ISSUE 22 DECEMBER 2016 - Pacific Community

DECEMBER 2016 ISSUE 22

http://prdrse4all.spc.int

NEWSLETTERPacific Energiser ISSUEDECEMEBER 2016

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Design & Layout: Beyond Design

Cover photo: Pacific Community

Disclaimer: While all care and diligence has been used in extracting, analysing and compiling informationfor this publication, SPC gives no warranty that the information is without error.

In this issue:LEADERSHIP, GOVERNANCE, COORDINATION AND PARTNERSHIPS

Double awards for Pacific technical vocational education and training project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Asia Regulatory Forum 24–28 October 2016: Experiences and lessons learned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

CAPACITY DEVELOPMENT, PLANNING, POLICY AND REGULATORY FRAMEWORKS

Two capacity building training attachments held in Tuvalu and Kiribati for Pacific women and youth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

ENERGY PRODUCTION AND SUPPLY (PETROLEUM)

Third Quarter Oil Market Report (July–September 2016) . . . . . . . . . . . . . . . . . . . 10

Pacific fuel price monitor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Fossil fuels still subsidised in Kiribati . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Reliability and safety of petroleum a priority in the Pacific . . . . . . . . . . . . . . . . . 30

ENERGY PRODUCTION AND SUPPLY (RENEWABLE ENERGY)

Kosrae Utilities Authority realises savings with grid-connected solar PV systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Ta’u Island, American Samoa on 100% renewable energy through solar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Tapping into sunshine in Kiribati . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

ENERGY CONVERSION

Restoring power lines in Fiji made possible by rapid response of development partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Tonga Power signs Power Purchase Agreement with Chinese Power Producer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

OTHER NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

PACIFIC ENERGY EVENTS CALENDER (November 2016–April 2017) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Message from Deputy Director (Energy), Economic Development Division, SPC

Solomone Fifita

Editorial

Bula everyone,

It is a pleasure to have the opportunity to sit down and

pen this last editorial for 2016 and to briefly reflect on

the past year.

Energy security has been a priority concern this year – safe

and reliable access to affordable modern energy sources

that are efficiently generated, distributed and consumed

in a manner that supports a healthy and sustainable

environment.

The question of the safety and reliability of energy

supply became especially urgent this past April when an

explosion and fire at one of the diesel fuel storage tanks

at Matautu-tai Wharf in Apia, Samoa resulted in the death

of one employee. Another worrying event took place

in September on the island of Vava’u in Tonga, which

experienced a prolonged fuel shortage during the peak of

its tourism season. While the losses have been estimated

at millions of dollars, no one has been held accountable.

These events are a reminder of the urgent need to

implement proper regulatory frameworks for the energy

sector. With the kind support of the Government of

New Zealand, and the Tonga Electricity Commission

and Ministry of Meteorology, Energy, Information,

Disaster Management, Environment, Climate Change and

Communications (MEIDECC), we were able to conduct an

Energy Regulators Study Tour and Training in Tonga in

early August. The training not only highlighted the need

for closer collaboration among the regulatory authorities

in the region, but also the need to inform the public in a

transparent and comprehensive manner of their rights

and entitlements under these regulations.

The Asian Development Bank (ADB) is a key driver behind

regulatory reform in the energy sector of Pacific Island

countries (PICs). The training in Tonga was followed by the

Asia Regulatory Forum in Singapore, which was attended

by some of the participants from Tonga. We thank ADB

for this opportunity and we look forward to learn from

their current technical assistance on the Support for

Energy Sector Regulatory Capacity and Electrification

Investment Planning in Fiji.

The substitution of fossil fuel with renewable energy

continues to be a priority focus for the ‘electricity

generation’. Savings have been recorded from the Kosrae

Utilities Authority, which is currently observing the

benefits of its grid-connected solar photovoltaic systems.

Kiribati and the World Bank are looking at the benefits

from a similar solar power project while the communities

in Fiji’s sugar cane belt area will soon be blessed with

solar powered electricity, and Tonga Power Ltd is entering

into partnerships to accelerate progress on its green

energy goals.

COP 22 has just concluded, where political leaders and

industry and development stakeholders discussed ways to

implement the Paris Agreement (PA). One of the obstacles

identified for pursuing the mitigation and energy targets

outlined in the PA is biased subsidies on fossil fuel. SPC’s

Energy Programme has just concluded a study on fossil

fuel subsidies in Kiribati, and the findings suggest the

need for PICs to reassess their policies on subsidising

fossil fuel prices.

The Energy Programme continues to provide up-to-date

market data and analysis on petroleum. Discussions are

already underway for a repeat of the joint SPC-Platts

petroleum pricing workshop conducted in 2012. We are

tentatively planning this workshop to be held in Auckland,

NZ in March 2017.

With December just around the corner, on behalf of the

Energy Programme team, I would like to wish everyone

quality time with loved ones over the holidays, and may

the happiness of this festive season be with you all as

we look forward to 2017 with much optimism and hope.

Malo ‘Aupito

Solomone Fifita

Deputy Director – Energy, SPC

4

LEADERSHIP, GOVERNANCE, COORDINATION AND PARTNERSHIPS

Pac i f i c e n e r g i s e r

Double awards for Pacific technical vocational education and training project

By: Emmanuel Duane Mar, [email protected]

The European Union Pacific Technical and Vocational Education and Training in Climate Change Adaptation and Sustainable Energy Project (EU PacTVET) has earned two prestigious awards for its

groundbreaking accomplishments in addressing climate change issues in the Pacific region.

This was confirmed by EU PacTVET team leader, Dr Sarah

Hemstock, at the International Vocational Educational and

Training Association (IVETA) World TVET Conference

2016 on 26 August at the Grand Pacific Hotel in Suva, Fiji.

The EU PacTVET Project is a EUR 6.1 million (FJD

14.06 million) programme jointly implemented by the

Pacific Community (SPC) and The University of the

South Pacific (USP), with their development partners,

the European Union.

The two awards that were given to the EU PacTVET

Project are the Special Projects award at the International

Symposium on Climate Change Adaptation in the Pacific

Region on 29 July and the Special Recognition Award at

the IVETA World TVET Conference 2016.

Dr Hemstock said that having won awards at two events

was a special achievement and acknowledged the work of

the EU PacTVET team and their European Union partners.

She also said that these awards raised the profile of the

project, garnering praise by the international community.

‘This award is important for raising the profile and

importance of the project to the greater TVET community.

The fact that the regional impact of our project has been

recognised, and that our work has been called “Trailblazing”

is great’, she said.

In addition to the two awards, the EU PacTVET Project

had a paper titled ‘Accredited qualifications for capacity

development in disaster risk reduction and climate change

Guests at the IVETA World TVET Conference, 26 August

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adaptation’ published in the renowned Australasian Journal

of Disaster and Trauma Studies.

Co-author of the paper and EU PacTVET senior lecturer

for climate change Dr Helene Jacot Des Combes said that

the paper addresses the need for formal qualifications in

‘Resilience’, which consists of climate change adaptation

and disaster risk reduction.

‘This paper addresses the need for accredited, recognised

qualifications in “Resilience”, which does not happen

anywhere else in the world, as well as the importance

of using the TVET system in order to have qualified

people’, she said.

Dr Combes said that being recognised by the international

community, with two awards and a journal paper, proves

that the EU PacTVET is leading the way forward in

addressing ‘Resilience’ in the world.

‘It is good to see that what we have done has been

recognised, supported and considered interesting by

people outside the (Pacific) region’, she said.

The Pacific Regional Federation for Resilience Professionals

at the Disaster Risk Management Pacific Platform was

launched on 26 October.

The EU PacTVET Project is the third component of a

larger initiative, called the European Union –Deutsche

Gesellschaft für Internationale Zusammenarbeit Adapting

to Climate Change and Sustainable Energy (EU-GIZ ACSE).

It aims to build the capacity of the Pacific people to

adapt to the challenges of climate change and sustainable

energy, through the creation of regionally accredited

TVET Certificate courses.

The project involves 15 Pacific-ACP (African Carribean

Pacific) countries: Cook Islands, Fiji, Federated States of

Micronesia, Kiribati, Nauru, Niue, Palau, Papua New Guinea,

Republic of the Marshall Islands, Samoa, Solomon Islands,

Timor Leste (East Timor), Tonga, Tuvalu and Vanuatu.

The project lasts 53 months, having begun in August

2014, and will end in August 2018.

For more information:

Sarah L Hemstock Team Leader European Union PacTVET ProjectEconomic Development Division, SPC [email protected]

SPC's Dr Sarah Hemstock with Fiji's Hon Minister for Education, Dr Mahendra Reddy

mailto:[email protected]

6



Asia Regulatory Forum 24–28 October 2016: Experiences and lessons learned

The Asia Regulatory Forum was organised by the Sustainable Energy Association of Singapore (SEAS) and supported by the Asian Development Bank and International Enterprise, Singapore.

The Pacific Island energy regulatory authorities represented

at the Forum were from Kiribati, Palau, Samoa, Tonga,

Tuvalu, Vanuatu and Papua New Guinea, and two staff

from the Energy Programme of the Pacific Community also

attended. The Asia Regulatory Forum was organised for

five days and participants also attended a two-day plenary

organised as part of the Singapore International Energy

Week (SIEW). The participants were able to learn new

policies, financial concepts and technologies discussed

in three plenary sessions: Clean Energy Leader’s Dialogue,

Solarising Singapore and Asia, and PV Asia Financial Summit.

The forum and the SIEW provided a platform for sharing

experiences from Asian companies and governments on

clean energy technologies, policies and finance. Even

though the presentations were aligned more to the Asian

context, some of the issues are similar to those of the

Pacific region. These include the continued growth in

energy demand; the diversity of the countries’ energy

supplies with renewables playing an important role in

the energy mix, in particular the installations of solar

PV; the necessity for energy storage systems to increase

the optimal use of renewable energy mainly for solar and

wind energy; and that feed-in tariffs should be developed

and made available to increase private sector investment.

Presentations also highlighted the fact that solar markets

in the Asia-Pacific region are growing, especially in India,

China, Japan, Thailand and Australia, with around 50%

of the global PV demand from these countries and an

estimated 35% annual growth from 2013. One of the new

technologies that the participants learned about was the

floating solar, on the Tengeh reservoir in Singapore. This

Pacific participants from Asia Regulatory Forum

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is the world’s largest floating solar testbed installed in

October 2016. The installed capacity is 1 megawatt, from

ten solar energy systems, each with a peak capacity of 100

kilowatts. In the next six months, the $11 million project

will be studied for the performance and cost-effectiveness

of the various systems. The power generated is sent to

the grid and contributes to Singapore’s electricity needs.

At the end of the forum, participants presented on what

they had learned from the forum and the plenary.

• The regulation of the electricity sector in Singapore is

quite developed, with specific legislation and regulations

such as its Solar Act. Singapore has limited renewable

energy resources and therefore solar power is the

best option. In addition, energy efficiency standards

for industries, buildings and households are also well

established. Pacific Island countries could learn a lot

from lessons at the Singapore forum.

• Research institutes play an important role in guiding

policies and legislation. The Renewable Energy

Integration Demonstrator – Singapore (REIDS) is

a Singapore-based Research Design-Demonstrator

platform dedicated to designing, demonstrating

and testing solutions for sustainable multi-activity

off-grid communities in South-east Asia. Another

institution is the Solar Energy Research Institute of

Singapore (SERIS) based at Nanyang Technological

University. During the forum week, SERIS announced

the deployment of the first hybrid micro-grid that

will power the infrastructure on Semakau Landfill.

• Availability/analysis of data is important for planning

and for formulation of legislation and regulations.

• Singapore Energy Week demonstrated the many

partners, one team approach, as many institutions

including private companies, worked together with

SEAS and Sustainable Energy Centre of Excellence

and the Government of Singapore. A similar forum

can also be organised for the Pacific region.

• Countries have similarities and differences as far as

renewable energy development is concerned and

lessons learned from other countries or regions are

useful. However, how renewable energy is developed

in a country depends on the priorities of the country.

• Participants leaned about new technologies, such

as floating solar beds that could be expanded to the

lagoon and ocean, which is relevant to atoll countries

that have limited land area.

• Countries could explore further the establishment of

energy standard committees, if they do not already

exist, and to be more active in regulating relevant

energy standards, mainly for buildings and industries.

SPC is working with the regulatory authorities of Pacific

Island countries to establish a network of energy regulators

as a platform to share experiences on areas of interest,

including the formulation of feed-in tariffs and relevant

fiscal incentives and policies for enhancing private sector

participation in electricity generation and distribution.

These links may be of interest:

http://www.seas.org.sg/

http://seas.org.sg/index.php?option=com_content&vie

w=article&id=66&Itemid=408

http://media.ntu.edu.sg/NewsReleases/Pages/newsdetail.

aspx?news=830aa91e-aa88-4c7b-8f95-00c171c17560


Makereta Lomaloma Energy Efficiency AdviserEnergy Programme, Economic Development Division, [email protected]

Koin EtuatiEnergy Policy OfficerEnergy Programme, Economic Development Division, [email protected]

OR

http://www.seas.org.sg/

http://media.ntu.edu.sg/NewsReleases/Pages/newsdetail.aspx?news=830aa91e-aa88-4c7b-8f95-00c171c17560

http://media.ntu.edu.sg/NewsReleases/Pages/newsdetail.aspx?news=830aa91e-aa88-4c7b-8f95-00c171c17560



8

LEADERSHIP, GOVERNANCE, COORDINATION AND PARTNERSHIPSLEADERSHIP, GOVERNANCE, COORDINATION AND PARTNERSHIPS


Two capacity building training attachments held in Tuvalu and Kiribati for Pacific women and youth

In strengthening the institutional capacity and networks of locally organised women’s groups to be agents of change in their own communities and nearby villages, two capacity building initiatives under the Pacific Community’s Energy Programme were funded by the New Zealand South-South

Cooperation for Capacity Building and Development in the Pacific.

The two initiatives were training attachments for the

Melanesia Million Miracle Programme (M3P) partners1

in Vanuatu and the Cooking for Li fe Programme

partners2 in Kiribati.

1. Training for the Melanesia Million Miracle

Programme (M3P) partners

The M3P project partners from Papua New Guinea,

Solomon Islands and Vanuatu attended a five-day training

attachment 25–29 July 2016 at the M3P Vanuatu project

site in Port Resolution, Tanna Island. The training was

hosted by the national project partners, the Department

of Energy and the Iatukury Port Resolution Women’s

1 M3P project partners, local women’s groups in Papua New Guinea, Solomon Islands and Vanuatu, Department of Energy and

Clean Energy Solutions.2 CFL project partners, KiGender CC, Kiribati and Fanau Niutao Funafuti Association, Tuvalu.

group. The total cost of the training was NZD 25,720

(equivalent to FJD 37,679).

The women and youths selected for the training are the

key people responsible for overseeing and maintaining

the charging stat ions and solar lanterns in their

communities. Twelve representatives of local women’s

groups3 in Papua New Guinea, Solomon Islands and

Vanuatu and five youths (males) attended the training.

The training equipped the participants with the basic

knowledge and principles needed to maintain the solar

systems, including cleaning solar panels, changing fuses,

using multi-meters to check voltages, and checking for

blown fuses. In addition to the technical maintenance

3 Papua New Guinea – Gorari and Kou women’s groups; Solomon Islands – Choiseul Provincial Council of Women Association; Vanuatu – Iatukury Port Resolution and Lapangtawa women’s group.

Training attachment for M3P partners in Vanuatu project site in Port Resolution, Tanna Island

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of solar charging systems and solar lanterns, a micro-

business session was also conducted. The women

participants shared experiences about collection of

payment for the solar lanterns and charging fees. They

also discussed other events that women tap into to

raise money for the solar shop. These funds are kept by

the women’s groups to buy spare parts for the systems

and the possible replication of the project model in

nearby communities.

2. Training attachment for the Cooking

for Life Programme partners

A five-day training attachment for the Tuvalu Cooking

for Life (CFL) Programme was hosted by the NGO

KiGender Climate Change in Tarawa, Kiribati. Participants

selected for the capacity bui lding ini t iat ive were

members of KiGender CC and another NGO, Fanau

Niutao Funafuti Association (FNFA) Tuvalu, who are

currently implementing two components of the CFL

Programme: Ef ficient cooking for the improvement of

livelihoods in Kiribati and Efficient stove and cleaner fuel for

cooking in Tuvalu. Both these components promote the

use of LPG stoves and improved biomass cook stoves.

The training attachment was held from 30 August

to 3 September 2016 at a total cost of NZD 12,300

(equivalent to FJD 18,019.34). Four women and two

male youths who are members of the KiGender CC

and FNFA benefited from this training.

This training provided opportunities to strengthen the

technical capacity of the NGOs, specifically of women,

who are the end-users of the improved cook stoves

(ICS SilverFire), and it empowered the participants to

promote and increase access to modern, cleaner and

more affordable sources of cooking fuel in Kiribati and

Tuvalu. In addition, the training included simple business

skills for setting up a microbusiness for women and

youths to replicate the project in other communities

and outer islands in Kiribati and Tuvalu.


Kuini Rabo Assistant Energy Officer Energy ProgrammeEconomic Development Division, SPC [email protected]

Training attachment for M3P partners in Vanuatu project site in Port Resolution, Tanna Island


10 Pac i f i c e n e r g i s e r

ENERGY PRODUCTION AND SUPPLY | PETROLEUM

Third Quarter Oil Market Report (July–September 2016)

This report has been prepared by the Database Team of the SPC Economic Development Division Energy Programme to review and analyse regional fuel and LPG prices for the third quarter of 2016

(Q3.2016) based on monthly averages of published daily, Mean Platt’s Singapore (MOPS) benchmark prices.

There are external factors that determine fuel prices, apart from internal factors that revolve around Pacific Island

countries like wharfage cost, duties, VAT etc. External factors heavily influence fuel prices. For instance, on 28 September

2016, OPEC members had an informal meeting and agreed to limit production to 32.5–33 million barrels per day,

which is between 0.7% and 2.2% below the current output. Noticeably, the following day MOPS price rose between

3% and 5% for all fuel products. Fuel prices can be volatile, as we have seen in Q4.2015 with the major drop in the

price of crude oil, which was considered the cheapest for the last decade. Noticeably, between Q1.2016 and Q3.2016,

there was an increase in MOPs price for all fuel products as a result of petroleum outages in Nigeria, when intruders

blocked access to its largest Crude Oil Exxon Mobil; massive wildfires forcing closures on key oil-sand mining sites

in Canada; and the decline in US oil production. In Q3.2016 there was a slight increase in price due to US pipeline

construction, limiting supply, the after-effects of the Brexit announcement, and the OPEC Special Meeting. The price

of Dated Brent crude oil was at its lowest at the beginning of this year by USD 31.90 per bbl. It then increased to USD

49.57 per bbl in June, followed by a drop of 7% in July to USD 46.31 per bbl, remaining constant throughout July and

August before it picked up again in September by USD 0.4 per bbl to USD 46.71 per bbl. The consistency in July and

August of USD 46.31 per bbl – or 7% compared to June – indicated the steady demand for petroleum products, which

may suggest that supply side was the main driver of prices.

USD

per

Bar

rel

11I S S U E 2 2 | D E C E M B E R 2 016


*Source: Platts Asia Pacific/Arab Gul Marketscan

For the third quarter there was a slight downward movement in MOP prices for gasoil, from July to 3 August 2016,

due to ongoing oversupply and the additional cargoes coming into the spot market adding to the mounting inventory.

Traders also pointed at the lacklustre demand, further dampened by the monsoon season in India and the fishing ban

in China. There was a steady upward increase in price before it jumped from 28–29 September by more than 3%–5%

for mogas 92, 95, 97, kerosene and gasoil. This came after the OPEC Special Meeting. For heavy fuel oil, there was a

huge increase of USD 5.67 per bbl, or 17% compared to the second quarter. Compared to the second quarter, there

was a slight increase of 1% for mogas 95 and 92, kerosene, gasoil 10 ppm and gasoil 50 ppm, whereas gasoil 500 ppm

rose by 2% to USD 54.62 per bbl.



Refiners margin compared with Dated Brent

Asian refining margins tumbled to their lowest in Q3.2016 compared to the last six months. For mogas 97, 95 and

92, prices were reduced by 37%, 42% and 48% respectively, compared to Q1.2016. Gasoline production is expected

to decline by 500,000 barrels due to closure of the major pipeline between Houston and New York Harbour in USA

and the Brexit vote. These are two crises that contributed to the Platts analysis in determining price. For Q3.2016 in

comparison to Q2.2016, the refiners margin declined for all petroleum products, with mogas 97, 95 and 92 recording

the biggest drop – 26%, 26% and 31% respectively. Kerosene, diesel 10 ppm and diesel 500 ppm for this period were

reduced by 2%, 4% and 2% respectively.

Freight rates

The Clean Tankwire spot freight rates from Singapore to Australia weakened in the third quarter in comparison to the

previous quarter. The average freight rate decreased by 3% from USD 21.82 per metric tonne in the second quarter

to USD 21.13 per metric tonne in the third quarter. The Singapore-Australia route was assessed at 171.93 worldscale

points: a decrease of 3% from the previous quarter. This may be subject to the increasing competition stemming from

abundant vessel supply and a decrease in demand.

Exchange rates

In the third quarter French Pacific (XPF) and Samoa (WST) currencies depreciated while other major PICT currencies

appreciated such as Australia (AUD), New Zealand (NZD), Fiji (FJD), Papua New Guinea (PGK), Solomon Islands

(SBD), Tonga (TOP) and Vanuatu (VUV) due to increasing economic activity in the third quarter resulting in economic

growth for PICTs.

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Source: Exchange rate www.oanda.com

Data Sources:

Exchange rates are sourced from www.oanda.com

LPG price is sourced from http://gasenergyaustralia.asn.au/

Prices for diesel, gasoline and jet/kerosene prices are provided by Platts (The McGraw-Hill Companies, Inc).

Abbreviations and glossary

bbl barrel (of oil)ppm parts per millionRON Research Octane NumberMT metric tonneOPEC The Organisation of the Petroleum Exporting CountriesMOP Means of Platts Singapore

Historical reports:

Historical fuel and LPG review reports can be downloaded from the SPC PRDR Energy Portal by typing ‘price reviews’ in the Search Box of the Library: http://prdrse4all.spc.int/list/publication?keys=price+reviews

For more information on PICT fuel pricing, please contact:

Tirisa Wainibalagi Assistant Petroleum OfficerEnergy ProgrammeEconomic Development Division, SPC [email protected]

http://www.oanda.com

http://gasenergyaustralia.asn.au/

http://prdrse4all.spc.int/list/publication?keys=price+reviews



Pacific Fuel Price Monitor

Figure 1: Regional retail prices including duty and taxes1

1 Fuel prices per litre are expressed in US cents per litre (cpl) throughout this article. US cents per litre (

Covering Third Quarter 2016 (July–September)

WHAT’S INSIDE

1. Pacific fuel prices at a glance2. Key observations – Pacific fuel prices3. Unleaded motor gasoline (mogas) prices (excluding taxes and duty)4. Automotive diesel oil (ADO) prices (excluding taxes and duty)5. Kerosene prices (including and excluding taxes and duty)6. Liquefied petroleum gas (LPG)7. International market pricing trends 8. Exchange rates9. PICT fuel-pricing methodologies10. Glossary and conversions

1. PACIFIC FUEL PRICES AT A GLANCE

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Overview

In Q3.2016 average fuel prices in Pacific Island countries and territories (PICTs) increased for mogas,

diesel, kerosene and LPG compared to Q2.2016. For mogas, PICT fuel prices increased by 3% and 6%

for retail and wholesale tax inclusive, diesel by 6% and 9%, kerosene increased by 4% and 8% and LPG

by 12% and 16% for retail and wholesale respectively, compared to Q2.2016.

Mogas

Hawaii had the lowest tax inclusive retail price followed closely by American Samoa and Fiji. Pre-tax

lowest was Sydney (49.73 cpl), Hawaii (55.05 cpl), Fiji (56.86 cpl) and Tonga (57.83 cpl). Highest pre-tax

costs were Niue (140.19 cpl), Tuvalu (126.90 cpl) and Wallis and Futuna (126.73 cpl). PNG had the lowest

PICT wholesale price, followed by American Samoa and Solomon Islands. The PICT retail pre-tax ‘low-

to-high’ price gap (Australia Sydney compared with Niue) for mogas was 90.47 cpl. Volume weighted,

the best performing mogas markets were Fiji, American Samoa, Samoa and Tonga.

ADO

Fiji and American Samoa had the lowest tax inclusive retail price, followed by New Zealand and Papua

New Guinea. Pre-tax lowest was Fiji (35.49 cpl), Australia (45.59 cpl), Samoa (52.03 cpl) and Vanuatu

(55.74 cpl). Highest pre-tax costs were Niue (141.64 cpl) and Tuvalu (131.52 cpl). Papua New Guinea had

the lowest PICT wholesale price, followed by Fiji, American Samoa and New Zealand. The PICT retail

pre-tax ‘low-to-high’ price gap (Fiji compared with Niue) for ADO was 98.09 cpl. Volume weighted, the

best performing ADO markets were Tonga, Fiji and Samoa.

Kerosene

Fiji had the lowest tax inclusive retail kerosene prices, followed by Tonga and American Samoa. Pre-

tax lowest was Fiji (51.99 cpl), Samoa (55.04 cpl) and Tonga (58.59 cpl). Papua New Guinea had the

lowest wholesale kerosene price (40.93 cpl) followed by Fiji and American Samoa. The highest wholesale

kerosene prices were in Niue, Vanuatu, and Wallis and Futuna. The PICT retail pre-tax ‘low-to-high’

price gap (Fiji compared with Palau) for kerosene was 150.70 cpl.

LPG

The lowest retail LPG prices were in Fiji (USD 1.26 per kg), closely followed by Tonga and Tuvalu. Palau

had the highest LPG price (USD 5.51 per kg). The PICT pre-tax ‘low-to-high’ price gap (Fiji compared

with Palau) for LPG was USD 4.25 per kg.

Crude oil

Average Dated Brent crude oil prices slightly increased by USD 0.10 per bbl compared to Q2.2016.

2. KEY OBSERVATIONS – Pacific fuel prices



3. MOGAS (UNLEADED PETROL) PRICES

Figure 2: Retail tax inclusive mogas price

Figure 3: Retail mogas prices sorted by pre-tax cost

17I S S U E 2 2 | D E C E M B E R 2 016


Figure 4: Wholesale mogas prices sorted by pre-tax cost

Figure 5: Wholesale and retail mogas prices (including tax and duty)


ENERGY PRODUCTION AND SUPPLY | PETROLEUM Pacific Fuel Price Monitor Quarter 1 (Jan–Mar) 2015

3 | P a g e

Figure 2: Retail tax inclusive mogas price

Figure 3: Retail mogas prices sorted by pre-tax cost

3. Mogas (unleaded petrol) prices

54.06 65.03

65.37 68.04 70.60 70.86 70.89 71.60

71.89 75.96 82.51 85.87

88.15 90.53

92.38

103.89 108.09 118.53 126.75 133.39

145.89 150.92 151.72 38.43 17.83

39.56 38.43 38.63

9.49

33.05 31.42

68.84

37.34 33.06

77.73

5.51

19.51

48.63

6.50

51.18

1.32

39.73 9.34

42.11 50.20 46.69

0

50

100

150

200

250

US

cen

ts p

er l

iter

Retail mogas sorted by underlying pre-tax prices

Taxes (Duty plus VAT) Mogas Retail Pre-tax Price Platts Benchmark 92 RON ULPPlatts Benchmark 95 RON ULP Pacific Average Pre-tax Retail Price

70.86 65.03 54.06

88.15 71.60 70.89 65.37 68.04

70.60 90.53

103.89

75.96

82.51

118.53

71.89 92.38

133.39

108.09 85.87

126.75

145.89 151.72

150.92 9.49 17.83 38.43

5.51 31.42 33.05 39.56 38.43 38.63 19.51

6.50

37.34 33.06

1.32

68.84 48.63

9.34 51.18

77.73

39.73

42.11 46.69 50.20

0

50

100

150

200

250

US

cen

ts p

er l

iter

Retail mogas tax-inclusive price

Taxes (Duty plus VAT) Mogas Retail Pre-tax Price Platts Benchmark 92 RON ULP

Platts Benchmark 95 RON ULP Pacific Average Pre-tax Retail P rice

Key observations – Mogas

• Most PICTs import 92 RON mogas. Niue, Cook Islands, New Caledonia, Vanuatu, and Wallis and Futuna

import 95 RON, which has a higher cost than 92 RON.

• The Pacific-wide retail average pre- and after-tax retail price for mogas was 87 cpl and 112 cpl respectively.

• Average pre- and after-tax wholesale price for mogas was 70 cpl and 99 cpl.

• Pre-tax wholesale price was lowest in New Zealand (38.29 cpl), Papua New Guinea (40.48 cpl), Australia

– Sydney (41.81 cpl) and Samoa (47.35 cpl).

• The PICT pre-tax ‘low to high’ wholesale price gap (New Zealand compared with Wallis and Futuna)

for mogas was 78.15 cpl.

• Average MOPS for mogas 92 and 95 RON during July–September period was 35 cpl and 37 cpl respectively.

• Mogas related retail tax rates in PICTs ranged from 1.32 cpl (Palau) to 45.92 cpl (Vanuatu).

• Mogas related wholesale tax rates in PICTs ranged from 5.10 cpl (Kiribati) to 42.08 cpl (French Polynesia).

4. AUTOMOTIVE DIESEL PRICES

Figure 6: Retail tax inclusive diesel prices

19I S S U E 2 2 | D E C E M B E R 2 016


Figure 7: Retail diesel prices sorted by pre-tax cost

Figure 8: Wholesale diesel prices sorted by underlying pre-tax prices



Figure 9: Regional prices of diesel (including tax and duty)

Key observations – diesel fuel

• Pre-tax and duty, Fiji, American Samoa and New Zealand have the lowest retail ADO costs and prices,

closely followed by Port Moresby and Australia (Sydney). Palau imposes the lowest amount of tax and

duty but is mid-ranking in terms of comparative retail sales price.

• The majority of PICTs import 500 ppm sulphur (S) ADO for land transport; Palau has specifications of

50 ppm. American Samoa, New Caledonia, Wallis and Futuna, and Vanuatu import 10 ppm diesel for

automotive use, factors that contribute to price variations among PICTs.

• The Pacific-wide average pre- and after-tax retail price for ADO was 84 cpl and 108 cpl.

• Papua New Guinea had the lowest tax inclusive wholesale prices, followed by Fiji and American Samoa.

Pre-tax wholesale price was lowest in New Zealand (37.60 cpl), PNG (41.64 cpl), Australia (Sydney)

(41.81cpl) and Samoa (46.94 cpl).

• The PICT pre-tax ‘low to high’ wholesale price gap (New Zealand compared with Niue) for ADO was

78.10 cpl.

• The Pacific-wide average pre- and post-tax wholesale price for ADO was 67 cpl and 92 cpl.

• Average MOPS for gasoil 10 ppm and 500 ppm during July–September period was 35 cpl and 34 cpl

respectively.

• ADO retail tax rates between PICTs range from 1.32 cpl (Palau) to 44.80 cpl (Vanuatu).

• ADO related wholesale tax rates between PICTs range from 1.92 cpl (Papua New Guinea) to 44.63 cpl

(Vanuatu).

21I S S U E 2 2 | D E C E M B E R 2 016


Figure 10: Retail tax- inclusive kerosene prices

Figure 11: Retail kerosene prices sorted by underlying pre-tax cost

5. KEROSENE PRICES



Figure 12: Wholesale kerosene prices sorted by underlying pre-tax cost

Figure 13: Wholesale and retail prices of kerosene (including tax and duty)

23I S S U E 2 2 | D E C E M B E R 2 016


Figure 14: Saudi Contract Price (CP) butane and propane price vs Dated Brent (crude oil)

The international benchmark for the cost of LPG in the Asia Pacific region is the Saudi Aramco Contract Price, also

known as the ‘Saudi CP’. It decreased in the third quarter compared to the previous quarter by 33.33 USD per metric

tonne. Saudi CP for butane and propane for the quarter averaged at USD 307 and USD 292 per metric tonne respectively.

6. LIQUEFIED PETROLEUM GAS (LPG) PRICES

Key observations – Kerosene

• Fiji had the lowest retail kerosene prices and Papua New Guinea had the lowest wholesale prices. Highest

prices were found in Palau and Niue.

• The Pacific-wide average pre- and after tax retail price for kerosene was 98 cpl and 111 cpl respectively.

• Average MOPS for Asian jet fuel (the main end-use for kerosene) during the July – September period

was 35 cpl.

• Papua New Guinea had the lowest tax inclusive wholesale prices, followed by Fiji and American Samoa.

• Pre-tax wholesale price was lowest in Papua New Guinea (40.93 cpl), Samoa (43.03 cpl) and Fiji (51.53 cpl).

• The PICT pre-tax ‘low to high’ wholesale price gap (Papua New Guinea compared with Niue) for kerosene

was 98.46 cpl.

• Kerosene-related retail tax rates in PICTs ranged from zero (Kiribati and Fiji) to 38.02 cpl (Wallis and

Futuna).

• Kerosene-related wholesale tax rates in PICTs ranged from zero (Kiribati, Papua New Guinea and Fiji)

to 38.02 cpl (Wallis and Futuna).



Figure 15: Regional prices of LPG (including tax and duty)

Key observations LPG

• Average Saudi Aramco LPG butane and propane decreased by 20% to 0.292 cpl and by 6% to 0.325 cpl

respectively.

• Between July and September 2016, Fiji had the lowest LPG retail and wholesale prices at USD 1.26 per

kg and USD 1.17 per kg respectively and Palau had the highest retail price USD 5.51 per kg and Wallis

and Futuna for wholesale price of USD 3.43 per kg.

• Average PICTs for LPG for retail and wholesale increased slightly compare to Q2.2016 by USD 0.46 per

kg and USD 0.56 per kg respectively.

7. INTERNATIONAL PRICING MARKET TRENDS

Figure 16: Comparison – Singapore gasoline, jet fuel/kerosene, diesel and Dated Brent

In Q3.2016, Dated Brent crude oil price slightly increase by 1% from USD 46.34 per bbl to USD 46.71 per bbl compared

to Q2.2016. Near to the end of the third quarter, OPEC called a special meeting and agreed to limit production to

32.5–33 million barrels per day. As a result, MOPS daily price rose by 4%–5% for all fuel products from 28 to 29

September before stabilising on 30 September. Also, the Brexit vote, the fishing ban in China and the construction

of an oil pipeline in USA were some of the associated factors that determined MOPS fuel price in Q3.2016.

Singapore fuel prices

In Q2.2016, Singapore free-on-board (FOB) prices for mogas 92 decreased by 5% and kerosene prices

also decreased by less than 11 cpl. FOB fuel price comparison for Q2.2016 v Q3.2016 is as follows:

Q2.2016 Average (cpl) Q3.2016 Average (cpl) Difference (cpl)

Gasoline 92 54.71 52.19 –2.52

Diesel 500 ppm 54.18 54.11 –0.07

Kerosene 54.39 54.28 –0.11

Dated Brent 46.39 46.44 0.05

In comparison to the second quarter of 2016, the price of Dated Brent crude oil in the third quarter of 2016

slightly increased (in USD per bbl terms) by 0.05 from 46.39 to 46.44.

25I S S U E 2 2 | D E C E M B E R 2 016


7. INTERNATIONAL PRICING MARKET TRENDS

Figure 16: Comparison – Singapore gasoline, jet fuel/kerosene, diesel and Dated Brent

In Q3.2016, Dated Brent crude oil price slightly increase by 1% from USD 46.34 per bbl to USD 46.71 per bbl compared

to Q2.2016. Near to the end of the third quarter, OPEC called a special meeting and agreed to limit production to

32.5–33 million barrels per day. As a result, MOPS daily price rose by 4%–5% for all fuel products from 28 to 29

September before stabilising on 30 September. Also, the Brexit vote, the fishing ban in China and the construction

of an oil pipeline in USA were some of the associated factors that determined MOPS fuel price in Q3.2016.

Singapore fuel prices

In Q2.2016, Singapore free-on-board (FOB) prices for mogas 92 decreased by 5% and kerosene prices

also decreased by less than 11 cpl. FOB fuel price comparison for Q2.2016 v Q3.2016 is as follows:

Q2.2016 Average (cpl) Q3.2016 Average (cpl) Difference (cpl)

Gasoline 92 54.71 52.19 –2.52

Diesel 500 ppm 54.18 54.11 –0.07

Kerosene 54.39 54.28 –0.11

Dated Brent 46.39 46.44 0.05

In comparison to the second quarter of 2016, the price of Dated Brent crude oil in the third quarter of 2016

slightly increased (in USD per bbl terms) by 0.05 from 46.39 to 46.44.



8. EXCHANGE RATES

In the third quarter Euro and XPF currencies weakened against the US dollar compared to the second quarter due to

the Brexit vote. Also Samoa’s Tala currency weaked by 5%, while Australia (AUD), Fiji (FJD), New Zealand (NZD),

Papua New Guinea (PGK) Solomon Islands (SBD), Tonga (TOP) and Vanuatu (Vatu) strengthened against the US dollar

compared to the previous month.

9. PICT FUEL-PRICING METHODOLOGIES

Observations – refiners margin

• For Q3.2016 in comparison to Q2.2016, the refiners margin declined for all petroleum products, with

mogas 97, 95 and 92 recording the highest drop by 26%, 26% and 31% respectively.

• Kerosene, diesel 10 ppm and diesel 500 ppm for this period were reduced by 2%, 4% and 2% respectively.

• Samoa, Tonga, Papua New Guinea, Wallis and Futuna, New Caledonia, Vanuatu and Solomon Islands

carry out price reviews on a monthly basis.

• Fiji reviews petroleum product prices on a quarterly basis. Price change is based on MOPS prices of

previous quarter.

• American Samoa reviews prices on a fortnightly basis.

• Niue and Cook Islands price changes are carried out on an ad hoc basis. Price change is mostly influenced

by either a major surge or fall in international market prices.

• Kiribati has held its fuel prices constant since 2012.

Price data sources

• Australian data are sourced from http://www.aip.com.au/.

• NZ data are sourced from http://www.med.govt.nz/.

• Hawaii prices are calculated using US average refiners wholesale prices sourced from http://www.eia.gov/ plus Hawaii taxes for diesel and mogas which are sourced from http://www.api.org/.

• Singapore data are sourced from www.facebook.com/PetrolWatchSingapore.

• Data for Saudi Aramco LPG prices were adapted from http://gasenergyaustralia.asn.au/.

• Figures 18 and 19 are generated using daily MOPS data sourced from Platts Asia-Pacific/Arab Gulf Marketscan.

• Prices for diesel, gasoline and jet/kerosene prices are provided by Platts (The McGraw-Hill Companies, Inc.) under subscription.

• Figure 20 derives from www.oanda.com

http://www.aip.com.au/

http://www.med.govt.nz/

http://www.eia.gov/

http://www.api.org/

http://gasenergyaustralia.asn.au/

http://www.oanda.com

27I S S U E 2 2 | D E C E M B E R 2 016


10. GLOSSARY AND CONVERSIONS

Abbreviations and definition of key terms

ADO automotive diesel oil or diesel fuel

After–tax price prices including tax and duty

bbl barrel (of oil), approximately 159 litres

cpl cents per litre

DPK dual purpose kerosene (i.e. jet fuel and domestic use)

FOB Free-on-board

Gasoil refinery designation of diesel fuel

kl kilolitres (thousand litres)

Mogas motor gasoline – normally unleaded

MOPS Mean of Platts Singapore

MR Medium range tankers, generally 20,000–30,000 metric tonnes

Pacific-wide All surveyed Pacific Island countries (excluding Australia and New Zealand)

ppm parts per million

Retail price fuel price at retail/service stations, also called pump price

Pre-tax price price excluding tax and duty

Pump price refer to retail price

RON research octane number

S Sulfur content (usually in diesel fuel)

ULP unleaded petrol

USD per bbl US dollars per barrel

USD per l US dollars per litre

USG US gallon

Conversions

Litres to USG 3.785

Litres to barrel 159

USG to barrel 42

Note: A more detailed petroleum glossary can be accessed from the PRDR website: http://prdrse4all.spc.int/production/node/1523

For more information on PICT fuel pricing, please contact:

Mr Solomone Fifita, Deputy Director Energy [email protected] or Ms Tirisa Wainibalagi, Assistant Petroleum Officer [email protected]

NVERSIONS

http://prdrse4all.spc.int/production/node/1523





Fossil fuels still subsidised in Kiribati

Fossil fuel subsidies have in recent years received attention from many international organisations and research institutions such as the World Bank, the International Institute for Sustainable Development’s

Global Subsidies Initiative, the Overseas Development Institute, and the International Monetary Fund (IMF). The reasons many experts advocate against fuel subsidies are that they are considered to, for example, encourage wasteful consumption, cause economic inefficiency, increase greenhouse gas emissions, and distort the market in favour of fossil fuels, thereby slowing down the transition to

renewable energy.

Subsidies are often justified by saying that they make fuels

and energy affordable to the poor. However, evidence from

around the world suggests that there are considerable

leakages from fuel subsidies to the non-poor, and a policy

of subsidising fuel has little effectiveness. Despite this, fuels

are still subsidised on a massive scale in many parts of the

world. The IMF has estimated that post-tax subsidies in

the whole world, which includes adjustment for negative

external impacts such greenhouse gas emissions and road

accidents, were USD 879 billion in 2011.1 The reasons

subsidies are maintained are often political, rather than

based on demonstrated economic and social benefits.

Fuel subsidy policies in Pacific Island countries and

1 Clements, M., Coady, D., Fabrizio, M., 2013. Energy subsidy reform: Lessons and implications. International Monetary Fund 68.

territories have not yet received much attention. That is

why the Pacific Community (SPC) carried out a review

of fossil fuel subsidies in Kiribati. The study attempted

to quantify subsidies and to estimate their effect. The

main subsidy policies in Kiribati are price controls, but

there are also VAT and excise exemptions on some fuels.

The study considered three fuels: gasoline, diesel, and

kerosene. The report of the study shows results similar

to research conducted elsewhere.2 Also in Kiribati, a

significant amount of money is being spent on subsiding

fuel. The report estimates the total annual subsidy on the

three fuels to be on average AUD 7.1 million, varying

with fluctuations in international oil prices. The amount

corresponds to around 4–5% of Kiribati’s gross domestic

2 SPC. 2016. Review of fuel subsidies in Kiribati, Draft Report. Suva.

Fuel storage tanks in Kiribati

29I S S U E 2 2 | D E C E M B E R 2 016


product and almost 9% of government revenue. In terms

of social spending, fuel subsidies were, on average,

estimated to correspond to 42% of Kiribati’s education

expenditure and 53% of healthcare expenditure. It was

also estimated that the subsidies increased Kiribati’s

carbon dioxide emissions by almost 7% compared to

2008 levels. In addition, they have a detrimental effect

on human health, by encouraging the use of kerosene for

cooking and lighting.

Even though a considerable amount is spent on subsidising

fuels, there appears to be no strong evidence of positive

social or economic effect to justify this policy. Although

analysing the effect of subsidies was limited by lack of

data on Kiribati, like elsewhere in the world, there seems

to be considerable leakages of benefits to the non-poor.

For example, the gasoline subsidy tends to benefit more

those who own private vehicles, who, in least developed

countries such as Kiribati, are often the wealthiest

households. Kiribati is already highly dependent on imports

of fossil fuels and is vulnerable to fluctuations in world

oil prices. Since subsidies and cheaper prices encourage

consumption of more fuels, the subsidies make Kiribati

even more reliant on fuel imports. At the same time, more

money flows out of Kiribati to pay for these imports.

While fuel subsidies often do not have the desired effect,

they can be difficult to reform. Even when the political

will is present, some countries have failed to reform fuel

subsidies. The reason has often been resistance from

the general public and powerful vested interests. Fuel

prices arouse strong feelings. That is why quantifying

and analysing the effect of subsidies is only the first

step. Considerable thought and planning is required to

make reforms successful. There are often many options

for alternative policies that are more cost-effective in

targeting the poor, such as cash transfers, support to

education, or subsidies on food and low-cost housing, but

their formulation still needs proper analysis and careful

design. The public also needs to understand the true

effect of subsidies and why reform is necessary, and this

is where communication on behalf of the government

is important.

The study looked at fuel subsidies in Kiribati. However,

there may be other Pacific nations with reasons to consider

how they subsidise and price fossil fuels. As seen from

Kiribati, this may have important implications for the

region’s economic and social development, not to mention

moving towards sustainable consumption of energy.


Ville M. Peltovuori ODI Fellow Economic Development Division, SPC [email protected]




Reliability and safety of petroleum a priority in the Pacific

In the Pacific region, which comprises many remote islands, there is a high cost of doing business. Developing infrastructure – in particular, safe, reliable transport and access to affordable energy – is

essential to drive sustainable economic growth.

These days, people are more concerned about fuel price

than about safety and reliability of fuel.

Earlier this year on 4 April, an explosion caused a fire at

one of the diesel fuel storage tanks at Matautu-tai Wharf

in Apia, Samoa, which claimed the life of an employee.

Luckily, fire authorities managed to control the blaze

and prevented it from spreading to other storage tanks.

In early September, Tonga’s Vava’u Island group ran out

of fuel; while the supply was restored towards month-

end, it was a blow to the local economy as September is

peak time for tourism in Vava’u, which is famous for its

whale watching. The fuel barge stopped serving Vava’u

and only one ferry was operational and able to transport

food, gas and passengers. Dozens of vehicles queued at

petrol stations with people holding empty cans.

These examples demonstrate the need for petroleum

authorities in the Pacific region to prioritise safety and

reliability of fuel. The Pacific Community (SPC) has been

assisting Pacific countries to draft and review their fuel

standards, including protocols related to storage and

handling.

SPC organised a regional petroleum workshop in 2014

where it acknowledged that the proper transport, storage

and handling of dangerous goods is critical and should

be of primary importance to the petroleum industry,

particularly in the Pacific Island region.


Atishma LalProject Information Assistant Energy ProgrammeEconomic Development Division, SPC [email protected]

Firefighters risk their lives to battle the blaze at the Matautu-tai Wharf on 4 April. Photo by Vatapuia Maiava, sourced from

Samoa Observer.

An unhappy crowd tries to buy rationed fuel in Neiafu, 14 September 2016. Photo by Calvin Schumaker, sourced from

Matangi Tonga


31I S S U E 2 2 | D E C E M B E R 2 016

ENERGY PRODUCTION AND SUPPLY | RENEWABLE ENERGY

Kosrae Utilities Authority realises savings with grid-connected solar PV systems

The Federated States of Micronesia (FSM) national energy policy has a renewable energy target of 30%. The four independent states of FSM have adopted the target and over the past decade have worked through their power utilities to reduce fuel consumption for power generation and increase

renewable energy penetration.

Kosrae, one of the four FSM states, has embarked on

grid-connected solar PV systems. Having a population

of about 6,000 and a land area of 43 miles2 (112 km2),

Kosrae has a peak demand for electricity of about 1 MW.

The Kosrae Utilities Authority (KUA) operates and maintains

a total of 360 kW grid-connected solar PV systems.

These were funded by the European Union through the

9th European Development Fund (EDF-9) Energy Sector

Support to Five ACP Pacific Island countries (REP5),

EDF-10 North Pacific ACP Renewable Energy and Energy

Efficiency Project (North-REP), and the Government

of Japan through the Pacific Environment Community

(PEC) Fund.

Recent analysis of the performance of the grid-connected

solar PV systems reveals that they have generated a total

savings of USD 92,000, a monthly value of USD 6,000,

worth of fuel – that is, savings of 5% of the total cost of

fuel used for electricity generation.

KUA continues to explore other opportunities to reduce

fuel costs, and part of its plan over the next three-to-five

years is to consider supply side efficiency measures – this

is also aligned to the FSM national energy policy goal:

to enhance the supply side energy efficiency of FSM utilities

by 20%. There are ongoing activities with development

partners to replace the aging generators and improve the

transmission and distribution system.


Robert TaulupeOperations Manager, [email protected]

Rupeni MarioNorth Pacific Regional Office, [email protected]

OR

Kosrae grid connected PV system





Ta’u Island, American Samoa on 100% renewable energy through solar

Article by Fili Sagapolutele, Samoa News Correspondent (28 October 2016)

The American Samoa Power Authority (ASPA) commissioned

USD 6.8 million solar energy project on 27 October on

the island of Ta’u, in the village of Faleasao, while the

Ofu Island renewable energy project is scheduled to be

commissioned during the latter part of next month.

Gov. Lolo Matalasi Moliga, other government officials

and invited guests travelled to Ta’u for the ceremony,

amid a cloudy day and now Ta’u island is fully powered

by renewable energy – solar photovoltaic systems.

The two Manu’a renewable energy projects, along with

Aoloaufou wind energy project on Tutuila is funded with

USD 8.1 million in revenues from the American Samoa

Economic Development Authority (ASEDA) issued bonds.

American Samoa Government accounts payment to

ASPA of USD 8.3 million was converted to bonds through

ASEDA, says ASPA executive director, Utu Abe Malae,

who is also ASEDA board vice chair. He also says that

20% of the renewable energy projects are funded through

grants from United States Interior Department.

“Ta’u project, which was contracted to California-based

company – Solar City, will provide 100% renewable energy

to the island and same will be for Ofu project, when it is

commissioned on 30 November,” Utu said.

In addition to the renewable energy projects, Utu told

Samoa News that all public lighting in Manu’a would be

upgraded to LED lights.

Ta'u Island solar PV project

33I S S U E 2 2 | D E C E M B E R 2 016


“This will reduce island loads by 15%, giving extra head

on renewable energy system,” he explained. “Combined,

the projects will reduce Manu’a demand for diesel fuel

significantly and reduce the demands on shipping services

to get it there.”

“Other benefits include reduced environmental damage

caused by diesel generator emissions, risks of diesel spills

and noise pollution,” Utu points out.

The Ta’u project calls for the installation of 1,410kW

of solar photovoltaic system, and 6000 kWh of battery

storage. Three new 275 kW Cummins diesel generators

and one 480V switchgear were also installed as backup

at the Ta’u power plant.

For the Ofu project, which is contracted to Pacific Solar

Innovations, it will have 342 kW of solar photovoltaic

system and 1,000 kWh of battery storage.


Sione KavaPetroleum Officer Office of the Petroleum ManagementAmerican Samoa [email protected]

Ta'u Island solar PV project

Ta'u Island solar PV project Ta'u Island solar PV project




Tapping into sunshine in Kiribati

As part of the Kiribati Grid Connected Solar PV Project, four government-owned facilities have now been installed with large-scale solar panels. The development and implementation of the project has

been a partnership between the Government of Kiribati, the Public Utilities Board and the World Bank. The solar panels will reduce Kiribati’s dependence on imported fuel and help reduce greenhouse

gas emissions from electricity generation.

The Kiribati Grid Connected Solar PV Project is funded

through the World Bank by a USD 1 million grant from

the Global Environment Fund and a USD 2.92 million

grant from the Government of Australia through the

Pacific Regional Infrastructure Facility. It is projected to

end in 2018.

Kiribati’s small size and remoteness makes it highly

dependent on fuel imports, and extremely vulnerable to

any changes in global fuel prices. About half of all imported

fuel in 2012 was used for electricity generation on the

South Tarawa grid, servicing around 52,000 people. It is

estimated that the energy generated through these new

solar panels will reduce diesel fuel use by 230,000 litres

per year, reduce greenhouse gas emissions by 765 tons per

year, and save the Government of Kiribati USD 290,000.

The 548 kWp (kilowatt peak capacity) solar panels were

fitted onto four buildings in South Tarawa – the Kiribati

Institute of Technology, Betio Sports Complex, Tungaru

Hospital and King George V Secondary School – with

the latter two sites also requiring roofs to be replaced

in order for the panels to be secured. Energy generated

from the solar panels will be fed directly into the South

Tarawa grid system.

King George V and Elaine Bernachi School

http://www.worldbank.org/en/news/press-release/2016/09/23/kiribatis-over-reliance-on-fuel-to-end-with-world-bank-project

http://www.worldbank.org/en/news/press-release/2016/09/23/kiribatis-over-reliance-on-fuel-to-end-with-world-bank-project

35I S S U E 2 2 | D E C E M B E R 2 016


The early work provided the overall framework for the

installation of solar panels connected to the South Tarawa

grid system. As a result, the delivery of this project is

one of three recent grid connected solar projects on the

system.

The project was implemented by the Public Utilities Board

and is managed entirely by local consultants and staff.

This approach has assisted Kiribati to acquire skills in the

procurement, construction, operation and maintenance

of solar systems.


Tiaon AukitinoPublic Utilities [email protected]

Kara MouyisThe World [email protected]

OR

For more information on our work in the energy sector, please visit: www.worldbank.org/energy

Bikenibeu Hospital Kiribati Institute of Technology, Betio

Betio Sports Complex



http://www.worldbank.org/energy


ENERGY CONVERSION

Restoring power lines in Fiji made possible by rapid response of development partners

In February 2016, Tropical Cyclone Winston left a path of destruction in its wake. With more than 340,000 Fijians left without power, water, shelter or food, the Government of Fiji declared a State of

Natural Disaster.

The government identified the urgent need to repair

damage to the Fiji electrical distribution network and

reached out to the Pacific Region Infrastructure Facility

(PRIF) members, in particular the Asian Development

Bank (ADB), Australia’s Department of Foreign Affairs

and Trade, and the New Zealand Ministry of Foreign

Affairs and Trade for support.

PRIF, in partnership with ADB and the Fiji Electricity

Authority (FEA), rapidly mobilised a rotating team of

five line mechanics and one operator from Tonga Power

Ltd (TPL) to provide assistance in restoring Fiji’s power

lines between March and August 2016.

Together with line mechanics supported by MFAT, TPL

was assigned the FEA network in the District of Ba, a rural

area in the Western Division on the island of Viti Levu.

Lorena Estigarribia, Technical Assistance Manager for

PRIF, said, ‘given the low population living in the Ba area,

its rural location, and FEA’s limited resources, the support

given by PRIF was essential to re-electrify family homes,

schools, and one health centre that would otherwise have

remained without electricity until December 2016’.

A major accomplishment of the project was that, in the

space of two weeks, a contract was established between

ADB and TPL. The team, a crane and a bucket truck were

shipped from New Zealand and Tonga and arrived in Fiji

in the third week.

‘The four-week rotation blocks of five line mechanics and

one operator was a major challenge of the project’, said

Lorena. ‘Staff were sourced from Tonga, so each new

rotation had to familiarise themselves with FEA’s electricity

standards, and its health and safety requirements.’

Broken power lines after Cyclone Winston

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ENERGY CONVERSION

To restore electricity to the area, the focus of the work

was on the safe reconstruction of power lines, re-erecting

fallen power poles and stays, restringing power lines,

reinstalling fallen transformers and other overhead

distribution equipment, and dismantling and clearing all

damaged cables and hardware from site and taking them

back to the FEA Depot in Lautoka.

Once the damaged cables were cleared, the project

progressed to the design and rebuild stage, focusing on the

network from Ba on the Koronubu Feeder, heading inland.

The successful rebuild restored power supply to the remote

community of Ba. It took 498 poles, 23 transformers and

96 km of cables to re-electrify 465 FEA customers.


Lorena EstigarribiaTechnical Assistance Manager Pacific Region Infrastructure [email protected]

Team who assisted in restoring power after Cyclone Winston

Broken power lines after Cyclone Winston



ENERGY CONVERSION

Tonga Power signs Power Purchase Agreement with Chinese Power Producer

Tonga Power Limited’s CEO, Mr. Robert Matthews and CEO of Zhuhai Singyes Green Building Technology Co. Ltd, Mr. Sam Leung have signed a long term Power Purchase Agreement (PPA) at the Zhuhai Singyes headquarters in China on September 12, 2016 for the construction and commissioning

of a 2 Megawatt solar facility at Matatoa, on His Majesty’s land at Mata- ki -‘Eua.

Left - Right: Zhuhai Singyes Green Building Technology Co. Ltd CEO, Mr. Sam Leung and Tonga Power’s CEO Mr. Robert Matthews in Guangdong, China. (12 September 2016)

Zhuhai Singyes Green Building Technology Co. Ltd.

specialises in environmental protection and renewable

energy application. The company also engages in the

investment, construction and operation of large scale solar

photovoltaic power plants and micro-grid energy systems,

boosting one of the top-grade design and construction

qualification in China and has been involved in more than

600 large systems engineering projects.

The new solar farm is expected to be fully operational

by mid next year and is part of Tonga Power Limited’s

continuing initiative to contribute and support the

Government of Tonga’s commitment of striving to a

100% renewable energy.

Tonga Power’s Chief Executive Officer, Mr. Robert Matthews

said, “Through a successful collaborative alliance with

Zhuhai Singyes, a company with proven expertise as a

solar developer, Tonga can be proud to be at the forefront

of solar generation in the Pacific and we can look forward

to a better renewable energy future”.

Tonga currently generates electricity from costly imported

diesel fuel. As the largest solar plant to be constructed in

Tongatapu, this 2 Megawatt solar facility is a step further

towards reducing the nation’s reliance on imported fossil

fuels.

At various stages, the project will provide employment

for locals during the construction period. Funded entirely

by Zhuhai Singyes, the total project cost is in excess of

T$10 million.

This article has been issued by the Tonga Power Limited

and was published on the Tonga Ministry of Information

and Communications website on 20 September 2016.


Tonga Power LimitedTel: +676 27390Fax: +676 23047

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OTHER NEWS

Other news

Welcome to SPC

Tirisa Wainibalagi, Assistant Petroleum Officer

Tirisa joined Pacific Community in September as

Assistant Petroleum Officer. Previously, she was

employed by one of the leading oil companies in

Fiji for over five years. Tirisa’s role mainly focuses

on preparing petroleum market advisories to Pacific

Island countries and territories on a weekly, monthly

and quarterly basis.

Farewell

Amali Shaw

The Pacific Community would like to acknowledge

the contributions of Amali Shaw, who was the Energy

Database Assistant in the Energy Programme. Her

main role was to provide support to the Pacific

Regional Data Repository for Sustainable Energy

for All (PRDR for SE4ALL) portal. In particular

the regional effort to collect, analyse and interpret

data for energy planning and policy formulation

and reviews.

Vinaka vakalevu Amali, we deeply appreciate your

efforts and we wish you all the best in your future

endeavours.

Date Event Venue Responsible agencies

Officer responsible

29–30 November

Energy planning and NDC implementation

Suva, Fiji GGGI Katerina Syngellakis [email protected]

1–3 December Workshop on financing for renewable energy in small

island developing states

Nadi, Fiji SPC Solomone Fifita [email protected]

7–14 December Regional Meeting for Heads of Maritime and Energy

Port Vila, Vanuatu SPC Solomone Fifita [email protected]

January–February (TBC)

Scoping missions for Kiribati ACSE GIZ project

Kiribati SPC Koin Etuati [email protected]

March (TBC) SPC-Platts Petroleum Pricing Workshop

Auckland, New Zealand

SPC Solomone Fifita [email protected]

24–28 AprilThird Pacific Regional Energy

and Transport Ministers Meeting

Nuku’alofa, Tonga SPCSolomone Fifita

[email protected]

24–28 AprilInauguration of the Pacific

Centre for Renewable Energy and Energy Efficiency

Nuku’alofa, Tonga SPC and Tonga Government

Solomone Fifita [email protected]

Pacific energy events calendar (November 2016–April 2017)

Energy ProgrammeEconomic Development Division Pacific CommunityPrivate Mail Bag, Suva, FijiEmail: [email protected] | Telephone: +679 337 0733Fax: +679 337 0146 | Website: www.spc.int/edd








ISSUE 22 DECEMBER 2016 - Pacific Community

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