing the responsibility for

grid-stability issues and creatingsynergies12; and (b) what legislativeand/ or regulatory instruments such asstandards both for Kiribati conditionsand inter-changeability and accep-tance or avoidance of private grid-connected solar/wind installations sho-uld be put in place relative to futuresolar based installations.

w There are no standards, laws orregulations for private generationusing renewable energy that feeds intothe grid. If the private sector is to beinvolved in on-grid renewable energydevelopment, net-metering isimportant as are standardisedarrangements for power purchaseagreements and independent powerproducers.

w What renewable energy options shouldbe used for Kiritimati and how shouldthey be applied? Should the individualKiritimati village grids be converted tosolar? Should they be interconnectedto create an island grid? From arenewable energy point of view, this isimportant since the manner that windand solar can be integrated will be verydependent on whether they remainseparate grids or are interconnected.

Although off-grid small-scale solar PVsystems have been in use in Kiribati sincethe 1970s and are well understood by theKSEC, there is a lack of knowledge andexperience in large-scale on-grid solar PVapplications. If a rapid increase in thegeneration capacity of grid-connectedsolar PV systems occurs, a number ofchallenges to the PUB would emerge andhave to be addressed in a timely andsystematic manner. Since the emerging

12 A Solar Steering Committee currently coordinates the two pipeline projects and the WB will provide a solarengineer to supervise installations, a three-year O and M programme and a three-year capacity buildingprogramme for PUB and KIT and will also include KSEC to broaden the skills base.


issues on grid integration stem both fromthe technical aspect and the currentinstitutional, capacity and legislativesettings, a systematic perspective andapproach is needed to address them.

RECOMMENDED ACTIONS

w Initiatives to maintain grid stability - Inthe RRA workshop discussions on thisissue, the trade-offs between usingsolar to offset imported fuelconsumption and weakening the gridstability due to the variable outputs ofsolar PV generation were discussed bythe on-grid solar discussion group. Itwas agreed that some specificmeasures would have to be taken tomitigate the negative impacts of highlevels of penetration by solar PVssystems on grid stability, especiallysince Kiribati will need to seekadditional grid-connected solar PVgeneration capacity in the future if therenewable energy goals are to be met.

This issue has three dimensions: (1)technology; (2) capacity building foroperators and O&M technicians; and(3) regulatory and technical standards.Each has to be addressed individuallyin order for the issue to be effectivelyaddressed as a whole. Additionally,effective donor co-ordination will havean important role to play when grid-connected systems proposed bydonors are to be installed in the future.

There are a variety of technical optionsavailable on the market. A number ofrecommended technical solutions wereput forth, including adding energystorage to smooth out the solar input,computer management of solar inputsthat slows down the rate of change ofpower from the solar or drops out solar

input when changing too fast or toomuch, ‘smart’ grid technology thatautomatically adjusts loads to matchsolar input variations and other high-tech options using advanced controltechnology. In addition to theproposed technical solutions, thegroup also put forth that there is aneed for capacity building includingtraining the system operators.

w Net-metering - Developing net-metering regulations or legislation hasgathered interest but it was agreedthat net-metering would be useful onlyif it is determined that the grid canallow the integration of a number ofsmall dispersed grid-connected PV ins-tallations after the completion of the900 kWp donor-funded systems. ThePUB would be unlikely to consider thenet-metering scheme until the issues ofpotential grid stability following theinstallation of the 900kWp from WBand PEC fund are effectivelyaddressed.

w Capacity building - Developingcapacity of the PUB to monitor the gridstatus and maintain the stability of thegrid was viewed as an importantmeasure to enhance grid reliability.There have been a number of capacitybuilding programmes funded bydifferent donors in the region but fewhave addressed these issues. Suchprogrammes need to be developedand provided by donors throughexisting training institutions such as theKIT and the University of the SouthPacific (USP), with the support andadvice of the Pacific Power Association(PPA), the Secretariat of the PacificCommunity (SPC) and the SustainableEnergy Industries Association of thePacific Islands (SEIAPI). The WB

K I R I B A T I 41

project includes a solar engineer tosupervise and commission installations,a 3- year O and M programme and a 3-year capacity building programmefor PUB and KIT and will include KSECto broaden their skills base. Capacitybuilding for the PUB is also plannedwithin the PEC Fund project. For thelong term, maintaining the requiredcapacity at the PUB and adjusting it tofit increased inputs of renewable ene-rgy on the grid needs to be consideredin any action plan that is prepared.

w Developing standards and regulationsfor grid-connected solar systems -Standards and regulations are neededto ensure the technical quality of therenewable energy projects and theirappropriateness for the islandenvironment. They are also importantto make easier the maintenance, spareparts management and the training oftechnicians and minimise costs.Standards and regulations are alsoneeded to safely integrate renewableenergy systems into the grid. Thediscussion group noted the priority ofsafety of the public and maintenancetechnicians. Standards for systemdesigns and components are critical forreliable and safe operation of therenewable energy systems. In addition,setting technical standards andregulations will help create guidelinesfor private sector participation, whichmay be needed if the fuel importreduction goals are to be met. Inparticular if the private sector is to takepart in renewables, standards fordesigns and components makes itmuch easier to attain competency,since the scope of training required islimited to the technology covered bythe standards.

w Donor co-ordination - It is vitallyimportant that the WB and the PECFund co-ordinate their designs andinstallations. Discussions betweenthose two funding sources and thegovernment of Kiribati are underway.For the long-term, as more renewablesare proposed for integration into thegrid, which ones are allowed to beconnected to the grid and how theprojects should be implemented mustbe addressed to prevent grid stabilityissues. It was proposed by the RRAthat IRENA could continue to play a co-ordination role to ensure that there iseffective communication among thedesigners and implementers of donorprojects and the PUB so that issues ofgrid stability will be addressedcooperatively and completely.

SERVICE-RESOURCE II: CNOBIOFUELS FOR PUB POWERGENERATION

This sub-section, together with sub-sections “Service-Resource IV and Service-Resource V”, is focused on CNO biofuels inKiribati and how they can contri-bute tothe reduction of imported fossil fuels. Thediscussion out-comes in these three sub-sections were based on the group discus-sions in the two-day RRA work-shop andan extended discussion that was organisedby the EPU for a smaller group on October5th 2012 at the PUB.


Currently the PUB uses around 5.5 millionlitres of diesel fuel each year in engines thatwere provided through Japanese aid lessthan 10 years ago. Of the renewable energysources available to Kiribati, CNO used forbiofuel appears to be the lowest cost


option for high capacityrenewable energy-basedpower generation. Roughly70% of Kiribati’s land area iscovered by a coconut treecanopy of an estimated 6.1million trees. Productionfrom that resource could bein excess of 3.5 million litresof CNO per year. On theother hand, the coprasector is highly subsidisedand hence poses a hugefinancial burden on thegovernment of Kiribati.Kiribati has examinedseveral options to utilise CNO as asubstitute for diesel fuel. For example, theKCMC attempted to use CNO in theirproduction boilers at a blending ratio of60% CNO with 40% kerosene (Cloin 2007).Through that experiment it was learnt thatCNO must be treated and filtered toupgrade its fuel quality while moisturemust also be removed. Additionally, ablend of CNO with conventional fuel wastrialled in the mill generator and companyvehicles. Today there is little doubt thatdiesel-powered generators can run safelyon blended CNO if the challenges posed byCNO use are well understood andeffectively managed.

To date, there have been few trials of CNOfor grid power generation in Kiribati butregionally there have been trials with ablend of CNO and diesel fuel in the largeengines used for power generation inVanuatu, Samoa and Fiji. UNELCO inVanuatu is currently using fuel containing30% (by volume) CNO and has reported nosignificant problems. On Savai’i, in Samoa,up to 20% CNO was used with nosignificant problems but due to supply andoil quality problems, Samoa is no longerdoing trials of CNO with diesel. The Fijian

government hasestablished a standard thatallows 5% CNO blend forgeneral sale as biofuel,though the Fiji ElectricityAuthority is not currentlyusing or doing trials ofbiofuel for powergeneration.

ISSUES

w Engine risk is a bigconcern in Kiribati. Sincethe PUB engines are notspecifically designed to be

compatible with CNO, the Japanesemanufacturer will not support the useof even a blend of diesel and CNO.Therefore either the PUB accepts therisk of losing manufacturer warrantiesand support or installs an engine thatis designed for coconut oil use.

w The price of CNO is currently set by theinternational market. So long as thePUB fuel purchase prices are equal orhigher than the export value of CNOand/or copra, the delivery of the millproduct for power generation isreasonably assured. However, shouldthe export price of CNO and/or copraexceed the price that the PUB findsacceptable, there will be strongeconomic pressure to sell the CNO orcopra for export and have the PUBrevert to imported diesel fuel.

w Feedstock supply depends on millsreceiving sufficient good quality coprato make oil that is suitable for use as abiofuel. For mills to have a securesupply of copra, shipping from theouter islands must be reliable andfrequent, the productivity of the treesmust be maintained and the price paid

Current Use: Cummins Genset 400 KVA10-20% CNO in Diesel FuelSavai EPC Power Station,

Samoa, 2005Source: Gilles Vaitilingom

K I R I B A T I 43

for the copra must be acceptable tothe copra cutters. Currently shipping isirregular and the quality of receivedcopra has suffered as a result. The pricepaid for copra in Kiribati is currentlyregulated and under the control ofgovernment, so the main factor is theoil or copra export market.

w The decline for copra demand over thepast several decades has allowed manyof the trees to become senile, with lowproductivity. An estimated 46% ofexisting trees have entered the senilephase of their life cycle. A greatly incre-ased demand for oil to supply the PUBfuel will require the cutting and properdisposal of the old trees and replantingwith trees specifically bred for high oilproduction. Currently the husks andshells left over from copra productionare used for cooking fuel and othertraditional purposes. If copra produ-ction is dramatically increased, a largesurplus of husks and shells will beproduced.

w A major issue with the use of CNO forfuel has been maintaining proper oilquality. Many of the problems, such asfuel filter clogging, can be avoidedthrough the establishment of qualitystandards and testing procedurescombined with better quality control ofthe oil intended as diesel replacement.This is related both to the quality of thecopra delivered to the mill and to theoperation of the mill itself, so a solutionmust include suppliers as well asmillers.

RECOMMENDED ACTIONS

w Prepare a CNO implementation plan -Develop an implementation plan whereCNO replaces diesel fuel that

considers: (1) rehabilitation of coconutstands; (2) how to best utilise seniletrees that have been cut down to makeway for new planting; (3) how to bestuse husk and shell waste from largescale copra production; (4) whether tocontinue with centralised milling onTarawa, use smaller scale milling onsome or all outer islands or acombination of both; (5) how best toprocess the oil to meet CNO biofuelstandards; and (6) how to regulateprices to avoid impact of internationalmarket price fluctuations.

w Include a CNO-capable base loadengine at the PUB - An additionalengine is being considered for the PUBto provide more flexibility and powerreliability. This will be supported withthe preparation of a project topurchase a dual fuel (CNO and dieselfuel) engine when the PUB purchasesa new engine.

w Establish a testing facility for CNO forfuel use - Develop a complete,independent biofuel testing facilitythat can assure the PUB that deliveredbiofuel meets the standards that havebeen set for CNO to be used as a dieselfuel replacement.

w Establish small mobile mills to avoidshipping problems - Development of amobile mill for the preparation ofadequate quality CNO for biofuel usecan prove helpful. This will contributeto developing CNO production forpower generation on Kiritimati, as itcurrently has no mill and shipping CNOfrom Tarawa is expensive. Should themobile mill be successful, it may beduplicated on the outer islands,especially those that have poor accessto shipping.


SERVICE-RESOURCE III: OFF-GRID SOLAR PVS


The current estimate is that over one-thirdof the approximately 2 200 outer islandsolar installations, mostly SHS, are nolonger working due to a need for batteryreplacement. This has had a cascadingeffect on KSEC income, as even previouslycompliant customers who have paid theirfees for years in expectation of receivingproper maintenance of their systems havebegun to stop payment, as they had notreceived the maintenance they had paidfor.

As a further result there has been areduction in fee collections due to manynon-operational systems and thepercentage of receipts of payments forworking systems has fallen to new lows,further worsening the KSEC cash flowsituation. A detailed plan for rehabilitationof the off-grid solar installations wasprepared by the KSEC in conjunction withthe Kiribati government, following whichthe government has promised to resumesubsidy payments soon.

Other off-grid electricity generationincludes small fossil fuelled generators atIC offices and facilities (typically one oneach island) and small diesel generators atsome boarding schools and health facilities.These generators typically run less than 24hours a day.

ISSUES

w How to best address the rehabilitationof the outer island solar installationsand how can the KSEC regain theconfidence of its outer island solarcustomers and its cash flow?

w Should the small IC grids be convertedto solar mini-grids or modified to runon CNO? Who should own, operate,maintain and manage them? To datethese small grids have been installedad hoc and are quite inefficient. It isimportant to establish a proper design,operation and management process sothat they not only provide and deliverbetter quality power in an efficientmanner but also meet safety andpower standards.

w What off-grid project concepts makesense for Kiribati at this time? There isa known demand for electricity in ruralareas. How should Kiribati fill thatdemand for residences? Forbusinesses? For schools? For healthcentres?

RECOMMENDED ACTIONS

w Rural Electrification ImplementationPlan - Fund a rural electrification imp-lementation plan that includes therehabilitation and expansion of solarfor rural households and maneabas.The plan should be based on acarefully prepared survey of rural energy needs, willingness and abilityfor residents to pay for the services tomeet those stated needs. A range oftechnically feasible solutions such asmicro/mini-grid configurations, pre-paid metering devices and feasiblemanagement and operational modelsshould be also carefully examinedagainst the local contexts of Kiribati. Inthis way, it would ensure the proposedtechnical systems in theimplementation plan could be welladapted into the varied localities withinKiribati and thus be operated in asustainable fashion, both technicallyand economically.

K I R I B A T I 45

w Combine solar maintenance under oneagency - Determine the renewableenergy maintenance needs of the var-ious organisations providing outer isl-and energy services for education, he-alth, communications, power and watersupplies. Also determine if it is a gooduse of resources to establish separatetechnical maintenance crews withineach organisation, or given the sharednature of maintenance activities,should a specialist organisation, suchas the KSEC or a new private company,be established to contract for allmaintenance.

SERVICE-RESOURCE IV: OFF-GRID CNO-BASED BIOFUELS FOR POWER GENERATION


The sector has two segments: (1) the use ofCNO for primary power generation or asback up for small-grid solar generation onKiritimati; and (2) the possible use of CNOas fuel for outer island diesel mini-grids,supplying power to IC compounds, schoolsand other public facilities on rural islands.Currently most of ICs have a smallgenerator that is operated a few hours aday for powering the IC facilities, whichmay include guest houses for visitors, theIC office, an associated school or healthcentre, workshops, storage buildings andthe homes of IC employees,

ISSUES

w While simply converting existing dieselgenerators to CNO is the cheapestinvestment option, in the long run CNOis likely to be more expensive for outerisland generation, compared to solar.That is partly due to the fact that fuel

grade CNO is expected to becomparable in price to diesel fuel andcurrently outer island diesel importsare more costly per kWh generatedthan solar with batteries. The cost ofsolar generation is largely the result ofhigh initial investment with moderateoperational costs while for dieselgeneration the greatest cost input isthe actual fuel, since the initialinvestment cost for equipment ismodest. Since donor funding canprobably be accessed for the off-gridsolar investment, the cost to Kiribati forthe solar electricity will be much lowerthan for diesel-generated electricity,since that fuel source will not beprovided by donors.

w For solar energy to become the mainpower source for Kiribati, solarinstallations must be ‘oversized’ to beable to provide extra energy during theextended periods of cloudy weather, orthey must have a backup power sourcesuch as a small diesel engine. ShouldCNO be the fuel of choice for back upgeneration?

RECOMMENDED ACTIONS

The following two recommended actionsare proposed separately based on thereasons: (a) the Kiritimati grids are muchlarger and more complex than thoseserving the IC that generally are no morethan a portable generator and; (b) therewill be different agencies implementing thetwo different projects and they havedifferent needs and expectations.

w Solar versus CNO for the outer islandmini-grids - Fund a feasibility studythat determines the economics andenvironmental effects of solar


generation at the various sizes neededfor ICs, schools, water pumps andhealth centres. Assume in one casethat the solar power installation isoversized so there is no need for backup generation; and in a second caseassume the solar power systemproduces 90% or more of the neededenergy while CNO-powered dieselprovides the rest. Evaluate based onboth direct investment and donorinvestment. Compare those resultswith and evaluation of 100% CNO-powered diesel generation for thesame size range.

w Solar versus CNO for Kiritimati grids -Fund a separate study of the sametype but focusing on the specific needsof the several small grids on Kiritimatithat follows on from the Kiritimatibiofuel feasibility study prepared in2011 using PIGGAREP funding.Determine which technologicalapproach best fits the requirements ofeach existing grid.

SERVICE-RESOURCE V: CNO-BASEDBIOFUELS FOR TRANSPORTATION


The KOIL estimates that about 12 millionlitres of all fossil fuels is used for transport.The fuel usage for inter-island shippingrepresents the bulk of the diesel fuel thatis imported for transport purposes andappears to be about equal to the fuel usedfor power generation, though accuratestatistics are not available. Currently bothgovernment and private ships providepassenger and freight services betweenislands or across the lagoon on an atoll. The

majority of the inter-island vessels havediesel engines that could be adapted to usea percentage of CNO as their fuel. To date,in the Pacific Islands there have been anumber of discussions and some proposalsfor the conversion of ship engines to CNObut no definitive trials.

Although there is no data regarding therelative amount of diesel and petrol use forland transport, there are an increasingnumber of diesel vehicles on the road bes-ides the usual trucks and busses. The gov-ernment in particular has been selectingdiesel-powered vehicles both for theirexcellent fuel economy and their relativelylow maintenance requirements.

ISSUES

w Unlike diesel generators on the grid,ship engines may be operated forextended periods at low power levels,such as while manoeuvring into port orwhile anchored. The carbon build-upseen in diesel engines burning fuels

with a significant percentage of CNO isgenerally the result of low combustionchamber temperatures that occur atlow engine loading. To accommodate ahigh percentage of CNO in enginesthat sometimes operate at low loadlevels, one simple approach usedelsewhere has been to switch betweentwo fuel tanks, one with biofuel that isonly used when the engine is loadedabove about 50%, and another filledwith diesel fuel for low load conditions.

w A biofuel quality standard that isstringently enforced is more importantfor shipping than for power generation,

K I R I B A T I 47

since engine breakdown at sea can putthe vessel and those aboard in seriousdanger. Therefore before committingto a high percentage of CNO forshipping, standards will need toestablished as well as a testing facilitythat can continually check to ensurethat the standards are beingmaintained

w Work with the KOIL to establish biofueldispensing sites for land transportfollowing approval of biofuel standardsand initiation of biofuel production.

RECOMMENDED ACTIONS

w Testing facility for CNO as a transportfuel - Development of a complete,independent biofuel testing facilitythat can assure ship and vehicleowners that delivered biofuel meetsstandards that have been set for CNOto be used as a diesel fuel replacement.

w Shipping trial with CNO - Prepare aproject to retrofit an existing inter-island ship with two fuel tanks, one fordiesel fuel and one for CNO, to allowswitching to CNO when engine loadingis high and to diesel fuel when loadingis low and problems with carbon build-up could occur if CNO were used.

SERVICE-RESOURCE VI: LEGISLATION AND POLICY


The MPWU has primary responsibility forthe planning, management and co-ordination of the energy sector. Otherentities with energy sector responsibilitiesare listed below.

w The EPU co-ordinates the implemen-

tation of energy policies and providesadvice and assistance on all energy-related matters and activities.

w The PUB is a government-owned bodyresponsible for provision of power,water supply and sewage services toSouth Tarawa.

w The KSEC is a government-ownedcorporation responsible for theprovision of electrical services to ruralareas through the operation andmaintenance of solar PV systems. Itcurrently manages 224 kWp of solarfor outer island residences, 47.6 kWp ofsolar for community buildings, 7.5 kWpfor streetlights and 6.4 kWp forcommunications. In addition, it hascontracted for the maintenance ofsolar pumps for the Public Works Dep-artment, health centre solar instal-lations, school solar systems for theMinistry of Education and solar instal-lations for schools of various churchgroups.

w The KOIL is a government-ownedcorporation involved in the purchaseand distribution of petroleum productsthroughout Kiribati.

w The MLPD is responsible for allgovernment services on Kiritimati andthe populated Line and Phoenixislands.

LEGAL STRUCTURE OF THE ENERGY SECTOR

w The Public Utilities Ordinance (Cap 83of 1977 revised 1998 and 2010) is thelegislative basis for the formation ofthe PUB. It allows the MPWU to declareelectricity supply and/or water supplyareas as exclusive to the PUB for the


provision of services. The ordinancewas amended to provide moreautonomy to the PUB. The PUB iscurrently acting as a parastatal bodywith its own terms of service and tariffmanagement.

w Prices Ordinance (Cap 1975 and revisedin 1981) includes price controls forpetrol and kerosene. Diesel is not underprice control.

w Petroleum Act (Cap 69) regulatessafety, storage, rationing, and customsinspections.

w The Environment Act (Act 9 of 1999amended in 2007) provides for theprotection, improvement andconservation of the Kiribatienvironment. It is supplemented byEnvironmental Regulations 2001.

The Energy Policy was established inassociation with the Kiribati DevelopmentPlan 2008-2011 and has as its primary goalshuman resource development in theenergy sector, development of livelihoods,energy security and energy access. Theguiding principles are sustainability, genderequity, environmental compatibility,stakeholder participation, goodgovernance and cultural/traditionalcompatibility.

With regards to renewable energy thepolicies include:

w Promoting sustainable renewableenergy access;

w Ensuring that the limited biomassresources are used in an economic,environmental and culturally-sustainable manner;

w Strengthening collaboration withdevelopment partners for theadvancement of renewable energyprogrammes;

w Promoting and encouraging the use ofappropriate renewable energytechnologies;

w Expediting the replication of successfulsolar programmes; and

w Introducing appropriate incentive pac-kages including taxes, duties and tariffsto encourage the use of renewableenergy technologies.

ISSUES

w What is the role of the private sector indeveloping renewable energy inKiribati? Should the KSEC beprivatised? What about privatepreparation and distribution of biofuel?What about private solar or windgeneration feeding into the grid? Whatlegislation, policies, incentives andregulation are needed for privatesector development?

w What are the policy and legislationgaps that may cause problems for thefuture as the use of renewable energyincreases? Although the Kiribati EnergyPolicy is relatively recent, there may beareas that need improvement to bestpromote the use of renewable energyto reduce the import of fossil fuels.

w What additional institutional structuresor changes in existing ones are neededto best support renewable energy inKiribati?

w What renewable energy standards anddesign guidelines are needed to assure

K I R I B A T I 49

that all installations can be sustainedby Kiribati institutions? How willtraining to meet standards be deliveredand to whom? Who should enforce theinstallation and design standards?

RECOMMENDED ACTIONS

w Establish a stakeholder-based co-ordinating committee for energydevelopment co-ordination - Estab-lishing a Kiribati National Energy Co-ordinating Committee (KNECC) tooversee the development ofprogrammes and projects intended toreduce dependence on fossil fuelsincluding the implementation ofNational Energy Policy, Action Plansand projects is recommended. TheSecretariat of the KNECC should be theEPU however capacity building will berequired for effective delivery of its co-ordination role.

w Review of the existing regulatory andpolicy situation - Reviewing policies,acts and regulations will helpdetermine where there aredisincentives for the use of renewableenergy and what incentives can beintroduced. There is a need to reviewthe existing Customs Act to createincentives to import and retailrenewable energy components to theouter islands by private businesses toincrease access to solar energy in therural areas. The current tax onimportation of renewable energytechnologies such as solar panels andbatteries is 30% for the private sectorwhile government projects areexempted from this tax. Establishingnet metering policies and standardisedpower purchase agreements may alsofacilitate the private sector indelivering renewable energy-

generated power to the grid. Thelimited coconut stock for biofuel usefor electricity and transport is achallenge and therefore there is a needto revise policies related to therehabilitation of the coconut industry.

w Review the KSEC business modelreview - The KSEC business model andits status need to be reviewed. TheKSEC is a government entityresponsible for improving access ofrenewable energy to rural and outerislands. Only 31% of the totalpopulation in the outer islands haveaccess to SHS while 5% use othermeans of obtaining power.

w Establish standards and guidelines forrenewable energy development – Thefirst stage is determining whatrenewable energy standards anddesign guidelines are needed for off-grid and on-grid installations. Currentlythere are no existing standards relatingto the technical and safety issues forrenewable energy electricitygeneration. The lack of electricalstandards is also a barrier todeveloping the capacity of locals inelectrical technology. Once neededstandards are identified and dev-eloped, there is a need to set up aregulatory body to ensure that thetechnical and safety standards andguidelines are properly followed. TheMWPU should serve as a technicalregulatory body to oversee the enfo-rcement of these standards. Standardsfor off-grid or stand-alone solar sys-tems have been established, howeverthese should be disseminated andstandardised for private sector use.

w Create a more comprehensive omni-bus act for energy – There is a need to


develop an ‘Energy Act’ that provideslegal mandates for the institutionalreforms necessary for the developmentof renewable energy to replaceimported fossil fuels. This act will alsofill in gaps in earlier legislation.

Following the completion of the RRA work-shop, discussions with stakeholders wereheld that considered the setting of goalsfor fuel import reduction. It was decidedthat there should be separate goals for fuelimport reduction for Tarawa and forKiritimati, since the two energy systems arevery different and not inter-related. Afterdue deliberation, the goals were set asfollows:

TARAWA GOAL13

The goal for Tarawa is that the percentageof energy coming from fossil fuels forelectricity generation will be reduced by45% through a Business As Usual (BAU)model by the year 2025. It is anticipatedthat solar energy and biofuel will be thedominant renewable energy sources usedto achieve this goal. The goal is forelectricity from renewable energy toreduce fuel imports by 23% by 2025. Thegoal for energy efficiency, both on thesupply and demand side is the reductionby 22% in demand through the BAU model.

KIRITIMATI GOAL

The goal for Kiritimati is to reduce by 60%the energy coming from fossil fuels forelectricity generation by the year 2025through the BAU model. A 100% reductionis to be achieved by 2030 throughincreased production of CNO. It isanticipated that solar energy and biofuelwill be the dominant renewable energysources used to achieve this goal. The goalis for electricity from renewable energy toreduce fuel imports by 40% by 2025. Thegoal for energy efficiency, in both thesupply and demand sides, is the reductionin demand by 20% by 2025 through theBAU model.

OUTER ISLANDS GOAL

For the outer islands, it is proposed that agovernment policy be put into effect thatrequires all electricity generation expansionto be through renewable energy. The policywould also mandate that existing IC, gov-ernment and school diesel generation beconverted to renewable energy by 2025.Thus by 2025 all electricity generation onthe outer islands will be through renewableenergy.

These proposed goals have beensubmitted to the Kiribati Cabinet for reviewand approval.

13The terminology of “goal” that was used in the proposal to Cabinet actually indicates a target to be set

K I R I B A T I 51

52 R E N E W A B L E R E A D I N E S S A S S E S S M E N T

R Coordinate the WB and the PEC Fund solar projects so both takeresponsibility for their combined projects to prevent endangering grid stability.

R Develop standards and guidelines for future solar PV grid-connectedsystems.

R Investigate the appropriateness of privately-owned grid-connected solar PV.R Facilitate capacity building to manage grid stability with high levels of solar

penetration.

Maintain the stabilityof the grid whileallowing a high levelof solar PV input

R Prepare a CNO implementation plan for Kiribati to determine the specificactions and timelines necessary to develop CNO as an acceptable diesel fuelreplacement.

R Establish fuel standards and a testing facility for CNO-based biofuel to beused for power generation and transport.

R Develop mobile copra mills for use on Kiritimati and outer islands.R Have the PUB procure a genset designed for use with CBI for base load

generation.

Develop CNO as abiofuel for powergeneration

R Trial of shipboard use of CNO through the dual tank system.R Trials of blends of CNO and kerosene or diesel fuel for land transport.

Use of CNO as a landand sea transport fuel

R Establish a Kiribati National Energy Coordinating Committee.R Review existing incentives, regulations, and policies relating to energy and

propose changes where there are disincentives for renewable energy.R Prepare an "Energy Act" that fills the gaps in current legislation.R Review the KSEC business model.

Policy, legislation andregulation developmentto support renewableenergy

R Prepare an outer islands electrification implementation plan that only uses renewable energy.

R Prepare standard modular design and installation guidelines for solarpowered mini-grids.

R Develop a local off-grid electrification capacity building facility at the KIT.R Provide for rehabilitation of existing outer island solar installations.R Determine how the KSEC can be institutionally strengthened.R Increase private sector involvement in renewable energy development

Off-grid electrificationincluding Kiritimati

The following schematic identifies the recommended actions from the RRA process. These actionsare not presented in any order of priority, and the list of actions from a rapid assessment is unlikelyto be exhaustive. The detailed list of actions can be found in Annex.

IV. Summary of Recom mended Actions

53K I R I B A T I

V. Best Practicesin Kiribati

SOLAR UTILITY (RENEWABLE ENERGY SERVICE COMPANY)STRUCTURE FOR OUTER ISLAND SOLAR ELECTRIFICATION

Probably the most difficult problem in implementing solar energy forresidences located in remote areas has been the creation and esta-blishment of a suitable institutional structure that can provide forsustainable, affordable and reliable electricity access through SHS tomeet the needs of remote rural households.

Since the early 1980s, the Kiribati government has focused on renewableenergy for the outer islands and has specifically avoided using dieselgeneration for electrical power. To support that policy, the Kiribati SolarEnergy Company (KSEC) was established under USAID funding in 1984to act as an importer and seller of SHS for outer island households. Theprogramme included technical assistance in the selection of componentsto meet the needs of the buyer, clear local language instructions on howto properly install the systems and technical advice in case there areproblems with the system. The initial response was strong, with over250 systems sold by 1987. But that was the peak for sales, with a rapidand constant decline after that until the KSEC faced bankruptcy in 1989,despite an injection of additional funds from USAID. A survey carriedout by the Forum Secretariat Energy Division, the regional energy age-ncy at that time, showed clearly that the reason for the rapid decline insales was a decline in market confidence in the technology, not marketsaturation. The equipment purchasers chose undersized panels andbatteries to save cost, installed the equipment using wire that was toosmall and made connections that were just twisted wires or alligatorclips. There was little or no maintenance of the batteries. The end resultwas low power reliability and great customer dissatisfaction. As the wordof the problems spread through the close-knit island communities, salesdried up.

At the request of the Kiribati government in 1989, a consultant wasbrought in to help determine how the KSEC could be re-organised tobetter achieve the goal of rural electrification through renewable ene-rgy. After lengthy discussions and analysis, it was decided to establisha solar utility that would operate along the lines of conventional utilities,

whereby all equip-ment was owned by theutility and all maintenance was done by theutility, with the customer’s onlyresponsibility being the payment of aperiodic fee. The JICA agreed to fund a trialof the concept using the North Tarawa ruralarea as the location, since it was relativelyeasily accessed and had all thecharacteristics of an outer island rural area.By 1992, over 50 homes on North Tarawawere provided electricity through the KSECUtility structure. Based on that trial anumber of lessons were learned:

w Hands-on training and continued train-ing, preferably at least annually, is esse-ntial to quality maintenance.

w Although young people tend to bebetter at technical tasks, it was foundthat the community responded betterto technicians who were older in age.The reason for this is that they aremore respected in the community andappear to have a greater sense of theirresponsibility. Also, as their main tasksare dealing with customer problems,not technical problems, they have beenmore successful at fee collection andsecuring customer co-operation.

w Only the most robust qualitycomponents should be installed inremote sites. The cost of replacingbatteries and other components is veryhigh due to access costs, so the morereliable the system the lower the lifecycle cost.

w Simplicity is important to reliability. Thelocal technician has to be able to easilyadjust and repair the installations.

w There needs to be careful control ofspare parts on the island. There is acontinuing temptation to use spare

parts to construct new systems for thefree use of friends and relatives of thetechnician

w Fees must be checked and if neededre-adjusted at least annually to providefor sustainable operations.

w Administration needs to be dispersednot centralised. Central administrationis expensive and not very effective,since it is not cost effective oradministratively efficient to supervisethe outer island agents from Tarawa.The central office needs to concentrateon corporate policy and itsenforcement, spare parts purchasingand their central storage, new projectdevelopment, component manufac-ture, and interactions with the nationalgovernment.

w Clear standards and guidelines forinstallations, component purchasingand administration need to beestablished and insisted upon in donorfunded projects. Many of the problemscurrently facing the KSEC are the directresult of poor technical and businessadvice that was provided in associationwith donor projects.

LOCAL MANUFACTURE OF SHS CHARGE CONTROLLERS AND DC/DC CONVERTERS FOR OPERATING RADIOS OFF SHS BATTERIES

A serious problem for maintenance of SHSin remote areas has been charge control-lers. As was seen in a multi-year test seriescarried out in Tahiti in the late 1980s,commercial charge controllers are not desi-gned to meet the demanding environ-mental conditions of atoll islands andtypically will not survive for more than a


few years. This is still the case for the newversions of commercial charge controllers,primarily due to the increasing complexityof controller design particularly usingmicroprocessor-controlled switching units.The life of commercial controllers seems tobe typically 3 to 5 years on atoll islandswhere the environmental effects are prob-ably the worst. In Fiji they seem to performa bit better but still not even close to thevery long life of the Kiribati manufacturedcontrollers.

A number of issues causing the failure havebeen identified. The first is an increase intemperature sensitivity with increasingfailure rates seen at higher ambient temp-eratures. The simple on-off relay type cont-roller is not affected negatively by higherambient temperatures and the need to putthe controller, battery and panel all in oneoutdoor unit that gets fairly hot (as it is inthe sun) is not a problem for the locallymade controller but is a problem forsemiconductor switching units.

The second cause is that none of thecurrent controllers that use micro-processors can be tested in the field with-out expensive equipment and a great dealof training for the field technicians.Although some modern controllers have abuilt-in ‘self-test’ routine but if the micro-processor is not working appropriately, thereliability of “self-test” function and resultsis questionable. The newer versions ofcontrollers generally use Pulse WidthModulation (PWM) and tapered chargingand have elaborate algorithms for manag-ing the charge. In theory this can increasethe quality of charging, in practice the unitsmay fail to work at all due to environmentalproblems and any charging benefits arelost as a result.

Furthermore, manufacturers neither

provide technical support for trouble-shooting or repair, nor share schematics ofthe circuitry to prevent cloning by localmanufacturers. Consequently, all malfun-ctioning chargers have to be returned atgreat expense to the manufacturer forrepairs or else are thrown away and simplyreplaced with new units. Finally, most com-mercial units employ circuitry that cannotbe tested in the field for proper operation,so field technicians are unable to properlytroubleshoot the installations, since thecharge controller may be a source of sev-eral different types of system problems.Also for remote sites, the replacement of afailed charge controller may take weeks oreven months, during which time the batt-ery is not being properly charged and isoften damaged in ways that shorten its life.

In order to avoid these problems, theSPIRE, as part of its mandate to test anddesign robust solar components and sys-tems for island use, created a specialdesign for a charge/discharge controllerthat would be simple to build, simple totest and simple to repair while surviving formany years in the atoll environment. Thecontroller design was first used in the mid-1980s in the Tuamotu atolls and was foundto have much fewer failures andoperational problems than commercialcontrollers. When the EU “PV-Follow-up”project of the Lomé II funding series wasestablished to provide SHS to Kiribati,Tonga, Tuvalu and Fiji, the KSEC opted tolocally manufacture the SPIRE controllerfor use in the project. The controller usesrelay switching instead of semiconductors,an approach that separates the panel tobattery circuit from the control unit soinduced voltage spikes in the panel tobattery circuit caused by nearby lightingstrikes are not damaging. The unit usesvery simple yet accurate discretecomponent voltage comparator circuitry to

K I R I B A T I 55

provide the on-off control for both thecharge and the discharge control sections.It generates no heat and therefore does notneed ventilation and operates withoutproblems at temperatures well in excess ofthose that would be detrimental to semi-conductor switching units. There are no int-egrated circuits so the common problem ofa salt-dust-moisture bridge forming in thevery small space between integrated circuitconnections and causing a malfunction isavoided. During the decade following theEU project installations, less than 1% of theinstalled controllers had problems andmost of those were due to improper act-ions by local technicians rather than comp-onent failures. Battery life for installationswith the locally made controllers wasexcellent, often exceeding 10 years.

Since the controllers were built locally fromloose parts and were tested and adjustedby local staff, maintenance and repairswere easily accomplished. Testing of thecontrollers can be done in the field withsimple test equipment, so field technicianscan learn how to test for the proper actionsof the controller. Furthermore, by removingthe discharge relay, the controller can con-tinue to maintain charge in the batterywhen power to the customer is dis-connected – an action needed if there is tobe disconnection for non-payment of feesor if there is a need to work on the wiringin the residence. To set the system toequalise the cells in the battery, pulling theplug that provides power to the voltagecomparator directly connects the panels tothe battery, allowing the field technician todo a controlled overcharge for equalisation.

Also part of the Kiribati system (though notpart of the installations delivered under theEU project) is a high efficiency DC/DCconverter that uses switching transistorcircuitry to deliver the proper voltage tocustomer’s radios or tape players, whichare typically 4.5 V, 6 V or 9 V. The designand kits of parts were provided byPlasmatronics, an Australian solar electr-onics company, and were assembled by theSolar Energy Company.

Lessons learnt follow:

w High reliability charge controllers andDC/DC converters for SHS can be cost-effectively manufactured by localtechnicians in the islands.

w Training for the manufacture of thedevices need not be complex orexpensive.

w It is best to not use only one qualitycontrol step in manufacturingelectronic devices; rather use at leasttwo, with an initial setting by onetechnician and a check by a secondtechnician.

w By using a design specifically createdfor the atoll environment and the enduse, much longer service life andhigher reliability can be achieved.

w High reliability controllers result inlonger battery life and lower life cyclecosts.


The RRA is just the first step towards preparing a comprehensive actionplan to reach the goals for renewable energy that are being set by theKiribati government. As the lead agency in assisting Kiribati to reachtheir renewable energy goals, IRENA plans to assist in co-ordinatingdonor agencies; developing funding for projects; co-ordinating theefforts of the WB and the PEC Fund to implement their grid-connectedPV projects in a way that will not adversely affect grid stability; assistingin capacity building where needed; sharing experiences from other partsof the world; and supporting Kiribati leaders’ attendance of meetingsand workshops where high level persons from around the world meetto discuss the future of renewable energy and its implementation today.

Another important follow-up lies in setting targets to reduce fuel importdependence. Following the RRA, the Kiribati EPU has prepared detailedtargets for renewable energy development. Since the EPU also considersenergy efficiency an important measure to reduce the consumption ofimported fuels, the MPWU took advantage of the momentum from theRRA workshop and funded a third workshop to begin development ofan action plan for energy efficiency in Kiribati. From that effort, targetsfor energy efficiency improvements were also prepared. At present, theproposed targets have been submitted to the Kiribati Cabinet for finalapproval. It is expected that the national targets will be approved in nearfuture.

In order to reach the targets that have been set, energy planning iscrucial. It is a process requiring multi-stakeholder consultation and co-ordination, the capability of developing different energy scenarios, thehuman resources to effectively develop and implement a concertedplan, and all areas that can be assisted by IRENA. Kiribati will need toestablish a national institution responsible for co-ordinating the different

VI. Future Co-operation

K I R I B A T I 57

58 R E N E W A B L E R E A D I N E S S A S S E S S M E N T

governmental agencies on energy related issues and strategy making.This may also present an opportunity for IRENA to provide support toKiribati in terms of sharing the best practices of energy planning andalso facilitating the set-up of such a co-ordinating entity.

In addition, there is great opportunity for IRENA to be engaged incapacity building in Kiribati. It is an area where IRENA’s support can beimpactful if done well and is an area where IRENA has the capacity tomake a difference. IRENA in concert with the WB, ADB, SPC, GiZ, JICAand other development partners, hopes to work further with Kiribati tohelp develop its capacity to carry out the planning, implementation andmanagement of programmes needed to reach its renewable energygoals.

59K I R I B A T I

ADB (Asian Development Bank) (2004), Kiribati Country Strategy and Program Update (2005,2006).

ADB (2010), Country Partnership Strategy 2010-2014.

Akura, T. (2009), Solar Home Systems - Technical/Management Model in Kiribati (REM 2009).

Akura, T., Griso, M. T., (2009) “Solar Home Systems – Technical/Management Model in Kiribati”, apresentation made at the Regional Energy Meeting, 2009.

Ásmundsson, R., K., (2008), South Pacific Islands, Geothermal Energy Production for ElectricityGeneration, Icelandic Development Agency.

Castilia Strategic Advisors (2009), Kiribati Infrastructure Sector Review (PRIF).

Cloin, J. (2004), “Regional Overview Biofuels”, South Pacific Applied Geoscience Commission(SOPAC).

Cloin, J. (2005), Coconut Oil as a Biofuel in Pacific Islands – Challenges and Opportunities, SOPAC.

Cloin, J. (2005), CocoGen: Feasibility Study into the use of Coconut Oil Fuel in EPC PowerGeneration, SOPAC.

Cloin, J. (2006), Regional Overview of Biofuels, SOPAC.

VII. References And Bibliograph

Great care was taken to obtain as much data and information as possible from primary sources. Somewas obtained through written questionnaires, some through interviews and some through emailcorrespondence. Data relating to energy statistics was obtained from the EPU. Data relating to powergeneration was obtained from the EPU and the PUB. Data relating to CNO, copra production, coconuttree cover and the extent of senile coconut trees came from presentations made by officials of theKiribati Copra Cooperative Society. Data regarding trials of CNO in Kiribati was provided by the KCMCLand statistical and demographic data was provided by the Kiribati National Statistics office of theMinistry of Finance.

For data not immediately available from primary sources, historical information, information relatingto donor support, external reviews, analyses, project designs and tenders, the following documentswere the sources:

Cloin, J. (2007), Liquid Biofuels in Pacific Island Countries, SOPAC Report 628,http://www.tonga-energy.to/wp-content/uploads/2010/02/MR0628_Cloinothers.pdf

Deamer, T. (2005), Using Coconut Oil as a Fuel in Vanuatu.

EPU (Energy Planning Unit of the Ministry of Public Works and Utilities, Kiribati) (2012), EnergyStatistics Yearbook 2009 (1st Draft).

EPU (MPWU) (2012), Kiribati Solar PV Grid Connected Project (PEC Fund).

EU (European Union) (2011), Annex II + Annex III TECHNICAL SPECIFICATIONS + TECHNICALOFFER, Supply of Solar Systems, CFFLs, LEDs and other associated equipment (EU Project Tender).

EPU/MPWU in concert with the World Bank, Asian Development Bank, SPC, GiZ, JICA and otherdevelopment partners (2012), Kiribati Solar PV Grid Connected Project, PEC Fund.

Government of Kiribati (2012), Invitation to Tender for the Supply of Materials re Chevalier College,Abemama Island.

IRENA (2011), Kiribati Renewable Energy Country Profile.

Johnston, P. (2009), Kiribati Energy Indicators.

KEMA (2012), Quantification of the Power System Energy Losses in South Pacific Utilities – PublicUtilities Board, Kiribati – Tarawa Atoll System.

Kiribati (2007), “2005 Census”, Vol. 2, Analytical Report.

Kiro, K. (2006), Agricultural Activities or Programs That Support the Coconut Production.

Leplus, A. (2003), Biofuel Energy from Coconut in the Pacific Islands the Lory co-operative pilotproject (Vanuatu).

Mala, K., et.al. (2008), Photovoltaic (PV) Technologies in Fiji and Kiribati: An Assessment of TheirImpact on Sustainable Development of Rural and Remote Communities Using a Complementary andInter-Related Perspective.

Mala, K., Pryor, T., Schläpfer, A. (2008), Photovoltaic (PV) Technologies in Fiji and Kiribati: anAssessment of their Impact on Sustainable Development of Rural and Remote Communities Using aComplementary and Inter-Related Perspective.

MPWU (2009), Kiribati National Energy Policy (Government of Kiribati).MPWU (2012), Invitation toTender for the Supply of Solar PV System Components and Associated Parts – Chevalier CollegeSolar Project.

MPWU (2012), Supply Procurement Notice EDF Financing Agreement No. KI/FED/2009/021-648.


National Statistics Office (2007), Kiribati 2005 Census, Volume 2: Analytical Report.

Statistics Department, Government of Kiribati (2009), Kiribati Household Survey.

Tarakia, T. (2009), “Feasibility Study of a Hybrid Energy System for Sustainable Energy Productionin Kiribati”, MSc Thesis, Murdoch University.

Tarakia, T. (2012), Technical Specifications for a Solar PV Hybrid Power System for Chevalier College,Abemama Island.

TEPCO (Japanese Investment Cooperation Agency) (2009), Preparatory Survey on the Programmefor Climate Change in the Pacific Islands (Renewable Energy).

TEPCO (2009), Preparatory Survey on the Programme for Climate Change in the Pacific Islands(Renewable Energy), JICA.

Tiroa, T. (2006) Analytical Report on the 2006 Kiribati HIES, National Statistics Office.

Tofinga, L. (2004), “The Environmental Case for Bio-fuels in Kiribati”, presentation given byEnvironment and Conservation Division, Ministry of Environment Lands and AgriculturalDevelopment.

Tofinga, L. (2006), The Environmental Case for Bio-Fuel in Kiribati.

Tokamauea, N. (2004), Potential Economic Impact of Biofuel on Kiribati.

Trama TecnoAmbiental, (2011) Kiribati Grid Connected Solar PV Power Station Project ConsultancyServices for Feasibility Study, World Bank.

Trama TecnoAmbiental (2011), Preliminary Report Kiribati Grid Connected Solar PV Power StationProject Consultancy Services for Feasibility Study, World Bank.

Wade, H. (2005), Pacific Regional Energy Assessment 2004: An assessment of the key energyissues, barriers to the development of renewable energy to mitigate climate change, and capacitydevelopment needs to remove the barriers: Kiribati National Report,http://www.sprep.org/att/publication/000479_PIREP_Kiribati.pdf

Zieroth, G. (2006), Biofuel ESCO: Option for Rural Electrification in Kiribati?.

Zieroth, G. (2006), Risks of Biofuel Programs in the Pacific Region.

Zieroth, G. (2012), Biofuel Feasibility Study Kiritimati Island, Pacific Islands Greenhouse GasAbatement through Renewable Energy Project.

K I R I B A T I 61

Action 1Improve policies, legislation and regulations to support the use of renewable energy

Resource-Service pair(s) Policy support for development of renewable energies

Description The 2009 Kiribati Energy Policy may require changes to betterpromote the use of renewable energy and reduce the import of fossilfuels. This is particularly true when it comes to the large-scaledeployment of renewable energy sources, as well as the role that theprivate sector can play in renewable energy development in Kiribati.The policy and legislation gaps must also be dealt with that otherwisemay cause issues in the future as the use of renewable energyincreases. Therefore, the following key initiatives need to be taken.

R Establishing a Kiribati National Energy Co-ordinating Committee (KNECC) to oversee and guide the development of programmes and projects to reduce dependence on fossil fuels, including the implementation of the National Energy Policy, Action Plans.

R Conduct a review of the existing relevant regulatory, customs duties, taxes and policies to determine the optimum way to promote the increased use of renewable energies and to replace fossil fuel usage. This is to include the development of new regulatory schemes and policies that may be appropriate, such as net metering and standardised power purchase agreements, to facilitate the private sector in delivering renewable energy-generated power to the grid.

R Establish standards and guidelines for renewable energy development including on-grid and off-grid installations, and CNO biofuel production; to minimise the cost of installation and maintenance; and minimise issues relating to the technical and safety characteristics of such installations.

VIII. Annex


R Continue developing an on-going strategy to achieve the renewable energy goals approved by Cabinet.

Actors Ministry of Public Works and Utilities, Ministry for Finance andEconomic Development, Ministry of Environment, Lands andAgriculture Development, Ministry of Commerce, Industry and Co-operatives, Ministry for Communications, Transport and TourismDevelopment, Public Utilities Board, Kiribati Solar Energy Company,Office of the President, Attorney General’s Office, Kiribati Chamberof Commerce and Industry, Kiribati Institute of Technology,development aid partners.

Timeframe The estimated timeframe is 24 months.

Keys for success The development of consensus and strong commitments from keystakeholders is a precondition of this action. The success will alsosubject to the following factors:

R Effective co-ordination and collaboration among the key stakeholders;

R Secure endorsement and continued support from high level officials;

R Accessibility of all relevant information and data for policy evaluation and improvements;

R Availability of financial and technical support from development aid partners.

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Action 2

Achieve high penetration of grid-connected solar photovoltaic (PV) installations

Resource-Service pair(s) Solar energy for electricity (on-grid)

Description In order to meet Kiribati’s goal of being energy independent, solarenergy will have to play an important role. Although off-grid small-scale solar PV systems have been in use in Kiribati since the 1970s,knowledge and experience in large-scale grid-connected solar PVapplications is limited. Since the emerging issues on grid integrationstem both from the technical aspect and the current institutional,capacity and legislative environment, a systematic perspective andapproach is needed to mitigate any negative impacts on grid stabilityand performance. Key initiatives under this action to address theseissues include:

R Continue to work together with the WB and the PEC Fund solar projects, so that both take responsibility to prevent their combined projects endangering grid stability. The co-ordination shall facilitate a full-range of exploration of technical options for ensuring future grid stability including adding energy storage.

R Conduct a further grid stability study that includes a detailed modelling of the grid needs to be conducted to assess what technologies are appropriate to install and thus ensure the grid can take additional variable energy sources (solar and/or wind) after the WB and PEC Fund installations are in place.

R Develop standards and guidelines that are in compliance with international standards and are appropriate to the island environment.

R Facilitate capacity building for the staff of the Public Utilities Board in managing the grid with a high level of solar penetration.

R Investigate the appropriateness of privately-owned grid-connected solar PV and of introducing net-metering in this context.


Actors Ministry of Public Works and Utilities, Public Utilities Board, KiribatiSolar Energy Company, and development partners like IRENA, WorldBank, and Pacific Environment Community among others.

Timeframe All the four initiatives can be implemented in parallel. The estimatedtimeframe is 24 months.

Keys for success Development of sufficient capacity to manage grid-connected solarPV installations within Kiribati, and the establishment of a strategyfor Kiribati to address the grid integration issues in a systematicmanner.

R Use appropriate tools to evaluate the grid stability under different scenarios;

R A wide range of technological options that can be adopted to address the stresses posed by variable energy sources should be examined, including those which are developed by local technicians.

R The capacity building programmes should be jointly developed in co-operation with relevant international and national partners to ensure the effectiveness of the programmes.

o Availability of financial and technical support from development partners.

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Action 3

Develop a strategy for partly substituting diesel fuel with coconut oil biofuel (CNO)

Resource-Service pair(s) Biofuels for power generation and transportation

Description Utilisation of CNO as a substitute for diesel fuel is important since itsusage does not introduce grid stability issues. However, there areother issues associated with use of CNO for power generation,notably the compatibility of existing engines. To date, there have beena few trials of CNO for diesel power generation in Kiribati andregionally there have been a number of experiments and successfuluse of a blend of CNO and diesel fuel in large engines used for powergeneration and transport. This indicates that the issues associatedwith engine compatibility, CNO biofuel quality and feedstock supplycan be successfully addressed if a holistic approach is adopted. Tothis end, a strategy for electric power generation using CNO biofuelapplications needs to be developed as the first step for Kiribati tomove forward in the use of CNO to partially substitute diesel fuel forpower generation and transport. This strategic action plan includesthe following key activities:

R Evaluate the supply chain of copra as feedstock for production of CNO biofuel and plan for the replantation of senile coconut trees to meet the potential demand growth for copra production.

R Conduct a feasibility study on the use of small-scale, mobile crushing mills for the preparation of adequate quality CNO for biofuel on outer islands and Kiritimati; and determine the appropriateness of the use of mobile crushing machine when compared with the existing CNO production chain.

R Prepare and Implement quality standards for the CNO.

R Establish a CNO oil testing facility in Kiribati to ensure the quality of CNO is adequate for biofuel that is used for power generation and transport.

R Trial of shipboard use of CNO through the dual tank system.

R In association with Kiribati Oil Company (KOIL), carry out trials of blends of CNO and kerosene or diesel fuel for land transport.


Actors Ministry of Public Works and Utilities of Kiribati, Kiribati Copra MillCompany Limited, Kiribati Copra Co-operative Limited, externaltechnical assistance providers and development partners

Timeframe The entire timeframe for this action is estimated to be 18 months

Keys for success Development of a better understanding of feedstock supply chainand determination of the critical path for CNO production;

R Actions by copra farmers to prepare for the increased demand for copra as feedstock for production of biofuel;

R Development of a price structure for copra production that is acceptable to farmers and end users of CNO.

R Ability of oil producers to meet the required quality standards.

R Availability of financial and technical support from development partners.

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Action 4Strengthen and promote off-grid solar applications

Resource-Service Pair(s) Solar energy for electricity (off-grid)

Description The current estimate is that over one-third of the approximately 2200 outer island solar installations, mostly Solar Home System (SHS),are no longer working due to the lack of battery replacements. Adetailed plan for rehabilitation of the off-grid solar installations wasprepared by the KSEC in conjunction with the Kiribati government.However, questions such as how to best address the rehabilitation ofthe outer island solar installations, or what rural electricity model usingoff-grid solar PV installations best meets the needs of rural Kiribati,i.e. stand-alone SHS, small lighting ‘kits’, or mini/micro-grids, remainsto be determined. The following initiatives will look to answer thesequestions and others, to develop for Kiribati the best approach forfuture off-grid solar applications.

R Prepare an outer islands electrification implementation plan that only uses renewable energy, including the rehabilitation of existing outer island solar installations. The plan should also elaborate the expansion of solar electricity installations for rural households and maneabas. The plan should be based on a carefully prepared survey of rural energy needs, the willingness and ability of residents to pay for the services to meet those stated needs, and effectiveness of the current operation and maintenance system compared with other business models for the KSEC.

R Prepare a standard modular design and installation guidelines for solar powered mini-grids, include the practical management and operational models that best fit the local context of rural Kiribati.

R Determine how the KSEC can be institutionally strengthened that will enable it to better meet the maintenance needs of the rural solar installations under its control.

R Determine if resources are better used to establish separate technical maintenance crews within each organisation having solar installations – notably health, education, water supply and private schools – on outer islands, or should a


specialist organisation, such as the KSEC or a private company, develop the capacity to contract for all outer island solar maintenance.

R Develop a local off-grid electrification capacity building facility at the Kiribati Institute of Technology (KIT).

Actors Ministry of Public Works and Utilities of Kiribat, KSEC, organisationswith outer island solar installations and Development aid partners

Timeframe The estimated timeframe is 14 months for this action.

Keys for success Rigid study and evaluation of the requirements for the operation andmaintenance of existing and planned off-grid solar applications

R The technical designs and capacity building programmes must be developed in the context of conditions in rural Kiribati;

R Availability of financial and technical support from development aid partners.

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Action 5

Determine the best roles for the available renewable energies in Kiritimati’s power development.

Resource-Service Pair(s) Renewable energy for Kiritimati development

Description: The existing power system on Kiritimati includes a number of smallindependent diesel powered grids. Some of these are planned to beinterconnected to provide a larger, more robust electricity supply forthe main population centres. However, several of the smallindependent grids will remain stand-alone power systems since thecost of interconnection cannot be justified due to the small loadsinvolved and the distance from those small grids to the mainpopulation centres. The long-term goal is for Kiritimati to have 100%renewable energy for electricity production and, where possible, alsofor transportation. Wind energy has been determined to be apractical resource and solar energy is already being used successfullyon Kiritimati to reduce fuel use in the London grid. There are a largenumber of coconut trees and the Ministry of Environment, Lands andAgriculture Development has prepared a replanting project toincrease coconut production. Therefore CNO is also expected to bea useful renewable energy resource. Currently, however, there is nooil mill on Kiritimati and the cost of shipping of copra to Tarawa andthe resulting oil back to Kiritimati significantly increases the cost ofCNO on Kiritimati, therefore some form of local oil productionappears to be necessary.

To make the best use of available resources, the following actionsneed to be taken:

R Prepare a detailed study for the near-term and long-term power development of the main grid on Kiritimati to maximise the use of renewable energy in the most cost effective and sustainable manner.

R Determine the most cost effective and sustainable approach to converting the remaining small grids to 100% renewable energy.

R In order to solicit funds from development partners for the development of the primary grid on Kiritimati, prepare a detailed design and associated project documents for the implementations necessary to follow the power development plan that is developed.


R Prepare detailed designs and project documents for the conversion of the remaining diesel powered micro grids to renewable energy in a manner that is sustainable and economically appropriate.

R Prepare a plan intended to ensure that the maximum amount of fuel used for transport on Kiritimati will have a renewable energy source within the next ten years.

R Develop and maintain the human capacity on Kiritimati needed to carry out the required installations and sustain them for the longer-term through a Kiritimati located public or private training institution – such as a training division under the organisation that operates and maintains the renewable energy systems or through a local branch of KIT or USP.

Actors Ministry of Line and Phoenix Development, Ministry of Public Worksand Utilities, Kiribati Institute of Technology, development partnersand key stakeholders on Kiritimati

Timeframe The estimated time frame is 24 months

Keys for success Development plans for all energy used on Kiritimati are preparedcollaboratively and not individually, to avoid competition betweendevelopment projects for the limited resources available on Kiritimati;

R Effective co-ordination, collaboration and co-operation among the many stakeholders;

R Secure endorsement and continued support from high level officials of the Kiribati Government;

R Availability of appropriate financial and technical support from development aid partners.

R Capacity building and long term capacity maintenance needs are made available on Kiritimati

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International Renewable Energy AgencyC67 Office BuildingKhalidiyah [32nd] StreetPO Box 236, Abu DhabiUnited Arab Emirateswww.irena.org

Copyright 2012

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