Renewable Energy and Energy Efficiency Programme (REEP)
Transcription
Renewable Energy and Energy Efficiency Programme (REEP)
Technical Assistance Consultant’s Report Project Number: RETA-6102 April 2006 Pacific Subregional: Renewable Energy and Energy Efficiency Programme (REEP) (Financed by the Danish Cooperation Fund for Renewable Energy and Energy Efficiency in Rural Areas) Volume I: Program Activities Prepared by BURGEAP Paris, FRANCE For The Asian Development Bank This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. All the views expressed herein may not be incorporated into the proposed project’s design. CURRENCY EQUIVALENTS (as of 1 April 2006) Currency Unit – Samoa Tala (WS$) WS$1.00 = US$0.342 US$1.00 = WS$2.924 Currency Unit FJ$1.00 US$1.00 – = = Fiji Dollar (FJ$) US$0.5545 FJ$1.803 WEIGHTS AND MEASURES MW (Megawatt) kW (Kilowatt) kWh (Kilowatt-hour) Mt (Metric Ton) – – – Power in millions of Watts Power in thousands of Watts Energy in thousands of Watt-hours 1000 kilograms i ACRONYMS ACP Africa-Caribbean-Pacific EU Partner Countries ADB Asian Development Bank ADO Automotive Diesel Oil AGO Australian Greenhouse Office CATD Centre for Appropriate Technology Development CEO Chief Executive Officer CFL Compact Fluorescent Light CIDA Coconut Industries Development Authority (Fiji) CO2 Carbon Dioxide (greenhouse gas) CTA Technical Centre for Agricultural and Rural Co-operation CROP Council of Regional Organizations of the Pacific DOE Department of Energy (Fiji) DSM Demand Side Management EE Energy Efficiency EESCO Energy Efficiency Service Company EET Energy Efficiency Technology EPC Electric Power Corporation (Samoa) ESCAP Economic and Social Commission for Asian and the Pacific EU European Union EUEI European Union Energy Initiative EWG Energy Working Group of CROP FEA Fiji Electricity Authority FIT Fiji Institute of Technology FS Forum Secretariat FSC Fiji Sugar Corporation GEF Global Environment Facility GHG Green-House Gas GoF Government of Fiji GWh Giga-Watt hours ha HECEC IIEC hectare Australia's Hydro-Electric Commission Enterprises Corporation International Institute for Energy Conservation IPP JICA Independent Power Producer Japan International Cooperation Agency JV Joint Venture kVA Kilo-Volt Ampere LPG Liquid Petroleum Gas MoU Memorandum of Understanding ii MOF MOFP Ministry of Finance (Samoa) Ministry of Finance and Planning (Fiji) MW Megawatt MWe NCSMED Megawatt electric equivalent National Centre for Small and Micro-Enterprise Development (Fiji) NEP National Energy Policy NGO Non-Government Organization NMFU National Micro Finance Unit (Fiji) NUS National University of Samoa O&M Operation and Maintenance OTEC PDMCs Ocean Thermal Energy Conversion Pacific Developing Member Countries (of ADB) PIC PIEPSAP PIGGAREP PIREP PIRGADI PPA Pacific Island Countries Pacific Islands Energy Policies and strategic Action Planning Pacific Island Greenhouse Gas and Renewable Energy Programme Pacific Island Renewable Energy Project Pacific Islands Regional Geothermal and Development Initiative Pacific Power Association (also “Power Purchase Agreement”) PV Solar Photovoltaics PWD Public Works Department RE REEP Renewable Energy Renewable Energy and Energy Efficiency Program REM REP-PoR Regional Energy Meeting UN Asia-Pacific Renewable Energy Programme for Poverty Reduction RET RESCO Renewable Energy Technology Renewable Energy Service Company RMI Republic of the Marshall Islands SHS Solar Home System SOPAC South Pacific Applied Geoscience Commission SPREP Secretariat of the Pacific Regional Environment Programme STEC Samoa Trust Estates Corporation TA Technical Assistance ToR Terms of Reference TPAF Training and Productivity Authority of Fiji UNDP United Nations Development Programme UNDESA United Nations Department of Economic and Social Affairs UNESCO United Nations Education, Scientific and Cultural Organization USP University of the South Pacific yr year iii TABLE OF CONTENTS EXECUTIVE SUMMARY VI I. INTRODUCTION 1 A. Target Country Selection ...................................................................................................1 1. 2. Criteria for Short List Selection Country Selection Survey 2 2 II. CURRENT RENEWABLE ENERGY AND ENERGY EFFICIENCY ACTIVITIES IN THE PACIFIC REGION 2 A. REEP team interaction with regional energy programs ......................................................5 III. NATIONAL PROJECT DEVELOPMENT AND ACTIONS 8 A. Fiji .....................................................................................................................................8 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. B. Steering Committee Policy strategies and incentives Establishment of an appropriate institutional framework Financing schemes development Capacity building Regional activities by the REEP team. Project development Priority 1 Project in Renewable Energy: Namosi hydroelectric joint venture Priority 2 Renewable Energy: Rotuma electrification using biofuel Priority 3 Renewable Energy: Geothermal resource investigation 8 8 8 11 12 15 15 16 22 29 Samoa .............................................................................................................................32 1. 2. 3. 4. 5. 6. 7. 8. 9. Steering Committee Policy strategies and incentives Establishment of an appropriate institutional framework Financing schemes development Capacity building Dissemination of activities in Samoa Project development Priority 1 - Renewable Energy: EPC generation using biofuel and biomass Priority 2 Renewable Energy: hydro-electric development for Upolu 32 32 32 35 36 39 39 40 47 IV. SUB-REGIONAL PROJECT IN ENERGY EFFICIENCY (FIJI AND SAMOA) 50 A. Project Concept and Objectives.......................................................................................50 B. Project Background .........................................................................................................50 C. Project proponents ..........................................................................................................53 1. 2. D. 53 Project Activities ..............................................................................................................54 1. 2. 3. 4. 5. E. Fiji 53 Samoa Capacity development Implementation loan guarantee Performance guarantee Independent auditing of performance Government support 54 55 55 56 56 Project preparation components ......................................................................................56 1. Proposed TA activities leading to a project design suitable for funding 57 V. DISSEMINATION OF RESULTS 59 VI. CONCLUSIONS AND NEXT STEPS 60 A. Attainment of intended outputs from the REEP................................................................60 B. Next steps .......................................................................................................................61 1. 2. Project pipeline Policy and institutional development 61 61 iv APPENDICES Appendix 1 63 Namosi, Naitisiri Hydro Project Prefeasibility Study Appendix 2 Prefeasibility study for the Electrification of Rotuma Based on Locally Produced Coconut Oil Appendix 3 Proposed Energy Efficiency Action Plan for Samoa 2006-2008 Appendix 4 Review of Past and Present Fiji DOE Energy Efficiency Activities and Recommendations for the Future Appendix 5 Survey of Standards and Certification Systems for Energy Efficiency and Renewable Energy Appendix 6 Proposed Standards for RESCO SHS Installation and Maintenance Appendix 7 Proposed Standard Specifications for RESCO managed Solar Home Systems (SHS) Appendix 8 Training Course for Solar Photovoltaics Instructors in Fiji (9-10 February, 2006). Curriculum for Solar PV at FIT (2005) Appendix 9 Facility Requirements for PV Technician Training Appendix 10 Regional Workshop on Renewable Energy and Energy Efficiency, Fiji, 2024 February, 2006 Appendix 11 Case Studies of Renewable Energy and Energy Efficiency Financial Mechanisms Around the World Appendix 12 Persons Contacted in the Course of REEP Activities Appendix 13 Terms of Reference for the Renewable Energy and Energy Efficiency Program v EXECUTIVE SUMMARY Introduction 1. The Renewable Energy and Energy Efficiency Program (REEP) was a regional program for the Pacific having the goal of increasing the use of renewable energy and energy efficiency with emphasis on private sector involvement, poverty reduction and rural area development. 2. January 26, 2004 to May 26, 2004 was the Inception period during which Samoa and Fiji were selected as the target countries. A Steering Committee was formed in each country to assist in the determination of REEP project activities and their priorities. Current Renewable Energy and Energy Efficiency Activities in the Pacific Region 3. The Pacific Region has one of the highest per-capita levels of bilateral and multilateral donor assistance in the world. A number of regional renewable energy and energy efficiency programs exist or are in the pipeline. The REEP team maintained close contact with these programs and coordinated its activities to avoid duplication of efforts. Where appropriate the REEP supported complementary activities with funds, personnel and information. In particular the Pacific Islands Energy Policies and Strategic Action Planning (PIEPSAP) project overlapped with REEP in the policy and regulatory development areas, recent Economic and Social Commission for Asia and the Pacific (ESCAP) activities overlapped in capacity building, the Pacific Islands Renewable Energy Project (PIREP) overlapped in areas of renewable energy and capacity development, the Australian Greenhouse Office (AGO) project with the Department of Energy (Fiji) overlapped in the area of energy efficiency standards and certifications, the UNDP funded CocoGen project overlapped in the area of biofuel development for Samoa, the South Pacific Applied Geoscience Commission (SOPAC) Regional Energy Efficiency Programme overlapped in Fiji and Samoa and ADB projects for Samoa utility development overlapped in Samoa. 4. Programs in the pipeline that needed to be considered when developing REEP activities included the follow-on project to PIREP, the Pacific Islands Greenhouse Gas and Renewable Energy Programme (PIGGAREP), new initiatives by ADB with the Samoa and Fiji utilities, a new regional initiative by UNDP in renewable energy (REPPoR) and activities in renewable energy by the Pacific Power Association (PPA) that the European Union (EU) is expected to support. 5. The Asia Pacific Economic Cooperation (APEC) Expert Group on New and Renewable Energy, the APEC Energy Standards Information System and the proposed UNDP “Barrier Removal for the Cost Effective Development and Implementation of Energy Standards and Labelling Project” are not specifically Pacific regional programs but are a source of information useful for Pacific project development. Policy strategies and initiatives 6. The PIEPSAP project includes all areas of policy development that were originally included in the REEP. Therefore the REEP did not include policy development in its activities unless the Fiji or Samoa governments requested specific assistance from the REEP. Establishment of an appropriate institutional framework 7. Helping design an institutional framework to support the development of Energy Efficiency Service Companies (EESCOs) was the primary institution building effort under REEP. Because both the Fiji and Samoa Steering Committees considered the EESCO concept as appropriate for development, a sub-regional project concept was developed by REEP. The REEP team laid the ground work by locating individuals and businesses vi Executive Summary that are EESCO candidates, developing support for the concept from large energy users and working with the Fiji and Samoa Governments to make use of EESCO services both to improve efficiency of energy use in Government and to provide initial work for the new EESCOs. The team also participated in an Asia-Pacific Energy Service Company (ESCO) workshop held in Bangkok in October, 2005 to examine the experiences of the developing countries in Asia using the concept. Regulatory framework development 8. The primary areas of regulatory framework development that REEP addressed are: 1) Assistance in the development of technical standards for PV including components, system designs, system installation procedures and maintenance procedures for RESCO operated rural electrification by solar PV in Fiji. This assistance builds on earlier GEF/UNDP funded work in Fiji. (See Appendixes 5, 6 and 7) 2) Assistance in the development of an action plan for energy efficiency improvement, including appliance labeling and certification processes, in Samoa. A multi-sectoral committee is expected to be established by Government to address this issue. (See Appendix 3) Development of a renewable energy association in Fiji and Samoa 9. Fiji has at least eight private businesses that concentrate on renewable energy sales and services. In February 2006, a meeting of these businesses was arranged and Mr. Bruce Clay of Clay Engineering in Fiji has accepted the role of founding secretary with the goal of establishing the legal structure and operating format for a Fiji Renewable Energy Business Association. A Constitution has been prepared and further organizational meetings are expected to be held in the first half of 2006. 10. The development of a renewable energy business association in Samoa is not presently practical since there are no businesses specializing in renewable energy. However, both the Samoa Association of Manufacturers and Exporters and the Samoa Engineer’s Association have indicated a willingness to establish a subsection devoted to renewable energy and energy efficiency matters should sufficient interest develop in the future. Financing schemes development 11. Surveys of the availability of finance for renewable energy development were carried out in both Samoa and Fiji and availability of finance is not considered by the team to be a primary barrier to renewable energy development in rural areas in either country. In Samoa, the only renewable energy financing likely to be needed is for solar water heater purchase. Existing commercial bank finance structures appear adequate for that purpose. 12. Micro-finance structures and rural financial access have both been developed in Fiji though to date there has been little use of finance for the purchase of renewable energy systems in rural areas. In rural Fiji, it appears likely that rural households are not aware of either the availability of renewable energy (mainly solar PV) systems for household use or of the availability of micro-finance for their purchase. Rather than attempt further development of micro-finance and rural finance facilities, the team has proposed that the renewable energy business association should accept as one of its roles the development of marketing methods to encourage sales in rural areas that can utilize the existing finance structures. vii Executive Summary Capacity building 13. A survey was carried out of training and educational organizations that could participate in capacity building activities in Samoa and Fiji. Also, information was gathered regarding past efforts and of plans for future capacity building programs that could impact on Fiji and Samoa, including APEC efforts in renewable energy training certification processes developed by Australia for APEC’s Expert Group on New and Renewable Energy. 14. In Fiji, the Fiji Institute of Technology (FIT), the Trades and Productivity Authority of Fiji (TPAF) and the Centre for Appropriate Technology and Development (CATD) are seen as being able to increase their renewable energy and energy efficiency training roles. Each has expressed an interest in doing so. 15. FIT is well suited as a provider of certificate, diploma and degree programs in electricity (for PV and energy efficiency training) and plumbing (for solar water heater training). TPAF is well suited as a provider of specialist short courses in RET and EET. FIT now has course modules in EET and RET and the REEP team supported their efforts by providing an intensive two day training of trainers course in solar PV and through the provision of curriculum materials and facility improvement recommendations (See Appendix 8). 16. The primary capacity building effort by the REEP team in Fiji has been working with the CATD to upgrade their solar PV technician training course through the updating of their existing course materials, through their participation in REEP sponsored training and workshop activities and through providing recommendations for the upgrade of their PV training facilities. CATD is expected to be an important component for the support of proposed large scale PV rural electrification using RESCOs and REEP training enhancement efforts have focused on CATD for that reason. 17. In Samoa, the Samoa Polytechnic and the Don Bosco Technical Institute are considered by the team to be the facilities that could provide needed training in RET and EET. Since the only renewable energy technology that presently is used on any substantial scale in Samoa is solar water heating, training through the plumbing trades program of Samoa Polytechnic and the Don Bosco Technical Institute is appropriate. Samoa Polytechnic now has a well developed program for solar water heating technology training and Don Bosco has some aspects of that training within their plumbing trades program. Samoa Polytechnic also includes aspects of EET within its electrical trades curriculum. Don Bosco Technical Institute has no electrical trades training at this time. 18. Therefore, as with Fiji, the REEP emphasis in Samoa is not primarily on new course development but on evaluating existing curricula. Project development approved and prioritized by the Fiji and Samoa REEP Steering Committees Sub-Regional (Samoa and Fiji) Priority 1: Energy Efficiency Service Company development 19. The Steering Committees of both Fiji and Samoa agree that developing private Energy Efficiency Service Companies (EESCOs) is the highest priority for energy efficiency project development. Though there have been several local and regional energy efficiency programs that emphasized energy audits, they have had little long term effect and at best have impacted only a very few of the highest use customers. For there to be widespread implementation of energy efficiency measures, the private sector must participate in EE and a means to maintain the long term value of EE measures needs to be in place. viii Executive Summary 20. The process that is proposed for the development of EESCOs in Samoa and Fiji is: 1) Determining if a sufficient market for energy efficiency services is present to support EESCOs 2) Locating individuals and businesses that are interested in becoming EESCOs 3) Providing specialty training in EET for those individuals and businesses 4) Marketing EESCO services to industry, businesses and government 5) Providing energy audits and recommendations for improvements 6) Assisting clients specify equipment and locate finance for EE improvements 7) Installing the EE equipment and training users in its proper operation and maintenance 8) Monitoring the equipment to ensure that it continues to provide the design savings 21. Most of the serious barriers to success of EE efforts relate to finance and customer confidence. The program that is proposed addresses the problem of obtaining finance for EE measures by (a) providing financial institutions training in EET so that the financiers will have more confidence in the process and (b) creating a loan guarantee fund to lower the risk for the loans that are made for EET thereby improving both the conditions of the loan and the ease of obtaining finance for the client. 22. The issue of customer confidence revolves around the accuracy of EESCO projections of savings and the life of the equipment that provides the savings. This problem is provided for in the project through the provision of a performance guarantee fund that will cover a significant part of any difference between the performance promised by the EESCO and that actually measured after installation. 23. A Technical Assistance (TA) project that determines the feasibility of EESCO development in Fiji and Samoa was proposed by the team. If the concept is found to be feasible, the TA will also design the specific structures needed for the project, train businesses in EESCO activities and provide market development services to those businesses. The estimated cost of the TA is US$615,000. Fiji Renewable Energy Projects Renewable Energy Priority 1: Namosi Hydroelectric Joint Venture 24. A joint venture (JV) for hydroelectric development has been formed that joins the resources of the Namosi Province and its communities with a local engineering firm. A prefeasibility study by a French consulting firm that was financed by the JV and completed in 2004 indicates favorable conditions for development of over 10 MW of hydro capacity in the Namosi/Naitisiri area of the main island of Viti Levu partly using small impoundments and partly run-of-river. 25. The project concept is unique in Fiji for hydro energy development. In the past, the Fiji Electricity Authority (FEA) has negotiated with land holders to lease the land providing the resource but there have been many problems with land owners over the quarter century since commercial hydro power has been developed in Fiji. In this project the land owners are among the principal developers of the resource and share in the profits and risks. The proposed structure allocates 80% of ownership to local communities and the province. 26. The FEA has stated that it will accept electricity from the JV on its standard Independent Power Producer (IPP) terms which include purchase guarantees and an expected FJ$0.135/kWh purchase price provided the power produced meets FEA quality standards. ix Executive Summary 27. The REEP team was requested by the JV, with support by the DoE and the REEP Steering Committee, to assist in developing a business plan, in locating funding and in assisting the JV to develop a project document for completion of a full feasibility study. Those tasks have been completed to the extent possible and a project document has been circulated for funding. 28. The estimated cost of the Namosi development at the Namado and Wairokodra sites is US$24.6 million for an annual production of about 31.6 GWh. No village relocation would be required and few environmental problems are anticipated 29. The Team has prepared a TA proposal for a full feasibility study followed by the engineering design efforts. The total cost of the feasibility study and engineering design is estimated at US$1.04 million. Renewable Energy Priority 2: Rotuma Centralized Electrification Using Coconut Derived Biofuel 30. Rotuma is an isolated island of 43 km2 located 465 km north of the main Fiji group of islands. The island remains a major producer of copra though the price received by the copra farmers is the lowest in Fiji due to the high cost of transport to the mill in Vanua Levu. The cost of imported fuel is the highest in Fiji due to transport costs. Additionally, shipping is irregular and fuel supplies are sometimes exhausted before a new shipment arrives. 31. All villages are located along the coastal road and about 90% of households are electrified from village generators that are operated independently of other villages. The power supply is typically unreliable, the quality poor and is available only several hours per day. 32. The Coconut Industry Development Authority (CIDA) requested the REEP team to consider a project that would upgrade the Rotuma electricity supply to a centralized system powered from diesel engines operating off locally produced coconut oil. 33. Since the Rotuma electrification project was not approved by the Steering Committee until February, 2005, the preparation of the project was delayed relative to other REEP projects but in November, 2005, a REEP team member visited Rotuma for a prefeasibility study and obtained sufficient information for the preparation of the project preparation document. 34. A TA is proposed for a full feasibility study and engineering design. The estimated cost of the TA is US$558,000 Renewable Energy Priority 3: Geothermal Resource Investigation for Viti Levu and Vanua Levu 35. The presence of numerous hot springs and other thermal phenomena on Vanua Levu and Viti Levu indicate possible sources of geothermal energy for power generation. Preliminary surface studies in the late 1970’s and in the early 1980’s, with some supplementary studies in the 1990’s, have been generally favorable for Vanua Levu development but provided only limited data for Viti Levu. Since capacity is needed urgently for Viti Levu, further study of the possibility of geothermal development on Viti Levu is needed. Further study of the Vanua Levu resource is also of interest since if the resource is large enough, transmission of power between Vanua Levu and Viti Levu could be economically reasonable. 36. FEA requested the REEP team to assist in the development of a project document for Technical Assistance (TA) for a two phase study of the Fiji geothermal resource. Phase 1 would be a review of existing data and new analysis of that data in light of recent technical improvements and to undertake surface measurements of the x Executive Summary geological, geochemical and hydrogeological structures of Viti Levu. Phase 2 would include more comprehensive studies on promising areas of Viti Levu and Vanua Levu and, if it appears reasonable, would design a follow-on exploration drilling project for final determination of the size and accessibility of the resource. 37. A TA project document has been prepared and approximately US$540,000 is budgeted for the prefeasibility study. Samoa Renewable Energy Projects Renewable Energy Priority 1: Biomass and biofuel for EPC generation 38. The need for capacity increase at EPC means adding diesel generation since hydro is seasonal and the capacity of the remaining practical hydro sites is insufficient. Given the large generally unused coconut resource on Upolu along with the high cost of diesel fuel, the REEP team was asked to assist EPC in developing a 3 MW diesel generation facility with its fuel based on coconuts. The initial concept of coconut gasification was found to be problematic and the project that was developed focuses on the use of coconut oil as a fuel combined with the use of wastes for energy production or other economic benefit. 39. In order to ensure continuous supply of coconuts, minimal transport cost, minimal impact on other infrastructure and stable coconut oil fuel price the project will utilize the government-owned 7,000 ha coconut plantation (operated by the Samoa Trust Estates Corporation or STEC), near the major electrical loads of the International airport and the new Aggie Grey’s Resort, has been chosen as the preferred site for the facility. The location of the facility at the source of the coconut supply will avoid congestion of public roads by vehicles transporting the coconuts to the facility. 40. Because of the need for good quality control and because all components of the coconut will be used in the process, the facility will take whole coconuts to produce oil for the diesel engines. The husks and shells are expected to be used as fuel in a boiler to produce steam for drying the copra, for supplementary power generation and/or for other economic activity. 41. Benefits from the project are expected to include: • • • • • • • Reduction in the rate of increasing dependence on imported oil Reduction in the growth rate of greenhouse gas production in Samoa Increased low skill employment Increased high skill employment 3 MW of base load capacity for Samoa that is located in a high demand area (Airport and Aggie Grey’s Resort) Renovation of the coconut industry Development of technology that can be transferred to other PICs. 42. The project is estimated to require an investment for the power generation component, for the coconut processing component and for the rehabilitation of the STEC plantation to the point where it can reliably provide the needed coconuts for 100% operation of the power plant on coconut oil. 43. A TA project document has been prepared that combines the feasibility study and engineering design for this project with those of Upolu hydro development study (below). The total cost for both TAs is projected as US$781,000. Renewable Energy Priority 2: Upolu hydro development feasibility study 44. Past hydro site identifications studies (HECEC in 1997 and JICA in 2003) indicate there may be economically reasonable hydro sites near Lotofaga, Tatifoala and Namo xi Executive Summary villages on Upolu. The preliminary hydrological and physical data indicate that a run-ofthe-river hydroelectric facility may be technically practical at the sites. A three phase project is proposed as a TA that first includes a prefeasibility study of the three sites followed by a full feasibility study of the best of the economically developable sites and finally an engineering design for the installations. 45. A TA project document has been prepared that combines the feasibility study and engineering design for this project with those of biofuel power development study (above). The total cost for both TAs is projected as US$781,000. xii Executive Summary RENEWABLE ENERGY AND ENERGY EFFICIENCY PROGRAM FINAL REPORT I. INTRODUCTION 46. The Renewable Energy and Energy Efficiency Program commenced on 26 January, 2004 and had as its primary goal the development of projects and programs that will result in increasing private sector activity that uses renewable energy and energy efficiency technologies. The socio-economic goals of the program include poverty reduction, rural development, reduced environmental impacts of energy use and the reduction in the use of fossil fuels. 47. The REEP is a regional program and activities in the target countries are intended to be useful examples for other countries in the Pacific Region. 48. The outputs include: ! ! Review of lessons from past renewable energy and energy efficiency assistance in the Pacific. A project to develop appropriate policies, institutional arrangements, legal/regulatory measures, capacity and the financial structure for promoting commercially viable energy efficiency services. (See section VI - Sub-Regional project in Energy Efficiency and Appendixes 3 and 4 ) ! Capacity building and training curricula for private and public sector key players on renewable energy technologies. (See Appendix 8) ! A pipeline of projects for funding by ADB, GEF, and/or other relevant financing sources; and ! Based on outcomes and progress made in the two selected countries, final consultations and dissemination of lessons learned from the TA to other Pacific Developing Member Countries (PDMCs) with a focus on establishing policy frameworks, building capacity, and replicating and disseminating good practices. 49. The period 26 January, 2004 to 26 May, 2004, was the Inception period during which the target countries were selected, the Steering Committees created and background surveys initiated. The main implementation phase with actions focusing on Fiji and Samoa commenced on May 26, 2004. A Mid-Term report was delivered four months following commencement of country implementation and an Interim Report was prepared that presented the status of the project implementation at the one-year mark. This Final Report provides an overview of the REEP implementation and presents the results of the program. The Final Report has two volumes with this Volume 1 containing the overview of the REEP implementation and the results of the program. Volume 2 consists of technical assistance (TA) framework and financing requirements for each priority projects in Samoa and Fiji following the ADB TA format and/or GEF format. A. Target Country Selection 50. The ADB’s Pacific Developing Member Countries (PDMCs) are Papua New Guinea, Solomon Islands, Vanuatu, Fiji, Tonga, Cook Islands, Samoa, Tuvalu, Kiribati, Republic of the Marshall Islands, Federated States of Micronesia, Nauru and Palau. In order to ensure that the selection process was based on the most complete information and knowledge of conditions in the PDMCs, a short list of four countries was selected using criteria considered by the consultants as indicative of the likelihood of utilizing the TA effectively. 1 1. Criteria for Short List Selection 51. The REEP is an advanced Technical Assistance (TA) program and could not be successful within the limited time available unless the target countries have sufficient interest, capacity and experience in renewable energy and energy efficiency programs. Therefore the selection of the two target countries was oriented toward those countries that have demonstrated interest in these programs, have shown that energy has sufficient priority by having responded to regional program efforts to develop energy policy, and had sufficient available capacity in 2004-2005 to fully participate in the REEP. 52. Using these criteria, the BURGEAP team evaluated each of the PDMCs. It was recognized that the scoring would be necessarily somewhat subjective and would be influenced by the availability of documentation, the experience of the consultants and access to information about the current situation in the countries. Therefore the four top ranking countries by this “desk” analysis were then short listed for field evaluation to ensure that the information available to the consultants was up to date and accurate. On that basis, the Cook Islands, Tonga, Samoa and Fiji were selected for field evaluation. 2. Country Selection Survey 53. During the period 21 January to 20 February, the BURGEAP REEP team made evaluation visits to the Cook Islands, Tonga, Samoa and Fiji. Through examination of records and discussions with stakeholders, each country’s level of meeting the selection criteria was estimated. Additionally, a letter indicating that there was no objection to the program was requested from the government and from the national utility in each of the four countries. Finally a letter indicating a willingness to provide the support resources necessary for carrying out the program was requested from the utility or the government energy agency designated as focal organization. 54. The final selection recommendation was based on ranking using the general selection criteria with three criteria receiving extra weight in the evaluation. The three criteria were: (i) (ii) (iii) The likelihood that the country would in fact use the information provided through the REEP TA after TA completion. The available capacity of the proposed TA focal organization, the utility and the government to take advantage of the TA effectively. The probability that the country would follow through with renewable energy and energy efficiency project applications that could be financed by ADB, GEF or other agencies. 55. Based on the visits, the consultants recommended Samoa and Fiji as the target countries for REEP and ADB accepted the recommendation. 56. In May, 2004, a Steering Committee was established in each of the two target countries for the development and prioritization of REEP project development activities. II. CURRENT RENEWABLE ENERGY AND ENERGY EFFICIENCY ACTIVITIES IN THE PACIFIC REGION 57. There are many programs operational or planned for implementation in the Pacific Region that focus on renewable energy and/or energy efficiency. Table 1 summarizes the regional programs that are presently operating or whose results are complete but not 2 yet published and Table 2 summarizes the regional programs focusing on renewable energy and energy efficiency that are in the planning stage. Table 1 - Summary of Currently Active Regional RE & EE Activities in the Pacific Region Name Summary Comments on RE / EE* Activities Promotion of Renewable Energy Efficiency and Greenhouse Gas Abatement (PREGA) ADB program concentrating on greenhouse gas reduction through RET and EE activities. In the Pacific Region it is only active in Samoa Funded by the Netherlands, PREGA is intended to promote investments in RE and EE technologies with the goals of greenhouse gas abatement, increased access to power in rural areas and by the poor and progress toward other strategic development objectives. In Samoa, PREGA focuses on the identification of environmental/social issues constraining the RE projects and formulate strategies on how they can be addressed. Renewable Energy and Energy Efficiency Project (REEP) ADB; $0.6m; 2004 - early 2006 The REEP is providing assistance and training, and developing investment projects for RE & EE. It provided lessons for PICs for RESCO & EESCO development and possibly useful information on outer island scale biofuel feasibility. South Pacific Applied Geoscience Commission (SOPAC) SOPAC is the lead agency in Council of Regional Organizations of the Pacific (CROP) for energy sector issues RE & EE actions for Fiji & Samoa A wide range of RE & EE activities Pacific Island Energy Policies and Strategic Action Planning project (PIEPSAP) UNDP Samoa/SOPAC; $1.6m; mid 20042007 through SOPAC Pacific Power Association RE & EE activities (PPA) The PPA has advised the region’s power utilities since its establishment in about 1992 and has carried out several RE & EE studies since 2000. Secretariat for the Pacific Community (SPC). Biofuel, Wind and PV for outer island communities ACP Five Country RE and EE Project European Union !11,4 million for investment in renewable energy and energy efficiency technologies Energy Policy planning advice In addition to PIEPSAP (below), SOPAC has implemented a large number of RE & EE activities. These include a UNDESA demand-side management project ($0.2m; 2002-2005) providing energy audits & training to Fiji & Samoa power utilities. Progress in this project has been slow & intermittent. The project may provide reasons why utilities fail to implement costeffective EE. In early 2005 SOPAC organized a workshop in Fiji on biofuel development and has been working in conjunction with the REEP on large-scale biofuel development in Samoa. Over the years, SOPAC has carried out numerous studies on geothermal, biomass, ocean thermal and seawave energy. It has the largest core of energy experts in the PIC region. This Danish-funded EUEI project has the mandate to assist the PICs in developing and applying energy policies. Included in the program are development of utility regulatory policy in Fiji, examination of the PREFACE installed RMI PV project that has had problems, and developing RE/EE polices, plans and possibly regulatory structures for several Program countries. Both Fiji and Samoa have draft energy policy documents now under consideration by Government. PPA carried out a supply-side EE study for PIC power utilities (including Kosrae, Pohnpei & Palau) in 2001 and an assessment of potential RE projects in Nauru & FSM in 2002. There was a workshop in early 2005 on RE for the north Pacific utilities with support from the E7 utilities, and a second one is planned for the southern utilities in late 2005. In late 2005 or in 2006, the EU is expected to provide PPA with staff and funding to increase their activities in renewable energy. Although SPC no longer initiates regional energy programs, renewable energy projects such as biofuel (Fiji), PV (Vanuatu, Tonga, RMI) and Wind (Cook Islands) installed under SPC management between 2000 and 2004 are still being operated and evaluated. When evaluation is complete these projects can be expected to provide useful lessons for the region. The project is to be implemented through utilities in the respective countries starting in 2006. Energy efficiency will be the primary focus for Nauru and Palau and renewable energy for FSM, Niue and RMI. The project will operate at least four years. 3 Table 1 – Continued Comments on RE / EE* Activities Name Summary Pacific Islands Renewable Energy Project (PIREP) UNDP Samoa/GEF; ~$0.7m; 2003 - end 2005. Assessments for 15 PICs. Assessed energy sector issues with opportunities and constraints for RETs investments to reduce GHG emissions. 15 national reports and regional overview were published in 2005. UNDP Several million US$ in the past decade Development of RESCO structure for Fiji (2000-2003, Evaluation of Fiji hybrid project, (2004) grid-connected PV in Tokelau (2004-2005), PV SHS in Samoa (2004-2006, feasibility studies for coconut oil biofuel for existing power generators in Samoa and grid-connected wind in the Cook Islands (20042005) ). Plans include GEF RE based GHG mitigation in Palau, RMI & FSM, & wind resource assessment in Samoa UN Economic and Social Commission for Asia & the Pacific (ESCAP) Various technical assistance projects and capacity building programs Review of RE energy activities in Tuvalu, Kiribati, Tonga & Cook Islands with recommendations for future activities. Sponsorship of training activities and studies directed toward capacity building for RE in the Pacific. A review of renewable energy capacity building requirements and facilities in PICs was prepared in 2004 and a project document for a regional capacity development program focusing on RETs was presented for funding in 2005. UN Asia-Pacific Regional Energy Programme for Poverty Reduction (REP-PoR) United Nations regional project based in Bangkok. UNDP management. To develop energy for productive use in order to provide for poverty reduction, rural development and GHG control. Program will not directly fund projects but is working with countries and donors for project development. UN Educational, Scientific and Cultural Organization (UNESCO) 2002-present & ongoing UNESCO / ESCAP rural electrification study UNESCO, ESCAP & others; late 2005-early 2006 Australian Greenhouse Office Fiji Energy Standards and Labeling Scheme Australian Greenhouse office (AGO); Intermittently from late 1990s – present Greenpeace Pacific Studies on sustainable energy in the PICs Funding level unknown. RE training materials Rural electrification experience in Fiji EE appliance guidelines and labeling Since 2002, UNESCO has been developing a “toolbox” of training materials for RE development including texts, videos & other media for decision makers, energy planners, those who install & maintain RETs and the general public. The focus is on PICs. Future materials are planned on biofuels. UNESCO also has co-funded with UNDP small scale RET activities in the region. A survey of small-scale rural power generation at Fiji sites with 5 or more years operational experience to provide useful information on patterns of rural energy use, electrical appliance use, productive uses of energy, actual costs, O&M problems, etc. (2005-2006) The AGO project is developing a common ‘Minimum Energy Performance Standards’ and efficiency labeling system for Australia, New Zealand and Fiji, with later extension to other PICs. Initial coverage is limited to household refrigerators, later to be extended to other appliances including air conditioning. In 2005, an agreement was signed between the Fiji Government and the AGO to survey imported appliances and to develop policies relating to appliance labeling and efficiency. Greenpeace has prepared studies on opportunities for renewable energy and improved energy efficiency for Niue, Fiji and Samoa and has recently increased its activities in association with RET development in PICs. EUEI = European Union Energy Initiative; E7 = a power utility organization of the G8 countries (minus Italy); O&M = operations & maintenance; PIC = Pacific Island Country; PV = photovoltaics; RE = renewable energy; RET = Renewable Energy Technology; SHS = solar home system; UNDESA = United Nations Dept of Economic & Social Affairs. ~ = approximately 4 Table 2 - Proposed New Pacific Regional RE or EE Activities: Name Summary Pacific Islands Greenhouse Gas Abatement through Renewable Energy Project (PIGGAREP) UNDP Samoa/GEF; ~ $5.3m; possibly from 2006 or 2007 Pacific Power Association (PPA) EU; !1m; timing uncertain, possibly from 2006 or 2007. RET development for GHG abatement HRD, RE & EE ESCAP regional RE training programme ESCAP & others; ~ $3.2m; possibly 2006-2011 Sun Grant Initiative US Dept of Energy; funds and timing unknown A. PIGGAREP is a planned follow-up to PIREP for most PICs including Nauru and Niue. PIGGAREP was provisionally approved by the GEF Council in 2005. It is expected to include a major RE capacity building component. A ‘Human Resource Development, Energy Efficiency and Renewable Energy within PIC National Power Utilities’ project is being considered. It involves utility capacity building and efforts to improve efficiency of power production, transmission and distribution. An expert in RE utility operations is proposed for a 3-year period. ESCAP proposes an extensive RE training program in cooperation with other agencies. It has been endorsed by CROP but no firm funding has yet been identified. RE capacity building Development of bioenergy REEP follow-up projects Comments on RE / EE Activities ADB; from 2006 RE & EE projects A coalition of Pacific universities, including the College of Micronesia and led by the University of Hawaii, plans to research and develop bioenergy resources for FSM, Palau & RMI. No details are yet available. Depending on the results of the REEP, there may be a followup to design and implement several RE & EE projects in Fiji & Samoa. REEP team interaction with regional energy programs 58. A member of the REEP team worked closely with ESCAP in its work to develop a regional project for renewable energy training. Team members also worked closely with PIREP in its surveys of the PICs, with UNDP in its REP PoR baseline study and UNDP/SOPAC in their energy related activities in Fiji and Samoa. The team maintained close contact with the PIEPSAP project and their development of Fiji and Samoa energy policy and with the Pacific Power Association (PPA) to ensure that REEP efforts did not duplicate theirs. 59. The REEP team worked with SOPAC in developing and arranging biofuel workshop and helped in the structuring of the CocoGen project of UNDP that examined the possibilities for coconut oil use at the Samoa power utility. There has been close cooperation between the REEP and the SOPAC teams to ensure that there was maximum synergy and minimal duplication of efforts. SOPAC provided invaluable assistance in the preparations for and operation of the REEP sponsored regional workshop from 20-24 February 2006 in Fiji. 60. REEP team members have regularly consulted with senior staff of the International Institute for Energy Conservation (IIEC), the organization providing services to Fiji and Samoa under SOPAC’s United Nations Department of Economic and Social Affairs (UNDESA) supported energy efficiency program. These consultations ensure that programs developed under the REEP consider the lessons learned from earlier programs and build on existing programs. 61. REEP team members worked closely with UNDP and its partner agencies in the development of solar energy for Apolima, Samoa, and in the design and analysis of a 5 survey of rural electrification in Fiji to determine the real cost, productive uses, appliance mix and other characteristics of diesel mini-grid, PV based and grid extension based rural electrification. Table 3 – Regional programs and Fiji/Samoa local programs that overlap REEP activities REEP Activities Policy Strategies and Incentives Establishment of an appropriate institutional framework for RE and EE activities Regulatory framework establishment Capacity Building Poverty reduction and rural development Financing schemes development Preparation of Pipeline of REGA Projects for Samoa Programs/Projects Implemented in Samoa and Fiji that Overlap REEP (in all cases the Fiji DOE and the Samoa Energy Office within Treasury are recipients/counterparts) Project Name Activities similar to Implementing Project Date Date of Contact or related to the Agency Sponsor Started Completi Person/information REEP on PIEPSAP Generally identical Independent Denmark 2004 2007 Gerhard Zieroth though broader ins project through [email protected] scope as it covers all operated UNDP energy not just RET within SOPAC and EET Regional Energy Some training and SOPAC UNDESA 2002 Ongoing Paul Fairbairn Efficiency information delivery through [email protected] Project IIEC PIEPSAP Appliance labeling program (initially limited to refrigerators and to be extended to other appliances Regional RE Training Project Development Regulatory structures Independent project in SOPAC Denmark through UNDP 2004 2007 Gerhard Zieroth [email protected] Support of standards for EE actions Australian Greenhouse Office (AGO) Australia 2003 2006 Makereta Sauturaga [email protected] Determine the ESCAP ESCAP 2004 Ongoing institutions that can participate in RET training and prepare a project to provide input for them to develop an RET training capability REP PoR Renewable energy UNDP UNDP 2005 Ongoing and energy efficiency development, poverty reduction, rural development No overlapping regional programs though PREGA could be overlapping in the future for Samoa Rikke Munk Hansen [email protected] PREGA Samuel Tumiwa <[email protected]> Identification of environmental/ social issues constraining the RE projects and formulate strategies on how they could be addressed. ADB Holland Apolima PV electrification Samoa PV development (Apolima) UNDP Fiji PV development PV installations for RESCO operation on Vanua Levu Savai’i hydro development FS of Savai’i Renewable Energy Project (0.25 to 2 MW run-of-river) 2001 Ongoing Thomas Jensen (Pacific representative) [email protected] Or the REACH Secretariat at [email protected] 2004 2005 Thomas Jensen [email protected] 2005 2006 Makereta Sauturaga [email protected] 2003 2005 Joseph Walters [email protected] 6 62. Members of the REEP team maintained close communications with the EU representatives in Fiji and EU contractors regarding their PV rural electrification project in Kiribati, the development of the renewable energy and energy efficiency project for the new ACP countries (Palau, Federated States of Micronesia, Marshall Islands, Nauru and Niue) and future programs of the EU for regional energy development. 63. The APEC Expert Group on New and Renewable Energy, the APEC Energy Standards Information System and the proposed UNDP Barrier Removal for the Cost Effective Development and Implementation of Energy Standards and Labeling Project are not specifically Pacific regional programs but were a source of information useful for Pacific project development since they address similar issues as are being considered in the Pacific. 7 III. A. NATIONAL PROJECT DEVELOPMENT AND ACTIONS Fiji 1. Steering Committee 64. After Fiji was selected as one of the two countries to take part in REEP, a steering committee was formed in order to ensure that stakeholders had representation in the project determination and project prioritization process. Five Steering Committee meetings were held in Fiji and all proposed projects were reviewed by the Committee and those that have appeared feasible were prioritized by the Committee. The projects developed by the REEP team have been approved and prioritized by the Steering Committee. The Steering Committee members include: Name Mr. Peter Johnston Mr.Krishna Prasad Mr. Mosese Qasenivalu Mr. Jone Usamate Mr. Bruce Clay Ms. Suliana Siwatibau Ms. Sharyne Fong Mr.Horst Pilger Mr. Abraham Simpson Mr. Ron Steenbergen Ms. Sala Nakeke Ms. Makereta Sauturaga 2. Sector Organization Private Economic Planning Economic Planning Training Private Private Banking Donor community Transport Public Utility Media Energy REEP Local Consultant (Chair) Ministry of Finance and Planning Ministry of Finance and Planning Training & Productivity Authority Clay Engineering Independent Consultant Colonial National Bank European Union, Apia Land Transport Authority Fiji Electricity Authority Fiji Broadcasting Corporation, Ltd. Department of Energy Policy strategies and incentives 65. PIEPSAP has the responsibility in the Pacific sub-region for the development of energy policy strategies and incentives and the REEP did not duplicate those activities. 3. Establishment of an appropriate institutional framework 66. Three primary areas of institutional development were the REEP focus in Fiji: • Development of the requirements for institutional structures that encourage the development of private Energy Efficiency Service Companies (EESCOs). • Assistance to the Fiji Department of Energy for the development of institutional structures to oversee and promote energy efficiency and renewable energy activities. • Working with Fiji businesses for the development of a Renewable Energy Business Association. a. Development of structures to support private EESCOs 67. Past energy efficiency efforts have typically been limited to energy audits with audit recipients expected to proceed with the implementation of the recommendations provided by the auditor. This has not generally resulted in long term improvements in the efficiency of energy use. For energy efficiency measures to be properly carried out and savings maintained for the long term, there needs to be an institutional structure that not only provides energy audits but also encourages carrying out the energy saving 8 activities, continues to monitor their effectiveness and makes adjustments where appropriate. The institutional requirements to develop mechanisms that support Energy Efficiency Service Company activities include: • Developing the structures necessary to provide specialist training to individuals and companies wishing to act as EESCOs; • Determining the regulatory requirements and developing the structure within Government necessary to regulate EESCOs; • Establishing the methodology and criteria for an independent agency to determine the savings effect of equipment that has been installed to improve energy efficiency; • Creating a process allowing clients to borrow money for the finance of energy efficiency improvements at a periodic cost equal to or lower than the periodic value of the savings brought about by the installed energy efficiency equipment; • Developing structures that provide performance guarantees to clients to increase their confidence that the services would indeed provide the expected savings initially and over time; • Developing methodology and criteria for monitoring the program on a national level; 68. These structures would be developed under the regional (Fiji and Samoa) project prepared by the REEP. b. Regulatory and promotional framework development i. Appliance labeling 69. The Australian Greenhouse Office (AGO) has a program to assist the DOE in developing a labeling and certification process that is consistent with that used in Australia and New Zealand. An Australian volunteer was provided to the DOE and provided support for this process. Therefore the REEP team did not take any action regarding appliance labeling or energy efficiency certification in Fiji. ii. Renewable Energy Standards Development 70. The comprehensive 2000-2003 GEF project 1 that developed the institutional structures for RESCO operation in Fiji included development of the structures and processes for regulation monitoring and enforcement. As part of the regulatory structure, the DOE has to have standards for the components and the installations and the maintenance of the solar home systems (SHS). The GEF project included preparation of the specifications for SHS components for the initial pilot project and those are being used as standard specifications for the purchase of new equipment to expand that pilot. The team has reviewed those specifications and though they may be suitable for exactly replicating the first installations, they should not be considered standards for general SHS implementation. Also, the GEF project team produced no written standards for the installation or maintenance activities to be carried out by contracted RESCOs though such standards are part of the regulatory structure specified under the GEF project. 71. Discussions were held early in the REEP with the DOE personnel responsible for renewable energy regarding the need for solar PV standards to support the regulatory 1 GEF project FIJ/99/G45 - Renewable Energy Service Companies for Rural Electrification in Fiji 9 responsibilities of DOE. At that time, the REEP team was told that no input from the team was needed with regards to standards for renewable energy. However, in March, 2005, the team was informed that input to DOE regarding standards for RESCO SHS components, system design, installation and maintenance would be welcomed. Draft standards based on those discussions have been developed by the REEP team and are shown in Appendix 6 and Appendix 7. These standards are considered suitable as guidelines for all SHS installations in Fiji though the numbers of non-RESCO based government PV installations are expected to be quite small relative to the RESCO managed installations. Formal regulation of private installations is not presently planned by the DOE though the standards provide a useful guide for private PV developers. iii. Action plan of structures for promotion of RET and EET 72. The institutional structures for promoting RET for rural electrification were well developed under the 2000-2003 GEF project that created a structure and provided draft legislation to support renewable energy service company operations in Fiji. Also efforts by PIEPSAP and SOPAC have addressed policy and action planning that relates to renewable energy development in Fiji by DOE and FEA. Therefore the REEP has not duplicated those efforts. However, there has been no development of an action plan for energy efficiency improvement in Fiji and Samoa. The EESCO project being developed by REEP for both Fiji and Samoa includes the necessary institutional structures for their implementation and technology promotion and is the core of the action plan for energy efficiency improvement recommended by REEP. Although Fiji has an Australian supported appliance energy labeling program, Samoa has not yet addressed that issue. iv. Development of a renewable energy association Table 4 – Private companies specializing in RET or with a strong RET business component Organization / Person Contact Interest Renewable Energy Services, Ltd Krishn Raj, Director PO Box 5045 Labasa resco@&connect.com.fj Tel: 881 2618 Fiji’s only RESCO with operations on Vanua Levu & Taveuni Hydro Developments Ltd Ross Brodie, Director PO Box 3258 Lami; [email protected] Tel: office 330 1882 Proposed development of about 8-15 MW of hydropower in Fiji Clay Engineering Bruce Clay, Managing Director PO Box 2395, Govt Bldgs, Suva Tel: 336 3880 [email protected] Solar PV & wind energy equipment & consulting services. Strong RESCO interest. Clean Energy, Fiji Ltd Peni Drodrolagi, Director. [email protected] Biofuel technologies for outer islands; solar PV. Agent for biofuel & PV equipment. Strong RESCO interest PacifcFree Energy Ltd. Simon Boxer, Director PO Box 3520 Lami [email protected] tel: 336 1849 Wing resource monitoring. Wind energy consulting. Wind farm development (one under development in Viti Levu). Strong RESCO interest. Advanced Power Systems, Fiji, Ltd. Ray Bower, General Manager PO Box 10376, Nadi Airport Solar, wind & hybrid energy systems Natural Power Ltd (subsidiary of Asia Pacific Resources, Ltd.) Matthew Huggan, Managing Director Natural Power Ltd, Savusavu [email protected] Holder of license for geothermal energy development at Savusavu, Vanua Levu Solar & Alternative Energy Supplies Peni Valevale Lot 9, Kalabo Industrial Estate, Nasinu 339 8006 Solar PV sales and installations in remote areas [email protected] 10 73. Fiji has a number of private (Table 4) and public (Table 5) companies that have strong ties with renewable energy and establishing a renewable energy association met with general approval when discussed with most of them. Mr. Bruce Clay of Clay Engineering has taken the lead and at the February 20-23, 2006 renewable energy and energy efficiency workshop, a Renewable Energy Association was formed with Mr. Clay acting as organizing secretary. A constitution was prepared and approved by the founding members. Table 5 – Public Companies with significant renewable energy activity or interests Organization / Person Contact Tropik Wood Industries Ltd. Interest Private Mail bag, Lautoka [email protected] CEO Tel: 992 9778 Office: 666 1388 Woodwaste-based power generation. A PPA has been signed with FEA to provide several MW of additional wood-based generation Fiji Sugar Corporation Ltd Ross McDonald, Chairman Abdul Shamsher, Acting CEO 3rd floor, Western House, Lautoka Head Office Tel: 666 2655 Chair Tel: : 330 5744 30 MW+ of bagasse-fuelled generation. A FJ$50m upgrade planned using bagasse & wood. Ethanol fuel under study Coconut Industry Advisory Board Ken Roberts, chair John Teaiwa CEO Gunu House, Gladstone Road, Suva Tel: 330 0503 [email protected] Has proposed to Fiji’s cabinet the commercial development of coconut oilbased biofuel development Fiji Electricity Authority Rokoseru Nabalarua, CEO 2 Marlow Street, Suva [email protected]; CEO Tel: 322 4301 & 999 2418 GM Tel: 332 4348 Over 80 MW of hydro in operation with more planned. A 10 MW wind farm under development. Small solar PV demonstrations. Other RE under consideration Mr Alec Chang, CEO Ron Steenbergen, General Manager for Major Projects & Strategy 4. Financing schemes development a. Renewable Energy 74. The team has interviewed the management of all commercial banks operating in Fiji and the Fiji Development Bank. Though solar water heaters have been financed through some banks, there is little activity by any financial institutions in Fiji related to renewable energy or energy efficiency. 75. There is increasing activity in Fiji regarding micro-finance and rural banking services, though to date there has been no attempt to market renewable energy to rural households through these services. In 2005, with support from UNDP, the ANZ Bank began a “roaming” banking facility that includes a specially equipped van to visit rural areas and provides banking services to rural customers on a schedule. The service is too new to evaluate but is expected to provide small rural loans in the future. 76. The National Centre for Small and Microenterprise Development (NCSMED) has a nation-wide micro-finance program, the National Micro Finance Unit (NMFU). The goal of the micro-finance program is to “create an enabling environment of a micro-finance industry, which will focus on providing financial services specially designed for the poor and disadvantaged households in the country”. The NMFU does not itself provide microfinance services. It creates and works with NGOs that have as their specialty the delivery of micro-finance services to rural Fiji. 77. Since there is already a well developed micro-finance structure in Fiji, the REEP team is not working to establish micro-finance but worked with local renewable energy companies and NGOs to encourage them to establish marketing programs that could take advantage of already available rural finance for the purchase of renewable energy 11 systems. This is expected to be continued as an early activity of the Renewable Energy Business Association. b. Energy Efficiency 78. There are many opportunities for investments in energy efficiency improvements both at the domestic and the commercial levels but there is little experience with financing such investments. Interviews with commercial finance providers indicate that they have little knowledge regarding the risks associated with energy efficiency investments. 79. At the household level, the largest improvement in energy efficiency is from replacement of incandescent lamps with more efficient compact fluorescent lights (CFLs). The primary barrier to the adoption of the high efficiency CFL bulbs is not the specific cost of the CFLs as they are well within the budget of the majority of Fiji households. The barriers to their purchase include: • CFLs are more expensive that the cheapest incandescent lamps. Consumers have higher priority uses for the immediate cash that is saved by choosing the low cost bulbs. • Energy cost savings from use of CFLs is not known to most consumers • Bulbs that are available in the Fiji market are not always suitable for direct replacement of household incandescent bulbs due to size or the base configuration. • Availability is generally limited to large grocery and hardware “super” stores. Neighborhood stores rarely stock anything but incandescent bulbs. 80. The problem at the household level is technically not one that relates to the availability of unconventional finance. However special financing programs can be developed that provide high efficiency lighting through the FEA with payment for the bulb through a charge to the customer lower than the savings that has accrued through the replacement of the light. In essence such programs are actually more to change the perception of customers than to overcome true financial barriers. 81. In April, 2005, the REEP team discussed this concept with FEA management and provided FEA with calculations that demonstrated significant economic benefits of such a program to FEA as well as to its domestic and commercial customers. FEA management then indicated that if FEA internal analysis shows a similarly high level of benefit as indicated by the REEP team calculations, FEA will develop the idea internally without any need for external funding. Subsequently, FEA began subsidizing CFLs imported by a private company (Poly Products, which has a commercial office at FEA headquarters). In late 2005/early 2006, FEA/Poly Products have made CFLs available at selected outlets to consumers on a two-for-the-price-of-one basis. The program has not been evaluated but has apparently been successful with sales reportedly over 100,000 units over the time period of the subsidy. 5. Capacity building 82. A continuing problem facing the development of large scale renewable energy and energy efficiency programs is the lack of training courses for the technicians who will be installing and maintaining the equipment associated with the programs. In particular, the 12 plans for large scale solar based rural electrification based on the RESCO model will require a continuing access to training for field technicians and installers. 83. The REEP team has worked with the institutions that have a mandate for technical training to determine their needs and to provide capacity building and program support for renewable energy development if needed. The goal is to create a continuing, locally supported training for renewable energy development. This will particularly focus on solar photovoltaics since that appears to be the technology most likely to require technical training support in the near term. 84. Of the four main educational institutions in Fiji that provide post-secondary education and vocational-technical training courses (Table 6), the REEP team concentrated on cooperation with the Fiji Institute of Technology (FIT), the Trade and Productivity Authority of Fiji (TPAF) and the Centre for Appropriate Technology and Development (CATD) since all have an interest in increasing and improving their existing renewable energy and energy efficiency course content. The University of the South Pacific (USP) provides tertiary degrees in academic areas that include technical content relating to renewable energy and energy efficiency but do not need inputs from the REEP. Table 6 – Post-Secondary Education and Vo-Tech Training institutions in Fiji Institution University of the South Pacific (USP) Fiji Institute of Technology (FIT) Trade and Productivity Authority of Fiji (TPAF) Centre for Appropriate Technology Development (CATD) a. Primary Function Comments Post secondary education through the PhD level. USP is the largest university complex in the Pacific and serves most of the PICs as a regional university with costs shared by member countries. Public post-secondary institution providing certificates, diplomas and degrees in technology and vocational technical training. Government institution primary to support industry in both technical and non-technical training. Includes renewable energy and energy efficiency in its technical curriculum. USP has developed formal courses in RE and issued MSc degrees in energy-related areas. REEP input not required. Includes programs that have components relating to renewable energy and energy efficiency. Government (Ministry of Fijian Affairs) training facility concentrating on the development of maintenance and repair skills for rural Fijian students Programs concentrating on short courses provided in response to the expressed needs of business and industry. Few permanent staff, most courses provided by instructors under short term contract Has included solar PV technician training in its curriculum since 1989. Interested in upgrading PV training facilities and course content. Training for renewable energy technicians 85. Given the resources available to the REEP team and the expectation of rapidly increasing solar PV for rural electrification through RESCOs, the team concentrated on supporting the CATD in their program to provide short courses for RESCO technician training. CATD has been the primary PV technician training facility for Fiji for over 15 years. Also, CATD has no access to substantial technical, financial and staff resources as FIT and TPAF have thus, will benefit most from the modest assistance the REEP can provide. The team was asked to assist CATD in preparing a proposal for locating funding in the amount of approximately $15,000 for PV training facility improvement, including replacement of training equipment (primarily solar panels, batteries and controllers) provided by a UN program in 1989 and in the construction of a small structure for practice installation of solar home systems (see Appendix 9 for details). The team, however, continued to work closely with FIT and TPAF in the development of course materials and instructor training for course development. 13 86. As part of that development, a two-day training course was provided for FIT, TPAF and CATD trainers in February 2006. Details of that training of trainers course and the PV training curricula at FIT are shown in Appendix 8 87. It is likely that FIT will become a centre in the South Pacific for general RET and EET training while TPAF limits its training to Fiji. CATD is expected to maintain its specialty role as provider of training for PV technicians both in Fiji and other PICs. b. Other renewable energy capacity building programs for the Pacific that will affect Fiji 88. In 2004, ESCAP funded a review of training facilities in the Pacific and of the needs for renewable energy training in the PICs. PIREP also included renewable energy capacity building requirements as part of the survey of the PICs in 2003 and 2004. As a part of its program, ESCAP developed a concept for a renewable energy capacity building regional program that was approved during the 2004 Regional Energy Meeting (REM) and later by the CROP. A project document was prepared for funding in 2005. The concept includes a proposed budget of around US$3 million for a three to five year program that could cover all the PICs including Fiji and Samoa. No funding is yet identified or allocated. 89. Also in the pipeline is a GEF proposal, the Pacific Island Greenhouse Gas and Renewable Energy Programme (PIGGAREP), as a follow on to the Pacific Islands Renewable Energy Project (PIREP). Capacity building is a major component of that proposal and the resulting project would include Samoa and Fiji. If all approvals are received, implementation is not likely in the PICs before 2007. c. Energy Efficiency training 90. It is noted that at present neither the ESCAP nor PIGGAREP capacity building efforts includes development of energy efficiency technology training. The Team considers the development of a training component within the proposed sub-regional EESCO development project as vital to its initial and long term success and to the further development of energy efficiency measures in Fiji and Samoa. The training materials to be prepared under that project are expected to be appropriate for distribution to the rest of the PICs. 91. The current FIT and TPAF curricula include components on energy efficiency measures and there is interest in cooperating with programs that can provide facilities and support to the further development of EE training at FIT. The sub-regional program for EESCO development that is proposed elsewhere in this report (Section IV) includes a training component that will include FIT and TPAF as training facilities that can be developed for ongoing energy efficiency training courses. Although not officially a regional institution, FIT effectively serves several countries, (e.g. Tuvalu and Kiribati), and the number of persons who can be expected to participate in energy efficiency training should be large enough to warrant a specialist course, though probably not a full diploma program in energy efficiency. 92. TPAF has provided short courses in energy audits and other aspects of energy efficiency technology and will continue to do so provided suitable instructors can be located and there is sufficient interest by businesses and industry. TPAF has managed an effective 2005 energy efficiency demonstration program supported by the Asian Productivity Organization (APO) at a Suva-based steel mill and is preparing training materials based on this experience. The proposed EESCO sub-regional program is to 14 include training of trainers to support both FIT and TPAF in further development of EE training capacity. 6. Regional activities by the REEP team. 93. The REEP supported one presenter with travel from Europe for the “Towards Increased Use of Biofuels In Fiji” workshop sponsored by SOPAC in Suva, March 2005, and the Fiji local REEP consultant attended the workshop. 94. A final regional workshop on renewable energy and energy efficiency that included all PICs, regional organizations and donor agencies was organized by REEP with the assistance of SOPAC from 20-24 February 2006 at CATD (see Appendix 10). 95. Team members maintained continuing consultations with: • IIEC in Bangkok regarding their Pacific activities, the practical aspects of EESCO formation for the PICs, the history of the current EE project in Fiji and other supporting information; • SOPAC regarding their activities in Fiji, in particular as relates to EE and capacity building, and discussions regarding areas where the REEP can cooperate and coordinate; • PIEPSAP concerning their activities in Fiji in supporting the development of a national energy policy; • The EU delegation in Suva regarding their activities and REEP cooperation with their programs. 7. Project development 96. A major goal of the REEP was to prepare at least one project proposal for renewable energy and one project proposal for energy efficiency that had strong support by stakeholders and which can serve as a replicable model for further development. In Fiji, the FEA and the DOE are the primary implementers of renewable energy and energy efficiency programs and any project development by the REEP had to be appropriate to their capacity and needs. 97. In Fiji, the primary cause of delay in the development of projects was the repeated changing of priorities and direction proposed for REEP project development by FEA and delays in receiving adequate information from FEA about the background for the renewable energy projects they have proposed. Of the projects proposed by DOE, their initial top priority project (100% conversion to renewable energy for the island of Moala) was found to be impractical for development under the REEP and, in early 2005, was changed to coconut oil use for fuel in Rotuma causing that project to begin development late in the program. Project priorities and content were finally fixed by the Fiji Steering Committee in February, 2005. All projects listed below were approved and prioritized by the Steering Committee. 15 8. Priority 1 Project in Renewable Energy: Namosi hydroelectric joint venture a. Project concept and objectives 98. The projections for the Viti Levu electrical demand and capital investment programs by the FEA indicate a continuing dependency on diesel generation and imported fuel for the foreseeable future. Although FEA proposes investing heavily in hydro, is committed to a modest investment in wind power and is likely to begin using biofuel for diesel generation in the near future, the importing of diesel fuel is expected to remain a significant requirement for power generation for at least 20 years and probably longer. 99. To encourage private investment in electricity production, the FEA has recently developed a new policy for accepting energy from Independent Power Producers (IPP). In the past, FEA only purchased energy that was surplus to the needs of large companies such as Emperor Gold Mines, Tropik Woods and the Fiji Sugar Corporation. 100. To take advantage of this policy, a joint venture has been formed, Namosi Hydro Ltd., that includes the land-owning communities of the Namosi area, Namosi province and a local engineering company. The Joint Venture, Namosi Hydro, Ltd., has been formed specifically to develop the hydro resources of the Namosi region as an IPP for the sale of electricity to FEA with benefits intended for the economic development of that rural region. In 2004, the joint venture commissioned a pre-feasibility study,2 the results of which indicate favorable conditions for economically reasonable development of the resource to make available more than 10 MW of capacity. 101. The expected results of the project are closely aligned with the objectives of the REEP and the Government of Fiji. The project uses only renewable energy, provides for rural development, is private sector sourced and provides for poverty reduction in the affected areas. Therefore following approval by the Steering Committee with support by the Fiji Department of Energy (DOE), the REEP team assisted the Joint Venture in structuring its proposal and developed a project concept for the funding of a full feasibility study. If that study indicates economic viability, follow-on funding of an initial phase of project construction can be obtained from private sources or through an international finance organization. 102. The project concept is unique in Fiji and the Pacific Region for hydro energy development. In the past the utility and government have negotiated with land holders to lease the land providing the resource rather than involving them in the ownership of the power development. Since a hydro facility is expected to be in operation for many decades, the terms negotiated at the time of installation are often not considered adequate in later years. For example, land owners associated with the 1983 Monasavu hydro development now feel that the terms negotiated in 1983 are no longer appropriate when viewed in the light of changing economic conditions. For the Namosi project, the land holders are among the principal developers of the resource and share in the profits and risks, curtailing future alienation of landowners from the project. The proposed shareholder structure is shown below. The Namosi Development Company represents the interests of the communities and the Namosi Province as well as those of Hydro Development Ltd., the local engineering company that will provide the technical support for the project. 2 “Prefeasibility Study for Mini Hydro schemes in Namosi, and Naitasiri Province in Viti Levu, and in Taveuni Island” Report N° 1 36 0220 R1, SOGREAH (France), April 2004 16 SHAREHOLDER STRUCTURE Namosi Development Company 80% Hydro Development Ltd. 10% 5% Ratu Suliano Matainitoba Namosi Hydro Ltd. 5% Ratu Kini Viliame Taukenikoro 103. The viability of the project concept is dependent on the willingness of the FEA to purchase all the power produced by the facility and on the price per kWh that is paid. FEA has provided a letter to the Joint Venture indicating their willingness to purchase energy from the project provided the quality of power and operational arrangements of the project meet FEA standards. The expected purchase price based on the FEA proposal is FJ$0.135 per kWh. Though FEA at this point will not provide a purchase quantity guarantee, the FEA system has a load that is projected to continue growing at 4.5% annually in demand and 5.5% annually in energy over at least the next decade 3 and is presently operating near capacity with a significant portion of its energy generated by high cost diesel generators 4. There is therefore good reason to assume that a relatively small project of this type can sell all the power it produces to FEA for the foreseeable future while offsetting the high cost of diesel power production. b. Location and site characteristics 104. The prefeasibility study for the project included sites in both the Namosi and Naitisiri provinces of south eastern Viti Levu. Figure 1 indicates the overall catchment area for those sites and the small insert shows the relative location of the project in Fiji. The long term plan is for development of both Namosi and Naitisiri sites. Initially, only the Namosi development is being proposed as it is easily accessed and is closest to the substation where the transmission line from the project will connect to the FEA grid. 105. Though only the Namosi component of the project is covered under this proposal, the transmission line will be designed to have sufficient capacity to handle the output from all the Namosi and Naitisiri sites that have been considered in the prefeasibility study (Appendix 1) as they are intended to be developed over the longer term. 106. The project area is mountainous and mostly forested with the population concentrated in permanent villages along the rivers. There is minimal economic 3 FEA Corporate Plan of 2004-2006 dated March 2004; Information Dossier for investors, dated March 2005 4 FEA is just now in the process of installing an additional 30MW of capacity on Viti Levu in the form of four 7.5 MW Caterpillar diesel gensets. 17 development in Namosi and the local economy is heavily subsistence oriented. Cash income is largely from the sale of agricultural products in the Suva market. 107. Lands downstream of the project sites are mainly used for agriculture. Stream flows are not expected to be affected by the project as there will be no major impoundments. Water quality will remain the same and will not affect the existing subsistence economy of the villages. i. Geology 108. Mr. Geoff Taylor of PacAu (Fiji), Ltd., carried out a geological survey report for the Joint Venture in February 20045 and found no reason to consider the sites as geologically unsatisfactory for the type of hydro development proposed though he notes that auger soil grids should be done for the sites to accurately determine the depth of soil cover. A more comprehensive geological study is included in the feasibility study project proposal. ii. Hydrology 109. The flow characteristics of the streams were estimated on the basis of rainfall data and very limited hydrological data. A number of years ago, some stream gauging was done in the area and the data was purchased from the Fiji Government though much of the data was not received until after the prefeasibility study was completed. A preliminary analysis of that data was supportive of the prefeasibility conclusions though there remained gaps in the gauging network that needed to be filled. In 2005, the Joint Venture purchased and installed additional stream gauges in areas where insufficient prior data has been obtained and by the commencement of the feasibility study, sufficient data are expected to be available to provide acceptable accuracy in hydrological analysis. Until better data can be obtained, there is significant risk that the stream flow estimates used for the financial analysis are too high and cause an overestimation of the income from the project. c. Project Background i. Prefeasibility 110. A prefeasibility study (See Appendix 1) of seven sites was carried out in early 2004 by Mr. Jean-Paul Huraut of SOGREAH (France) for sites in the Namosi and Naitisiri provinces as listed in Table 7. A site in Taveuni was also examined in the study but is not included in this table. For each site, the consultant defined the catchment area, estimated the hydrological and geological characteristics, proposed a dam and power house location, indicated a suitable route for access, estimated the total cost and estimated the annual power and energy production that could result. Table 7 – Summary of Prefeasibility Study Site Estimates Site Waimanu Namado Waisoi Waivaka Wairokodra Wailutulevu Wainikovu Estimated Power Estimated Energy (MW) GWh/year 3.2 10.5 7.7 24 4.9 16.3 4.2 13.5 2.4 7.6 Not recommended for development at this time Not recommended for development at this time Estimated Cost millions of USD 12.3 17.5 11 11.6 7.1 5 “Preliminary Geological Investigation of Five Hydro Dam Sites in the Namosi and Naitisiri Provinces Viti Levu Fiji” Geoff Taylor, PACAu (Fiji), Ltd., 06 February, 2004 18 Figure 1 - Catchment Area Map of the Proposed Namosi and Naitisiri Hydro Development Sites. ii. Financial 111. The Namado and Wairokodra sites are proposed to be the Phase 1 development for a total estimated cost of US$24.6 million and a total annual energy production of 31.6 GWh representing annual gross revenue of approximately US$2.8 million of which 80% of net profits would go to the communities of the affected region. 112. The Joint Venture has developed financial spreadsheets that indicate a FIRR of over 7% based on soft loan funding and imply an EIRR substantially greater than that due to the considerable economic benefits for the region that are expected to accrue through the project. The accuracy of these values, however, is very dependent on the accuracy of the hydrological estimates and a more complete hydrological analysis that includes the data now being collected is needed before there is adequate assurance that 19 the FIRR and EIRR are sufficient to proceed with the construction of the project. That will be a component of the proposed feasibility study. iii. Environmental Impact 113. The area is thinly populated and the impoundments relatively small. No major agricultural areas are affected though some pasture land would be flooded. No villages will be flooded and there are expected to be few problems associated with relocation of the small number of households that have residences or actively engage in agriculture in the areas that would be flooded. It is noted that some of the upper Navua River wetlands has been listed as a Ramsar site but the site does not overlap the catchment area of the proposed project. d. Next Steps 114. To obtain funding for the construction of the proposed power development, a comprehensive feasibility study and engineering design study will be necessary. Since there is considerable overlap in the skills needed for a feasibility study and for the engineering designs, the REEP team has developed a project document for these as one combined technical assistance (TA) project thereby reducing the total cost of project preparation. i. Feasibility and Engineering Design Study Technical Assistance project outline 115. The Namosi feasibility and engineering design study will be implemented in two stages: (i) stage 1 ensures that a power development strategy and a lowest cost/benefit ratio option is followed that will maximize economic, social and poverty reduction impacts and (ii) stage 2 develops the design for those hydropower projects suitable for financing by ADB and/or other external funding. 116. Phase 1 will: (i) review relevant studies on power demand and supply in Fiji and for the Namosi hydropower development; (ii) establish a Steering Committee within 4 weeks after commencement that includes representatives from all key stakeholders; (iii) formulate the lowest cost/benefit ratio hydropower development scheme in Namosi Province in consultation with stakeholders; (iv) undertake a detailed socio-economic survey, environmental impact assessment, and land acquisition and resettlement plan in accordance with requirements of local regulations, ADB safeguard policies and those of other external funding agencies that may be associated with the hydro development; (v) assess existing institutional arrangements and identify measures to enhance project management; (vi) analyze FEA power purchasing policies and their financial and economic impact on the proposed Namosi project; and (vii) assess and identify a financing scheme suitable for the joint venture arrangement, Government, ADB and other funding sources expected to be associated with the project. 117. Based on the results of Phase 1, Phase 2 will develop the hydropower supply project suitable for external financing as follows: (i) assessment of highest priority components of the project for ADB financing; (ii) preparation of an engineering design of the proposed small scale hydropower projects; (iii) preparation of a project design document for Clean Development Mechanism (CDM) approval; (iv) development of a business plan for the project developer/owner, i.e., Namosi Hydro Ltd.; and (v) preparation of documents needed in project financing and for negotiations with FEA for a power purchase agreement. 20 118. The TA is estimated to cost US$1,040,000 equivalent, with a foreign exchange cost of US$555,000 and a local currency cost of US$485,000 equivalent Local funds are available to provide part of the local currency cost equivalent to US$300,000. Funding for the remaining US$740,000 is being actively sought but no commitments have yet been received. 119. Namosi Hydro Ltd. will be the executing agency of the TA. Namosi Hydro Ltd. will provide overall supervision and help ensure adequate cooperation from the Government and non-government organizations as well as villages in the project area. Namosi Hydro Ltd will recruit/hire a project manager with qualifications acceptable to ADB. 120. The TA will require about 18 person-months of international consultant services composed of a hydropower planning engineer, an economic and financial analyst, a private sector/institutional specialist, an environmental and social assessment specialist and other short-term specialists as identified during Project implementation (e.g., for geological and hydrological assessments). Domestic consultants will be hired, equivalent to 14 person-months, consisting of a community development and resettlement planning expert and other short-term specialists as identified during Project implementation (e.g., a local environmental specialist). TA implementation will be assisted by a team of international and domestic consultants. 121. The TA will be implemented over a period of 20 months with the time about equally divided between Phase 1 and Phase 2 assuming that the results of Phase 1 are favorable to the project continuing. 21 9. Priority 2 Renewable Energy: Rotuma electrification using biofuel a. Project concept and objectives 122. In October 2004, the Coconut Industry Development Authority (CIDA) recommended Rotuma to the REEP Steering Committee as a site for renewable energy development using coconut oil as a replacement for diesel fuel for power generation. Figure 2 – Rotuma Location Map 123. After receiving the support of the DOE, the Steering Committee approved the concept in February 2005. A site survey by the REEP Fiji local consultant was carried out in October 2005 and further data were gathered after the survey. 124. Rotuma is the most remote island of the Fiji group located over 450 km to the north of the main islands The island has a total population of about 2,500. The primary fuel used for electricity generation is imported diesel fuel. The remoteness of the island resulted in shipping costs of products in and out of the island being the highest in Fiji. This includes importation of diesel fuel oil and shipping of copra products to Vanua Levu. Likewise, irregular deliveries of these products occur Source: http://www2.hawaii.edu/oceanic/rotuma/os/hanua.html due to bad weather conditions or when cargo loads are not enough to justify shipment. 125. Rotuma copra sent to Vanua Levu has the highest shipping cost for copra in Fiji. If that copra could be converted to fuel to replace the diesel fuel imports that also have the highest fuel shipping costs in Fiji, there would be substantially greater returns to local copra producers and lower costs for electricity. A project to develop the private, local production of biofuels on Rotuma therefore fit the REEP objectives of rural development, poverty reduction and private investment in renewable energy and energy efficiency. 126. A TA project has been prepared to determine the economic and technical feasibility of (i) producing coconut based biofuel on Rotuma in sufficient quantity to provide for the majority of power generation needs on the island; and (ii) upgrading the power system to a central generation system to use the biofuel in the most efficient and cost effective manner. b. Project proponents 127. The CIDA was the official proponent of the project and has considered Rotuma with its high per-capita copra production and the dual benefit from the project – the elimination of shipping costs for both fuel and copra – as being most likely for local biofuel production to be economically and technically reasonable. 22 128. The concept of the project was strongly supported by the Rotuma Island Council. They felt it could dramatically improve the reliability, quality and cost of producing electricity on Rotuma. Discussions with households on Rotuma also indicated almost universal support for utilizing locally produced fuel for electricity production. 129. The project was endorsed in principle by the Office of the Prime Minister, the Ministry of Finance and Planning (MOFP) and the DOE. c. Project Background 130. Rotuma is volcanic, 44 km2 in land area (14 km long by 4.3 km at its widest) with central hills (see Figure 4) reaching 262 meters in height and abundant coconut trees. An unpaved road circles the island linking all villages. Until recently there were twiceweekly 2" hour flights from Fiji’s capital Suva by small turboprop aircraft but due to a problem between the Fiji Government and the air carrier over the payment of subsidies, flights were reportedly stopped in April 2006 so the only access is the irregular ocean transport that sails every 4-6 weeks with a 36 hour transit time from Suva to Rotuma. 131. On paper, nearly 90% of the island’s population is electrified using numerous independent diesel generators feeding small underground village grids but often many of these are not operational, sometimes for long periods. In October 2005, only 73% of village households had a connection to a functioning electricity system. 132. Service is typically provided for 4-6 hours each day with extended periods without service due to lack of fuel or mechanical problems. In 2004, the island was reportedly without fuel for two months due to shipping problems and during 2005 there were numerous periods where power was restricted for both the government system and communities, sometimes due to slow fuel delivery and sometimes to lack of funds to purchase fuel. i. Government Station Electricity Supply 133. There is a government station that includes the postal service, satellite telecommunications center, hospital, administrative centre, school and government offices. Affairs are managed by an elected council of traditional chiefs, the Rotuma Island Council (RIC), for a three year period. The RIC has about 22 members that include chiefs and sub-chiefs from all districts plus several Fiji government officials. 134. A highly subsidized Government power system serves the government station and nearby households, reaching about 10% of the island’s population using a small diesel generator and underground distribution. The system serves the government complex at Ahau and nearby housing that includes eleven civil servants’ quarters, seven private homes and a church at Tieri village 1 km south and another nine private houses between 0.2-0.8 km to the north. The government system normally operates for eight hours daily from 08:00-12:00 and 18:00-22:00. When there is ample fuel, it also runs from 05:00-08:00 but when fuel supplies are low, operating hours are reduced. 135. There are no records of kWh of energy produced nor maintenance schedules at the Rotuma government power house. However, fuel consumption was reported as an average of 350 liters of diesel fuel per week or about 18,000 liters per year. According to the Public Works Department (PWD) Water Supply Office, an additional 48,000 liters of fuel are used each year for three gensets for electric water pumping. That makes a government total of 66,000 liters of diesel fuel per year for power generation. An additional 50,000 liters per year is estimated for village electrification making a total of 116,000 liters (116 KL) of diesel fuel per year used in Rotuma for power generation. 23 ii. Existing Village Electrification 136. By far the largest population concentration (887 persons in 2003) is in Itu’ti’u in the general vicinity of the government centre. Away from Ahau, electricity is generated by many small diesel gensets operated by users or a local committee. There are several privately-owned solar PV electricity systems at homes and shops. 137. In October 2005 the visit by the REEP consultant included a detailed survey of the electricity use in three villages, visits to all electrified villages, and interviews with operators. The survey found 470 homes connected to 19 generators of which 389 actually had electrical service the day of the visit (See Appendix 2 for details). 138. The village power systems are usually operated only at times of peak need, the quality of power is typically poor and system reliability is low. Long periods without power are common due to delays in ordering and receiving repair parts, lack of village funds for purchasing replacement parts or fuel and at times delayed fuel deliveries. The fuel efficiency of the village generators is very low. Figure 3– Village and Pumping Station Locations on Rotuma Modified by REEP from map at http://www2.hawaii.edu/oceanic/rotuma/os/hanua.html. 139. During October 2005, the REEP also arranged a detailed household survey of appliance use, electricity use and attitudes toward electrification in 51 households in three communities all of which had been electrified for at least five years and presumably had reached some stability in electricity use patterns. There was little to suggest that villagers expect a significant increase in electricity use through the purchase of new appliances or the establishment of new businesses. However the experience in several other PICs indicates that shifting from a part-time electricity supply to a 24 hour supply does significantly increase the use of refrigerators and freezers and this should be expected in Rotuma. iii. Diesel Fuel Supply and Cost 140. Fuel is purchased, shipped and stored in 200 liter drums, the most expensive storage arrangement used in Fiji, since tanker access to bulk storage was destroyed in a cyclone. In October 2005, villages reported paying FJ$1.70-1.83 per liter of diesel fuel. Several communities reported paying FJ$1.80 per liter even when purchasing a full 200 liter drum. In addition to the fuel cost, Rotuma is subject to charges from the supplier for damaged drums. Each drum carries a deposit of FJ$50, returnable if the drum is sent back undamaged. Damage is reportedly common and adds significantly to the cost of fuel supply. 24 iv. Load forecast 141. There are no historical data available from which to estimate the future growth in demand. There has been no population census since 1996 but population is said to be stable. There are plans to construct a new air-conditioned hospital in 2006 but the plans have not been made available, so it is difficult to estimate the impact on demand though it will increase considerably. 142. Overall, power demand is expected to grow slowly due mainly to increasing appliance ownership by households (refrigerators, freezers, washing machines, irons, TVs) and the development of new government facilities. A change from several hours per day of unreliable village power to a 24-hour service will also increase demand, especially with the satellite television service that was recently introduced by Fiji TV to Rotuma and the 24-hour operation of the refrigerators/freezers. The magnitude of increase cannot however be accurately predicted, until a reliable baseline data on current electricity use is available. 143. A centralized system would require about 100 kVA for the current government load (power distribution and electric water pumping) and a similar capacity for rural electrification, excluding back-up requirements. Present indications are therefore that Rotuma will need roughly 250 kVA to cover the existing customers. Additional capacity will be needed for back-up and for the consumption of the proposed coconut oil mill. v. Coconut Resource and Coconut Oil Potential 144. There has been no recent survey of the coconut resource in Fiji or Rotuma in particular. In 2006, the SOPAC agreed to arrange high-resolution satellite imagery to provide an accurate current assessment of the resource and its availability for transport. That assessment should be available late in 2006. A 2004 report prepared for CIDA indicated that in December 1999 Rotuma had somewhat less than this: 2,615 hectares or 59% of land area under coconuts, 100% of which were of a productive age. Sources in Rotuma suggest a potential output of between 11,610 and 12,550 metric tons of copra (10% moisture content) from 2615 ha, an average of 12,080 metric tons. It is therefore assumed for prefeasibility purposes that the maximum yield of copra with the current resource is on the order of 12,000 metric tons per year. 145. Most of the lower parts of the island are covered in coconut trees. Although Rotuma is hilly, most coconut trees are near the coast and nearly all of the area planted in coconuts is said to be readily accessible. In 2005, CIDA reported that the island has the capacity to produce 1,500 metric tons of copra per year equivalent to 900 metric tons of coconut oil and has the potential to double output to 1,800 metric tons of oil without new planting. Figure 4 – Ahau and Northwest Rotuma from Maka Bay Photo: P Johnston October 2005 25 146. From 1970 through 1980, copra production averaged 1,300 metric tons per year. In the past five years, copra production has never exceeded 1,500 metric tons per year, and has generally been declining, presumably due to the poor price of copra. 147. In principle, based on the CIDA data, a preliminary estimate suggests that Rotuma-produced coconut oil should be able to displace 81% (94 KL / 116 KL) of the diesel fuel now used to produce electricity with no additional effort by coconut suppliers. Without new planting, but with a much higher, but still quite practical, rate of collection of available nuts, Rotuma should be able to produce about 162% of current diesel fuel demand. To displace all 116 KL of diesel fuel, Rotuma would need to produce about 122 KL of coconut oil. That would require about 1846 metric tons of copra or less than 16% of the estimated maximum copra production of 12,000 metric tons from all of the 2615 ha of land currently under coconut trees. 148. The current efficiency of conversion of diesel fuel to electricity is very low, partly due to poor engine maintenance but mainly to the use of over 20 small generators that have inherently low fuel efficiencies. The project should see major improvements in fuel efficiency through centralization of power generation allowing the present volume fuel use to cover substantial increases in energy demand. vi. The Economics of Coconut Oil Production in Rotuma 149. Coconut oil is not produced commercially in Rotuma. Approximately 14 conventional biomass-fuelled copra driers produce small quantities of copra, often at low quality, for sale to Three Sisters, the local copra purchasing and shipping company. There are also two solar driers, a large one (5 metric tons capacity) at Kalvaka, Noa’tau District, built around 1994 which is used intermittently to produce a higher-grade of copra and a small one (0.5 metric tons capacity) at Maf’toa, Itu’muta, which is used regularly. Most copra is produced by Three Sisters itself using a biomass-fuelled drier. 150. The world price of coconut oil exported from Fiji in 2005 was US$620 per metric ton (about FJ$1,000/metric tons) or FJ$0.91/litre. This has been fairly static for some months but is higher than the medium to long-term projections of US$400-600/metric tons. The real value of oil to Fiji as an export commodity is somewhat lower as freight, insurance and other charges to transport the oil to market must be paid. The removal of the high cost of shipping copra to Suva (FJ$84/metric ton), and then on to Savusavu (on Vanua Levu) for processing into oil will provide substantially increased benefit to local producers. 151. The combination of Rotuma having the highest diesel fuel cost and the lowest effective copra price in Fiji makes it the most likely site in Fiji to find the use of coconut oil for power generation an economically sustainable endeavor. d. Next Steps 152. To obtain funding for the construction of the proposed power development, a comprehensive feasibility study and engineering design study will be necessary. Since there is considerable overlap in the skills needed for a feasibility study and for the engineering designs, the REEP team has developed a project document for these as one combined technical assistance (TA) project thereby reducing the total cost of project preparation. 26 i. 153. Scope of the Project The proposed project has two major components: 1) It centralizes generation and connects all the island’s villages through an 11kV grid eliminating the numerous mini-grids now in place and dramatically improving the fuel efficiency for power production. 2) It develops the capacity to locally produce all the biofuel needed to power the centralized electricity supply, including water pumping. 154. In effect the project completely replaces the patchwork electrification that is now present and develops a local capacity to produce coconut oil based biofuel in sufficient quantities to fuel the central generator. ii. Feasibility and Engineering Design Study Technical Assistance project outline 155. The TA will address issues regarding public-private sector partnerships, land acquisition, environmental impacts and social acceptability. The TA will identify suitable financing schemes and develop a business plan for any private sector component to ensure low/manageable project risks to ADB and/or other funding institutions as well as the project recipients. 156. The assistance will be implemented in two stages: (i) formulation of a Rotuma power development strategy and a least cost/benefit ratio option that will optimize economic, social and poverty reduction impacts and (ii) development of a rural power project suitable for financing by ADB or other external funding agency. 157. Phase 1 will: (i) include a review of relevant studies on rural power demand and supply in Fiji in general and on Rotuma specifically; (ii) include the creation of a Steering Committee within 4 weeks after commencement that includes representatives from key stakeholders; (iii) in consultation with stakeholders formulate the least cost/benefit ratio coconut oil fuelled power development scheme for Rotuma; (iv) undertake a detailed socio-economic survey and environmental impact assessment (EIA) in accordance with the requirements of local regulations, ADB safeguard policies and those of other agencies to be approached for funding; (v) assess the coconut resource and the economic and physical feasibility of accessing sufficient coconuts on a continuing basis to provide fuel for the power system; (vi) assess existing institutional arrangements for rural power delivery in Fiji and on Rotuma and develop a structure that is technically, socially and economically optimized for the operation and maintenance of a coconut oil fuelled centralized power system for Rotuma that draws on the strengths of both the public and the private sectors; and (vii) assess and identify a financing scheme suitable for the Rotuma Island Council, Fiji Government, ADB and other funding sources. 158. Based on the results of Phase 1, Phase 2 will include: (i) preparation of an engineering design for the complete power system including generation, power distribution and the facilities needed to produce coconut oil suitable for engine fuel using whole coconuts as the raw material; (ii) preparation of a coconut purchasing plan addressing the logistics of nut delivery to the processing site and the maintenance of an acceptable price for whole coconuts over the long term; (iii) development of an institutional structure that optimizes inputs from the public and the private sectors; (iv) preparation of a business plan for any private partners; and (iv) preparation of documents needed for project financing. 27 159. The TA is estimated to cost US$558,000 equivalent, with a foreign exchange cost of US$313,000 and a local currency cost of US$245,000 equivalent. 160. The DOE would be the executing and implementing agency of the TA since this project is classed as rural electrification. CIDA will provide technical support as necessary. The Rotuma Island Council would support the TA in Rotuma. The Island Council will arrange for overall support of the TA and help ensure adequate cooperation from the Government and non-government organizations as well as villages in the project area. 161. The TA will require about 10 person-months of international consultant services composed of a small diesel system power engineer, an economic and financial analyst, a private sector/institutional specialist, a biofuels specialist with coconut oil experience, an environmental and social assessment specialist and other short-term specialists as identified during Project implementation (e.g., for design and specification of the coconut processing component). Domestic consultants will be hired, equivalent to 4 personmonths, consisting of a community development expert and other short-term specialists as identified during Project implementation (e.g., a local environmental specialist). TA implementation will be assisted by a team of international and domestic consultants. 162. The TA will be implemented over a period of 8 months. About 5 months will be required for Phase 1 and 3 months for Phase 2. The TA is expected to produce design and analytical results that fully comply with all relevant ADB policies. 28 10. Priority 3 Renewable Energy: Geothermal resource investigation a. Project concept and objectives 163. FEA has stated that the development of renewable resources, including geothermal, is its highest priority and tabled a request for the REEP to assist in developing a TA project for a prefeasibility study of the Viti Levu resource with the objective of determining whether or not it is reasonable to pursue further development of geothermal to offset the growth of use of imported fossil fuels and slow the growth of CO2 emissions by FEA’s diesel based generation. 164. In February 2005, the Steering Committee agreed that this request should be included in REEP submissions but at a priority lower than that of Namosi Hydro and Rotuma Coconut Oil project development. 165. The concept of the project is to determine whether or not the resource in Fiji can be developed to warrant a full feasibility study that includes expensive deep well drilling. The studies of the 70s and 80s were not conclusive and it is expected by the team that the use of modern equipment and techniques will allow a clearer understanding of the geological structures involved. FEA has estimated the cost of a full feasibility study at over FJ$3 million making it worthwhile to carry out a relatively expensive prefeasibility study to lower the risk of very expensive drilling operations. b. Project background 166. The presence of hot springs in Fiji has long created interest in development of geothermal resources. In the late 1970s, the Department of Mineral Resources began a series of studies of geothermal surface phenomena and determined that the Savusavu and Labasa areas of Vanua Levu show strong indications of the presence of a relatively shallow geothermal resource. The presence of hot springs and other evidence of shallow geothermal resource in the Ba, Tavua and Soa areas of Viti Levu is also noted but those areas have received much less study than the more obvious sites of Vanua Levu. 167. FEA’s preliminary desk study in 2004 suggests that a 20 MW facility at a site with a good resource may need an investment of approximately FJ$105 million (US$61m) equivalent to an electricity cost of FJ$0.074-FJ$0.109/kWh, with a base case price of FJ$0.102/kWh. This is well below FEA’s current marginal cost of production and below the current price at which it is willing to purchase power from new IPPs (around FJ$0.135/kWh). FEA feels that a larger development on the order of 50 MW is preferable and should the development be on Vanua Levu, a 50 MW development might justify the cost of under sea transmission from Vanua Levu to Viti Levu. 168. Between 1978 and 1983, there were various geothermal investigations near Labasa and Savusavu, the main towns of Fiji’s second island of Vanua Levu. These were mainly preliminary geophysical and geochemical studies. Further geochemical studies and a resistivity survey were carried out in Labasa in the early 1990s. 169. A 1996 report assessing the results of work in Fiji concluded that “geothermal resources [on Viti Levu] have not been investigated because of the existence of inexpensive hydropower. However, on … Vanua Levu, very little hydropower can be found, but the hottest geothermal fields are located there. The highest assessed subsurface temperatures occur on Vanua Levu (maybe 160oC), and there are industries that could use process heat, whether or not the resources are suitable for electrical power generation. A 1994 consultants' report reviewed the information available in the 29 areas of Savusavu and Labasa … and recommended a deep drilling program to allow measurement of reservoir conditions down to 800 meters. Slimhole technology is the preferred method with three holes to be drilled on each area at an estimated cost of approximately US$2.5 million.” 170. FEA wishes to include Viti Levu in any new assessment of geothermal potential because: (i) the bulk of Fiji’s demand is on that island; and (ii) the only remaining large undeveloped hydro resource, the Ba/Sigatoka scheme (~50 MW; ~100 GWh; ~FJ$125m incl. transmission) is expected to be developed within a few years, leaving no large, reasonable-cost hydro options for the future. c. Next Steps 171. In early 2004, FEA issued a ‘Request for Proposal’ for geothermal assessments. Based on information contained in the submissions from five companies (PB Power (NZ) Ltd, Sinclair Knight Merz (SKM) Ltd, Worley Pty Ltd, Century Drilling & Energy Services (NZ) Ltd and Pacific Island Power) FEA estimated that a prefeasibility study (in 2004 Fiji dollars) would cost about FJ$950,000. The Terms of Reference included a study of Ba, Tavua, Rabulu, Busa, Sabeto sites on Viti Levu and the Labasa area on Viti Levu. The work included desk studies of existing information, carrying out further geochemical and geophysical tests and ranking their technical and economic potential. FEA did not include Savusavu in the proposal because the Fiji Government had previously granted Natural Power Ltd., (NPL), a subsidiary of Asia Pacific Resources, Ltd., a special prospecting license for geothermal exploration in the Savusavu area. NPL proposed that they would do exploratory drilling at an estimated cost of FJ$2 million (US$1.2 m) should a mine at Wainivesi be developed. Approval for mine development has not yet been provided. 172. The REEP project follows generally the same approach as the FEA tender in that both Viti Levu and Labasa are included in the survey and the emphasis is on consolidating and interpreting existing data and adding new measurements where gaps exist. Savusavu exploration may no longer be exclusive to NPL by the time this study is mounted, so if that is the case Savusavu should be included. Only the Initial Investigation is included under this TA project. i. • • • Initial investigation component (6 months) Viti Levu. Review existing studies (including hydrological and petroleum studies, hold discussions with MRD, SOPAC etc.) to determine prospective sites. Carry out preliminary geological, geochemical and hydrogeological studies at sites that warrant further study. Rank the sites based on likely technical and economic geothermal potential. Recommend further assessment at sites with favorable characteristics and specify the studies most appropriate considering the cost of the studies and the likelihood of finding a commercially viable resource. Vanua Levu. Determine the appropriateness of including both Labasa and Savusavu in geothermal investigations. Re-interpret the earlier Labasa (or, if appropriate Labasa and Savusavu) studies of the past 30 years using up-to-date analytical methods. Assess the need, if any, for further geological, geochemical, hydrogeological and geophysical studies and specify the studies most appropriate considering their cost and the likelihood of their use locating a commercially viable resource for electric power development. General. Advise on the desirability, cost, risks and anticipated results of further exploratory geothermal study in Fiji. To the extent practical, advise on the magnitude 30 of the resource, or resources in Fiji that are possibly suitable for power development. Develop the TOR for a possible phase 2. Advise on whether a Vanua Levu resource appears to be sufficiently large to consider power transmission to Viti Levu, and if so, determine the approximate costs. 173. Phase 1 2 It is proposed that the prefeasibility study proceed in several stages as follows: Activities Initial investigations. Review existing documentation for Vanua Levu & Viti Levu. Rank sites for further study. Prelim. geological, geochemical & hydrogeological studies on Viti Levu. Refine phase 2 costs & develop TOR. Prefeasibility including further geochemical and physical studies. Geochemical and geophysical studies, Viti Levu. Possibly supplementary geochemical / geophysical studies, Vanua Levu. General prefeasibility study. US$ ~ 150,000 ~ 390,000 174. If the results are favorable at the conclusion of Phase 2, FEA would request funding for a full feasibility study, including exploration drilling on both Viti Levu and Vanua Levu, at an approximate cost of US$5.7 million (FJ$10 m). 31 B. Samoa 1. Steering Committee 175. After Samoa was selected as one of the two countries to take part in REEP, a Steering Committee was formed in order to ensure that stakeholders had representation in the project determination and project prioritization process. Six Steering Committee meetings were held in Samoa and all proposed projects were reviewed by the Committee. The projects developed by the REEP team have been approved and prioritized by the Steering Committee. The Steering Committee members include: Name Papalii Tommy Scanlan Muaausa Joseph Walter Sector Ministry/Ministry Governor, CEO SC Chairman CEO Electricity Utility SC Deputy Chairman Papalii Grant Percival Commerce & Industry Tuuu Ieti Taulealo Environment Mosese Vitolio Tui Sili’a Kilepoa Ualesi Thomas Jensen Steven Rogers Bola Nacanieli Fiu Mataese Fuimaono Falefa Lima Atanoa Crichton Technical Training Government Energy Sustainable Energy Donor community Petroleum NGO and community Finance Media Central Bank of Samoa Electric Power Corporation Samoa Association of Manufacturers and Exporters Ministry of Natural Resources & Environment Principal, Don Bosco Technical School Energy officer, Ministry of Finance UNDP Samoa/UNESCO Apia European Union, Apia Private Le Siosiomaga Society Development Bank of Samoa Samoa Broadcasting Corporation 176. Mr. Fiu Mataese formally resigned from the Committee and was not replaced. Other persons were invited to participate when items of special interest to them were on the agenda of the Committee. 2. Policy strategies and incentives 177. The regional PIEPSAP project is handling energy policy development and regulatory issues that the REEP initially was expected to cover. The REEP team has discussed policy issues, particularly as regards utility regulation and the appropriate components for a national energy policy for renewable energy and energy efficiency, with the Ministry of Finance (MOF) and PIEPSAP and did not separately address these issues. The Team indicated to the Samoa Energy Officers and senior MOF staff that the REEP team was available for further support of policy efforts if Samoa desires additional input either in the form of additional policy advice or in the form of a review of the proposed policies developed under PIEPSAP. No assistance was requested and the REEP team took no further action. A Samoa national energy policy has been developed with the assistance of PIEPSAP and is now in the review stage. 3. 178. Establishment of an appropriate institutional framework Three primary areas of institutional development have been the REEP focus: • Development of institutional structures to encourage the development of private Energy Efficiency Service Companies (EESCOs). • An action plan for development of institutional structures to oversee, regulate and promote energy efficiency activities. 32 • Working with businesses for the development of a Renewable Energy Business Association. a. Development of private EESCOs 179. Past energy efficiency efforts have typically been limited to energy audits performed by EPC with audit recipients expected to proceed with the implementation of the recommendations provided by the auditor. This has not generally resulted in long term improvements in the efficiency of energy use. For energy efficiency measures to be properly carried out and savings maintained for the long term, there needs to be an institutional structure that not only provides energy audits but also supports carrying out the energy saving activities, continues to monitor their effectiveness and makes adjustments where appropriate. The structure that is proposed for Samoa is to develop mechanisms that support energy efficiency service company activities as a component of existing technical companies and the EESCO approach proposed for Fiji is followed. However, the demand for EESCO services in Samoa is not considered sufficient to support a business only providing EESCO operations, so in Samoa the expectation is that technical companies may include a component for EESCO type activities but may not need to specialize in energy efficiency services. Specific needs for institutional development to support this activity include: • Developing the structures necessary to provide specialist training to individuals and companies wishing to act as EESCOs • Developing the structures in government necessary to regulate EESCOs • Establishing the methodology and criteria for an independent agency (expected to be EPC) to determine the savings effect of equipment that has been installed to improve energy efficiency • Creating a process allowing clients to borrow money for the finance of energy efficiency improvements at a periodic cost equal to or lower than the periodic savings brought about by the installed energy efficiency equipment • Developing structures that provide performance guarantees to clients to increase their confidence that the services would indeed provide the expected savings. • Developing methodology and criteria for monitoring the program on a national level. 180. These structures would be developed under the regional (Samoa and Fiji) project prepared by the REEP for the development and support of EESCOs. b. Regulatory and RET promotion framework development i. Appliance labeling 181. Team members have discussed the use of standards and the use of standardized appliance labels to inform consumers of the relative energy efficiency (and therefore cost of operation) of appliances sold in Samoa. Discussions have been held with importers, retailers, and the Government. Specific problems that Samoa must overcome for energy efficiency labeling of appliances to be effective include: 33 • Lack of testing facility. It is impractical for Samoa to establish its own testing facility for appliances and it must therefore depend on external testing for labeling of appliances; • Imported appliances have diverse testing and labeling schemes. Though most of the countries that supply appliances for Samoa import have labeling schemes in place, they do not all use the same procedures for test and the labels are not consistent in the way efficiency information is presented; • Consumers unfamiliar with energy efficiency issues. Consumers are generally not aware of the considerable difference in cost of operation of appliances seen in different models of the same appliance and are not familiar with energy efficiency labeling systems. Retailers are not encouraged to provide that information even when appliances have been rated by the exporting country as is the case with many appliances coming from the US, Japan, New Zealand and Australia. 182. As shown in Appendix 3, the REEP team has proposed an action plan for Government for the development of energy efficiency based appliance labeling and its implementation. To implement the plan an institutional structure specializing in energy efficiency development and implementation should be in place. To date, no institutional structures have been formed by the Government that focuses on regulating the energy efficiency of imported equipment or on the development of efficiency standards, labels or certifications. Thus, the Steering Committee agreed to propose and seek approval from Government for the establishment of a multi-sectoral committee to commence the process of energy efficiency standards and certification development. A formal request was sent to Government in March 2005 by the Governor of the Central Bank (also the Chairman of the REEP Steering Committee). The request is currently being considered by Government. 183. Since establishing an entirely new governmental structure is a matter of years, not months, the REEP cannot do more than get the process started. Should the regional EESCO project that is being proposed be implemented, that will help continue the momentum for the development of energy efficiency structures that are being supported by the REEP. 184. The proposed regional EESCO project includes the development of institutional structures for the regulation and support of EESCOs including finance, a performance guarantee fund management structure and a structure for the independent auditing of EESCO energy efficiency implementations (see Section IV of this report). ii. Renewable Energy Standards Development 185. Unlike Fiji, there is almost no opportunity for photovoltaics as a rural electrification technology and the allow grid connected solar PV to become a large scale Therefore, the development of standards and other implementing solar PV are not needed in Samoa. the development of solar economic climate does not power source at this time. regulatory processes for 186. Under the project for the development of coconut oil for EPC generation, standards for fuel quality, its storage and its transport will need to be applied. Those standards can be imported from other countries without modification so no developmental process is needed. As EPC will be the only user of the fuel, the responsibility for those standards will be best maintained at EPC, not Government. The 34 specific process that should be followed will be identified during the feasibility study for the project. 187. The lack of national standards for solar heaters does not appear to be a barrier to their use since there is no local manufacture of solar water heaters. The imported units are all from New Zealand and Australia where adequate standards and certification systems are applied. Thus the cost of developing and the bureaucracy for implementing such standards for what is still a small market does not appear to be justified. Should a local manufacturer of solar water heaters commence operations or should the domestic market for solar water heaters dramatically increase, it is recommended that the Australian standards and certification system be applied. iii. Action plan for promotion of RET and EET 188. The EESCO project being developed by REEP for both Fiji and Samoa includes the necessary institutional structures for its implementation and technology promotion. 189. The primary area that has been requested by the Steering Committee for institutional development is the development of an action plan for the implementation of energy efficiency labeling of household appliances, particularly refrigerators and freezers which appear to be the largest users of electricity in the domestic sector. c. Development of a renewable energy association 190. Currently, there are no businesses in Samoa specializing in renewable energy equipment or services. The only renewable energy components being sold by Samoa businesses are solar water heaters. They are “off-the-shelf” commercial items imported from Australia and New Zealand and their sale represents only a small part of the businesses selling the units. 191. Though the team could find no interest in forming a separate renewable energy association in Samoa, both the Samoa Association of Engineers and the Samoa Manufacturer’s Association have indicated that if in the future there is sufficient interest by individuals or businesses to establish an energy sub-section within either of those associations, both associations would be willing to provide an organizational umbrella. 4. Financing schemes development a. Renewable Energy 192. The team has interviewed the management of all the commercial banks and the Samoa Development Bank. Though a few solar water heaters have been financed through the banks, there is essentially no activity by any financial institutions in Samoa related to renewable energy or energy efficiency. Mainly it appears that is because there has been no demand for such finance. 193. Since nearly all households are electrified, there is no justification for rural microfinance for renewable energy. Such renewable energy applications as exist, primarily solar water heating for hotels and businesses, can be financed by existing commercial banks or by larger businesses that have ready access to commercial and, in some cases, low cost international finance for economically justifiable investments. 194. The commercial market for the finance of renewable energy projects that cannot be financed through existing channels is very small and development of special financial schemes for those projects does not appear to be justified. 35 b. Energy Efficiency 195. Unlike renewable energy, there are many opportunities for investment in energy efficiency improvements both at the domestic and at the commercial level. There is little experience with financing energy efficiency improvements in Samoa. Interviews with commercial finance providers indicate that they have little knowledge regarding the risks associated with energy efficiency investments. 196. At the household level, the largest improvement in energy efficiency is from replacement of incandescent lamps with more efficient compact fluorescent lights (CFL). The primary barrier to the adoption of the high efficiency CFL bulbs is not the specific cost of the CFLs as they are well within the budget of the majority of Samoan households. The barrier is that the CFLs are typically several times the cost of the cheapest incandescent bulb and that there are higher priority uses for the immediate cash that can be saved by choosing low cost bulbs and prefers it than long-term energy cost savings from purchasing the expensive but high efficiency bulbs. 197. The problem of energy efficiency at the household level is technically not one that relates to the availability of finance, it is more a lack of confidence that the extra expense will be returned in savings. Persons interviewed feel that it would be risky to buy them since there is no assurance that they will last long enough to pay the initial investment in energy cost savings. Also, high efficiency bulbs are not available in neighborhood shops, only large retail stores in Apia. There is little incentive to make the special effort to find and purchase the high efficiency units for savings that can amount only to a dollar or two a month for most households. However special financing programs can be developed that provide high efficiency lighting through EPC with repayment for the more expensive CFL through a charge to the customer lower than the savings that has accrued from the replacement incandescent bulbs. In essence such programs are actually more to change the perception of customers than to overcome true financial barriers. 198. The team has discussed this concept with the Energy Unit and EPC, and offered to prepare a concept paper but no request was made since EPC claims to be familiar with the concept. A program of this type can be done by the Government or EPC and is not expected to require external funding. 5. Capacity building 199. Of the four main educational institutions outside of primary and secondary schools (Table 8), the USP facility concentrates on agriculture and the National University of Samoa provides tertiary degrees in academic areas that do not include technical content relating to renewable energy and energy efficiency. The REEP team is concentrating on cooperation with the Samoa Polytechnic (combined institutionally with the National University of Samoa (NUS) in 2006 as the Institute of Technology under the University) and the Don Bosco Technical Centre since both have interests in increasing their existing renewable energy and energy efficiency course content. The merging of the NUS and Samoa Polytechnic is not expected to affect the proposed capacity building activities with Samoa Polytechnic nor its usefulness in the future when implemented. 36 Table 8 – Post-Secondary Education and Vo-Tech Training institutions in Samoa Institution University of the South Pacific School of Agriculture National University of Samoa Primary Function Comments Post secondary degree education with the Samoa campus focusing on agriculture (primary campus in Suva, Fiji) Post secondary degree general education. In the process of merging with Samoa Polytechnic Not presently providing courses relating to energy. No program that could be quickly developed for RE and EE training No engineering program or other program that could be quickly developed for RE and EE training Some RE and EE content in existing courses for electrical trades and plumbing Post-Secondary Vocational-Trades school with programs that include electrical and plumbing trades. Now merging with the University of Samoa Private Secondary school level Vocational-Trades school with programs that include plumbing trades but not electrical trades. Samoa Polytechnic Don Bosco Technical Centre a. Solar water heater installation included in the plumbing program Training for renewable energy technicians 200. The team has visited the two technical institutes in Samoa, Don Bosco Technical Institute (private) and Samoa Polytechnic (Government), and discussed the REEP program and how the program could work with them in developing course materials needed to support renewable energy and energy efficiency programs. 201. Don Bosco Tech presently does not have a program for electrical trades, though it does have a plumbing trades program that includes the basics of solar water heater installation. The Principal is a member of the REEP Steering Committee and has direct access to information about the program. 202. Samoa Polytechnic has a full vocational trades program including electrical and plumbing trades training. The facilities are being upgraded through Japanese funding and are expected to be among the best in the region when completed. The plumbing program already includes considerable student work with solar water heating (courses PL201 and PL211). An evaluation of the program was made by the team and no further curriculum development support appears to be needed in that area at this time. Should there be a major increase in the market for solar water heaters in Samoa, as could be the case if incentives for household use of solar waters were provided by government, a future expansion of the solar water heater course content could be warranted. 203. As there are almost no solar photovoltaics used in Samoa presently and little expectation of solar photovoltaics being used significantly in the foreseeable future, there is little interest in adding a full module on solar PV to an already crowded electrical trades program at Samoa Polytechnic. However there is interest by the head of the Electrical Division regarding solar PV technology. As a result the head of the electrical trades section was invited to participate in the REEP sponsored renewable energy and energy efficiency workshop held in Fiji and was provided with the PV curriculum materials used at FIT. 204. For the trade schools to gain experience with renewable energy, the REEP team leader has proposed to UNDP and EPC that selected Don Bosco School building trades instructors and students and selected Samoa Polytechnic electrical trades instructors and students participate in the construction of the 10kW solar PV system that is to be constructed for Apolima (a small island with 9 households that is located between Upolu and Savai’i) in 2006. UNDP and EPC have responded positively to the proposal and will work with the two training institutions during the implementation of the Apolima project. 37 b. Energy Efficiency training 205. There is interest at Samoa Polytechnic to expand the contents of the energy efficiency course materials for the electrical trades program when Government begins to actively promote energy efficiency measures sometime in the future. The sub-regional program for EESCO development that is proposed elsewhere in this report (Section IV) includes a training component that will include Samoa Polytechnic as one of the training facilities to be developed for ongoing energy efficiency training courses. For Samoa, the number of persons likely to require specialist energy efficiency training is not expected to be large enough to warrant a specialist course as is proposed for Fiji. Components focusing on basic training in energy auditing and methods of increasing the efficiency of energy use will, however, be relevant. 206. REEP cooperated with SOPAC regarding their demand side management (DSM) training in Samoa in July, 2005 through the selection of additional participants and a review of the program. c. Other renewable energy capacity building programs for the Pacific that will affect Samoa 207. In 2004, ESCAP funded a review of training facilities in the Pacific and of the needs for renewable energy training in the PICs. As a part of their program, ESCAP included the development of a concept for a renewable energy capacity building regional program that was approved during the 2004 Regional Energy Meeting and later by the CROP. The concept included a budget of around US$3 million for a five year program that could cover all the PICs including Fiji and Samoa. A complete project document based on that concept paper was prepared and submitted to donors in late 2005. No funding is yet allocated. 208. PIREP also included identification of renewable energy capacity building requirements as part of their survey of the PICs in 2003 and 2004. The results were used in the development of the PIGGAREP project proposal that is in the GEF pipeline. Capacity building is a major component of the proposal and will include Samoa and Fiji though implementation is not likely to begin before 2007. 209. It is noted that at present neither program includes development of energy efficiency technology training. The Team considers the development of a training component within the proposed sub-regional EESCO development project as vital to its long term success and to the further development of energy efficiency measures in Fiji and Samoa. However, energy efficiency training in Samoa has too limited a clientele to permit the training institutions to develop specific programs concentrating on energy efficiency, though if the sub-regional EESCO development project is carried out, limited short course development for Samoa should be included. For the foreseeable future, it will be more cost effective for Samoa to send trainees to facilities outside Samoa for any long term training specializing in energy efficiency technology. d. REEP activities for capacity building 210. Because of the very limited time and financial resources available to the REEP, the capacity building strategy has been to work on training development only in areas where there is an immediate need for support. In Samoa the technical needs for RE technology support is mainly for installation and maintenance of solar water heaters and that appears to be adequately covered in the existing training programs considering the small market for those skills in Samoa. 38 6. Dissemination of activities in Samoa 211. REEP team members have provided formal presentations disseminating information about REEP activities in Samoa at: • a meeting of the Samoa Chamber of Commerce and Industry (2005) where a team member explained the activities under the REEP and how they can support private business in Samoa; • a meeting of the Samoa Engineering Association encouraging participation in developing the EESCO concept in Samoa and outlining the technical programs under the REEP (2005). • Steering Committee meetings • A UNDP project planning meeting held in Apia 5-7 September, 2005. 212. Team members have had continuing non-government consultations with: • IIEC in Bangkok regarding EESCO formation, the history of the current EE project in Samoa and to obtain other supporting information and to get IIEC opinion regarding the sub-regional EESCO project being proposed by the REEP; • SOPAC regarding their activities in Samoa, in particular as relates to EE and biofuels, and discussions about where the REEP could cooperate and coordinate programs with SOPAC; • PIEPSAP concerning their activities in Samoa in supporting the development of a national energy policy; • The EU office in Apia regarding their activities in Samoa and how the REEP can cooperate and complement their work. 7. Project development 213. A major goal of the REEP is to prepare at least one project proposal for renewable energy and one project proposal for energy efficiency that has strong support by stakeholders and which can serve as a replicable model for further development. In Samoa, the EPC and the MOF are the primary implementers of renewable energy and energy efficiency programs and any project development by the REEP had to be appropriate to their capacity and needs. 214. In Samoa, there were several months of delay in the progress of the REEP due to the need to change the top priority project design from biomass gasification technology to biofuel. This was because the team determined late in 2004 that the gasification technology being proposed was not fully commercialized and also that the cost of electricity using that technology would likely be substantially higher than that of existing diesel generation or power development using biofuel. 215. Projects developed and proposed below have all been approved and prioritized by the Steering Committee. 39 8. Priority 1 - Renewable Energy: EPC generation using biofuel and biomass a. Project concept and objectives 216. The concept of the project is to provide new power generating capacity using locally produced biofuel derived from coconuts to reduce poverty and accelerate rural development. The objectives are: (i) provide 3MW of new capacity for EPC and (ii) replace imported diesel fuel with biofuel to provide increased energy production without a corresponding increase in greenhouse gas production. b. Project background 217. As with most of the more developed PICs, the coconut industry in Samoa has been in trouble for many years for a number of reasons but mainly because the expected hourly income for rural workers has risen above the world market price of copra making its production less attractive to farmers. The Government of Samoa has placed the rehabilitation of the coconut industry as a priority activity to make better use of the existing massive investment in coconut trees and to increase the income generation possibilities of rural Samoans. The concept of using coconut oil as a replacement for diesel fuel has been considered for several decades, and was actually used for a short time in the 1980s by EPC during periods of diesel fuel shortages and high prices, but in general the cost of production of a liter of coconut oil suitable for engine use has, until recently, been significantly higher than the cost of imported diesel fuel. The petroleum product price hikes in 2004 and 2005 have now made it possible for coconut oil to be directly competitive with imported diesel fuel provided a high efficiency process is used for oil production. 218. Clearly the two key issues for successful use of coconut oil by EPC as a diesel substitute are (i) that there has to be a confirmed and reliable supply of coconut oil of an acceptable quality and (ii) that the biofuel price is acceptable when compared with imported diesel fuel. Therefore the project design must address these issues for the results to be applicable. 219. Discussions with Ministry of Agriculture personnel working toward coconut industry rehabilitation indicate that the low utilization of the coconut resource has several reasons. Important ones are: • The work of extracting coconut meat and drying it into copra is boring, low skill labor and the amount of money that can be offered for preparing copra provides an hourly wage few persons in Samoa are willing to accept. • Payment for copra is not made upon delivery and copra providers often have a long wait to get their money. • A significant portion of the coconut resource in Samoa has reached an age where productivity is falling. The cost of replacement of these senile trees is not viewed as profitable for copra producers under present market conditions. 220. For biofuel use, another issue is quality control of the end product whether the coconut oil is to be used directly as a diesel replacement, blended with diesel fuel or esterified. The quality of the oil is directly affected by the processes of drying the coconut meat and storage of the resulting copra. Individual small scale producers have not provided consistent copra quality because of poor control of the drying process and poor 40 storage methods. As a result it has proven difficult for the Samoa oil mill (now closed) to maintain a consistent oil quality. 221. A major concern of EPC is the long term price of the coconut oil and the reliability of the supply of coconuts. In particular there is a concern that once EPC becomes a major coconut buyer, local producers will raise the price of nuts both due to market pressures brought about by the dramatically increased market provided by EPC and due to the perception that EPC has “deep pockets” and once it has made a major investment in coconut oil based generation, EPC will have to pay whatever farmers ask. 222. Reliability of supply is an issue related to competition for the resource – in particular, the desiccated coconut production facility is hoped to expand demand rapidly as overseas markets are developed – and to loss of coconut production for months due to damage to coconut trees by tropical cyclones. i. Sizing 223. The peak power to be available from the generation facility is to be at least 3 MW upon completion. This capacity is consistent with the forecast requirements and the location of the power plant. Using the assumptions in Table 9, the facility will require around 900,000 coconuts a week (47,000,000 nuts a year) if the fuel is made 100% from coconut oil and is not to be a blend of coconut oil and diesel fuel. Table 9 – Operational Characteristic Assumptions Value 3.8 3.0 70% 2.1 18,000 4,800,000 10 Units Characteristic kWh/liter MW Percent MW MWhr/year Liters/year Whole nuts ii. Generator Efficiency Peak capacity Average load percentage Average power level Annual Production – constant average load Annual fuel requirement For 1 liter of coconut oil Coconut supply 224. To address the supply issues, it is proposed that the EPC purchase whole nuts, paying on delivery, and control the entire process of extraction of coconut meat, drying it into copra and pressing the copra into oil. This is expected to make the labor more acceptable since only collection of whole nuts would be required, not the considerable work involved with producing copra. Further, quality control of the oil production process would be much easier since the entire process would be under EPC direct control. With the large volume of nuts to be processed, mechanization of the copra preparation process is possible which will improve the possibilities for quality control and further reduce the labor intensive components of oil production. 225. The main disadvantage of using whole nuts by EPC is the problem of transport. Whole nuts are much bulkier than copra and transport logistics will be a major issue when over 100,000 nuts must be processed each day. The project will propose to site the EPC facility within the Government owned Samoa Trust Estates Corporation (STEC) coconut plantation and for STEC to provide all coconuts needed under long term contract. That will make transport of coconuts to the processing facility less than 1 km without using public roads making it practical to use specialized transport equipment that 41 cannot be operated on public roads (e.g. trailer trains). For shorter distances very energy efficient conveyors can be used for moving the coconuts to the processing site. Also locating the power plant within the plantation will provide a permanent sound and visual buffer zone around the plant that cannot be developed for residences or tourist facilities. 226. The STEC coconut plantation, located adjacent to the International Airport and to the new Aggie Grey’s Resort, has approximately 7,000 ha of land area of which less than 2,000 is currently being even minimally harvested. Using the theoretical production assumptions used to prepare Table 10, the STEC facility has a maximum production capacity of nearly three times the production needed to meet the 3MW project goal though in practice the actual production is unlikely to ever be more than half the theoretical maximum unless a major replanting program is undertaken. The 45 nuts per tree per year production estimates are based on Samoa Tall type trees, some hybrid varieties can produce more than 150 nuts per Table 10 - Theoretical Production by year though with a lower yield of oil per nut. STECA 227. The current low production at STEC, less Quantity Units than 5,000,000 nuts a year, is due to a weak 7,000 Ha available market for copra that has allowed only a fraction 80% % useable for trees of the plantation, around 2000 ha, to remain in 5,600 Total ha for trees production. STEC management estimates that 520 Trees/ha with no investment in renovation, the facility 2,912,000 Total trees could deliver only around 15,000,000 nuts a 45 nuts per tree/yr year, sufficient to cover about a third of the needs of the proposed EPC plant. Much of the 131,040,000 Total nuts/yr problem is that heavy ground cover has grown over most of the plantation and that means missing many coconuts during the walk through for picking up nuts. In those parts of the plantation not currently active, uncontrolled vegetation growth has reached almost jungle conditions. Also replanting has not been carried out in much of the plantation so there is a significant percentage of trees that are senile or approaching senility. Major rehabilitation of the STEC facility, particularly clearing of ground cover, “volunteer” trees and heavy underbrush, will be necessary to meet production requirements for EPC generation. Planned replanting will also be necessary for reliable long term production. Therefore the project will need to include loan funding to Samoa for STEC rehabilitation concentrating initially on the areas where replanting is not yet needed since that will allow an immediate increase in production. Roughly 3,000 ha of fully productive plantation populated by Samoa Tall trees would be the minimum needed to reliably provide sufficient fuel for the full 3 MW of capacity desired. 228. Because it will take several years to bring the STEC capacity to that needed to fully supply the required number of coconuts, it is anticipated that the power plant will initially operated with a blend of coconut oil and diesel fuel with the percentage of the blend being coconut oil increasing as STEC productivity increases. By the end of three years of operation, the facility should be running on 100% coconut oil. By using a modular design for the coconut processing components, investment in coconut processing equipment can be staged to coincide with increased production needs. iii. Waste processing 229. The bulk of the coconut consists of husk and shell. With nearly a million nuts per week being processed, waste material will be generated on the order of 1,000 metric tons per week. The large volume of waste makes it practical to burn the husk and shell 42 residue in an efficient boiler and to dry the coconut meat under controlled heat conditions using heat from a combination of exhaust heat from the burner, exhaust heat from the diesel engines and steam heat from the boiler. Initial indications are that there will be a substantial heat surplus that can be used for further power production using a steam turbine in the order of 500 kW or more at full production. 230. For years to come, the rehabilitation of the STEC plantation will yield large quantities of biomass in the form of senile trees, underbrush and other trees that have grown to maturity in the plantation area. That biomass can be added to the processing waste to provide additional biomass for combustion and steam generation. Estimates of the volume of this secondary biomass source and its heat content are not available but indications are that at least another continuous 500 kW of capacity can be provided from this source for sufficient time to make it economically reasonable to increase the electrical generation capacity to one megawatt or more. This option should also be considered in the final project design. 231. It is noted that coconut shells are an excellent source of activated charcoal for the purification of water and air, coconut husks can be converted into geotextiles (biodegradable mats to limit erosion of soil in new construction areas until ground cover vegetation is mature) or other woven products or ground into mulch. Portions of senile coconut trees can be used for lumber that can be used for construction or high quality furniture production. These uses of by-products of the copra producing process should be investigated as alternate economic inputs to EPC/STEC during the feasibility study. 232. The material that remains after pressing oil from copra has a ready market as animal feed and its sale can also help offset the cost of oil production. Whether the Samoa market can absorb the quantity that will be produced has yet to be fully evaluated, however. iv. Type of fuel 233. Three types of fuel could be produced under this project, (1) coconut oil filtered and lightly processed; (2) coconut oil blended with diesel fuel; and (3) coconut oil chemically modified as a methyl or ethyl ester which closely emulates the characteristics of diesel fuel. 234. Any of the three types of fuel could be produced under this project concept, (1) coconut oil filtered and lightly processed; (2) coconut oil blended with diesel fuel; and (3) coconut oil chemically modified as a methyl or ethyl ester which closely emulates the characteristics of diesel fuel. Each type of coconut oil based fuel has advantages and disadvantages that will need to be weighed in the feasibility study before a final decision is made regarding the fuel production process that is finally used. 235. Sustainability and flexibility are both requirements for long term success. Sustainability depends largely on the ability of EPC to manage the interlocking processes of obtaining sufficient nuts, processing the nuts into oil, managing the waste products and maintaining all the equipment. Flexibility is required because the project is moving into operational areas not yet tried in the Pacific and it is likely that improved efficiency of operation will be possible through operational changes after sufficient experience is gained in project operation. 236. In general, the simpler the overall process, the more likely it is that maintenance can be handled in a developing country context and the easier it will be to make changes to the process to take advantage of operating experience for efficiency improvements. Therefore emphasis on project design should be for maximum simplicity, minimal 43 dependence on high technology and be of modular construction to provide physical and management flexibility. 237. Another characteristic of the project that is important is expandability and replicability. If the project is successful and coconut production rises due to increased interest by farmers in rehabilitating plantations, expanding the facility would be reasonable. Being able to replicate the project in other countries of the Pacific will also be an important project characteristic under the REEP. v. Possible equipment suppliers 238. Although coconut oil has long been known to be practical as a replacement for diesel fuel, manufacturers of engines have only recently begun to offer fully warranted engines intended for the use of 100% coconut oil as a fuel. The REEP team located two manufacturers who indicated that they could provide the necessary 3MW of generation capacity with engines that would be fully warranted for coconut oil fuel. Suppliers of other components needed for the facility were also located. Table 11 lists those suppliers. Table 11 – Suppliers of equipment for use in the 3MW coconut oil fuelled power development project Coconut Oil Fuelled Engine Manufacturers Company Address ENERGIE RELAIS WARTSILA Company DE ROSEDOWNS SMET MECANIQUE MODERNE Company ETP Contact person Rue Denis Papin Mr. J. Bigot Parc industriel 28639 Gellainville France Les collines de l’arche Mr. A. Gouet Immeuble Opera E 92057 PARIS La Defense cedex FRANCE Coconut oil expelling equipment Address Contact person Cannon Street E. Yorkshire HU2OAD UK Mr. Barker ZAC Artoipole BP 42015 62060 ARRAS cedex 09 France Mr. J.P.Vasseur Contact information Ph:33.2.37.30.70.30 Fax:33.2.37.30.00.39 [email protected] Ph:33.1.47.76.89.37 Fax:33.1.47.76.89.21 [email protected] Contact information Tel: 44.1482.329864 Fax: 44.1382.325887 [email protected] om Tel:33.3.21.55.36.00 Fax:33.3.21.24.04.34 Filtration and Conditioning Units for Coconut Oil use as Address Contact person Centre d’innovation Mr. P. Bourgeois 14-16 rue Léonard de Vinci 45074 ORLEANS cedex 2 France Company METHOD MACHINE WORKS Fuel Contact information Tel: 33.4.99.62.00.96 Fax: 33.4.99.62.00.97 Coconut Dehusking and Deshelling Machines Address Contact person Contact information Level 26, Menara IMC N/A Tel: 60.3.2039.4763 NO. 8 JALAN SULTAN Fax: 60.3.2031.8359 ISMAIL Email: Kuala Lumpur 50250 [email protected] Malaysia m 44 vi. Private Investment possibilities 239. The possibility of local private sector investment in all or part of the coconut oil fuelled power development project, possibly combined with ADB equity was proposed. The lack of prior experience by EPC, the relatively large size of the investment relative to Samoa’s private investment capacity, the availability of higher return investments in the rapidly expanding tourism industry, and the lack of experience with private power development in Samoa all combine to make it unlikely that the power plant can be privately financed. However, the coconut processing component may be possible for private investment. EPC has already agreed to having a private contractor operate the coconut processing facility under EPC oversight and the level of investment for the processing facility is probably within the capacity of local investors, particularly if ADB equity investment funds are included. Additionally there is considerable local experience with coconut processing industries. This possibility should be further developed by the feasibility study. The investment would probably not be large and secure enough or provide a high enough rate of return to attract foreign investors, however. c. Project preparation 240. Due to the overlapping of a number of activities and technical requirements and the fact that both projects are under EPC, the proposed feasibility study for the EPC Biofueled Power Development Feasibility and Design study is proposed to be combined with the Upolu Hydro Development Prefeasibility/Feasibility Study into one Technical Assistance Project. 241. The study will be carried out in two phases. Phase 1 will: (i) include a review of relevant studies on power supply and demand on Upolu and of the state of the coconut industry and the coconut resource with special focus on STEC; (ii) in consultation with stakeholders create a conceptual design for the least cost/benefit ratio 3 MW coconut oil fuelled base load power development scheme for Upolu that includes sufficient whole coconut processing capacity to provide 100% of the fuel needs for the power plant and sufficient fuel storage to avoid shortages due to adverse weather slowing fuel production; (iii) undertake a detailed socioeconomic survey and environmental impact assessment (EIA) in accordance with the requirements of local regulations, ADB safeguard policies and those of other external funding agencies likely to be approached for funding; (iv) review assessments of the coconut resource at STEC and determine the economic and physical feasibility of rehabilitating the plantation sufficiently to ensure the production of sufficient coconuts to provide all fuel for the 3 MW base load power plant on a continuing basis; (v) assess existing institutional arrangements for power generation and delivery in Samoa and develop an institutional structure for the proposed coconut processing and power generation facility that draws on the strengths of both the public and the private sectors while being technically, socially and economically optimized for the operation and maintenance of the coconut oil fuelled power generation system; and (vi) assess and identify a financing scheme suitable for STEC, EPC, Samoa Government, ADB and other funding sources. 242. Based on the results of Phase 1, Phase 2 will include: (i) preparation of an engineering design for the complete power generation facility including generation, connection to the existing grid and the facilities needed to produce the required quantity of coconut oil suitable for engine fuel using whole coconuts as the raw material; (ii) preparation of a rehabilitation and investment plan for the STEC plantation to bring production to the level required for the continuous operation of the 3 MW power plant on coconut oil fuel; (iii) preparation of a coconut collection and transport plan addressing the 45 logistics of nut collection and delivery to the processing site including plans for any road or other infrastructure development needed on the STEC plantation to support the collection and delivery plan; (iv) detailed development of an institutional structure for the entire facility that optimizes inputs from the public and the private sectors; (iv) preparation of a business plan for any private partners; and (v) preparation of documents needed for project financing. 243. The TA (combined for both the 3MW biofuel power development and the Upolu hydro development studies) is estimated to cost US$781,000 equivalent, with a foreign exchange cost of US$582,000 and a local currency cost of US$199,000 equivalent. The biofuel project is approximately 60 percent of the total TA cost. 244. The MOF will be the executing agency and EPC will be the implementing agency of the TA. The EPC and the MOF will arrange for local support and help ensure adequate cooperation from the Government and non-government organizations as well as villages in the project area. 245. The TA will be implemented over a period of 8 months. Within 5 months after commencement of the TA, the consultants will submit a draft final report for Phase 1 of the biofuel power development component including the feasibility study report, environmental impact assessment reports, and land acquisition and resettlement plan (LARP). If Phase 1 results indicate project viability, Phase 2 will commence and 8 months following initiation of the TA the consultants will submit an engineering design report for review. i. 246. TA funding As of early 2006, no funding had been located for the project. 46 9. Priority 2 Renewable Energy: hydro-electric development for Upolu a. Project concept and objectives 247. Hydro-electric development for Upolu is a high priority for the EPC as their load grows and the percentage of generation from high cost diesel increases. The objectives of the project are to determine the feasibility of supplying additional energy from hydro power on Upolu. Developing hydro power on Upolu is an activity that is consistent with the REEP objectives of increased renewable energy use and rural development. b. Project location 248. A review of the 1997 Hydro-Electric Commission Enterprises Corporation (HECEC) study and the 2003 Japan International Cooperation Agency (JICA) study show that there are three potential sites on Upolu: Lotofaga, Tatifoala and Namo village areas. A visit to the site of Lotofaga was done on March 12, 2005 by a REEP consultant along with the EPC Engineering Manager and members of his staff. Included also was the Fichtner consultant (Mr. Hubert Hildebrand) who was then carrying out the feasibility study of the Savai'i hydro project. 249. After a few hundred meters of walking up the Leafe river it was obvious that the preliminary designs presented in the JICA study were based on desk studies and had not been assessed on the field. With the JICA recommended site, a project would be very difficult to achieve technically as there are very steep slopes where the penstock was to be located and the site is inaccessible by truck. The implementations proposed by the HECEC study were much more remote and not accessible to the REEP team without a much longer preparation time. 250. It is clear that the existing documentation is inadequate to justify proceeding with a full feasibility study. Therefore it was proposed to EPC that the REEP developed TA project have two components, a more complete prefeasibility study and then a feasibility study covering the site determined as most appropriate from the results of the prefeasibility study. The General Manager and the Engineering manager of EPC approved the concept that the TA should consist of two phases: ! Phase 1: Complete the prefeasibility studies for the areas near Lotofaga, Tatifoala and Namo villages, including new on site data collection, technical implementation and design estimates, environmental impact assessment and social assessment ! Phase 2: Complete a feasibility study of the best of the 3 schemes as determined by the prefeasibility study. In addition, new measuring equipment would be provided to EPC and/or Apia Observatory to support their monitoring activities. ! A Phase 3 is proposed by the REEP team to prepare the actual engineering design should the feasibility study indicate that the project should proceed. This is proposed because the personnel needed to do the engineering design will be on site for the feasibility study and the design can therefore be done at considerable cost savings when compared to a stand-alone design consultancy. 47 Figure 5 – Lotofaga site proposed by the JICA study 251. Also, because many of the same skills are needed for the feasibility study for the 3 MW biofueled power development for EPC, it is proposed that the two feasibility studies be combined into one renewable energy power development TA for EPC. 252. No realistic estimates of the site’s power producing potential can be made without further study though it is known that the resource is seasonal (as with other Samoa hydro development) and adding the site to the Upolu generation mix will not significantly offset the firm capacity requirements of the EPC as the project will not include water impoundment. Its economics will be primarily dependent on the cost of the diesel fuel that it can replace. c. Project Preparation 253. The study will be carried out in three phases. Phase 1 will: (i) ensure that a reasonable power development strategy and a lowest cost/benefit ratio option is followed that will maximize economic, social and poverty reduction impacts; (ii) review the HECEC and JICA studies of the proposed sites and all available background data on 48 their topography, hydrology and geology; (iii) visit the Lotofaga, Tatifoala and Namo river sites and prepare concept designs for the sites that are technically developable; (iv) prepare estimates of the cost of construction including access development, annual energy production and peak power capacity for each of the sites; and (v) prepare a report of the findings and rank the sites as to their appropriateness for development. 254. 14. Phase 2 will: (vi) in consultation with stakeholders, determine the lowest cost/benefit ratio hydropower development site among the technically developable sites; (vii) assess existing institutional arrangements and identify measures to enhance project management and lower future risk; and (viii) assess and identify a financing scheme suitable for the EPC, Government, ADB and other funding sources. 255. 15. Based on the results of Phase 2, Phase 3 will prepare the feasibility study for the hydropower site considered by the prefeasibility study as most suitable for development. The study includes: (ix) preparation of an engineering design of the most economically attractive of the small scale hydropower sites; (x) undertaking a detailed socio-economic survey, environmental impact assessment, and land acquisition and resettlement plan in accordance with requirements of local regulations, ADB safeguard policies and other external funding agencies; (xi) assessing the highest priority components of the project for ADB financing; (xii) preparation of a project design document for Clean Development Mechanism (CDM) approval; (xiii) development of economic, financial, cash flow and power production projections for 15 years; and (xiv) preparation of documents needed in project financing. 256. The TA (combined for both the 3MW biofuel power development and the Upolu hydro development studies) is estimated to cost US$781,000 equivalent, with a foreign exchange cost of US$582,000 and a local currency cost of US$199,000 equivalent. 257. The MOF will be the executing agency and EPC will be the implementing agency of the TA. The EPC and the MOF will arrange for local support and help ensure adequate cooperation from the Government and non-government organizations as well as villages in the project area. 258. For the hydro development component, within 3 months after commencement of the TA, a draft prefeasibility report will be submitted. Within 7 months after TA commencement a draft feasibility report will be submitted for review. If the project is not considered feasible, the draft feasibility report will be considered the draft final report. If it is considered feasible, the engineering design report will be submitted 9 months after commencement of the TA. i. 259. TA funding As of early 2006, no funding had been located for the project. 49 IV. SUB-REGIONAL PROJECT IN ENERGY EFFICIENCY (FIJI AND SAMOA) A. Project Concept and Objectives 260. The concept of this project is to develop a private sector capability for the design and implementation of electrical energy efficiency improvements in the industrial, commercial and government sectors. The objective is to improve the efficiency of energy use with the long term goal of reduction of fossil fuel dependence and to help reduce the rate of growth of the generation of greenhouse gases in Samoa and Fiji. B. Project Background 261. It has been recognized for decades that significant improvements in the efficiency of energy use are possible in the PICs. Practical energy efficiency savings estimates for individual PICs ranging from 4% to 30% of total energy use were cited by the PIREP reports in 20046. The overall potential for total energy saving in the Pacific sub-region through efficiency measures averaged approximately 10% with Fiji at 4% and Samoa at 13%. These figures are considered conservative since: (i) they do not represent maximum possible energy efficiency improvements but rather easy energy savings that have a high rate of return and are technically practical with technologies and human resources available in the Pacific; and (iii) energy efficiency opportunities were only considered after renewable energy opportunities had been assessed. (ii) the percentages are based on total energy use, which includes traditional biomass. The Fiji figure is particularly low because the indigenous use of biomass for cooking is a major energy use that has proven to be very difficult to reduce through efficiency improvement programs. When only electricity use is considered, opportunities for electricity use efficiency improvements, in terms of percentage of usage reduction, are expected to be far greater than that when considering all energy sources. 262. Though Fiji and Samoa have not had surveys of the industrial/commercial sector in recent years, the growth rate of tourism exceeds overall economic growth in both economies. That implies that there is a significant and increasing market for energy efficiency improvement services in air conditioning, lighting, water heating and support services, all of which are heavily used by the tourist industry. 263. Government has buildings and pumping stations on their lists of top users of electricity by the government sector in both Fiji and Samoa. In Samoa, church facilities are among the “top 20” electrical energy users. Banks are in the Fiji “top 40” users list. Fiji includes some industrial users among the top 40, though commercial and government users dominate electrical energy use. Samoa has few industries so commercial and government users are expected to be the primary target for energy efficiency efforts. Both Fiji and Samoa are likely to have the greatest need for energy efficiency services in commercial and government facilities, mostly relating to energy efficiency improvements in buildings, though in Fiji there will also be some need for industrial energy efficiency services. 264. A number of small national and regional projects have addressed energy efficiency through the provision of energy audits for government, commercial and industrial energy users and through limited public information efforts. Unfortunately, the effect of these programs has been small and the energy savings that did result often disappeared after a few years. A number of reasons have been cited: 6 PNG was not included due to lack of energy use data. 50 • The cost of energy for most commercial and industrial businesses of the types found in Samoa and Fiji is typically less than 15% of the total cost of operations; therefore improving energy efficiency has a lower priority than reducing costs in other areas of the business. In mining, cement production and steel processing activities in Fiji energy is a significant cost and there have been investments in energy efficiency improvements though further investment may well be needed. • The technical competence of most businesses does not include the installation, operation and maintenance of energy saving equipment; therefore the equipment is often operated incorrectly, maintained poorly and not replaced when worn out. • Government polices and incentives for tourism and other business investments do not include any provisions that encourage energy efficiency or discourage energy waste. • Programs carried out by a utility or a Government energy office have limited capacity and can reach only a few energy users. • Businesses are reluctant to make major investments in energy efficiency improvements without assurance that they will indeed save the amounts projected by the energy audits. • Once installed, energy efficiency savings need to be monitored to ensure that efficiency improvements are being maintained. Programs have not included any long term follow-up and monitoring. • The small size and isolation of PICs and the generally small size of local businesses prevents international energy service companies from entering the local market for any but the largest projects. • Lending institutions are not familiar with financing energy efficiency improvement equipment and may refuse finance or offer finance on unfavorable terms due to the unknown risks. • Utility and Government programs have limited lifetimes and once the programs are ended, the public information programs and implementation programs also stop. 265. The REEP team and the Steering Committees have considered various approaches to overcome these problems and have concluded that the development of independent, private Energy Efficiency Service Companies (EESCOs) that address energy efficiency issues for commercial, industrial and government clients have the greatest potential for developing long term energy efficiency improvements in Fiji and Samoa. The characteristics of energy efficiency processes carried out by an EESCO include: • Clients receive an energy audit and recommendations regarding the scope and type of investment needed to provide cost reduction benefits through energy efficiency measures. • The EESCO works with a funding institution that has experience and knowledge regarding finance of energy efficiency investments to obtain finance for the investment at good terms, typically with periodic payments lower than the savings projected to be provided by the investment. 51 • In association with the client’s technical staff, the EESCO implements the energy efficiency measures with an independent body (typically the utility) providing a “before” and “after” measurement of energy use of the process being improved to ensure that the projected savings actually occur.. If not, then payments are adjusted to fit the actual savings with a performance guarantee fund covering part of any extra interest cost and added finance costs with the EESCO paying the rest. • The EESCO works with the client to monitor and maintain the energy efficiency improvement over time. • The amount of payment to the EESCO for its services is contingent on clients receiving energy efficiency improvements at the cost calculated by the EESCO. • An EESCO has a strong incentive to continually provide public information about energy efficiency improvements as part of its marketing efforts. 266. In both Fiji and Samoa, energy costs are high and the utilities are having problems developing capacity to meet the growing electrical loads. It is clear that to mobilize sufficient effort for the large-scale energy efficiency improvements that are needed and justified economically and financially, the limited utility and government staff available for energy efficiency improvements are inadequate. The private sector will need to be directly involved in energy auditing and assisting companies in determining the best investments for improving energy efficiency. Therefore, the Steering Committees of both Samoa and Fiji have positioned the development of Energy Efficiency Service Companies as the top priority for REEP energy efficiency development. Through this process it is intended that a number of benefits would accrue including: • slowing the growth of diesel fuel imports and the related economic and political burden, • delaying or reducing the need for increased investment in generation, • developing existing and creating new local, technical businesses and financial services, • improving the profitability of local companies through more efficient use of resources, • reducing the environmental impacts of energy use, in particular local pollutants and GHG emissions, and • over time, including the provision of energy efficiency services to smaller neighboring countries that could not afford to develop such services themselves. 267. Since both Fiji and Samoa have requested that essentially the same concept be developed as a priority for energy efficiency improvement, development of a subregional project that can support the private development of EESCOs in both Fiji and Samoa is proposed for funding. This allows the consolidation of finance, capacity building and other components resulting in more efficient use of funds and lower per country program costs than required by development of individual programs for Fiji and Samoa. Establishing the program for the sub-region also will make it much easier to expand to other countries if the concept proves a success in Samoa and Fiji. 52 C. Project proponents 1. Fiji 268. The relatively large size of Fiji and the presence of several fairly large (by Pacific standards) businesses and industries has allowed the development of a number of local engineering and technical support companies in Fiji. Table 12 summarizes those companies and individuals who have been interviewed by members of the REEP team and who have expressed an interest in establishing EESCO operations. A few of these companies have provided energy audits to clients and have assisted clients in selecting, installing and establishing maintenance arrangements for equipment to improve energy efficiency in the client’s business operations. However, none have yet developed a full measure of services specifically oriented toward energy efficiency improvement for their clients. 269. This is not an exhaustive list as it only identifies companies with offices in Suva though that is where the bulk of the energy efficiency improvement opportunities lie. It is expected that several companies or individuals in other areas of Viti Levu and in Vanua Levu may also be interested in developing an EESCO capacity if the business can be shown have a likelihood of being profitable. 270. The Chairman of the FEA Board indicated to the team that some thought has been given to establishing an EESCO subsidiary of FEA. For the short term, this does not appear likely since energy efficiency development activity at FEA is clearly very low in priority with only one junior staff person and a JICA volunteer assigned to the task and no working funds dedicated for future EE development. Table 12 – Fiji Businesses and Individuals with EESCO Interests Maurice Ruggiero, Managing Director, Tritech Consulting 152 Ragg Avenue; 332 2503 [email protected] Bruce Clay, Managing Director, Clay Engineering PO Box 2395, Govt Bldgs, Suva Tel: 336 3880 ; [email protected] George Peterson & Warren Yee , Partners, 19 Domain Road; 330 2619 [email protected] Irwin Alsop Consulting Engineers Robert Pole, President, Fiji Institute of Engineers Ian MaCallan Engineering Consultants; 340 Waimanu Road (near main Suva hospital) Tel: 3313388 [email protected] Robin Palmer, Managing Director, Ian MaCallan Ian MaCallan Engineering Consultants; 340 Waimanu Road Engineering Consultants Tel: 3313388 [email protected] Mr. Peni Drodrolagi, Managing Director, Tel: 9920 504; [email protected] Clean Energy, Fiji Ltd. Mr. Amit Prakash, Tel: 331 5770 [email protected] Sinclair Knight Merz Engineering (SKM) Mr. Jitendra Mehta, Managing Director, Poly Products PO Box 5171 Raiwaqa; Tel: 338 5544 [email protected] Mr. Tony Sansom, Sansom Design Architecture 17 Naimawi Street, Lami; [email protected] Phone: 359 0025; mobile: 9922120 Fiji Electricity Authority 2. Samoa 271. The Team was unable to identify any existing technical companies that are presently engaged in energy auditing and energy efficiency activities. However, several individuals and one local consulting firm have indicated an interest in establishing an EESCO capacity and, if appropriate support mechanisms and incentives are developed for Samoa, establishing a small business or developing an existing business that includes EESCO operations. 53 272. The Team also held discussions with several larger businesses in Samoa and all agree that they would welcome the services of an EESCO to help lower operating costs. In February, 2005, a team member presented a talk to the Samoa Association of Engineers about energy efficiency and EESCO type operations and the response was favorable. 273. Since the opportunities for EESCO type work in Samoa are much more limited than in Fiji, developing businesses that specialize in EESCO operations will require more external inputs for capacity building and Government will need to provide a favorable environment for EESCO operation, for example through financial incentives, and – as the largest sectoral user of electricity – by itself accepting EESCO services to improve Government’s own efficiency of electrical energy use. D. Project Activities 274. For this concept to work, there are seven important factors that need to be present. There must be: 1. a market for the services sufficiently large to justify the private development of EESCOs. 2. local individuals willing to attain the necessary level of technical skill and then develop an existing business or form a new business that can act as an EESCO; 3. an easily accessible and cost effective means of obtaining the necessary skills; 4. availability of acceptably priced finance for the implementation of energy efficiency measures; 5. the presence of a performance guarantee mechanism external to the EESCO to provide confidence to customers that the projected savings will be met; 6. an independent agency to determine the actual benefits provided by energy efficiency measures and a clear, generally accepted methodology for that determination; 7. strong support within the government and the utility to support EESCO business development through complementary programs such as financial incentives, marketing of energy efficiency measures, public information, etc. 275. In both Fiji and Samoa all these factors need further development though Samoa is much weaker than Fiji in terms of local technical capacity and market. 1. Capacity development 276. With the possible exception of a small number of Fiji Engineering firms that have experience with energy auditing and the installation of energy efficiency improvement measures for their clients, a well developed training program will be needed to upgrade the capacity of interested companies and individuals to competently provide EESCO services in both Fiji and Samoa. 277. Although the Fiji Institute of Technology (FIT) has an introductory module on energy audits in its electrical training program, the module is not sufficiently specialized or advanced enough to provide the level of training needed. There is no energy efficiency training provided in Samoa though Samoa Polytechnic does have an electrical program that could incorporate such training. 278. The proposed project therefore includes the provision of a training program for Fiji and Samoa by an outside agency, such as the International Institute for Energy Conservation (IIEC) or another organization that has an appropriate EE training capacity. The external agency would be expected to identify and train EESCO 54 candidates and assist Fiji training institutions (FIT and/or TPAF) and, if there is sufficient interest the Institute of Technology in Samoa, in developing an ongoing training program for energy auditing and the development of energy efficiency improvement measures. 279. The Governments of Fiji and Samoa would be expected to provide participants some “hands on” experience through the development of energy efficiency improvements for selected Government facilities by participants while still under the supervision of the trainers. 280. Since the cost of bringing Samoa trainees to Fiji is likely to be greater than the cost of bringing trainers to Samoa, separate training programs for Fiji and Samoa are proposed. This also allows trainers to focus on the specific problems of each country in the training process and for the “hands on” component to be done in the target country. 281. It is recognized that no training program can cover all the aspects of EESCO technical operations and support from external experts will be needed for at least the initial years of program operation. Although much of this external expert support can be provided through electronic communications, at least once per year for the first three years of program operation, a visit by an external expert to both Samoa and Fiji is proposed. This visit would be to upgrade training for both EESCOs and training institution instructors and to review the prior year’s operations by EESCOs, help them evaluate their work and propose improvements in their work processes. 2. Implementation loan guarantee 282. Readily available finance at acceptable terms will be needed in both Fiji and Samoa. Discussions with existing commercial lending institutions indicate that those institutions have little experience with the finance of energy efficiency improvements and have little concept of the relative risks involved. As a result, loans for energy efficiency improvements can be expected to have more strict collateral requirements, higher interest rates and generally poorer terms than those offered for more common commercial investments. 283. To reduce this barrier, the proposed project would take two actions: (1) as part of the capacity building process, local lending institutions would be provided training in the basics of energy efficiency investments and in evaluating the risks of those investments, and (2) a loan guarantee fund for energy efficiency investments would be established that would act to reduce the risk of energy efficiency finance. The loan guarantee fund would be intended to lower the perceived finance risk for energy efficiency investments and provide incentives for local financial institutions to gain experience in EE investment. The fund would be fully in place for three years and slowly phased out over the 4th through 8th year after program commencement. 284. This fund would be managed through a contract with a single financial institution for both Fiji and Samoa and could be expanded to other countries in the region. 3. Performance guarantee 285. For the EESCO efforts to be accepted, they must be able to guarantee the performance of the proposed energy efficiency investment at least for the period of any loans received for implementation. Since most of the EESCOs will be small businesses and will have very limited resources, they will not be able to provide a performance guarantee that clients are likely to consider credible. To increase the confidence of clients, an externally managed performance guarantee fund would be established to supplement the resources of the EESCOs in the case of an installation failing to meet 55 contracted savings and implementation costs. The presence of this fund would also help encourage the development of EESCOs since their payment is to be dependent on performance. 286. Should performance be lower than contracted, the performance guarantee fund would pay part of the difference between the contracted amount and the measured amount. The EESCOs would lose the income not covered by the performance guarantee. Initially external financial input would be required but EESCOs would be expected to contribute to the fund, based on the size of their project portfolio so that in the long term, the fund would be self-perpetuating. It is proposed that the same financial management firm that handles the loan guarantee fund would manage the performance guarantee fund. 4. Independent auditing of performance 287. Since the EESCO would be paid on the basis of the actual energy savings resulting from a proposed investment, some process that is independent of both the EESCO and the client must be in place for determining the actual savings. For Fiji and Samoa, the FEA and EPC are proposed as the independent auditors of performance for energy efficiency installations as they are the only existing organizations with the necessary skills and facilities. The independent auditor would be expected to monitor the energy usage for a period immediately before and an equivalent period immediately after the installation and would issue a report that indicates the actual performance of the installation. 288. The methodology to be used would be developed under the project in association with the FEA and EPC and would, where possible, be designed using the experience of other countries with similar performance measurement requirements. Training in the methodology would be provided to FEA and EPC under the project. 5. Government support 289. In the early stages of EESCO development, it will be important that Government provide support through incentives and programs directed to prospective clients (e.g. subsidies for interest charges on EE finance, covering the cost of the utilities providing independent performance measurements, public information services that emphasize EESCO use and energy efficiency in general). Also, as Government in both Fiji and Samoa is a major user of energy and also the owner of companies that are major energy users, a program by Government to use the services of the new EESCOs would provide a strong incentive for companies to start EESCO operations as well as resulting in major energy savings for government and its corporations. E. Project preparation components 290. Although this project concept has been used in other parts of the world, for example in Sri Lanka, India and China, it is new to the Pacific and care must be taken to ensure that the project is designed to best fit the small island context as exists in Fiji and Samoa. All the factors are not yet sufficiently determined to estimate the amount of external funding needed to establish the loan guarantee fund, the performance guarantee fund, provide the needed capacity building and support the availability of external expert assistance during the initial years of operation. However, because the funds strongly leverage external commercial finance, a total initial investment of less than US$2 million is presently anticipated as needed to provide the training, external expert support services and initial fund inputs. 56 291. Using additional information obtained during a September 2005 visit of an International Team member to Samoa and Fiji and building on the information gleaned from the Bangkok 2005 ESCO conference, the team considers the approach to be sufficiently promising to develop a proposal for a TA to complete the feasibility study initiated by the REEP team and to preparing a detailed project design suitable for funding by ADB or another funding agency. 1. Proposed TA activities leading to a project design suitable for funding 292. The assistance will be implemented in two stages. In Stage 1 the TA will prepare an estimate of the market for energy efficiency improvement and a determination of the sector(s) that should be the initial focus of an EESCO-managed energy efficiency improvement program for Fiji and for Samoa and a determination of the feasibility of EESCO-implemented energy efficiency programs for Fiji and Samoa. If considered feasible, Phase 2 will include the preparation of a detailed structural design of an EESCO development project for ADB or another funding agency support. 293. Phase 1, lasting 4 months after commencement, will: (i) review existing and past energy efficiency programs in Fiji and Samoa regarding their scope, structure and effectiveness; (ii) establish a Project Steering Committee in each country that includes representatives from key stakeholders; (iii) consult with the Fiji Electricity Authority (FEA) and other stakeholders to select at least six representative major electrical energy users in each of the government, industrial and commercial sectors; and in Samoa consult with the Electric Power Corporation (EPC) and other stakeholders and select three representative major energy users in each of the same sectors; (iv) through on-site surveys of the representative major energy users, determine their responsiveness to and the probable net benefits of EESCO support for energy auditing, implementation finance, performance guarantees and ongoing contracted services; (v) based on the surveys and discussions with key stakeholders, estimate the percentage savings that can be economically realized in electrical energy for each sector and the cost to achieve that level of savings; (vi) assess the capacity of the private sectors in Fiji and Samoa to develop competent EESCOs, assuming specialist training will be provided under the program; (vii) assess the capacity of the financial institutions in Fiji and Samoa to provide finance of the type needed for implementation of an EESCO program in each country; (viii) assess the capacity needed at SOPAC to manage an EESCO development project that includes provision of training (for prospective EESCOs, FEA, EPC and financial institutions), overseeing the management of a regional EESCO performance guarantee fund and supporting Fiji and Samoa governments in the implementation of any policy, regulatory, monitoring and support structures required under such a project; (viii) determine and prepare specifications for any hardware and software needed to support energy savings calculations and the monitoring of energy savings; and finally (ix) determine the economic, financial and capacity feasibility of development of EESCOs for electrical energy efficiency improvement in Fiji and Samoa. 294. Based on the results of Phase 1, Phase 2, lasting 4 months after completion of Phase 1, will include: (i) the detailed design of an EESCO development project taking into consideration requirements for public and private sector capacity building, regulatory requirements, any needs for legislation, market development needs and requisite financial components; (ii) preparation of an implementation plan for the project; (iii) preparation of a pro-forma business plan for a typical EESCO; and (iv) preparation of documents needed for project financing. 57 a. Cost and Financing 295. The TA is estimated to cost US$615,000 equivalent, with a foreign exchange cost of US$434,000 and a local currency cost of US$181,000 equivalent. b. Implementation Arrangements 296. As the program is sub-regional in nature and only SOPAC has the mandate and capacity to manage and implement a program of this type at the sub-regional level, SOPAC is expected to be the executing and implementing agency of the TA with local support by country contacts determined by SOPAC based on stakeholder consultations. Country contacts are expected to be the Fiji Department of Energy and the Samoa Energy Unit within the Ministry of Finance. 297. The TA will require about 12 person-months of international consultant services composed of an EESCO development specialist (team leader), an economic and financial specialist and a private sector/institutional specialist. Other international and short-term specialists as identified during Project implementation (e.g., fund management specialist, technical trainers, energy use monitoring specialist) may be included. Additionally, local consultants will be hired, equivalent to 3 person-months, consisting of short-term specialists as identified during Project implementation (e.g., information gathering and survey support). TA implementation will be assisted by a team of international and domestic consultants. 298. The TA will be implemented over a period of 9 months. Within 4 months after commencement of Phase 1 of the TA, the consultants will submit a draft final feasibility study report for Phase 1. If the program is considered feasible and there is a Phase 2 under this TA, the TA draft final report will be submitted within 8 months from the commencement of the TA. If Phase 1 efforts determine that the program is not feasible, the draft final feasibility study report will be considered the TA draft final report. 58 V. DISSEMINATION OF RESULTS 299. The REEP team members have disseminated their findings regarding renewable energy and energy efficiency in the Pacific region through: • Preparation of this final report for distribution in the region and for posting on an ADB approved website. • Dissemination of results in Fiji and Samoa through the Steering Committee members to the sectors they represent. Steering Committee meetings were held during each visit of the REEP consultants to Fiji and Samoa. At each meeting detailed findings of the REEP team were presented and discussed. Additionally there were frequent communications between the REEP team members and Steering Committee members during the periods between visits to provide new information or to discuss specific actions needed. • The REEP sponsored a resource person from Europe to support a sub-regional biofuels workshop held in Fiji on 16-17 March 2005. • A REEP team member provided a presentation at the Pacific regional energy officials meeting held in Suva from 8-10 November 2005 • The REEP team provided a two day solar technology course (9-10 February 2006) for trainers at FIT, Fiji DOE, TPAF and CATD (See Appendix 8 for details) • The REEP sponsored and organized a 15 country regional renewable energy and energy efficiency workshop that included presentations by REEP team members on specific findings of the REEP (20-23 February 2006), See Appendix 10 for details). • The REEP sponsored and organized a donor and regional agency meeting where REEP team members provided Pacific regional agency and donor representatives, details of the REEP project proposals (24 February 2006) (See Appendix 10 for details). 59 VI. CONCLUSIONS AND NEXT STEPS A. Attainment of intended outputs from the REEP 300. The intended outputs from the REEP were: (i) review of, consultations on, and dissemination of lessons from past renewable energy and energy efficiency assistance in the Pacific (ii) an action plan for the adoption of appropriate policies, institutional arrangements, legal/regulatory measures, and financial schemes including venture capital, as well as private sector and household-level incentive mechanisms for promoting commercially viable renewable energy and energy efficiency services; (iii) a training needs analysis and training curricula for private and public sector key players in the two PDMCs (iv) a pipeline of projects for funding by ADB, GEF, and/or other relevant financing sources (v) based on outcomes and progress made in the two selected countries, final consultations and dissemination of lessons learned from the TA to other PDMCs with a focus on establishing policy frameworks, building capacity, and replicating/disseminating good practices. 301. The REEP has completed these outputs with the exception of the following items which were prepared under other programs that were functioning at the time of the REEP activity and were therefore not duplicated by REEP: ! Lessons learned regarding renewable energy were reviewed and disseminated in detail through the country and regional reports of the PIREP project of SPREP in 2003-2004. The REEP team provided a review only of energy efficiency projects and lessons learned as those were not included in the PIREP. ! ESCAP prepared and disseminated a detailed analysis of training needs in renewable energy for the Pacific region, including Fiji and Samoa, in 2005 thus the REEP team concentrated only on curriculum reviews and training of trainers in Fiij and Samoa. ! The PIEPSAP project under SOPAC is specifically for energy policy development and both Samoa and Fiji are engaged with that program for the preparation of National Energy Policies and other policy efforts. Therefore the REEP did not include policy and institutional development beyond the narrow areas of energy efficiency development that included Fiji and Samoa energy efficiency action plans and the institutional development for those plans. 302. The REEP went beyond the initial Terms of Reference with regard to project pipeline development in that the requirement was for one renewable energy and one energy efficiency project for each target country. The REEP prepared three renewable energy projects for Fiji (hydro, biofuel and geothermal) and two renewable energy projects for Samoa (biofuel and hydro) and a major sub-regional project for energy efficiency (EESCO development). 303. The REEP also went beyond the Terms of Reference with regards to training and information dissemination in that: 60 ! a two day training of trainers course on solar energy was prepared and delivered to trainers at FIT, TPAF and CATD in Fiji ! The REEP expanded the final workshop beyond just a dissemination of REEP results. A four day renewable energy and energy efficiency workshop attended by 15 Pacific Island nations was sponsored under the REEP with the support of the Technical Centre for Agricultural and Rural Co-operation CTA where the results of the REEP were disseminated as well as providing participants with the most up to date information on renewable energy and energy efficiency applications appropriate to the Pacific region (See Appendix 10 for details). B. Next steps 1. Project pipeline 304. 304. The REEP provided prefeasibility studies for the Fiji and the Samoa biofuel projects and the sub-regional EESCO development project. The next step is a full feasibility study for those projects. Likewise, the promoters of the Namosi hydro project provided a prefeasibility study and the next step for that project is also a full feasibility study. However, the Upolu hydro development and the Viti Levu geothermal development projects both require additional prefeasibility studies before a commitment should be made for the more substantial cost of a full feasibility study for each of those projects. The PIEPSAP project has indicated that it will fund a feasibility study for the Rotuma biofuel project but the other proposed projects do not yet have committed funding for the completion of feasibility studies. The Governments of Fiji and Samoa and the proponents of the projects have been advised that they need to actively pursue the necessary funding for the PPTAs needed to complete the feasibility study phase of project implementation. 2. Policy and institutional development 305. 305. Neither Fiji nor Samoa have yet committed to a National Energy Policy (NEP) though the policies are in the last stages of development. An NEP and the development of a consistent strategy for its implementation are considered vital to the rational development of renewable energy and energy efficiency efforts in the two countries. Additional policy and institutional structures that are needed in the near term for further development of RETs and EETs include: ! IPP policies that favor renewables. The utilities in Fiji and Samoa do not yet have economically rational policies for accepting power from IPPs and are unlikely to develop such policies without government intervention. The development of a policy for Independent Power Producers using renewable energy that reflects the national priorities for renewable energy development and the real marginal, economic cost of new generation by the national utility is essential for the private sector to become fully engaged in the development of renewable energy resources for power production. ! Building codes that include energy efficiency considerations. The rapid increase in the use of air-conditioning in the past 15 years has been a major contributor to increased electrical demand. The existing building codes do not consider energy efficiency and most new office buildings and many tourist facilities are continuing to be built using designs that could have their energy efficiency easily and cost effectively improved through minor design changes 61 before construction but once built, improved energy efficiency will be much more costly to achieve. ! Legislation for renewable energy and energy efficiency regulation. Regulation of imported products with regards to their energy efficiency, particularly of motor vehicles and major electrical appliances, is necessary if efforts at improving the national efficiency of energy use is to be achieved. A legal basis for that regulation is necessary if it is to be consistently applied for the long term and is to be effective. Also, in Fiji if the concept of a Public Private Partnership for rural electrification (through the use of RESCOs) is to be effective, the DOE must have the legislated powers to perform the activities needed to act as the public component of that partnership. Those include the large scale leasing of energy production equipment to the private sector and the regulation of the use of that equipment for the public benefit. ! An updating of the Fiji Rural Energy Policy. The 1993 rural energy policy of the DOE needs to be updated with regards to electrification technology in order to properly reflect the real cost of rural electrification. The existing policy strongly favors diesel based rural electrification for off grid use because the cost to the recipient village for electrification is based on a percentage of the capital cost. Diesel electrification has the lowest capital cost but generally a much higher life cycle cost than renewable energy technologies such as solar PV and village scale hydro power. The policy needs to be redesigned to reflect life cycle cost rather than just capital cost and to better fit national priorities for reducing dependence on fossil fuels and for environmental benefits. ! Better dissemination of renewable energy and energy efficiency project results within the Pacific Region. Renewable energy and energy efficiency projects continue to be designed that use methods and components that have been shown through experience in other Pacific nations to be inappropriate. This appears to be partly due to a lack of a systematic collection and dissemination of information about Pacific renewable energy and energy efficiency projects and partly due to reluctance on the part of project developers to discuss problems with their projects. A consistent process for the evaluation of RET and EET projects in the region and for the dissemination of information about both success and failure modes for those projects would help avoid the repetition of failures and help promote the replication of successes in the region. 62 APPENDICES Appendix 1 Namosi, Naitisiri Hydro Project Prefeasibility Study Appendix 2 Prefeasibility study for the Electrification of Rotuma Based on Locally Produced Coconut Oil Appendix 3 Proposed Energy Efficiency Action Plan for Samoa 2006-2008 Appendix 4 Review of Past and Present Fiji DOE Energy Efficiency Activities and Recommendations for the Future Appendix 5 Survey of Standards and Certification Systems for Energy Efficiency and Renewable Energy Appendix 6 Proposed Standards for RESCO SHS Installation and Maintenance Appendix 7 Proposed Standard Specifications for RESCO managed Solar Home Systems (SHS) Appendix 8 Training Course for Solar Photovoltaics Instructors in Fiji (9-10 February, 2006). Curriculum for Solar PV at FIT (2005) Appendix 9 Facility Requirements for PV Technician Training Appendix 10 Regional Workshop on Renewable Energy and Energy Efficiency, Fiji, 20-24 February, 2006 Appendix 11 Case Studies of Renewable Energy and Energy Efficiency Financial Mechanisms Around the World Appendix 12 Persons Contacted in the Course of REEP Activities Appendix 13 Terms of Reference for the Renewable Energy and Energy Efficiency Program 63 APPENDIX 1 - I APPENDIX 1 NAMOSI, NAITISIRI HYDRO PROJECT PREFEASIBILITY STUDY APPENDIX 1 - I TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................... I PREFEASIBILITY STUDY FOR MINI-HYDRO SCHEMES IN THE NAMOSI AND NAITASIRI PROVINCES IN VITI LEVU AND IN TAVEUNI ISLAND................................................................................................... 1 1. GENERAL ........................................................................................................ 1 1.1. 1.2. 2. BACKGROUND .................................................................................................................... 1 PURPOSE OF THE PRE-FEASIBILITY STUDY.......................................................................... 1 BASIC DATA .................................................................................................... 1 2.1. READILY AVAILABLE HYDROLOGICAL DATA ........................................................................ 1 2.1.1. 2.1.2. DATA RELATED TO VITI LEVU ............................................................................................. 1 DATA RELATED TO TAVEUNI ............................................................................................... 2 2.6.1. 2.6.2. EXISTING .......................................................................................................................... 3 CARRIED OUT DURING THE MISSION .................................................................................... 3 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. 3. PRINCIPLES OF HYDROELECTRIC SCHEMES ........................................................................ 4 GENERATED ENERGY PLACING .......................................................................................... 4 TRANSMISSION LINES ......................................................................................................... 5 PRELIMINARY ECONOMIC EVALUATION ............................................................... 6 4.1. 4.2. 5. GEOLOGICAL DATA ............................................................................................................ 4 HYDROSCHEMES CONSIDERED AT THIS PREFEASIBILITY STAGE ............................ 4 3.1. 3.2. 3.3. 4. HYDROLOGICAL DATA EXISTING AT THE HYDROLOGICAL DEPARTMENT ............................... 2 RUNOFFS AND FLOODS ....................................................................................................... 2 MONTHLY RUNOFFS............................................................................................................ 3 FLOODS ............................................................................................................................. 3 TOPOGRAPHICAL DATA....................................................................................................... 3 UNIT RATES ........................................................................................................................ 6 PRELIMINARY COSTS .......................................................................................................... 6 CONCLUSIONS AND RECOMMENDATIONS ............................................................. 6 DESCRIPTION OF THE HYDROSCHEMES .................................................. 7 WAIROKODRA ............................................................................................... 8 1. HYDROLOGICAL DATA ...................................................................................... 8 1.1. 1.2. 2. 3. 3.1.1. 3.1.2. RUNOFF ............................................................................................................................. 8 FLOODS ............................................................................................................................. 8 GEOLOGICAL CONDITIONS ................................................................................. 9 PRINCIPLE AND SIZING OF THE SCHEME .............................................................. 9 3.1. DAM ................................................................................................................................... 9 3.2. WATERWAY ...................................................................................................................... 10 SERVICES PROVIDED BY THE DAM ....................................................................................... 9 DAM STRUCTURE .............................................................................................................. 9 APPENDIX 1 - II 3.3.1. 3.3.2. 3.3. POWER PLANT ................................................................................................................. 10 EQUIPMENT .....................................................................................................................10 STRUCTURE .....................................................................................................................10 4. 5. 6. ACCESS ROADS ..............................................................................................10 TRANSMISSION LINE ........................................................................................11 PRELIMINARY EVALUATION ...............................................................................11 WAIVAKA...................................................................................................... 12 1. HYDROLOGICAL DATA......................................................................................12 1.1. 1.2. 2. 3. RUNOFF ........................................................................................................................... 12 FLOODS ........................................................................................................................... 12 GEOLOGICAL CONDITIONS ................................................................................13 PRINCIPLE AND SIZING OF THE SCHEME .............................................................13 3.1. DAM ................................................................................................................................. 13 3.1.1. 3.1.2. SERVICES PROVIDED BY THE DAM ......................................................................................13 DAM STRUCTURE .............................................................................................................14 3.3.1. 3.3.2. EQUIPMENT .....................................................................................................................14 STRUCTURE .....................................................................................................................14 3.2. 3.3. 4. 5. 6. WATERWAY ...................................................................................................................... 14 POWER PLANT ................................................................................................................. 14 ACCESS ROAD ................................................................................................14 TRANSMISSION LINE ........................................................................................15 PRELIMINARY EVALUATION ...............................................................................15 WAISOI.......................................................................................................... 16 1. HYDROLOGICAL DATA......................................................................................16 1.1. 1.2. 2. 3. INFLOW ............................................................................................................................ 16 FLOODS ........................................................................................................................... 16 GEOLOGICAL CONDITIONS ................................................................................16 PRINCIPLE AND SIZING OF THE SCHEME .............................................................17 3.1. DAM ................................................................................................................................. 17 3.1.1. 3.1.2. SERVICES PROVIDED BY THE DAM ......................................................................................17 DAM STRUCTURE .............................................................................................................17 3.3.1. 3.3.2. EQUIPMENT .....................................................................................................................18 STRUCTURE .....................................................................................................................18 3.2. 3.3. 4. 5. 6. WATERWAY ...................................................................................................................... 18 POWER PLANT ................................................................................................................. 18 ACCESS ROAD ................................................................................................18 TRANSMISSION LINE ........................................................................................18 PRELIMINARY EVALUATION ...............................................................................18 WAILUTULEVU............................................................................................. 20 1. HYDROLOGICAL DATA......................................................................................20 2. 3. GEOLOGICAL CONDITIONS ................................................................................20 POSSIBLE SCHEME PRINCIPLE ..........................................................................21 1.1. 1.2. RUNOFF ........................................................................................................................... 20 FLOODS ........................................................................................................................... 20 APPENDIX 1 - III NAMADO....................................................................................................... 22 1. HYDROLOGICAL DATA......................................................................................22 1.1. 1.2. RUNOFF ........................................................................................................................... 22 FLOODS ........................................................................................................................... 22 2. 3. GEOLOGICAL CONDITIONS ................................................................................22 PRINCIPLE OF THE SCHEME ..............................................................................23 4. 5. TRANSMISSION LINE ........................................................................................23 PRELIMINARY EVALUATION ...............................................................................24 3.1. 3.2. 3.3. DAM ................................................................................................................................. 23 WATERWAY ...................................................................................................................... 23 POWER PLANT .................................................................................................................. 23 WAINIKOVU.................................................................................................. 25 1. HYDROLOGICAL DATA......................................................................................25 1.1. 1.2. 2. 3. RUNOFF ........................................................................................................................... 25 FLOODS ........................................................................................................................... 25 GEOLOGICAL CONDITIONS ................................................................................25 PRINCIPLE OF THE SCHEME ..............................................................................26 WAIMANU ..................................................................................................... 27 1. HYDROLOGICAL DATA .....................................................................................27 1.1. 1.2. RUNOFF ........................................................................................................................... 27 FLOODS ........................................................................................................................... 27 2. 3. GEOLOGICAL CONDITIONS ................................................................................27 PRINCIPLE OF THE SCHEME ..............................................................................28 4. 5. 6. TRANSMISSION LINE ........................................................................................29 ACCESS .........................................................................................................29 PRELIMINARY EVALUATION ...............................................................................29 3.1. 3.2. DAM ................................................................................................................................. 28 POWER PLANT .................................................................................................................. 29 SOMOSOMO................................................................................................. 30 1. 2. PROJECT PRINCIPLE .......................................................................................30 COMPONENTS OF THE SCHEME .........................................................................31 2.1. 2.2. 2.3. 3. STUDIES TO BE CARRIED OUT ...........................................................................32 3.1. 3.2. 4. WATER INTAKE ................................................................................................................. 31 PENSTOCK ....................................................................................................................... 31 POWER PLANT ................................................................................................................. 31 DEMAND STUDY ............................................................................................................... 32 ENVIRONMENT STUDY ...................................................................................................... 32 PRELIMINARY EVALUATION ..............................................................................32 DATA TO BE ACQUIRED DURING THE COMING WET AND DRY SEASONS ............................................................................................ 33 1. HYDROLOGICAL DATA .....................................................................................33 1.1. 1.2. DATA TO BE ACQUIRED FROM THE HYDROLOGICAL DEPARTMENT OF THE MINISTRY OF PUBLIC WORKS ................................................................................................................ 33 DISCHARGE MEASUREMENTS............................................................................................ 33 APPENDIX 1 - IV 1.2.1. 1.2.2. 1.2.3. WAIROKODRA, WAIVAKA AND WAILUTULEVU SCHEMES ......................................................33 NAMADO SCHEME ............................................................................................................35 MEASUREMENTS PROCEDURES .........................................................................................35 1.3. 1.4. 2. 3. RAINFALL DATA ................................................................................................................ 35 STAGE DISCHARGE RELATIONSHIP .................................................................................... 35 TOPOGRAPHICAL DATA TO BE ACQUIRED ..........................................................36 GEOTECHNICAL DATA ......................................................................................36 APPENDIX 1 - 1 PREFEASIBILITY STUDY FOR MINI-HYDRO SCHEMES IN THE NAMOSI AND NAITASIRI PROVINCES IN VITI LEVU AND IN TAVEUNI ISLAND 1. GENERAL 1.1. BACKGROUND Further to a review of the potential hydro-schemes sites in the Namosi and Naitasiri Provinces in the south eastern part of the island of Viti Levu, and in the Taveuni Island, Fiji, several sites have been preliminary retained for further consideration by a specialised organisation. All the potential schemes are located in areas with considerable rainfall (4 to 6 m/year for the schemes in Viti Levu, to 10 m/year for the Taveuni scheme), and most of the schemes take benefit of significant to large heads over short river reaches, conditions that are a priori favourable for the development of hydroelectric schemes. As a result and despite of small catchment basins (6 to 120 square kilometres), the hydraulicity and available heads allow envisaging the construction of schemes with installed capacity of 1.5 to 7 to 8 MW. 1.2. PURPOSE OF THE PRE-FEASIBILITY STUDY A first assessment of the hydro potential of the various sites, together with a definition of the principle of the schemes and a preliminary evaluation of the related construction cost is required to be carried out by a professional Consulting Engineer with international experience in the study design and construction of similar schemes, to confirm the potentialities of the sites and allow for the mobilisation of the needed financial resources to carry out a proper feasibility study before proceeding with the final design and starting the construction activities. The intent is therefore to proceed as soon as possible with this full feasibility study to establish the actual technical, economical and financial viability of the envisaged projects. 2. 2.1. BASIC DATA READILY AVAILABLE HYDROLOGICAL DATA 2.1.1. DATA RELATED TO VITI LEVU A. Global hydrological data and records Global hydrological data have been reported on the Hydrogeological Map of Viti Levu, issued by the Mineral Resources Department, Fiji. These data include – the average monthly rain at Laucala Bay, near Suva, – the monthly evapotranspiration, – the map of the isohyets covering Viti Levu. – the annual rainfall at Laucala Bay from 1942-43 to 1988-89. APPENDIX 1 - 2 These data allows a reasonable determination of the monthly runoff available in a given catchment basin, but not the related cumulated discharge curve, nor the instantaneous discharge variation within the month. Hourly discharge records are existing at gauging stations in the area of the schemes (Wainikacau, Namosi (records available until 1985 ? only), Waimanu and Somosomo creek) but they are not readily available and have not been used for this evaluation. A request for obtaining these data has been made to the Hydrological Department of the Ministry of public works, but the related data are still awaited. Except for the Waimanu river, no records exist in the rivers retained for the study of the envisaged hydroelectric schemes. It is therefore necessary to initiate at the earliest regular measurements of the discharges wherever possible in those rivers. B. Hydrological Study for Monasavu Hydroelectric Scheme Project A detailed hydrological study has been carried out by SA Gibb and Merz & McLellan around years 19781980 within the framework of the study of the Monasavu Hydroelectric Project. This study covers general considerations on the Hydrology of Viti Levu, and more detailed study of the rainfall, runoff and rainfallrunoff correlations and floods on the Nadrau Plateau. In the absence of more detailed data collected in the Namosi study area, it has been considered justified to make use, in the present prefeasibility study, of the data collected and analysed in the Gibb study. In particular, measurements on two gauging stations allow a first approach for the determination of a standard cumulated discharge curve. 2.1.2. DATA RELATED TO TAVEUNI Data relatqed to Taveuni include daily flow duration of the Naibili Creek and of the spilling of Lake Tagimocia, which have been subject of regular measurements carried out from 1981 to 1982 within the framework of a feasibility and detailed study. 2.2. HYDROLOGICAL DATA EXISTING AT THE HYDROLOGICAL DEPARTMENT The following records related to the project area have been indicated to be available at the Hydrological Department of the Ministry of , most of them on an hourly basis (Chief Hydrologist Richi Raj, meeting on Feb 23): 1) Discharge records: – Waynicacau – Namosi – Waimanu – Somosomo creek - Taveuni 2) Rainfall – Nasevu – Wainicavu – Waimanu – Wainaboro – Nabukaluka – Wainivra – Des Voeux Peak - Taveuni Partial records are available only for the Namosi gauging station. However, these data do not appear to be readily available, as they require some works to be carried out before they can be released, which requires time and proper order. 2.3. RUNOFFS AND FLOODS At the present preliminary stage of the study, it is necessary to get a reasonable estimate of the inflow available for each envisaged scheme, at least on average and on a monthly basis, as well as of the large floods. APPENDIX 1 - 3 MONTHLY RUNOFFS 2.4. A. Determination procedure The data provided by the Hydrogeological Map of Viti Levu allow the determination of the monthly inflows for each catchment, by application of the following procedure: – The isohyets give the distribution of the average yearly rainfall over a given catchment basin, which allows the determination of the weighted average of the rainfall over the basin, – The monthly runoff in the catchment is obtained by rating the monthly rainfall at Laucala Bay proportionally to the yearly average rainfall in the catchment and to the annual distribution of the rainfall at Laucala Bay, and deducting, for each month, the corresponding monthly evapotranspiration which is considered constant for each month of the year. B. Estimation of available runoff The average runoff determined by this procedure amount to 2100 to 3000 mm/year for the schemes in Namosi province. For the Somosomo scheme inTaveuni, the runoff is probably higher than 8 meters/year. 2.5. FLOODS The rains and floods of the Hurricane Bebe, which caused large amounts of rainfall on Viti Levu on October 23 and 24, 1972, are well documented and described in the Gibb and Merz & McLellan’s report on the Monasavu study. They are convenient to evaluate the maximum floods to take into account for the preliminary design of new hydroelectric schemes. The maximum flood considered for the sizing of the Monasavu Dam spillway has been determined through a maximisation process. It retains a 732 m3/s peak discharge for a 62.5 km² catchment basin. For the present preliminary evaluation of the characteristics of the dams of the various schemes under consideration, we shall consider the Monasavu peak discharge factorised proportionally to the 0.75 power of the related catchment area. TOPOGRAPHICAL DATA 2.6. 2.6.1. EXISTING No specially made survey data are available for the various sites of Viti Levu, and the only available sources are: – Standard 1:.50 000 scale topo maps, – Standard aerial photos at 1:50 000 scale, – Colour aerial photos at 1:40 000 scale. Topographical data related to the Somosomo project in Taveuni are available in the Detailed Design and Tender Documentation prepared by Beca Worley for the construction of a 350 kW scheme. 2.6.2. CARRIED OUT DURING THE MISSION Limited survey works have been carried out during the mission on March 4 by a team of Wood and Jepsen Consultants: 1) Namadu Scheme – Cross section at provisional dam axis – Levels at various points along the river course, including the site provisionnaly retained for the power plant. 2) Wainokodra Scheme – Cross section at provisional dam axis; – Cross section of bridge. APPENDIX 1 - 4 2.7. GEOLOGICAL DATA Preliminary geological investigations have been carried out by Mr Geof Taylor of PACAu (Fiji) Limited on five sites of the Namosi and Naitasiti Provinces (Winikovu, Mado Gorge, Wainarava, Wairokodra and Waimanu). These investigations are subject of a report entitled “Preliminary Geological Investigations of Five Hydro Dam Sites in the Namosi and Naitasiri Provinces Viti Levu, Fiji”, dated 06 February 2004. 3. HYDROSCHEMES CONSIDERED AT THIS PREFEASIBILITY STAGE Eight small scale hydroelectric schemes have been considered and briefly studied at this stage, based on the data available and a visit to the sites. These hydroschemes are located in the Namosi and Naitasiri Province in Viti Levu and in the Taveuni Island. A Namosi Province Wairokodra Waivaka Waisoi Waivutulevu Namado Wainikovu B Naitasiri Province Waimanu C Taveuni Somosomo These schemes will be briefly described and compared in the present section. A more detailed description and analysis of the various schemes is available in the following section. 3.1. PRINCIPLES OF HYDROELECTRIC SCHEMES It is known, and easily verifiable, that the discharge of the rivers in Fiji is very variable at the hourly scale, with rather low minimum or baseflow. Except for cases where the power plant is sized to serve the local demand and where the head and the minimum discharge of the site is sufficient to install a small power plant commensurate with this demand, this highly variable discharge generally precludes the choice of pure run-of-river schemes. Indeed, where it is wished to make use of the major part of the river inflow, the schemes will have to include a reservoir with a minimum size to allow for the storage of the discharge peaks at a scale of a few days, and will be equipped with generating units able to absorb a discharge in excess of the average of that of the wet months so as to allow the partial emptying of the reservoir after wet episodes to build some capacity to store part of the next discharge peak. A more precise sizing of the required reservoir volume will be determined when more detailed data related to actual flow histories are known. In the meantime, we have retained the following criteria for the sizing of the schemes: – Active volume of the reservoir equal to a few days (large catchment basins) to one week (small catchment basins) of inflows during the wettest month of the year (April), – Maximum discharge capacity of the power plant equals to 1.25 times the average discharge of the wettest month. This arrangement would lead to the capacity to catch a proportion estimated at 90 % of the total runoff, but results in a plant factor around 0.42. This corresponds to a certain oversizing of the projects, that may be reduced at the next stage of study, according to the final data acquired during the prefeasibility study. 3.2. GENERATED ENERGY PLACING With the characteristics of the schemes retained at this stage, the dependable energy available during the driest month is in average 22% of the energy produced by the plant running at full power, and the energy guaranteed 95% of the time is 20% of the that of the plant running at full power, meaning that the power of the plant is guaranteed at least 5 hours per day during the driest month with a confidence of 95%. APPENDIX 1 - 5 The main generating plant in Viti Levu is the Monasavu hydroelectric scheme. Its installed capacity is 72 MW, for an average production of 420 GWh, representing respectively… % of the installed capacity and 72% of the energy consumed in the island in 2002. The storage capacity of the Monasavu reservoir corresponds to 160 GWh, and the plant factor of the scheme is 0.71, giving to the scheme the capacity to provide base flow throughout the year together with important peaking capacity. In these conditions, the capacity of the proposed hydroelectric schemes appears very favourably. They provide a significant amount of energy throughout the year and offer peaking facilities during the dry season, which allows large possibilities for optimising the cumulated resource of Monasavu reservoir and all other energy sources available in the island. The proposed general arrangement with a reservoir of moderate size based on a week inflow of the wettest month being sufficient to ensure adequate peaking facilities, it is likely that the evaluation of the result of coordinated operation of these schemes with the large reservoir Monasavu scheme will show that there is no reason to increase the size of the reservoirs and associated dams to provide an annual regularisation of the flow. 3.3. TRANSMISSION LINES A. Namosi province The various schemes envisaged in the Namosi Province includes – power stations close to the Waidina river between Namosi and Naseuvu (Wairokodra, Waivaka and Waisoi, total installed power 11 to 12 MW) – power stations close to the Navua river between Nakavika and Nukusere (Namado, installed power around 7 MW, and Wainikovu, installed power still to be determined, probably not exceeding 3 MW, but with very uncertain economical attractiveness). The Waivutulevu site, that may be developed as very small plant only, is considered marginal at this stage. The geographic position of these power stations allow their connection to a single transmission line to be installed along the Waidina river, and extended towards west to Namado site. This 16 kV transmission line will be in 33 kV, and its installation is very easy along a communication road. The closest connexion of this transmission line to the national grid is to the Suva-Deuba 33 kV transmission line, through a 18 km long double circuit 33 kV line, with a connexion to this Suva-Deuba line in the vicinity of Nabukavesi Village, 10 km NW of Navua. The capacity of the existing line to carry the load remains to be verified, depending on the present and future load flow of this line and its technical characteristics. A reinforcement of the capacity of this line over 25 km between Nabukavesi and Suva may become necessary. The alternative consisting in a transmission line from Namado to the Deuba power station and switchyard, requires long portions in the bush, which requires the building and maintenance of a specific construction track, and resulting much higher installation and maintenance cost. B. Naitasiri Province The only scheme envisaged at this stage in Naitasiri Province is the Waimanu scheme, which retains at this stage a power plant with an installed power evaluated at 3 MW. The power station is envisaged to be placed on the Waimanu river, on the upstream branch of the large oxbow which lays 14 km east of the confluence of the river with the Rewa river. Subject to verification, it is probably possible to connect the power plant to the line that feeds the pumping station set on the Waimanu river in Koroi road, or to find a suitable connecting point in the area. The length of the transmission line would not exceed 10 to 12 km, and the tension would be preferably 33 kV, but 11 kV should be probably acceptable as well. C. Taveuni Island The existing grid in Taveuni Island is very small and limited to the Somosomo village area. Furthermore, its appears to present deficiencies leading to operational problems. A new grid is to be designed, with the view to connecting all major consumers. The length of the main trunk line could be some 30 km, all placed along existing roads with easy access. APPENDIX 1 - 6 4. PRELIMINARY ECONOMIC EVALUATION 4.1. UNIT RATES The unit rates used for this very preliminary evaluation correspond – for the civil engineering works, to recent global rates observed for the construction of small hydroelectric schemes in Asia, – for turbines and generators, to machine costs supplied by specialised manufacturers. Usual mark-ups for P&G (Preliminary and General, 15%), contingencies and non measured items (20%), have been included in the preliminary evaluation. 4.2. PRELIMINARY COSTS The preliminary costs indicated in the next sections contains P&G, contingencies, and 10% for engineering and development. They include as well the part of the transmission line directly related to the scheme, but, for the Namosi schemes, not the 18 km main trunk to be built along the upper Namosi road. For the Somosomo scheme, they include 30 km of 33 kV transmission line, but it may be possible, subject to further studies, to reduce the tension and have a less costly transmission line. 5. CONCLUSIONS AND RECOMMENDATIONS There is no doubt that the more efficient schemes are Waisoi and Namado, in Namosi Province, and Somosomo in Taveuni, subject for this last scheme to the proved existence of sufficient demand. Waisoi and Namado show, at this stage, similar performance economic, and they both need the common transmission line trunk along the upper Namosi road to evacuate the produced energy towards the south coast and the main grid. It is likely that none of these schemes will be able to support alone the cost of this 18 km long line. It is also probable that there is some local development advantage to start a transmission line along the Waidina river towards downstream to feed more villages, as well as to provide energy to the copper mine that may develop in the upper reach of the Waisoi river. It makes therefore good sense to include both Namado and Waisoi schemes, together with Somosomo in a first priority development programme. The cost of the kWh produced by these two schemes appear at this stage slightly above that of the energy produced by the wind farm indicated in the FEA Annual Report of 2002. But it must be stressed that: – The cost indicated in the present report is very preliminary. It is based on international contracted works, and includes large provisions for contingencies, development engineering and other costs, – The energy produced by the hydro schemes is likely to be guaranteed at certain time of the day, all along the year, which is not the case of wind energy, – The hypothesis for the determination of the runoff are thought to be conservative, and there is still room for the optimisation of the schemes, the adjustment of the generating equipment and dam gates etc.. APPENDIX 1 - 7 DESCRIPTION OF THE HYDROSCHEMES A. Namosi Province Wairokodra Waivaka Waisoi Waivutulevu Namado Wainikovu B. Naitasiri Province Waimanu C. Taveuni Somosomo APPENDIX 1 - 8 WAIROKODRA Wairokodra scheme is installed on the Wairokodra creek, a tributary of the Waidina river, which joins the main river 500 m downstream of Narukunibua village. The catchment basin is small, and covers an area of 5 25 km², that can be extended to 6.25 km² by adding the catchment of the Wainitunikadua creek, which joins the Wairokodra creek slightly downstream of the possible intake structure. With an average rainfall of 4 000 mm per year, the 6.25 km² catchment can provide an average discharge estimated at 0.5 m3/s. The scheme makes use of a 1 km long flat portion of the valley upstream of a steep gorge, where it is possible to arrange a small reservoir, and of a 230 m drop over a 1.7 km long reach of the creek. The sites provisionally selected to install the intake structure and dam is in the vicinity of the bridge on the upper Namosi road that crosses the Wairokodra river, and the powerhouse is located at the outlet of the gorge, at the beginning of the last 600 m reach of the river course, which is with a moderate slope until the crossing of the lower Namosi road and the confluence with the river. HYDROLOGICAL DATA 1. RUNOFF 1.1. Wairokodra Catchment Basin Wairokodra Annual Rainfall Rainfall 6.25 4000 km² Mm Runoff January February March April May June July August September October November December Mm 436 403 502 509 324 225 185 185 258 271 350 350 Mm 281 268 367 397 229 140 95 76 140 136 201 192 M3/s 0.66 0.69 0.86 0.96 0.53 0.34 0.22 0.18 0.34 0.32 0.49 0.45 Mm3 1.759 1.677 2.297 2.482 1.431 0.874 0.595 0.476 0.874 0.850 1.259 1.203 Total 4000 2524 0.50 15.775 1.2. FLOODS Cyclonic conditions similar to those retained for the Monasavu dam would lead to a 114 m3/s peak flood on the 5.25 km² catchment basin of the Wairokodra dam. APPENDIX 1 - 9 GEOLOGICAL CONDITIONS 2. The dam site and Wairokodra creek are located in the Namosi Andesite formation. The volcanics are relatively fresh and unweathered with minor fracturing. Soil covers is 1 to 2 m thick with jungle cover. Weakly chlorite (propylitic) altered hornblende porphyries outcrops at the dam site in upper Wairokodra creek. The site is considered adequate for the construction of the dam and for the possible tunnelling works anticipated west of the Wairokodra creek. A porphyry copper resource occurs immediately upstream of the dam site at Wainikatam in flat laying grasslands, and is the subject of the Namosi Special Prospecting License held by Nittetsu Mining Company of Japan. The resource is however considered to be of marginal importance, and the decision to proceed with its exploitation appears remote. 3. PRINCIPLE AND SIZING OF THE SCHEME Based on the characteristics of the site, the scheme will include a low dam, sized to create a reservoir sufficient to catch the majority of the inflows, a waterway which shall consist preferably of a tunnel driven through the mountain range on the west side of the creek gorge and of a surface penstock, and a power plant installed on the left bank of the lower reach of the creek, which is gently sloping over the last 700 m upstream of its confluence with the Waidina river. In an endeavour to maintain the cost of the dam as low as possible, we shall limit the volume of the reservoir to a reasonable minimum, with the aim of storing the peaks of usual micro-floods, without attempting to provide any interseasonal regularisation. In the absence of detailed discharge or runoff data, we have retained to size the active reservoir for the discharge corresponding to one week of the wettest month, i.e around 0.6 Mm3. To allow the reservoir to act as a flood damping structure, the power plant must be sized to drain the reservoir with a discharge capacity higher than the average inflow of the wettest month, say 25 % more, which gives a discharge capacity of 1.20 m3/s. For a reservoir Full Supply Level around elevation 315, and a restitution around elevation 80, corresponding to a maximum gross head of 235 m, the installed power will be some 2.4 MW, and will be able to generate an average of 7.6 GWh per year. 3.1. DAM The location of the dam will be best if – It is in a narrow place, so as to limit the length of the dam, – It creates a significant reservoir with limited head, so has to limit the height of the dam. The observation of the contour line on the 1:50 000 topo map indicates such a configuration just downstream of the existing bridge on the Namosi road. A cursory evaluation of the volume capacity of the reservoir upstream of the dam site leads to a provisional setting of the reservoir at elevation 315, 5 to 7 m above the level of the Namosi road bridge deck, and a maximum height of the dam above the foundation of say 12 to 14 m. It is anticipated that the reservoir will be operated as well as a desanding basin, which avoids the construction of a specific desanding/desilting basin in the waterway. 3.1.1. SERVICES PROVIDED BY THE DAM The dam must be designed so as to ensure the following services: – Retaining structure, to create the reservoir required for the proper operation of the scheme, – Bottom outlet, to allow the flushing of the reservoir, that will be operated also as a desanding basin, – Spillway to allow the routing of the extreme floods without submersion of the dam. 3.1.2. DAM STRUCTURE APPENDIX 1 - 10 The dam will include a central block fitted with the bottom outlet and spillway, and two lateral embankments. These embankments are anticipated to be of rockfill type, with upstream concrete facing, for which part of the rockfill may come from the excavation of he headrace tunnel. The bottom outlet must be sized to allow the routing of the annual flood at low level. An opening slightly smaller than that of the existing bridge will be sufficient, and a set of three 3 m² sector gates would be adequate. The spillway will consist in 15 m long crest section, able to route the extreme 114 m3/s flood with a reservoir surelevation of 2.3 m. A short stilling basin is to be provided, which supposes that the dam in founded on reasonably solid rock. Alternatively, the dam can be built as a RCC (Roller Compacted Concrete) structure. 3.2. WATERWAY A pressure penstock installed between the dam and the power plant would have a diameter of approximately 0.80 m to ensure a minimum stability to allow a reasonable participation of the plant to the frequency control of the grid. It seems not practical to consider the installation of such penstocks in the river valley, which is very deep, shows steep sides, is obstructed by huge boulders, and where access appears very difficult to arrange. A better option is to consider the driving of a pressure tunnel between the dam and the slope which dominates the power plant site, and restrict the surface penstock to the last portion of the waterway, in the slope which dominates the last 700 m long moderately sloping reach of the Wairokodra creek. The tunnel, which will be 1300 m long, will be built with the minimum section allowing the execution of the underground excavation, say 1.9 x 2.20 m, to allow for a section of 1.5 x 1.8 in the reaches requiring the placing of a cast in situ concrete lining. The penstock will be placed over the slope which dominates the power plant site, perpendicular to the contour lines, so as not to be intersected by surface water. It will be 400 m long with a 600 mm diameter. Calculations show that, with the selected dimensions, and provided that the closure time of the Pelton turbine nozzles is not shorter than 20 seconds, there is no need for a surge chamber. 3.3. POWER PLANT The power plant will be located at the extremity of the last and moderately sloping reach of the Wairokondra creek, 600 m upstream of the existing bridge on the Namosi Road, on the left side of the creek. 3.3.1. EQUIPMENT The plant will be equipped with either one 2.4 MW or two 1.2 MW two jet horizontal Pelton turbines and associated annex and control equipment. The Pelton wheels will be placed well above (minimum 2 m) the flood level of the Wairokodra creek. 3.3.2. STRUCTURE The powerplant structure will include massive foundations for the installation of the Pelton turbine(s) and generator(s), and standard superstructures holding a 6 tons gantry crane. The surface of the power plant will be around 140 m², sufficient to house the two generating units, the control panels and other services, as well as an erecting bay. 4. ACCESS ROADS Suitable access roads exist in the vicinity of the various structures of the scheme. Beyond various site tracks, the only road to build will be – the 600 m long road to the powerplant, in flatish and easy terrain, – an access track from the powerplant to the downstream portal of the tunnel (say 1200 to 1500 m from el. 80 to 240, in steep grassed residual soil). APPENDIX 1 - 11 5. TRANSMISSION LINE The transmission line will be a 33 kV line, from the extremity of the upper Namosi road to the Wairokodra power plant, length 750 m, in easy terrain. 6. PRELIMINARY EVALUATION Maximum Gross Head Maximum plant discharge Installed capacity Average Annual Energy Production Preliminary cost evaluation 235 m 1.20 m3/s 2.4 MW 7.6 GWh 7.1 M US$ APPENDIX 1 - 12 WAIVAKA Wavaka scheme is installed on the Waivaka creek, a tributary of the Waidina river, which joins the main river a few hundred meters downstream of WaiNarukunibua village. The catchment basin is rather small, and covers an area of 12.5 km², two times that of Wairokondra scheme. With an average rainfall of 4 100 mm per year, the catchment can provide an average discharge estimated at 1.04 m3/s. The scheme makes use of a 1.5 km long flat portion of the valley upstream of a steep gorge, where it is possible to arrange a small reservoir, and of a 200 m drop over a 2.5 km long reach of the creek. The sites provisionally selected to install the intake structure and dam is the inlet of the gorge, in a bend of the stream slightly downstream of the confluence of a small creek on the left bank, and the powerhouse is located on the right bank of the Waidina river, in the vicinity of the Waivaka suspension bridge. HYDROLOGICAL DATA 1. RUNOFF 1.1. Waivaka Catchment Basin Waivaka Annual Rainfall 12.5 4100 Rainfall km² Mm Runoff January February March April May June July August September October November December Mm 447 413 515 522 332 230 190 190 264 278 359 359 Mm 292 278 380 410 237 145 100 81 146 143 210 201 m3/s 1.36 1.44 1.77 1.98 1.11 0.70 0.47 0.38 0.71 0.67 1.01 0.94 Mm3 3.653 3.480 4.751 5.123 2.963 1.818 1.247 1.009 1.829 1.786 2.627 2.515 Total 4100 2624 1.04 32.8 1.2. FLOODS Cyclonic conditions similar to those retained for the Monasavu dam would lead to a 220 m3/s peak flood on the 12.5 km² catchment basin of the Waivaka dam. APPENDIX 1 - 13 GEOLOGICAL CONDITIONS 2. East west trending hornblende porphyries and associated porphyry copper mineralisation occur in the headwaters of Waivaka creek. Associated propylitic alteration envelopes the deposit. Further downstream in the area outlined for hydro development Namosite andesite flows are cut by a major east west fault 2.2 kilometres south of Waivaka village. Competent fractured Wainimala basalts and agglomerates extend to the junction. Geological conditions are generally similar to those prevailing for the Wairokodra scheme. They are considered adequate for the development of the hydraulic structures and underground works envisaged for the Waivaka scheme. As for Wainikova scheme, copper resource occurs immediately upstream of the dam site in flat laying grasslands and above, and is the subject of the Namosi Special Prospecting License held by Nittetsu Mining Company of Japan. As for Wairokodra area, the resource is considered to be of marginal importance, and the decision to proceed with its exploitation appears remote. 3. PRINCIPLE AND SIZING OF THE SCHEME Rationales for the sizing of the scheme are similar to those developed for Wairokodra scheme. Based on the characteristics of the site, the scheme will include a low dam, sized to create a reservoir sufficient to catch the majority of the inflows, a waterway which shall consist preferably of a tunnel driven through the mountain range on the west side of the creek gorge and of a surface penstock, and a power plant installed on the right bank of the Waidina river slightly upstream of the Waivaka village. Solutions with a shorter tunnel and a power plant installed more upstream in the last reach of the Waivaka creek would have been possible, either with a power plant installed one km U/S of the Namosi road bridge, with a saving of 600 m of tunnel length but at a cost of a loss of 50 m of hydraulic gross head and with a difficult access to the plant, or with a power plant installed a few hundred meters upstream of the Namosi road bridge, with a small saving on the tunnel length, but at a cost of a longer penstock and a loss of more than 10 m on the gross hydraulic head. These alternatives do not appear to present definite advantages and have not been considered further at this stage. As for Wairokodra scheme, we shall limit the volume of the reservoir to a reasonable minimum, with the aim of storing the peaks of usual micro-floods, without attempting to provide any interseasonal regularisation. We have therefore have retained to size the active reservoir for the discharge corresponding to one week of the wettest month, i.e around 1.2 Mm3. Similarly, the power plant has been sized to drain the reservoir with a discharge capacity of 2.5 m3/s, 25% larger than the average inflow of the wettest month. For a reservoir Full Supply Level around elevation 250, and a restitution around elevation 50, corresponding to a maximum gross head of 200 m, the installed power will be some 4.2 MW, and will be able to generate an average of 13.5 GWh per year. 3.1. DAM The observation of the contour line on the 1:50 000 topo map indicates a favourable configuration just downstream of the confluence of a small creek on the left bank, around elevation 250. A visit of the area confirmed the possibilities of the site. A cursory evaluation of the volume capacity of the reservoir upstream of the dam site leads to a provisional setting of the reservoir at elevation 250, between 5 and 8 m above the level of the alluvial flat that can be observed upstream of the entrance of the gorge. It is anticipated that the reservoir will be operated as well as a desanding basin, which avoids the construction of a specific desanding/desilting basin in the waterway. 3.1.1. SERVICES PROVIDED BY THE DAM The dam must be designed in a similar manner and to ensure the same functions than the Wairokodra dam, i.e.: – Retaining structure, to create the reservoir required for the proper operation of the scheme, – Bottom outlet, to allow the flushing of the reservoir, that will be operated also as a desanding basin, APPENDIX 1 - 14 – Spillway to allow the routing of the extreme floods without submersion of the dam. 3.1.2. DAM STRUCTURE The dam will include a central block fitted with the bottom outlet and spillway, and two lateral embankments, all similar to the Wairokodra dam. The bottom outlet must be sized to allow the routing of the annual flood at low level, so as to be able to flush regularly the sediment that will settle in the reservoir. A set of three 5 m² sector gates would be sufficient for this function. The spillway will consist in a 20 m long crest section, able to route the extreme 220 m3/s flood with a 3 m reservoir surelevation. A short stilling basin is placed downstream of the spillway, which supposes that the river bed is made of competent rock. Alternatively, the dam can be built as a RCC (Roller Compacted Concrete) structure. 3.2. WATERWAY The option retained at this stage considers the driving of a pressure tunnel between the dam and the slope which dominates the power plant site, and the installation of a surface penstock in the slope on the right bank of the Waidina river, just south of Waivaka village. The tunnel will be 2 250 m long, and will be excavated, as for the Wairokodra tunnel, with the minimum 4.2 m² section, with concrete or shotcrete lining as required by the quality of the rock. The penstock will be placed over the slope which dominates the Waidina river south of Waivaka village, perpendicular to the contour lines, so as not to be intersected by surface water. It will be 300 m long with a 900 mm diameter. The length of waterways together with the selection of reaction turbines require the presence of a surge chamber to be installed close to the junction between the headrace tunnel and the penstock. 3.3. POWER PLANT The power plant will be located on the right bank of the Waidina river, in front of Waivaka village, in the vicinity of the existing suspension bridge. 3.3.1. EQUIPMENT The plant will be equipped with two 2.1 MW horizontal Francis turbines and associated annex and control equipment. The turbines will be placed above the normal level of the Waidina river, to limit the importance of the protection against flooding. 3.3.2. STRUCTURE The powerplant structure will include massive foundations for the installation of the two Francis turbines and generators, and standard superstructures holding a 10 tons gantry crane. The surface of the power plant will be around 180 m², sufficient to house the two generating units, the control panels and other services, as well as an erecting bay. 4. ACCESS ROAD Access to the Power Plant is easy from the Namosi road, and requires no more than a few hundred meters of new road in easy terrain. Access to the tunnel D/S portal will be from the slopes dominating the left bank of the D/S reach of the Waivaka creek (say 1000 to 1200 m from el. 80 to 200, in steep grassed residual soil). Access to the dam and tunnel inlet portal is more difficult. Two possibilities can be considered and investigated: – The use of the existing logging road starting from the upper Namosi road, upstream of the dam site retained for the Wairokodra scheme, which is traced and opened down to the south side of the Wainavuga creek, say 1 to 1.5 km from the retained dam side as the crow flies, APPENDIX 1 - 15 Another logging road, as shown on the 1/50 000 scale aerial photos of the area, which arrives 2 km east of the site, coming from the Waisomo basin. There is also a trace of an ancient logging track a few hundred meters upstream of the dam location, on the right bank of the Waivaka creek. It is likely that these two tracks have been connected at some time, and that there is a possibility to reopen the route with moderate works. We shall retain, for the evaluation of the access road works, 3 km of heavy road rehabilitation works, and 3 km of new roads. – 5. TRANSMISSION LINE The transmission line will be a 33 kV line, from the start of the Wairokodra branch to the Waivaka plant. This 2.5 km long transmission line will be installed along an existing road and in flat plain. 6. PRELIMINARY EVALUATION Maximum Gross Head Maximum plant discharge Installed capacity Average Annual Energy Production Preliminary cost evaluation 200 m 2.5 m3/s 4.2 MW 13.5 GWh 11.6 M US$ APPENDIX 1 - 16 WAISOI The Waisoi scheme is installed on the downstream reach of the Waisoi river, with an intake located 2.5 km upstream of its confluence with the Waidina river. It exploits a 16.5 km² catchment that can provide an average inflow estimated at 1.5 m3/s, and makes use of a 2 km long flat portion of the valley between the intake site and the Waisoi Exploration Camp site, where it is possible to arrange a small reservoir, and of a 160 m drop over a 1.5 km long reach of the river. The sites provisionally selected to install the intake structure and dam and the powerhouse are relatively easily accessible from existing logging tracks. HYDROLOGICAL DATA 1. 1.1. INFLOW Waisoi Catchment Basin Waisoi Annual Rainfall 16.5 4400 Rainfall Km² Mm Runoff January February March April May June July August September October November December Mm 480 444 553 560 356 247 204 204 284 298 385 385 Mm 325 309 418 448 261 162 114 95 166 163 236 227 m3/s 2.00 2.11 2.57 2.85 1.61 1.03 0.70 0.58 1.05 1.01 1.51 1.40 Mm3 5.363 5.093 6.893 7.392 4.313 2.678 1.875 1.562 2.733 2.693 3.902 3.753 Total 4400 2924 1.53 48.246 1.2. FLOODS Cyclonic conditions similar to those retained for the Monasavu dam would lead to a 270 m3/s peak flood on the 16.5 km² catchment basin of the Waisoi dam. 2. GEOLOGICAL CONDITIONS Waisoi creek is located near the centre of the stratavolcano and flows east through the exploration camp to its junction with the Waidina river. The proposed scheme occurs immediately east of the main copper deposit at Waisoi, predominantly within basalt and basaltic agglomerates of the basement Wainimala Group. Narrow quartz porphyry diorite dykes cut the creek along with andesite dykes near the junction. Prominent clay alteration occurs at the base of the hill where the road is closest to the Waisoi creek. The APPENDIX 1 - 17 Wainimala rocks are fractured but competent with a number of waterfalls and boulder chokes between the camp and junction. The copper resource which occurs immediately upstream of the dam site in the Waisoi catchment, is also the subject of the Namosi Special Prospecting License held by Nittetsu Mining Company of Japan. The resource is considered to be more economically attractive than those investigated in the Wairokodra and Waivaka catchment. The decision to proceed with its exploitation is still pending, but, subject to further verifications, the location of the deposits might not interfere with the scheme. Geological conditions are considered adequate at this stage for the development of the hydraulic structures and underground works envisaged for the Waisoi. 3. PRINCIPLE AND SIZING OF THE SCHEME Rationales for the sizing of the scheme are similar to those developed for Wairokodra and Waivaka schemes. Based on the characteristics of the site, the scheme will include a low dam, sized to create a reservoir sufficient to catch the majority of the inflows, a waterway which shall consist preferably of a tunnel driven through the mountain range on the northern side of the creek and of a surface penstock, and a power plant installed on the left bank of the Waisoi river 800 m upstream of its confluence with the Waidina river, 3 km downstream of Naivaka village. As for Wairokodra and Waivaka schemes, we shall limit the volume of the reservoir to store the discharge corresponding to one week of the wettest month, i.e around 1.7 Mm3. Similarly, the power plant has been sized to drain the reservoir with a discharge capacity of 3.5 m3/s, 25% larger than the average inflow of the wettest month. For a reservoir Full Supply Level around elevation 230, and a restitution around elevation 60, corresponding to a maximum gross head of 170 m, the installed power will be some 4.9 MW, and will be able to generate an average of 16.4 GWh per year. 3.1. DAM The observation of the contour line on the 1:50 000 topo map indicates a favourable configuration where the track to the Waisoi Exploration Camp Site gets close to the river, around elevation 220. A cursory evaluation of the volume capacity of the reservoir upstream of the dam site leads to a provisional setting of the reservoir at elevation 230, between 10 and 12 m above the level of the alluvial flat that can be observed upstream of this site. It is anticipated that the reservoir will be operated as well as a desanding basin, which avoids the construction of a specific desanding/desilting basin in the waterway. 3.1.1. SERVICES PROVIDED BY THE DAM The dam must be designed in a similar manner and to ensure the same functions than the Wairokodra and Waivaka dams, i.e.: – Retaining structure, to create the reservoir required for the proper operation of the scheme, – Bottom outlet, to allow the flushing of the reservoir, that will be operated also as a desanding basin, – Spillway to allow the routing of the extreme floods without submersion of the dam. 3.1.2. DAM STRUCTURE The dam will include a central block fitted with the bottom outlet and spillway, and two lateral embankments, similar to Wairokodra and Waivaka dams. The bottom outlet must be sized to allow the routing of the annual flood at low level. A set of three 6 m² gates would be sufficient for this function. The spillway will consist in a 25 m long crest section, able to route the extreme 270 m3/s flood with a 3 m reservoir surelevation. A short stilling basin is placed downstream of the spillway, which supposes that the river bed is made of competent rock. APPENDIX 1 - 18 Alternatively, the dam can be built as a RCC (Roller Compacted Concrete) structure. 3.2. WATERWAY The option retained at this stage considers the driving of a pressure tunnel in the hill range running alongside the left bank of the river, and the installation of a surface penstock in the slope that dominates the flat grounds that border the left bank of the downstream reach of the river before its confluence with the Waidina river.. The tunnel will be 1 400 m long, and will be excavated, as for the Wairokodra and Waivaka tunnels, with the minimum 4.2 m² section, with concrete or shotcrete lining as required by the quality of the rock. The penstock will be placed over the slope which dominates the Waidina river south of Waivaka village, perpendicular to the contour lines, so as not to be intersected by surface water. It will be 300 m long with a 900 mm diameter. As for Waivaka scheme, the length of waterways together with the selection of reaction turbines require the presence of a surge chamber to be installed close to the junction between the headrace tunnel and the penstock. 3.3. POWER PLANT The power plant will be located on the left bank of the Waisoi river, in front of Waivaka village, 900 m upstream of its confluence with the Waidina river. 3.3.1. EQUIPMENT The plant will be equipped in principle with two 2.45 MW horizontal Francis turbines and associated annex and control equipment. The Francis turbines be placed well above the level of the Waisoi river, so as to limit the importance of the protection against the floods. 3.3.2. STRUCTURE The powerplant structure will include massive foundations for the installation of the two turbines and generators, and standard superstructures holding a 20 tons gantry crane. The surface of the power plant will be around 240 m², sufficient to house the two generating units, the control panels and other services, as well as an erecting bay. 4. ACCESS ROAD Access to the Scheme is easy from the track built to give access to the Waisai Exploration Camp Site. The track lays close to the river in the vicinity of the dam site, but is to be shifted to stay higher than the reservoir created by the dam. Access to power house requires the construction of a one km long road in relatively easy terrain, but requires the construction of a bridge over the Waisoi river. Access to the downstream portal of the tunnel requires the construction of track from power house access track in the left bank of the Waisoi river, say 1000 to 1200 m from el. 50 to 180, in moderately sloping terrain. 5. TRANSMISSION LINE The transmission line will be a 33 kV line, from the Waivaka switchyard to the Waisoi plant. This 3.5 km long transmission line will be installed for a part along an existing road in flat plain and across a small in more sloppy ground. 6. PRELIMINARY EVALUATION Maximum Gross Head Maximum plant discharge 165 m 3.5 m3/s APPENDIX 1 - 19 Installed capacity Average Annual Energy Production Preliminary cost evaluation 4.9 MW 16.3 GWh 11.0 M US$ APPENDIX 1 - 20 WAILUTULEVU The Wailutulevu scheme is located on the Wailutulevu creek, the main tributary of the upper reach of the Waidina River. The 10 km² catchment basin, slightly smaller than the Waivaka catchment, provides an average discharge of 0.77 m3/s. The Waivutulevu gorge is very deep, with difficult access, and no easy access from the plateau to the possible location of a water intake appears to be available. The head between the entrance of the gorge and the Waidina valley does not exceed 80 to 100 m. HYDROLOGICAL DATA 1. RUNOFF 1.1. Waivutulevu Catchment Basin Waivutulevu Annual Rainfall 10 3900 Rainfall Runoff km² mm January February March April May June July August September October November December Mm 425 393 490 496 316 219 180 180 251 264 342 342 Mm 270 258 355 384 221 134 90 71 133 129 193 184 m3/s 1.01 1.07 1.33 1.48 0.82 0.52 0.34 0.27 0.51 0.48 0.74 0.69 Mm3 2.705 2.582 3.549 3.844 2.209 1.342 0.905 0.715 1.334 1.293 1.927 1.837 Total 3900 2424 0.77 24.24 1.2. FLOODS Cyclonic conditions similar to those retained for the Monasavu dam would lead to a 190 m3/s peak flood on the 10 km² catchment basin of the Waivutulevu scheme. 2. GEOLOGICAL CONDITIONS Wailutulevu creek flows south and is located 1.3 kilometres west of Namosi village. It occurrs near the rim of the stratavolcano and cuts the outer Korobasabasaga tephra layers. The creek is extremely rugged and full of very large pyroclastic boulders making traversing difficult. Three major east west trending faults cut the creek forming the boundary between Namosi andesite flows downstream and hornblende porphyries APPENDIX 1 - 21 upstream. The hornblende porphyry trends east west and is the western extension of the Waivaka copper deposit. Propylite alteration surrounds the porphyry while argillic alteration occurrs within the intrusive. 3. POSSIBLE SCHEME PRINCIPLE The observation of the 1/50 000 scale topographical map does not reveal the presence of a proper dam site able to store significant amount of water with reasonable height. This means that it will be difficult to create a reservoir allowing the dampening of the river inflow, leading to poor flow recovery, unless the capacity of the plant is widely increased. The scheme suffers also other drawbacks: – The available head between the entrance of the gorge and the Waidina river valley does not exceed 80 to 100 m, – The access to the possible intake site is very awkward, no reasonable access being available in the headwater of the Wailutulevu creek, – The development of the scheme requires a 600 m long headrace tunnel, unless a penstock is placed in the creek itself, which would not be easy. All these difficulties will lead to an expensive set up of the scheme for small installed power and uncertain production. It is recommended not to include this scheme is the priority development programme, and to review its feasibility in the light of – better hydrological information (in particular the sustained low flow during the dry season), – the possibility to place a small penstock in the banks of the gorge. For this, field investigations could be undertaken by a geologist or a civil engineer, with the view to recognising a layout reasonably accessible, where a narrow track can be traced with moderate transverse slope. If it is possible to find such a route and if a sustainable discharge of 200 l/s can be guaranteed, the 80 m gross head can allow to install a 120 kW generating set with a small action turbine. APPENDIX 1 - 22 NAMADO The Namado hydroscheme scheme is located on the Wainikoroiluva river, in the Mado gorge 1.5 km east of the village of Nakavika. It exploits the 25 m drop between the upstream part of the gorge and the large oxbow of the river which stands directly south of Nakavika. The catchment basin is relatively extensive, and covers an area of 123 km² where the average rainfall is slightly more than 3700 mm. This catchment provides an average discharge of 8.8 m3/s HYDROLOGICAL DATA 1. RUNOFF 1.1. Namado Catchment Basin Namado Average Annual Rainfall Rainfall 123 3736 km² Mm Runoff January February March April May June July August September October November December Mm 408 377 469 475 303 210 173 173 241 253 327 327 Mm 253 242 334 363 208 125 83 64 123 118 178 169 m3/s 11.60 12.29 15.35 17.25 9.53 5.93 3.81 2.93 5.83 5.43 8.46 7.77 Mm3 31.065 29.728 41.121 44.709 25.533 15.370 10.197 7.860 15.108 14.537 21.929 20.822 Total 3736 2260 8.81 277.98 1.2. FLOODS Cyclonic conditions similar to those retained for the Monasavu dam would lead to a 1250 m3/s peak flood on the 123 km² catchment basin of the Namado dam. 2. GEOLOGICAL CONDITIONS The Mado deep gorge is formed along a major fault trending south east, where Navua mudstones abut Namosi andesites. The fault is however not active and shows no clay alteration or fracturing. The andesites are competent and weakly weathered. Further to the east, another gorge occurs, where quartz eye porphyries outcrop. These porphyries are more weathered and less competent than the andesites of the Mado gorge, but still widely sufficient to provide excellent foundation conditions for a concrete dam. APPENDIX 1 - 23 PRINCIPLE OF THE SCHEME 3. The Wainikoroiluva river shows a drop of 25 meters between the upstream gorge and the pools which form downstream of the Mado deep gorge outlet. This scheme includes a 2 km long reservoir, where it is possible to accommodate an active storage volume of 2.5 Mm3 between elevation 75 and 85, which represents 2 days of storage of the average inflow of the wettest month. To allow the reservoir to act as a flood damping structure, the power plant must be sized to drain the reservoir with a discharge capacity higher than the average inflow of the wettest month, say 25 % more, which gives a discharge capacity of 21.5 m3/s. For a reservoir Full Supply Level around elevation 85, and a restitution around elevation 42, corresponding to an average gross head of 43 m, the installed power will be some 7.7 MW, with an energy production of 24 GWh for 90% of the inflow. 3.1. DAM Two options can be envisaged for the location of the dam, – The Mado Deep Gorge itself (D/S site), – The longer gorge which lays 500 m upstream of the Mado Deep Gorge (U/S site). The topographical survey shows a difference of 15 m between the possible dam foundation levels of the upstream and the downstream sites, but the upstream site requires a 500 m longer power tunnel. Pending further evaluation and comparison of both options, we retain at this stage the upstream gorge, where the installation of the dam appears easier. At this site, the width of the dam will be around 20 m at foundation level, and 120 m 25 m above the foundation. As the foundation quality is good for a concrete dam, we retain this type of structure with high capacity bottom outlets to flush the sediments that will settle in the reservoir, and an overflow spillway sized to route the hurricane discharge. For the 30 m wide crest spillway that the site can accommodate, the routing of the flood discharge requires a head of 8 m. In order not to increase the height of the dam excessively, we have considered to include in the spillway arrangement a 3 m high flap gate that may be designed in such a way as to regulate automatically the reservoir level during the routing of the floods until the flap gate is completely lowered down. 3.2. WATERWAY The waterways comprise a water intake structure located on the right bank of the river just upstream of the dam, a 950 m long tunnel with a minimum section of 6.5 m² where lined, daylighting at the location of the power plant, 500 m downstream of the outlet of the Mado gorge. Alternatively, the tunnel can be made of two small reaches with a surface pressure conduit arranged in the right bank of the amphitheatre which exists just upstream of the Mado gorge. 3.3. POWER PLANT The power plant is installed in the right bank of the Wainikoroiluva river, 500 m downstream of the outlet of the Mado gorge, where it appears more gentle to accommodate the 400 m² power station. The plant is sized to house two Francis generating units, that are set 2 to 3 m above the normal level of the river, above the level expected to be reached by the floods. The road to the village of Nakavika dominates the river bank, providing an easy access to the site of the plant. 4. TRANSMISSION LINE The transmission line will be a 33 kV line, from the extremity of the upper Namosi road the Namado plant switchyard. This 10 km long transmission line will be installed along an existing road in easy terrain. APPENDIX 1 - 24 5. PRELIMINARY EVALUATION Maximum Gross Head Maximum plant discharge Installed capacity Average Annual Energy Production Preliminary cost evaluation 44 m 21.5 m3/s 7.7 MW 24 GWh 17.5 M US$ APPENDIX 1 - 25 WAINIKOVU Wainikovu scheme is to be developed on the Wainikovu river, in the narrow gorge which stands 2.5 km upstream of its confluence with the Navua River. The site lies 3 km east of Nukusere Village, but its access is awkward, and requires the construction of 3 km long access road is bush and hilly terrain to the north bank of the gorge, and a few more km to have access to the left bank of the river. HYDROLOGICAL DATA 1. RUNOFF 1.1. Wainikovu Catchment Basin Wainikovu Annual Rainfall Rainfall 70 3580 km² Mm Runoff January February March April May June July August September October November December mm 391 361 450 456 290 201 166 166 231 243 314 314 Mm 236 226 315 344 195 116 76 57 113 108 165 156 m3/s 6.16 6.54 8.23 9.28 5.10 3.14 1.98 1.48 3.05 2.81 4.45 4.07 Mm3 16.488 15.817 22.030 24.055 13.647 8.133 5.298 3.968 7.894 7.533 11.523 10.893 Total 3580 2104 4.67 147.28 1.2. FLOODS Cyclonic conditions similar to those retained for the Monasavu dam would lead to a 800 m3/s peak flood on the 70 km² catchment basin of the Wainikovu dam. Construction flood are to be properly evaluated, but could be in the range of 200 to 300 m3/s. 2. GEOLOGICAL CONDITIONS The dam site stands in the Wainikovu sandstone and conglomerate units. These formations are relatively fresh and stand up as competent cliffs. The conglomerates contain basalt clasts to 5 cm in diameter with interbedded grits. The bedding planes are flat lying and the units average 30 to 40 cm thick. APPENDIX 1 - 26 3. PRINCIPLE OF THE SCHEME At the dam site, the sandstone and conglomerate formations form 50 m high cliffs on both sides of the creek, leaving a 50 m high 10 to 15 m wide gorge. This gorge could appear as an ideal site to build a dam with a significant height and small concrete volume. In reality, various aspects of dam construction realities are to be taken into account: • The banks and the foundation of the dam structure must be the subject of proper treatment to provide stiff, stable and watertight support to the dam: – The dam will be probably of the cylindrical arch type, and keys of suitable shape are to be excavated in the cliffs, – The foundation needs to be cleaned of all sediments and debris, and will have probably to be shaped to provide adequate support to the structure, • The river must be diverted so as to allow the execution of the works in the river bed: – In the present instance, the only feasible way is to drive a tunnel in the left bank. 5 to 10 year recurrence floods of possibly 200 to 300 m3/s would require the construction of a 5 m diameter tunnel. The difficult access conditions to the gorge itself lead to the necessity to arrange a 600 m long tunnel that by-passes the gorge. – The diversion of the river and the emptying of the dam site require the construction of a 10 to 12 m high upstream cofferdam, and of a few meters high downstream cofferdam, together with the drainage by pumping of the space between both cofferdams, • Access must be provided to both banks of the river, and access to the gorge and banks at the dam site proper will probably require the installation of a cableway, The 800 m3/s flood discharge must be routed over the dam. This will produce a surelevation of the reservoir above the level of the spillay by more than 10 m, which is no problem, but the dissipation of the energy of the falling jet will require..... Assuming a 40 m high dam, to allow for the surelevation of the reservoir during the routing of the floods, and with the sizing of the plant at 1.25 times the wettest month average discharge, the installed power will be around 4 MW. • Conclusion/Recommendation : It is clear that the site deserves attention and that all the works required to develop the Wainikovu scheme need to be carefully studied. However, given the complexity of the construction of this scheme, the studies require comprehensive field investigations that have to be carried out in difficult conditions and the relatively modest production of energy expected, we suggest not to place the Wainkovu scheme in the priority development programme. APPENDIX 1 - 27 WAIMANU The Waimanu scheme is installed on the downstream reach of the Waimanu river, with a dam built somewhere in the large oxbow located 10 km upstream of the confluence of the river with the Rewa river. It takes advantage of a 1121 km² catchment that can provide an average inflow estimated at 11.6 m3/s. The river profile is rather flat in the area, and the whole head of the scheme is to be created by the dam. A solution with a power plan placed at the extremity of a short tunnel cutting the opening of the oxbow can be envisaged, and would bring a moderate additional fall of possibly 1 to 2 meters. HYDROLOGICAL DATA 1. RUNOFF 1.1. Waimanu Catchment Basin Waimanu Average Annual Rainfall 121 4509 km² mm Waimanu Runoff Rainfall January February March April May June July August September October November December Mm 492 455 566 574 365 253 209 209 291 306 395 395 mm 337 320 431 462 270 168 119 100 173 171 246 237 m3/s 15.22 15.99 19.49 21.56 12.21 7.86 5.36 4.50 8.06 7.71 11.48 10.71 Mm3 40.764 38.675 52.202 55.887 32.693 20.376 14.360 12.061 20.892 20.639 29.766 28.677 Total 4509 3033 11.64 366.993 1.2. FLOODS Cyclonic conditions similar to those retained for the Monasavu dam would lead to a 1 200 m3/s peak flood on the 121 km² catchment basin of the Waimanu dam. 2. GEOLOGICAL CONDITIONS At the dam site, on the west part of a large oxbow, the Waimanu river trends north up to a major bend where the road meets the river. Further west, the river trends south west. Quartz eye rhyolites, generally APPENDIX 1 - 28 weakly fractured, outcrops on both sides of the river at the dam site, with basalts outcropping to the north and forming cap on the ridges. The basalts represent outlier of the Ba basalt plateau to the east. A major fault trends east north east along the Waimanu river and cuts the ridge south of the dam site. Further east, the fault trends along the eastern side of the ridge. Major landslides are associated with the basalts. The slips occur at conjugate faults on the east and west slopes of the river and are unstable. Geological conditions of the foundation in the river remain to be assessed, but the depth of sediments is not considered to be excessive. 3. PRINCIPLE OF THE SCHEME The flat profile of the river involves that the majority of the head of the scheme is to be created by the dam. However, the route of the river with a large oxbow open towards south allows the consideration of two types of schemes as follows: – a solution with a power plant placed alongside of the dam or at the foot of the dam if the dam is high enough, – a solution with a power plant placed at the extremity of a short tunnel cutting the opening of the oxbow. The second solution brings a moderate additional fall of possibly 1 to 2 meters, but requires the construction of a short tunnel. Since this additional head is very small, the advantage of this solution may appear modest at first glance, but it allows the construction of a simpler dam structure since the power plant will not be in the river bed. The final height of the dam is to be determined after an optimisation process. This process cannot be undertaken at this stage, but, as a result of the very large increase of the cost of the dam when the height increases, it is likely that it will lead to a dam of relatively modest height. Likewise, it is not possible to envisage and compare at this stage the various scheme arrangements that the site allows, and we shall limit this first approach to a reasonable scheme lay out, with low dam and power plant installed in one side of the dam. We shall consider also the construction of the power plant and of the overflow section of the dam in two phases during two successive dry seasons to allow for construction works in half of the river width at a time. 3.1. DAM The location of the dam is to be selected in the upstream branch of the oxbow. A position between the road and the Wailosilosi creek offers relatively small dam length, but must be chosen so as to avoid the landslide that can be observed on the right bank. The river valley is subject to numerous landslides, leading to a high level of sediment transport in the river. It is therefore necessary to include in the dam a high capacity bottom outlet able to flush the sediments that will settle in the reservoir. The interannual regularisation of the flow would require a live reservoir capacity of 68 Mm3, whereas the capacity corresponding to 25% of the wettest month to dampen the usual flood is only 14 Mm3. The contour lines of the existing 1/50 000 scale topographic map are not precise enough to give an idea of the slope of the stretch of river where the dam lays, but local measurements indicate a possible slope of 1 to 1.5 m/km. For an average width of the valley of 150 m at elevation 30, the storage would be 3 to 4 Mm3 per m of storage, and to provide the live volume necessary for the annual regularisation would lead to an uneconomically high dam. There again, the site conditions call for a run-of-river type of scheme with a few days live storage. Because of the requirements to ensure the necessary hydraulic functions, the dam will be almost certainly a concrete structure including: – high capacity bottom outlets sized to route the annual flood at low reservoir level, to allow for regular flushing so as to permit the use of the reservoir as desanding basin. – a free flow spillway, able to route the cyclonic flood over the dam. Depending of the quality of the river bed, the addition of a proper stilling basin may be necessary to ensure the stability of the river bed downstream of the dam. APPENDIX 1 - 29 3.2. POWER PLANT The power plant will be placed alongside or just downstream of the dam body, and sized to house two axial flow turbines, bulb type or S type. TRANSMISSION LINE 4. Subject to verification, it is probably possible to connect the power plant to the line that feeds the pumping station set on the Waimanu river in Koroi road, or to find a suitable connecting point in the area. The length of the transmission line would not exceed 10 to 12 km, and the tension would be preferably 33 kV, but 11 kV should be probably acceptable as well. 5. ACCESS The Waibau road gives access to the north bend of the oxbow, 300 to 500 m north of the dam site. A short length of road will have to be built in hilly terrain. 6. PRELIMINARY EVALUATION Maximum Gross Head Maximum plant discharge Installed capacity Average Annual Energy Production Preliminary cost evaluation 16 m 27 m3/s 3.2 MW 10.5 GWh 12.3 M US$ APPENDIX 1 - 30 SOMOSOMO The Somosomo Minihydro Project, which is located on Naibili Creek on the west coast of Taveuni, has been the subject of successive studies since the sixties, including – a Design Study by Beca Worley International in 1986, followed by the preparation of Tender Documents in 1987 for a scheme including a 350 kW hydraulic generating unit and back up diesel generating units, – a financial, economic and socio-economic study of the project by Gibb-Sinclair Knight in 1994. The project considered in these studies includes a 350 kW run-of-river high head hydroelectic plant and two 225 kVA diesel engines that will supplement the hydro generation during the period of low stream flow and peak demand, as well as during maintenance or forced outage of the hydro plant. The project was shown to be viable in economical term, with an Economical Internal Rate of Return of 15%, but not financially viable with all the charges considered in the study. At the time of the study, the annual electicity usage in the area covered by the project was estimated to be 1.02 GWh, for a 24 hour grid supply, with a peak power demand of 480 kW, coresponding to a load factor of 0.24. With the installation of new hotel resorts, the level of the electricity demand is considered to be at present much more than that resultig from the growth rate retained in the economic study of Gibb-Sinclair Knight, and will continue to grow. This demand could be as high as 1.5 MW, but this figure remains to be confirmed by proper investigations and study. The economical conditions for the installation of larger generating facilities appear therefore more favorable now than anticipated by the previous studies. 1. PROJECT PRINCIPLE Considerable information on the project to be developped is available in the existing study reports, that can be used for the present study. The project, as presently developped, taps the water from the Naibili Creek at elevation 633. The location of the water intake appears to be judiciously chosen, where creek turns west towards the west coast of the Island, and where its slope increases. The catchment of the creek is small, but the rainfall is extremely high in the area, from 10 m/year over the Lake Tagimaucia catchment, to 14 m at Des Voeux Peak, south of the lake. The Lake Tagimaucia and surrounding marshlands occupy the centre of an old volcano crater. The marshlands and lake drain through a small river which spills over a natural rocky weir located in the south part of the rocky range that closes the east side of the crater. The spilled flow joins ultimately the Wainisairi creek which flows towards the east coast of the island. The surface of the crater is around 2 km², but its catchment covers an area of 4.9 km². The catchment of the Naibili creek is to the north of the crater and covers an area of 2.5 km². Measurements of the flow in the Naibili creek and over the Lake Tagimaucia rocky weir are reported in the table below : % 100 95 90 80 Daily flow duration Naibili Lake Creek l/s Tagimaucia spillage l/s 55 25 84 80 97 130 123 250 Total l/s 80 164 227 373+ APPENDIX 1 - 31 70 60 50 40 152 183 215 264 250+ 250+ 250+ 250+ 402+ 433+ 465+ 514+ The minimum flow of the Naibili Creek is relatively small, with 84 l/s for a 95% guarantee, compared to the 200 l/s that is necessary to produce the objective of 1.5 MW. It is however relatively easy to increase the hydraulic resource by diverting towards the Naibili Creek part of the crater catchment. The observation of the discharge spilled over the rocky weir towards the Wainisairi creek, shows that the instantaneous demand may exceed the total discharge of the system during small periods. The deficit of flow corresponds to a very small volume of water, that can be easily extracted from the marshland, either by digging a short canal through the north bank of the crater, towards the Ndranomath Lake, or by pumping in a well to be dug in the marshland. This Ndranomath lake, which spills into the major tributary of the Naibili Creek, may constitute an ideal reserve of water to provide the missing water during peak energy consumption. This will allow a considerable reduction of the pumping capacity, ad the cost of a small structure to raise slightly the level of the dam. Alternatively, the level of the Tagimaucia lake can be raised by adjusting the control level of the rocky weir with small volume of concrete fill. It is likely that a very modest of the level of the lake will provide the necessary buffer volume. 2. COMPONENTS OF THE SCHEME 2.1. WATER INTAKE The water intake is located on the Naibili Creek at elevation 633, which provides a gross head of 590 m. The intake includes a desanding basin. The design is ready for a discharge of 80 l/s, and can be easily adjusted for the 300 l/s discharge required for a 1.5 MW installed power. 2.2. PENSTOCK The conveyance of the water from the water intake to the power plant is made through a 300 mm dia 4200 m long welded steel pipe, with cement mortar or epoxy coating. By using 360 MPa yield strength pipe for pipes with more than 200 m pressure, the total weight of the supply is around 300 t. The penstock will be placed over a sand bed in a trench, which will be eventually backfilled with compacted soil. The bends will be fixed by concrete anchor blocks. 2.3. POWER PLANT The power plant will be installed on the side of the Somosomo creek, probably just above the Somosomo village. It will be probably developed in stage, to follow the progress of the energy demand. Several options of equipment are possible. They depend on the predictable growth of the demand, and must be selected so as to provide the lowest present cost of the project. They must also take into account the fact that, to convince future customers of the reliability of the supply and assure the viability of the operation, the availability of the energy must be guaranteed, which implies to have back-up equipment ready to be put on line in case of programmed maintenance or forced outage of the main units. The most convenient back-up equipment consists in diesel engine(s) to be installed in close proximity of the hydroelectric plant. Options that can be considered and compared may be: – The installation in a first phase development of a 500 kW hydro-generating unit, together with a 500 kW diesel unit, and complete the equipment by a 1 MW hydro-generating unit when the demand and the distribution network allow it, together with a second 500 kW back-up diesel generating unit, APPENDIX 1 - 32 The installation in a first phase development of a 750 kW hydro-generating unit, with a 750 kW back-up diesel unit, and complete the equipment by a second 750 kW hydrogenerating unit when the demand and the distribution network allow it. For both previous options, the choice between the installation in the first phase of a penstock sized for the total installed power of the ultimate phase of development or the delayed installation of a second penstock needs to be analysed. The final choice is, of course, very dependant of the anticipated energy demand growth rate. – With the arrangement envisaged, the hydraulic power plant will be able to produce the energy corresponding to the installed power 95% of the time. The actual energy produced with be therefore controlled by the demand. 3. STUDIES TO BE CARRIED OUT 3.1. DEMAND STUDY The study of the demand is to be carried out in a manner similar to that adopted for the Gibb-Sinclair Knight study, with detailed investigations concerning the potential large consumers. 3.2. ENVIRONMENT STUDY The Lake Tagimaucia is ecologically sensitive. It is customary land of Bouma community, living in the South East of the Island, and not to be beneficiary of the proposed project. A full Environment Impact Assessment appears to be necessary prior to undertake the development of the project, to verify that the (small) drainage of the marshland during a limited period of the year, or the small raising of the Tagimaucia Lake is ecologically and sociologically acceptable. 4. PRELIMINARY EVALUATION Maximum Gross Head 590 m Maximum plant discharge 0.305 m3/s Installed capacity 1.5 MW Average Annual Energy Production According to the demand Preliminary cost evaluation 6.8 M US$ A large proportion of the cost is for the transmission line. APPENDIX 1 - 33 DATA TO BE ACQUIRED DURING THE COMING WET AND DRY SEASONS 1. 1.1. HYDROLOGICAL DATA DATA TO BE ACQUIRED FROM THE HYDROLOGICAL DEPARTMENT OF THE MINISTRY OF PUBLIC WORKS The following records have been indicated to be available, most of them on an hourly basis (Chief Hydrologist Richi Raj, meeting on Feb 23) 3) Discharge records: – Waynicacau – Namosi – Waimanu – Somosomo creek - Taveuni 4) Rainfall – Nasevu – Wainicavu – Waimanu – Wainaboro – Nabukaluka – Wainivra – Des Voeux Peak - Taveuni Partial records are available only for the Namosi gauging station. As long as possible records should be obtained, with a minimum of 20 years when they are available. 1.2. DISCHARGE MEASUREMENTS It is necessary to proceed with regular and comprehensive measurements of the discharge of some of the rivers where the development of hydroelectric schemes envisaged, with the view to getting a better understanding of the hydraulic regime of theses rivers, and particularly – the short term variation of discharge, in relation with rain episodes, – the base flow during the dry season. We have selected rivers and location where the measurement was possible without the necessity to build particular structures, and the measurements will have to cover the next rainy and wet seasons. 1.2.1. WAIROKODRA, WAIVAKA AND WAILUTULEVU SCHEMES The measurement of river discharge is relatively easy for these three schemes, where bridges with characteristics suitable to install accurate flow measurement devices are available. APPENDIX 1 - 34 Indeed these bridges are of common design, and consist of adjacent concreted arches with flat concrete apron. It is possible to force the flow into the central arch of the bridges by placing 40 cm high flashboards across lateral bays and create critical flow conditions in the central bay that allow an accurate determination of the discharge by measuring the head1 over the concrete base. The resulting head discharge relationship is indicated in the graph below for 40 cm high flashboards installed in all except one bays of the bridges. Such bridges are available at the place of the dam and upstream of its confluence with the Waidina river for the Wairokodra creek, and upstream of its confluence with the Waidina river only for the Waivaka and Wailutulevu scheme. Description of the flashboards – The flashboards will be made of 80 mm thick wood boards, placed vertically against the offset between the discharge bays and the upstream guide walls, – The width of the flashboard is around 2.65 m, – The top level of the flashboards will be adjusted to be 40 cm above the bridge concrete apron, – The flashboards will be rigidly tied to the concrete so as not to move, vibrate or float when loaded by water. Discharge through Bridge Q m3/s 14.000 12.000 10.000 8.000 5 bay bridge 6.000 4 bay bridge 6 bay bridge 4.000 2.000 0.000 0 0.2 0.4 0.6 0.8 1 Water level above apron (m) 1 The head is the difference between the elevation of the water upstream of the measuring section, or the still water upstream of the closed sections, and the elevation of the sill of the central section. APPENDIX 1 - 35 Discharge through Bridge Small discharges Q m3/s 2.000 1.800 1.600 1.400 1.200 5 bay bridge 1.000 4 bay bridge 0.800 6 bay bridge 0.600 0.400 0.200 0.000 0 0.1 0.2 0.3 0.4 0.5 0.6 Water level above apron (m) 1.2.2. NAMADO SCHEME It is possible to proceed with water level measurement on the Wainikoroiluva river near the village of Navunikabi. A river section has been selected to this effect at the downstream limit of Navunikabi village, where a staff gauge can be sealed in the low rock cliff that exists on the right bank just upstream of the Wainatava Set. This section has been selected because of its commodity to install a staff gauge in an accessible place, but it is probably not very stable, and needs to be calibrated from time to time. Flow velocities are therefore to be measured from time to time at various river discharge conditions. 1.2.3. MEASUREMENTS PROCEDURES Taking into account the rapid variations of the discharges to be measured, it is recommended to proceed with 4 measures per day. These measures will be made at defined hours, and reported on dedicated log books. The precision of the measurement will be lower than 1 cm. For the measurements to be made at the bridges over the Wairokodra, Waivaka and Wailutulevu rivers, the level will be measured upstream of the bridge, where still water (moderate flow velocity) prevails. – 1.3. RAINFALL DATA Rainfall gage are to be installed and read on a regular basis at: – Wairokodra dam site, – Wairokodra power plant site Namado scheme, at the gauging section on the Wainikoroiluva river near the village of Navunikabi. 1.4. STAGE DISCHARGE RELATIONSHIP Obtain the rating curve (stage-discharge relationship) of the Waimanu river at gauging station. APPENDIX 1 - 36 2. • • TOPOGRAPHICAL DATA TO BE ACQUIRED Cross section of the Waimanu valley at provisional dam site axis, up to 30 meters above the river level, If possible, cross section of the Waikava river at provisional dam site axis, up to 25 m above the river level. 3. GEOTECHNICAL DATA Proceed with the verification of the level of the bedrock in the Waimanu river at retained dam site by jetting technique as already considered. The execution of geophysical profiles can be delayed to the next phase of study. Appendix 2 - i APPENDIX 2 PREFEASIBILITY STUDY FOR THE ELECTRIFICATION OF ROTUMA BASED ON LOCALLY PRODUCED COCONUT OIL December 2005 Prepared by Peter Johnston, REEP Consultant Appendix 2 - ii TABLE OF CONTENTS I. Project summary.........................................................................................................1 II. Physical, Demographic and Economic Background .................................................2 III. The Government Electricity Supply System.............................................................3 A. Fuel requirements for electricity supply ............................................. 5 B. ‘Urban’ household consumption ....................................................... 5 C. Government corporation consumption................................................ 5 D. Cost of supply from Ahau government station....................................... 5 IV. Existing Village Electrification ..................................................................................6 V. Diesel Fuel Supply and Cost.....................................................................................9 VI. Annual Patterns of Power Use and Growth in Demand ..........................................10 VII. Rotuma’s Coconut Resource and Coconut Oil Potential........................................11 VIII. Comments on Economics of Coconut Oil Production in Rotuma..........................12 IX. Scope of the Project .................................................................................................14 A. 11 kV centralised grid and central power station................................... 14 B. Biofuel production ....................................................................... 15 C. Managing the enterprise ................................................................ 15 X. Further Project Concept Development......................................................................16 XI. Supplementary Rotuma Photographs......................................................................17 Appendix 2 - 1 Rotuma Electrification Using Locally Produced Biofuel I. Project summary 1. In October 2004, the Coconut Figure 2 – Rotuma Location Map Industry Development Authority (CIDA) recommended Rotuma to the REEP team as a site for renewable energy development using coconut oil as a replacement for diesel fuel for power generation. However, the Department of Energy (DoE) did not initially support the concept, preferring to develop 100% electrification of the island of Moala by renewable energy through the REEP. Further investigation in late 2004 indicated that renewable energy on Moala probably could not be economically developed to the extent desired by the DoE. In February 2005, DoE shifted its support to the CIDAproposed Rotuma biofuel electrification project. The Steering Committee approved the concept in February 2005. This late acceptance of the project, limited availability of fuel use and electrification data for Rotuma and the difficulty of accessing the Island all delayed development of the project proposal. A site survey by the REEP Source: http://www2.hawaii.edu/oceanic/rotuma/os/hanua.html Fiji local consultant was carried out in October 2005 and further data were gathered between then and December 2005. Figure 3 – Rotuma from the Air Photo: Peter Johnston, October 2005 2. The remote island of Rotuma has a small diesel system supplying the government administrative centre at Ahau and nearby households. There are also numerous stand-alone generators in villages in seven districts spread fairly evenly around the island. This project is for the development of a centralised electricity system that would replace expensive imported diesel fuel, supplied irregularly and sometimes unreliably, with fuel based on locally produced coconut oil. The project would include a coconut oil mill and related facilities, a new central diesel plant on the Appendix 2 - 2 order of 300 kW, and reticulation of supply, probably at 11 kV, around the perimeter of the island. The transmission line would extend about 32 km in total.1 The project has been endorsed in principle by the government-owned CIDA, the Office of the Prime Minister and the Ministry of Finance and Planning (MOFP). It also has the support of the DoE. II. Physical, Demographic and Economic Background 3. Rotuma is Fiji’s most remote island (see Figure 2), 465 km north of the main Fiji Islands group. It is volcanic, 44 km2 in land area (14 km long by 4.3 km at its widest) carpeted with lush vegetation, with hills (see Figure 3) reaching 262 metres in height and abundant coconut trees. Although politically part of Fiji, Rotumans are ethnically Polynesian. The Rotuman language is unique although Polynesian based. After class 3 (the third grade), students are taught in English, and nearly all Rotumans are at least bilingual with many also speaking Fijian and Hindi. The population of about 2,400, increasing to 2,600 over the Christmas/New Year’s holiday period, is spread along the coastline with the hilly interior largely uninhabited. An unpaved road circles the island (See Figure 4 and supplementary photos2) linking all villages. There are twice-weekly 2½ hour flights from Fiji’s capital Suva by small turboprop aircraft that are typically fully booked for freight and passengers. Irregular ocean transport sails every 4-6 weeks with a 36 hour transit time from Suva to Rotuma. Figure 4 – Map of Rotuma Source: http://www2.hawaii.edu/oceanic/rotuma/os/hanua.html 1 The transmission line would extend 25 km around the larger eastern part of the island, plus 3 km to reach the main villages on the smaller western bulge (1.6 km to Maftoa and a 1.4 km branch to Losa) and another 3½-4 km for branches to the three water pumping stations (1.5 km to Motusa, 1 km to Sumi and 1 km to Lepjea). Distances were measured along the roads and into the interior on a map of scale 1:7920 or 8 inches = 1 mile = 80 chains. 2 Supplementary photographs are annexed as Attachment 1. These illustrate the quality of roads, village generating systems, typical house wiring, copra drying, fuel storage, topography, etc. Attachment 2 lists people and organisations contacted. Appendix 2 - 3 4. In principle, nearly 90% of the island’s population is electrified using numerous independent diesel generators feeding small underground village grids but often many of these are not operational, sometimes for long periods. In October 2005, 73% of village households had a functioning electricity system. Service is typically provided for 4-6 hours each day with periods without service due to lack of fuel or mechanical problems. In 2004, the island was reportedly without fuel for two months due to shipping problems and during 2005 there were numerous periods where power was restricted for both the government system and communities, sometimes due to lack of funds to purchase fuel. During the October 2005 REEP visit to the island, it was observed that residents had difficulty in purchasing diesel fuel from retailers for use in private vehicles. 5. Relative to Fiji’s other outer islands, Rotuma is relatively affluent, with a semiskilled workforce. Rotumans by and large enjoy a comfortable standard of living with ample food, adequate housing, and an increasing number of household appliances. There are probably fewer than twenty motorised vehicles on the island, however, and their number is increasing only slowly. Because of high outward migration to mainland Fiji for employment, the island’s population has a higher percentage of children and retired people than that of Fiji overall. There are currently no restaurants, hotels, cafes, tourist facilities or Internet service on the island. The onceactive cooperative system failed some years ago. There is one commercial piggery and considerable subsistence fishing. In the past, Rotuma exported oranges to mainland Fiji but this has long ceased. Copra is the only export commodity of any significance but this brought less than US$0.2m to the island in 2004.3 6. The lifestyle is supported by a combination of local production, formal employment (primarily with government agencies) and remittances from family members who live elsewhere in Fiji or overseas. Although remittances from within Fiji are not well documented, authorities in Rotuma suggest that at least FJ$430,000 (over US$250,000) was remitted to the island in November and December 2004 alone. In 2004, remittances for the full year exceeded FJ$1.4 million (US$0.8m) or about US$350 per capita.4 7. There is a government station (postal service, satellite telecommunications, hospital, administrative centre, school, etc.). Affairs are managed by an elected council of traditional chiefs, the Rotuma (RIC), with a three year mandate. The RIC has about 22 members: chiefs and sub-chiefs from all districts plus several Fiji government officials (the District Officer (DO), agricultural officer, doctor, etc.). The DO is accountable to the Ministry of Regional Development in Suva. A highly subsidised Government power system serves the government station and nearby households, reaching about 10% of the island’s population. III. The Government Electricity Supply System 8. A small diesel generator and underground distribution system serves the government complex at Ahau and nearby housing that includes eleven civil servants’ 3 In 2004, Rotuma exported 801 tonnes of copra (source: Rotuma agricultural office), at an average value of FJ$485 per tonne (assuming, as reported by the agents “Three Sisters”, 70% grade F1 at FJ$500 and 30% grade F2 at FJ$450) minus shipping costs of FJ$84/tonne. As discussed later, the growers earned less. 4 There are no banking facilities on Rotuma. According to sources on the island, FJ$1.4 million is the amount remitted to the island through Western Union during 2004. As Rotumans bring cash (and food and gifts) when they visit, particularly during Christmas, the actual amount remitted is considerably higher. Appendix 2 - 4 quarters, seven private homes and a church at Tieri village 1 km south and another nine private houses between 0.2-0.8 km to the north. Some government offices have their own gensets, solar PV power or standby diesel facilities. The government system normally operates for eight hours daily from 08:00-12:00 and 18:00-22:00. When there is ample fuel, it also runs from 05:00-08:00. Government generation facilities are summarised in Table 8. Except where noted, these are diesel based. All generation except that used for water pumping is at or near the government station at Ahau. There are three electric water-pumping stations, with the approximate locations shown in Figure 6. 5 9. Although there is no record of the average or peak load on the government system, demand is normally the highest in mid-morning when PWD welding equipment and compressors tend to be used. The RIC garage is used as a general maintenance facility for the island, with extensive use of power tools, a welder and compressors. The hospital includes a dental clinic with a small compressor, several refrigerators and a small (7.5 kW) back-up genset. Although the Post Office shop serves as a general wholesale / retail outlet and has several big freezers, they are really only used for several days per month, as frozen goods sell out within 2 or 3 days and ships deliver food only every 4-6 weeks. Table 8– Government Facilities Electricity Supply Summary Generating plant Comments Main loads Government station 1 44 KVA (35.2 kW) No backup 2 1996 Wilson F6 model P44E 415/240v 3 phase, 1500 rpm. Govt offices, shops & homes. 3 Mid-morning peak; little or no A/C. Water Supply Office pumping stations 4 x 27 KVA Perkins Three gensets and pumps are used daily to meet demand & one is used for peak demand. Diesel consumption is slightly less than 4,000 litres (20 x 200 litre drums) per month. Demand has not increased noticeably in recent years. Electric pumps for reticulated water supply and to water tanks in rural areas Hospital 5 KVA backup Powermate APY5 single phase; currently not functioning 2 small compressors (1-2.2 kW; 1-3.2 a), several refrigerators (3.5+a).sterilisation equipment, xray, computers, lights Rotuma Island Council 4.8 KW Robin RGD5000 240 VAC 17.9 a diesel; portable; purchased 2005 & used for garage, workshop and main office during afternoons Power tools, welder (Tranarc Tradesman 180 a; 240 v), compressor (1.7 kW, 9a) District Officer < 1 kW (?) Small wind electric generator for battery charging VHF communications Telecom PV charged batteries 18 KVA backup Specifications unknown. 1994 Onan 46DGRE, 1 operates ‘few hours’ monthly Satellite communications; battery charging Location 1 2 3 5 Centrally located in government complex in dedicated building on concrete slab. Water cooled. The radiator has been replaced three times in past 9 years due to vibration, metal fracture and corrosion. A used 110 KVA Perkins 3 backup system never operated and was shipped to Suva. These homes typically have electric lighting, electric iron, refrigerator, radio, kitchen appliances, and small home workshop. Some have television/video and stereo systems. The three boreholes were drilled in the early 1980s. Mono lift pumps are operated from diesel engines as follows: Lepjea 44.5m depth (10-12 hours daily; 3 litres per second or 11 m3/hr), Motusa 60m (18 hours daily; 11 m3/hr) & Sumi 72m (volume unknown, should be used for standby production). Source: “The Status of the Groundwater Production Boreholes on Rotuma” (Prem Kumar; Govt of Fiji Mineral Resources Dept. Note BP 44/25; July 1997). Appendix 2 - 5 A. FUEL REQUIREMENTS FOR ELECTRICITY SUPPLY 10. There is no logbook at the Rotuma Figure 5 – 44 kVA PWD Genset, Aahau power house recording kWh of energy produced, or maintenance, only the fuel consumption, which averages 350 litres of diesel per week or about 18,000 litres per year. This appears to represent an extraordinarily low efficiency of operation and actual system logging of generation needs to be carried out. According to the Public Works Department (PWD) Water Supply Office, an additional 48,000 litres per year are used for three gensets for electric water pumping, for a government total of 66,000 litres per year for power generation. An additional 50,000 litres per year is estimated (see Table 11) for Photo: John Bennett, May 2005 village electrification, a total of 116,000 litres (116 KL) of diesel fuel per year used on Rotuma for power generation. This volume is approximate and should be confirmed.6 B. ‘URBAN’ HOUSEHOLD CONSUMPTION 11. For the 27 households connected to the government grid, consumption from Feb.-April 2005 (when records were available) averaged 51.3 kWh per month per household (from 5-268 kWh). According to tenants, the charge to households is FJ$0.1575 per kWh plus 12.5% value added tax (VAT) or FJ$0.1772/kWh (about US$0.103) compared to the VAT-inclusive FEA price of FJ$0.2316/kWh.7 C. GOVERNMENT CORPORATION CONSUMPTION 12. For February-April 2005, consumption for the Rotuma facilities of Post Fiji Ltd and Telecom Fiji Ltd. averaged 535 kWh/m and 404 kWh/m respectively. The charge to government entities is the same as for households. There are apparently no records of government’s own consumption although some facilities are metered. D. COST OF SUPPLY FROM AHAU GOVERNMENT STATION 13. There is no reliable information on the cost of electricity produced by the government power system. An estimate of costs from the other four remote government stations in 2002 by a Fiji DoE consultant8 indicated a range of FJ$0.81.5 per kWh. That study did not include site visits and was based on logbook entries 6 Discussions with a former executive of Shell, which has a contract to supply fuel used by PWD Rotuma, suggests that the volume might be considerably higher. Fuel is provided by drum to PWD Suva as part of a larger government contract and Shell does not distinguish Rotuma volumes from the total. PWD has been unable to provide information on its shipments from Suva to Rotuma. The main supplier of fuel for private and village use, Three Sisters, did not respond to requests for information on volumes. See Attachment 3. 7 According to PWD Suva, consumers are supposed to be charged at the FEA rate. In October 2005, one tenant in a government house claimed to pay a flat charge of FJ$10/m. 8 “Cost of Electricity Production: Diesel Schemes for Remote Villages, Government Stations and Fiji Electricity Authority Un-Electrified Villages” by Luis Vega, for Office for the Promotion of Renewable Energy Technologies (OPRET), Fiji Department of Energy, 2003. Appendix 2 - 6 at the power plants, which are unlikely to be accurate. The costs were probably understated. Rotuma was excluded because sufficient data were not available. However, in 2002 it was probably in the upper range of these estimates. From 2002 to late 2005, the cost of diesel fuel (duty-free Singapore price) has increased from US$27 to about US$60 per barrel and the wholesale price of diesel fuel in Suva increased by 71%. The current cost of electricity at the Ahau power station is probably well over FJ$2 (US$1.2) per kWh. There is clearly a massive subsidy provided to those consumers connected to the Government system. IV. Existing Village Electrification 14. Table 9 shows Rotuma’s population by district, with the largest concentration in Itu’ti’u in the general vicinity of the government centre. Away from Ahau, electricity is generated by many small diesel gensets operated by users or a local committee. There are several privately-owned solar PV electricity systems at homes and shops. Table 9 – Rotuma Population by District (2003) District Noa’atau Oinafa Malhaha Itu’ti’u Itu’mutu Pepjei Juju Total Population % Households % 311 287 277 887 165 167 296 2,387 13 12 12 37 7 7 12 100 79 74 58 192 33 30 59 525 15 14 11 37 6 6 11 100 Source: Rotuma Island Council, 2005. Percentages are rounded to nearest whole number 15. Figure 6 shows the seven districts of Rotuma and the distribution of villages. There are 15 main villages, some of which are contiguous, and several sub-villages. Some villages have more than one generator and some villages share a generator so there is not a one-to-one correspondence between villages and gensets but generally there is one communal genset per community. Figure 6 – Village and Pumping Station Locations on Rotuma Modified by REEP from map at http://www2.hawaii.edu/oceanic/rotuma/os/hanua.html. 16. In early 2005, DoE staff provided training in Rotuma in diesel operation and maintenance (O&M) and found the existing systems to be widely variable in terms of quality of maintenance and general condition. The systems are usually operated only at times of peak need, the quality of power is typically poor and system reliability is low. Long periods without power are common due to delays in ordering and receiving Appendix 2 - 7 repair parts, lack of village funds for purchasing replacement parts or fuel and at times delayed fuel deliveries. 17. No comprehensive inventory of generators in use has yet been officially prepared but PWD/DoE rural electrification records show the installations listed in Table 10. Table 10 – Diesel Generators known to have been installed on Rotuma (DoE Records) Village Oniafa Village * Year Install ed Generator 1981 LISTER (ST3) 18. During the March 2005 diesel system Paptea Village * 1982 LISTER (ST2) O&M training, DoE staff visited villages in Malhaha 1983 LISTER (ST3) 20 KVA each district and interviewed diesel system Juju District 1985 LISTER (ST2) 1985 LISTER (ST2) operators. This was supplemented in Pepjei Diatrict Lau/Feavai 1991 LISTER 13.5 KVA October 2005 by a detailed follow-up Maftoa 2002 LISTER 8.5 KVA survey of electricity use in three villages, Savalei 2002 LISTER 10.5 KVA visits to all electrified villages, and Pala 2002 LISTER 15 KVA interviews with operators. The initial survey Tuakoi Ext 2003 DEUTZ 15 KVA 2003 DEUTZ 8.5 KVA indicated 18 electrified communities Sumi Catholic School 2003 DEUTZ 15 KVA providing a part-time electricity service to Losa Kalavaka / Ituitu 2003 DEUTZ 20.0 KVA 471 households or nearly 90% of the Noatau District School 2003 DEUTZ 20.0 KVA island’s population. However, there were Haga 2004 HATZ 15 KVA some discrepancies, including apparent Motusa 2004 DEUTZ 40 KVA double counting of some households. * Not operational in 2005; ‘Year Installed’ refers to most Some systems reported by PWD/DoE to recently installed system. be operational have reportedly broken down, some several years ago. Table 11 summarises the revised findings. 19. Table 11 suggests that 88% of the village households (470 of 535) are electrified but in Late 2005 only about 73% (389 of 535) actually had a functioning electricity service. The systems operate 3-6 hours per day (4 hours unless noted), often for an hour early in the morning to keep refrigerated food cool, and several hours in the evening. Figure 7 – Mea Hampak village generator installed in 1998 20. There is some ambiguity in the survey data as different responses were received from the same informants at different times. In general, operators could not Peter Johnston October 2005 produce records so fuel consumption data were based on their estimates only. There appear to be 18 village generating systems with a total capacity under 300 kVA, which is consistent with the information in Table 10 from DoE rural electrification records. The reported fuel consumption, which is unlikely to be very accurate, suggests that village power systems consume about 4,200 litres per month of diesel fuel. 21. The monthly payments per household, and the formulas for setting tariffs, vary considerably ranging from nothing to as much as FJ$30 per month. In several villages, there is no monthly payment but households take turns buying fuel for the generator. In most, if not all, villages, households can arrange additional hours of service at cost for special functions. The operators are usually paid no wages but may receive free electricity. There is village fund raising to meet expenses for Appendix 2 - 8 repairs. The cost of generation and distribution cannot be calculated from the data available. The data should be considered indicative. Table 11 – Rotuma Village Electrification Survey Results (October 2005; Costs in FJ$) District Itu’ti’u Village Households: with no Elec Elec 67 ? 15 Saulei Fee ($/hh/m) Other comments $9.4 $12 Operates 5 hrs/day 0 ? 0 Late ‘04 ? 2004 18 ? 5 ? $100/yr ? $12 ? $10 30 0 25 kVA Lister 2002 >7 $10 Tuakoi Elsio 2 Pephaua 23 20 11 1 0 1 16 kVA Duetz Small Lister 10 kVA Lister 2004 2005 ~ 1995 5-7 10 5-8 Else’e 20 1 Lopta 32 0 ~19801985 2002/3 10 Oinafa 13 (or 17.5?) kVA Lister 16 kW Lister 10 Yes; $ unknown ? $ 100/yr $600 (once) $100 / year ? Noa’tau Oinafa Maragtteu 0 46 40 ? 7 27 kVA Duetz 2004 16 $10/hr $15 Kalvaka 3 Ujia Uanheta & Avave 4 Tuai Haga5 mission Juju & Saukana Maftoa 22 15 21 0 1 0 15 kVA Duetz 2004 9 $1.5 $10 Shared 10 kVA Lister 1985 >4 See note $8 4 hrs/day (previously 6 hrs) Out of order Aug-Oct. 2005 Flat fee; 3hrs: 6-9 pm Not operating in 2005 + $1/m per power point & $1/m per tube light; 4 hr/day One breakdown (?) 4 hrs: 6-10 pm 4 hrs: 6-10 pm 5 breakdowns/yr Also provide 16 l fuel/hh/m. 6-9 pm; 4 breakdowns/year 1 breakdown; 6-10 p.m; Fuel provided in turn by families No genset for past 10 years + $4 per appliance per month; Operates 6 hrs/day Operates 5-6 hrs/day ~100 breakdowns/year! Normally used 6-9 p.m.; down past 10 months 0 15 4 30 31 0 1 10 ~ 1985 2005 Aug ‘04 1984 n/a 5.6 3.4 6 30 3 7 kVA Lister 16 kVA Hatz 6.7 KW 6 (or 7.3?) kVA Lister 13 and 10 kVA Listers 2003 12 Total: All Gensets 470 65 ~ 140 6 All gensets listed above Total: Now Operating 389 146 ~ 125 Gensets operating in Oct. ‘05 Itu’muta Motusa Lau Losa Other cost ($/m) 7.5 Juju 0 Fuel (l/day) ~ 1998 Pepjei 38 Date installed 17.5 kVA Lister 40 kVA Duetz ? 15 kVA Duetz Malhaha Mea 1 Genset n/a ? ? $100 / year ? $17-20 $30 (?) $10 See comments n/a ? none ? $15 Broke down about 2001 5-6 am & 6-10 pm: 5 hrs/day Costs paid by church Operates 4 hours: 6-10 pm; ~ 2 breakdowns/year Operates 6 hrs/day; 1 breakdown 1) 2) 3) 4) 5) Mea (Hapmar subdistrict) genset also serves Melsa’a, Salvaka and Ropure. > = more than; n/a = not applicable ~ = approximately. Elsio has an old generator (age ?) borrowed from Oinafa to replace a 1985 genset in 2005. Fuel is provided daily by households in rotation. Kalvaka operator claims fuel use of 200 litres in 23 days or 260 l/m. Extra usage is charged at $15 per hour. The genset also serves Ut’utu. Informants say several hundred dollars was collected months ago (very early 2004) for repairs but parts & service still awaited. After joint Haga-Tuai system broke down, 16 kVA replacement plant was ordered but Tuai dropped out and is now unelectrified. The oversized genset is used for Haga alone. Previously (pre-2001) chare was $10 per hh per month plus fund-raising. 6) Assuming 365 days per year, the current fuel use would be about 46 KL/year. If all gensets are operating about 51 KL. 22. The March DoE survey provided very limited information on village appliance ownership. In October 2005, REEP arranged a more detailed household survey of appliance use, electricity use and attitudes in 51 households in three communities (Juju in the south of the island and the contiguous villages of Pephaua and Else’e on the north coast),9 all of which had been electrified for at least five years and presumably had reached some stability in electricity use patterns. Although the DoE has not yet completed an analysis of results, there was little to suggest that villagers expect a significant increase in electricity use through the purchase of new 9 Rotuma has a long history of interdistrict rivalry compounded by divisions along religious lines between the Methodist north and Catholic south. Thus the survey covered both areas. Appendix 2 - 9 appliances or the establishment of new businesses that would require a reliable 24hour per day power supply. V. Diesel Fuel Supply and Cost 23. A Mobil Oil fuel storage facility (Figure 8) is located on the road to the village of Fapufa near Motusa. It was built at a cost of about FJ$375,000 and opened in February 1997 but is no longer used. The capacity is about 200 tonnes of all products, sufficient for many months of consumption. Fuel supplies were pumped ashore from small coastal tankers anchored offshore via a pipeline that extended beyond the reef. Serious damage to the pipeline from a tropical cyclone caused the facility to be unusable. Repairs were not considered by Mobil to be financially reasonable since high shipping costs, an unreliable shipping service, maximum prices set by the government and other factors resulted in Mobil claiming losses on fuel delivered to Rotuma. Mobil withdrew from the market about mid 2004. For a time Shell provided fuel to Rotuma in 200 litre drums but withdrew in early 2005 (except for the government contract for fuel delivered to Suva). Fuel continues to be shipped and stored in 200 litre drums (Figure 9). Figure 8 – Rotuma’s Deteriorating Fuel Depot Figure 9 – Ahau Fuel Storage in 2005 Photo: P Johnston, October 2005 Photo: J Bennett, May 2005 24. In March 2005, communities reported that diesel fuel for power generation cost FJ$1.42-1.66 per litre and lube oil FJ$2-5/litre. In October 2005, villages reported paying FJ$1.70-1.83 per litre of diesel fuel, which is higher than the maximum allowable price established by the Prices and Incomes Board (PIB) shown in Table 12.10 Several communities reported paying FJ$1.80 per litre even when purchasing a full 200 litre drum. In addition to the PIB cost, Rotuma is subject to charges from the supplier for damaged drums. Each drum carries a deposit of FJ$50, returnable if the drum is undamaged. Damage is reportedly common. Table 12 – PIB Maximum Fuel Prices in Rotuma in Fiji cents per litre (November 2005) Location Diesel Kerosene Motor Spirit wholesale retail wholesale retail wholesale retail Within 3 km of Oinafa jetty 143.11 165.0 131.15 170.0 174.63 201.0 Beyond 3 km from Oinafa jetty 146.11 168.0 134.15 174.0 177.63 204.0 Source: PIB, 7 December 2005 10 In October 2005, the maximum wholesale and retail prices of diesel fuel within 3 km of the Rotuma jetty were FJ$1.361 and FJ$1.57 respectively (3 FJ ¢/l higher elsewhere in Rotuma). See Attachment 4 for PIB fuel price changes during 2005. Appendix 2 - 10 25. The cost of diesel fuel in Rotuma is the highest in Fiji and the timing and frequency of deliveries can be uncertain. The supplier to PWD (roughly 60% of consumption) is Shell but PWD must arrangement shipping from Suva to Rotuma. The main supplier for private use including village electrification is ‘Three Sisters’ with several distribution outlets on the island. The RIC also arranges occasional shipments on the government ship, mainly for school buses and other transport, and private individuals sometimes purchase small volumes in Suva and ship it to Rotuma. VI. Annual Patterns of Power Use and Growth in Demand 26. Fuel consumption and power demand increases each year typically in May and November, corresponding to 2-4 week visits of government officials to the island. The extent of the increase has not been documented. There is an increase in population of several hundred or more people over Christmas as Rotumans living away from the island return for the holidays. Although it can be inferred that household electricity use increases over the holidays, anecdotal evidence suggests that Government use does not increase, as there is less activity by government during the holiday season. 27. There are no historical data available from which to estimate the future growth in demand. There has been no population census since 1996 but population is said to be stable. There are plans to construct a new air-conditioned hospital in 2006 but the plans have not been made available, so it is difficult to estimate the impact on demand, though it will increase considerably.11 There are tentative plans for a new air-conditioned complex for the RIC and government offices but this is presently on hold, in part because the Fiji government has not committed itself to renting space in the proposed facility. Without the government as an assured tenant, the complex is not a financially viable investment for the council. At one stage there was reportedly interest in upmarket tourist hotel development in Rotuma. However, in part due to the unwillingness of 100% of landowners to allow the development of their land, this did not eventuate and is not now under active consideration. 28. There is almost no air household air conditioning in Rotuma and no indication that it is likely to increase in the near future. Overall, demand (both kW and kWh) is expected to grow slowly due mainly to increasing appliance ownership by households (washing machines, irons, TVs) and the development of new government facilities. A change from several hours per day of unreliable village power to a 24-hour service will also increase demand, especially as a satellite television service has recently been introduced by Fiji TV to Rotuma, but the magnitude cannot be accurately predicted, especially in the absence of any baseline data on current electricity use. 29. A centralised system would require about 100 kVA for the current government load (power distribution and electric water pumping) and a similar capacity for rural electrification, excluding back-up requirements. Present indications are that Rotuma will need roughly 250 kVA to cover the existing customers. Additional capacity will be needed for back-up and the internal consumption of the proposed coconut oil mill. 11 According to the doctor in charge, the old 12-bed single-storey, non air-conditioned hospital (see Attachment 1 for photograph) will continue to be used. The new two-storey, fully air-conditioned building will have administrative rooms, surgery facilities, a laboratory and a pharmacy downstairs and 9 beds for patients upstairs. Appendix 2 - 11 VII. Rotuma’s Coconut Resource and Coconut Oil Potential 30. Most coconut trees in Rotuma are of the Figure 10 – Husked Coconuts Rotuma Tall variety, with smaller numbers of Malayan dwarf and Samoan but very few Fiji Talls. Most trees were planted during the 1970s. Although replanting on a small scale continues, relatively few trees have been planted since the demise of the cooperative system in 1993/94. The nuts in Rotuma are considerably larger than those in Fiji’s other islands, apparently due to the variety grown and soil and weather conditions, with claims of flesh and copra yields per nut being about 75% higher than elsewhere in Fiji. In Figure 10, the Photo: P Johnston, October 2005 larger husked nut is a Rotuma Tall and the smaller a Fiji Tall (which are said to be bigger in Rotuma than those grown in Fiji proper. The difference in the amount of flesh is more obvious with shelled nuts. 31. There has been no recent survey of the coconut resource in Fiji overall or Rotuma in particular. In 2005, the RIC requested SOPAC to arrange high-resolution satellite imagery to provide an accurate current assessment of the resource. However, as of 16 December 2005, this still awaited formal endorsement by the Fiji Government’s SOPAC representative.12 According to the Agriculture Office in Rotuma, perhaps 65-70% of the total land area of 4400 hectares is under coconut. A 2004 report prepared for CIDA13 indicated that in December 1999 Rotuma had somewhat less than this: 2,615 hectares or 59% of land area under coconuts, 100% of which were of a productive age. The report indicated a potential production of 15,843 tons (14,400 tonnes) from this area although CIDA questions the accuracy of this estimate. Sources in Rotuma suggest an output of between 11,610 and 12,550 tonnes of copra (10% moisture content)14 from 2615 ha, an average of 12,080 tonnes, somewhat less than the CIDA report. It is assumed that the maximum yield of copra with the current resource is on the order of 12,000 tonnes per year but this should be confirmed. 32. In the photo below (Figure 11), most of the lower parts of the island is covered in coconut trees. Although Rotuma is hilly, most coconut trees are near the coast and nearly all of the area planted in coconuts is said to be accessible. In 2005 CIDA reported15 that the island has the capacity now to produce 1,500 tonnes (metric tonnes or mt) of copra per year, equivalent to 900 mt of coconut oil, with the potential to double output to 1,800 mt of oil without new planting. 12 In 2005, SOPAC provided similar satellite imagery to assess the resource for the proposed Samoa coconut-oil based biofuel project under REEP. 13 The report is “Feasibility Study on the Setting Up of a Coconut Wood Mill in Savusavu, Vanua Levu, Fiji” 14 The low estimate is based on 4000 nuts/tonne of copra, 60 nuts/year/tree, and 296 trees/ha. The higher estimate assumes 16 kg of copra/tree (at 60 nuts/year/mature tree) and 300 trees per hectare. Observers note that in some areas, there can be up to 100 trees per hectare. 15 “Use of Coconut Oil Based Biofuels in Rotuma” prepared for REEP Steering Committee Appendix 2 - 12 Figure 11 – Ahau and Northwest Rotuma from Maka Bay Photo: P Johnston October 2005 33. From 1970 through 1980, copra production averaged 1,300 tonnes per year.16 In the past five years, copra production (Table 13) has never exceeded 1,500 tonnes per year, and has generally been declining. Table 13 – Rotuma Copra Production, 1999 – 2004 (tonnes) Year 1999 2000 2001 2002 2003 2004 Copra 1425 960 897 703 694 801 Source: Technical Officer, Agriculture Department, Rotuma (2005) 34. As noted, CIDA estimates a current capacity to produce 1500 tonnes of copra or 900 mt of coconut oil, which is equivalent to 99 KL of oil, or somewhat less in terms of diesel fuel equivalent.17 Assuming 5% lower fuel efficiency (l/kWh) for coconut oil compared to diesel, 99 KL of coconut oil would displace about 94 KL of diesel fuel. Rotuma’s current estimated consumption of diesel fuel for power production is 116 KL. In principle, based on the CIDA data, a very preliminary estimate suggests that Rotuma-produced coconut oil should be able to displace 81% (94 KL / 116 KL) of the diesel fuel now used to produce electricity. Without new planting, but with a much higher (doubled) collection of available unused nuts, Rotuma should be able to produce about 162% of current diesel fuel demand. To displace all 116 KL of diesel fuel, Rotuma would need to produce about 122 KL of coconut oil. If this were made from copra, it would require about 1846 tonnes or less than 16% of the estimated maximum copra production of 12,000 tonnes from all of the 2615 ha of land currently under coconut trees. VIII. Comments on Economics of Coconut Oil Production in Rotuma 35. It is not possible to accurately estimate the cost of the production of coconut oil or its derivatives for fuel use in Rotuma at this time. It may be that a refined cocomethyl ester (CME), produced from the transesterification of coconut oil might be preferred as the appropriate fuel alone or for blending with diesel fuel, in part to reduce issues related to engine warrantees. However, this would be expensive, would require the use of methanol and a catalyst such as caustic soda, could raise environmental issues, and is unlikely to be economic at the small scale of production proposed. For engines of the size proposed, it is understood that warranties are available for 16 From “One Hundred Years: Rotuma 1881-1981”, Rotuma Island Council (undated). An unknown, but significant amount of coconuts are used for animal feed and drinking but a large amount is unutilised. 17 Coconut oil contains about 38.4 MJ/litre compared to 46 MJ/l for automotive diesel oil but this difference is apparently not reflected in significantly less fuel efficiency per litre. Appendix 2 - 13 coconut oil itself as a fuel. For Rotuma, coconut oil produced from the kernel (fresh flesh) or possibly copra (dried flesh) would be preferable, filtered and possibly centrifuged as required. 36. The current world price of coconut oil exported from Fiji is US$620 per mt (about FJ$1,000/mt) or FJ$0.91/litre. This has been fairly static for some months but is higher than the medium to long-term projections of US$400-600/mt. The value of oil to Fiji as an export commodity is somewhat lower as freight, insurance and other charges to transport the oil to market must be paid. The value of the oil is still lower in Rotuma due to the high cost of shipping copra to Suva (FJ$84/tonne), and then to Savusavu (on Vanua Levu) for processing into oil. The combination of Rotuma having the highest diesel fuel cost and the lowest effective copra price in Fiji makes it the most likely site in Fiji to find the use of coconut oil for power generation an economically sustainable endeavour. 37. Coconut oil is not produced commercially in Rotuma. A small amount is occasionally made by one person (John Bennett) for use as fuel or for blending with diesel fuel in a 2.5 kVA Yanmar genset. He uses a small hand press (about 2 kg or 2.2 litres of oil per hour capacity) or a ‘Hander’ screw press (30 kg or 33 l/hr). 38. Approximately 14 conventional wood-fuelled copra driers (see Attachment 1) produce small quantities of copra, often at low quality, for sale to Three Sisters. There are also two solar driers, a large one (5 tonne capacity) at Kalvaka, Noa’tau District built around 1994 which is used intermittently (Figure 12) to produce a highergrade of copra and a small one (0.5 tonne capacity) at Maf’toa, Itu’muta, which is used regularly. Although the large drier appears to be dilapidated, the designer/builder (J Bennett) said it should be relatively inexpensive to renovate it. Some coconut flesh is also air-dried (Figure 13) to produce copra. Most copra is produced by Three Sisters itself using a wood-fuelled drier. Coconut flesh is prepared by villagers and left in baskets (see Attachment 1) for collection for later processing by Three Sisters. Although the flesh is sometimes left for several days before collection, and the surface can become rancid, this is reportedly adequate for producing fuel-grade raw coconut oil. Figure 12 – Large Solar Copra Drier, Kalvaka, Noa’tau District Figure 13 – Village Air Drying of Copra Photos: J Bennett, May 2005 39. Displacing 116 KL of diesel fuel per year would require about 122 KL of coconut oil, which would in turn require about 1846 tonnes of copra. There are various technologies available to produce this volume of fuel. A simple system using a copra cutter and expeller is illustrated in Figure 14. About 15 units have been sold in the Pacific Islands. The basic equipment to produce the required volume would cost about US$20,000 delivered to Fiji excluding civil works, filters and motors. The coconut oil is ‘food quality’ but is yellowish with a slight odour. 40. Other systems produce a finer high-quality ‘virgin coconut oil’ (VCO), which is clearer and odourless, from the cream produced by squeezing finely grated coconut flesh. These often use a fermentation and filtering system or the cream can be Appendix 2 - 14 centrifuged (Appendix 7), in some cases without further filtering.18 One Fiji company which uses VCO for body oils, pays US$5/litre, far above its value as a fuel and export prices for high quality VCO can be considerably higher. Another Fiji company which produces VCO (using the basic system described in Appendix 6 but freezing the cream rather than fermentation) estimates a production cost of F$2 per litre (about US$1.10) from a small system producing about 100 l/day. For this size, a turnkey container-mounted system would cost about F$50,000 (US$29,000). For the volume required for Rotuma, and a centrifuge system, he estimates a considerably lower production cost. 41. In November 2005, Three Sisters (the sole Figure 14 – coconut flesh or ‘kernel’ and copra buyer on Old Tinytech Coconut Oil Expeller Rotuma) reportedly paid growers FJ8¢/kg of kernel, equivalent to FJ$40 per tonne of copra produced, i.e. the growers received about 10% of the net value of copra exported from Rotuma, or only FJ$32,000 (under US$20,000).19 FJ 8¢/kg of kernel is equivalent to about FJ4¢ per (Rotuma sized) coconut. The number of coconuts necessary to produce 122 KL of oil is roughly 2.3 times the number used for copra production in 2004. Some Rotumans feel that the price paid per kg of kernel would have to Photo: Peter Johnston 2004 (Solomon Islands) increase to FJ 15¢ per kg of kernel, about FJ 8¢/nut to provide sufficient incentive to produce that much kernel. However, a less labour-intensive system based on the delivery of whole nuts to the roadside rather than kernel flesh, should be less costly. The cost per coconut could have a significant impact on fuel price. At FJ4¢ and FJ8¢ per nut, and about 6 nuts per litre of oil, the raw material cost is FJ 24¢/litre and FJ 48¢l respectively. IX. Scope of the Project 42. The project has two parts: 1) It connects all the island’s villages through an 11kV grid and eliminates the numerous mini-grids now in place. All generation would be centralised. 2) It develops the capacity to locally produce all the biofuel needed to power the centralised electricity supply, including water pumping. 43. In effect the project completely replaces the patchwork electrification that is now present and develops a local capacity to produce coconut oil based biofuel in sufficient quantities to fuel the central generator. A. 11 KV CENTRALISED GRID AND CENTRAL POWER STATION 44. The project would require construction of a 32 km 11 kV grid, either above or below ground, around the perimeter of the island, including branches to the three water-pumping stations and the villages in the westernmost part of the island. There 18 Some systems run the centrifuge twice, with one basket to remove solids and a second to remove liquids. 19 In 2004, Rotuma exported 801 tonnes of copra at an average value of FJ$485 minus F$84 shipping cost. Although several growers reported receiving FJ 8¢/kg of kernel, a Three Sisters employee on Rotuma said the payment was actually FJ 12¢/kg, in which case, the growers received 15% of the value of the copra or FJ$48,000. Appendix 2 - 15 would probably be 18 (possibly less) step-down transformers required. The PWD, which tends to estimate very high rural electrification costs, has calculated a cost for an above-ground pole-mounted grid system (including all supplies, labour and shipping to Rotuma) of F$80,000 per km (US$46k/km) or about US$1.47million. The REEP consultants estimate a lower cost of about US$25k/km or US$0.8 million. Underground reticulation, preferable in a hurricane prone country, would cost considerably more. 45. Each village already has an underground distribution system, often only several years old. However, the homes are not individually metered so provision will need to be made for meters. A provision of US$27,000 is made for this (535 meters at US$50 per meter). 46. Rotuma will require about a 250 kVA system to meet present and anticipated needs plus back-up and around an additional 50 kVA for the internal consumption of the proposed coconut oil mill. B. BIOFUEL PRODUCTION 47. The production of 122 KL/yr of oil (about 500 l/day assuming a 5-day workweek for 50 weeks per year) will require the collection of about 732,000 nuts or nearly 3,000 nuts per workday. Equally spread among 15 villages, this is only 200 nuts for each village per day. Provision is made for one truck with a driver and labourer to collect the nuts and transport them to a central facility. 48. The preferred fuel is coconut oil, filtered as required, rather than a more complex esterification process. Dehusking, defibring, deshelling and grating the nuts should require no more than two unskilled labourers. The processing of the copra and the production of 500 litres of fuel daily from the copra, should require no more than one skilled and one unskilled worker. C. MANAGING THE ENTERPRISE 49. Currently the Ahau power system and all other remote government centre power systems are managed by the PWD. There has been no policy decision to change this. However, there have been informal discussions between the Ministry of Works and Energy (of which PWD is a department) and the Fiji Electricity Authority regarding the conditions under which FEA would be willing to take over the management of these power systems. Thus far the main stumbling block has been the long-standing Cabinet directive that the remote systems must charge users at the national FEA tariff. Under this tariff, FEA would lose considerable revenue for each kWh produced and sold. Within an ongoing Fiji Government reform process, there has been a slow shift away from the previous public service emphasis on implementing all activities to the oversight and management of activities undertaken by others. Within FEA itself, there is considerable interest, and activity, in negotiating power purchase agreements (PPAs) with independent power producers (IPPs). When considering options for managing a centralised power system in Rotuma (whether diesel or biofuel based) it should not be assumed that PWD is the only alternative acceptable to the government or to Rotumans. Several options are summarised in Table 14. Regardless of the option, Rotumans would receive a reliable 24-hour power supply that would cost more than consumers currently pay for their limited service. Either government subsidies – which are already substantial – or charges would have to increase to meet costs, quite possibly both. Appendix 2 - 16 Table 14 – Possible Alternative Mechanisms for Rotuma Biofuel Power System Management Management Likely Strengths PWD Headquarters back-up support available. Hidden govt subsidies possibly available. FEA Considerable staff & financial resources. Developing some biofuel experience. Improved accounting and billing Relatively professional. May be easier to obtain and retain government subsidies Island Council RESCO 2 Rotuman IPP 1 3 1 Ownership remains with Government. Contractual operation under government oversight could provide arms-length (i.e. honest) operations. Might tap skills of retired skilled Rotumans. Ownership could be with Govt or the IPP. Possible incentive to reduce costs through value-added activities. 3 Might tap skills of retired skilled Rotumans & funds of Fiji-based professional Rotumans. Expected Weaknesses History of inefficiency in Rotuma (poor records & management). No experience with island-wide system. Unwilling without massive tariff increase. High staff salaries; would be expensive service. Under law, only operate where it is profitable. No experience with small remote systems Limited continuity of staff and perhaps policies. No commercial experience. Likely to be politicised. May expect power sales to subsidise RIC operations or shortfalls. Legal framework not yet established. No true RESCOs yet exist in Fiji. No obvious candidates. Jealousy or mistrust among other Rotumans. IPP contract would require good govt supervision. Possibly no Rotuman experience in such a venture. through a Rotuma provincial development company. 2 Renewable Energy Service Company. For example selling excess oil as high-value VCO, producing commercial abrasives from shell powder, promoting intercropping with other oil-bearing plants, etc. 50. Considering the inefficient operation of the current Ahau system, and the extreme unlikelihood of FEA interest or ability to operate in Rotuma at low cost, the preferred option would be some sort of private management of a government-owned facility under an IPP or possibly RESCO arrangement. X. Further Project Concept Development 51. The proposed project is to design and install a centralised power generation system powered by diesel engines operating on locally produced fuel that is based on coconut oil. To develop the project to the design stage, the following remains to be completed: The current electricity demand and forecast for the future to be confirmed; Recommendations as to equipment for the production of the fuel and for the central generation facility Better cost estimates for the fuel production process, the generation process and the island wide distribution system The institutional structure appropriate to ensure the reliable collection of sufficient coconuts, the quality controlled production of copra, the quality controlled production of coconut oil, the quality controlled process for the production of the fuel from raw coconut oil, the operation and maintenance of the centralised power system, the setting of appropriate tariffs and the collection of fees for services provided. An environmental impact study An estimate of the benefits to Rotuma development by such a project Appendix 2 - 17 Calculation of cash flows and other financial parameters. Calculation of EIRR for the project An overall analysis to determine the feasibility of the project XI. Supplementary Rotuma Photographs Photographs by J Bennett, P Johnston or staff of Fiji Department of Energy, all 2005. The road around the perimeter of Rotuma Village wood fuelled copra drying Appendix 2 - 18 Coconut flesh awaiting collection Elsio genset, Malhaha District, with operator Charlie Kitione Scraping coconuts for animal feed, flesh or copra production Maragtteu genset, Noa’tau District with operators; installed new in 2004 Appendix 2 - 19 Mea genset, Hapmak District, with energy use surveyor Peter Underwood Typical village genset housing Typical internal wiring Genset, village unknown Household external wiring Junction to underground village reticulation Appendix 2 - 20 Rotuma’s hospital at Ahau Village fuel sales Composite aerial photograph of Rotuma (circa 1991) Views from Kilaga Lookout in October 2005 (P Johnston) Much of the land in the photo to the right is covered in coconut trees Appendix 3 - 1 APPENDIX 3 PROPOSED ENERGY EFFICIENCY ACTION PLAN FOR SAMOA 2006-2008 Appendix 3 - 2 1.1. Task 1.1 – Achieve the political involvement into energy efficiency 3 1.2. Task 1.3 – Establish an Energy Efficiency Committee 3 1.3. Task 1.2 – Create an Energy Efficiency Section (EES) in the Energy Unit, emply and train the staff in the management of the activity 3 2.1. Task 2.1 – Update the input data 4 2.2. Task 2.2 – Set up the labelling program 4 2.3. Task 2.3 – Define the marketing tools 5 2.4. Task 2.5 – Set up the monitoring and evaluation system 5 Appendix 3 - 3 1. 1.1. PHASE 1: ESTABLISH AN INSTITUTIONAL LEGITIMACY Task 1.1 efficiency – Achieve the political involvement into energy Responsible: Government of Samoa 1.2. Task 1.3 – Establish an Energy Efficiency Committee Responsible: Government of Samoa A high level committee needs to be assigned the mission to develop and achieve the different tasks of the action plan. Within the committee, working groups may be established to look after specific tasks. The members of the Energy Efficiency Committee needs to include representatives from all the stakeholders, noticeably (i) the governmental bodies (the Energy Unit within Treasury, EPC, Customs, Department of Fair Trade), (ii) local private companies (consulting companies, retailers of appliances), (iii) the educational and training bodies (University of Samoa), (iv) Consumer advocates and NGOs, and (v) other relevant stakeholders. - Issue an official statement of Government’s strong commitment in supporting a global energy efficiency strategy and action plan 1.3. Task 1.2 – Create an Energy Efficiency Section (EES) in the Energy Unit, emply and train the staff in the management of the activity Responsible: Government of Samoa - Establish the necessary positions within the Energy Unit - Proceed recruiting the staff of the EES on a contract basis - Achieve the staff's training - When the staff positions become available shift contracted staff to established staff positions. Appendix 3 - 4 2. 2.1. PHASE 2: IMPLEMENT THE OPERATIONAL FRAMEWORK Task 2.1 – Update the input data Responsible: Energy Efficiency Committee / Energy Unit - Carry out a national survey on household energy consumption and determine the market for energy-efficient appliances and energy saving services Sample at least 2000 households Characterize the type and number of domestic appliances in use Carry out a statistical analysis of household energy consumption profiles Complete a socio-economic analysis of the population at household level regarding their expectations for and understanding of household energy use, - Achieve a detailed statistical and cross analysis evaluation on import data and retailer sales in order to determine the type, quantity and origin of appliances imports over the last five years 2.2. Task 2.2 – Set up the labelling program Responsible: Energy Efficiency Committee / Energy Unit - From the analysis and synthesis of the above activities, prepare quantitative efficiency targets for the next 5 years for 3 product classes: refrigerators, air conditioners and lighting systems: number of items of the three classes of labelled equipment expected to be imported, projected power generation and energy savings for each year as a result of labelling, - Establish collaborative frameworks with the Department of Energy in Fiji and with labelling bodies in all countries manufacturing the labelled appliances to establish a table of equivalence for all the labels applied in those countries and create a Samoa rating systems that cleary shows the relative energy efficiency of imported equipment from all contries exporting labelled appliances to Samoa. - Analyse the data and projections and after stakeholder consultations, establish by legislation the minimum energy efficiency requirements for the import of refrigerators, air conditioners and fluorescent light ballasts - Include in the legislation a timetable to grandually reduce and finally prohibit the import of second hand refrigerators or air conditioners without a special permit from the Energy Unit. - Establish the procedure to remove the foreign labels and apply the proper Samoa lable on the appliances after their import Appendix 3 - 5 2.3. Task 2.3 – Define the marketing tools Responsible: Energy Efficieny Committee / Energy Unit - Define the contents of a marketing strategy and program sustaining the analysis and objectives obtained in task 2.1 Retailers and EPC would be major partners in this marketing program - Define the contents of the training program for the vendors and plan the training sessions; design it together with the private sector 2.4. Task 2.5 – Set up the monitoring and evaluation system Responsible: Energy Efficiency Committee / Energy Unit - Define the indicators to be used for monitoring the results with regard of the objectives - Identify the sources of information for the indicators - Define and implement sustainable procedures for the data collection and quality control - Define and implement the process of evaluation of results 3. PHASE 3: SUSTAIN THE EE & LABELLING PROGRAM Responsible: Energy Unit 4. CALENDAR The calendar of the project would spread over a 36 months period with the following breakdown: - Phase 1: 12 months - Phase 2: 6 months - Phase 3: 12 months Appendix 3 - 6 2006 7 PHASE 1: ESTABLISH AN INSTITUTIONAL LEGITIMACY T1.1 Achieve the political involvement into energy efficiency T1.2 Establish an Energy Efficiency Committee T1.3 Create an Energy Efficiency Section (EES) in the Energy Unit, emply and train the staff in the management of the activity - Establish the necessary positions within the Energy Unit - Proceed recruiting the staff of the EES on a contract basis - Achieve the staff's training PHASE 2: IMPLEMENT THE OPERATIONAL FRAMEWORK T2.1 Update the input data - Carry out a national survey on household energy consumption and determine the market for energy-efficient appliances and energy saving services - Achieve a detailed statistical and cross analysis evaluation on import data and retailer sales in order to determine the type, quantity and origin of appliances imports over the last five years T2.2 Set up the labelling program - Establish collaborative frameworks with the Department of Energy in Fiji and with labelling bodies in all countries manufacturing the labelled appliances to establish a table of equivalence for all the labels applied in those countries and create a Samoa - Include in the legislation a timetable to gradually reduce and finally prohibit the import of second hand refrigerators or air conditioners without a special permit from the Energy Unit - Analyse the data and projections and after stakeholder consultations, establish by legislation the minimum energy efficiency requirements for the import of refrigerators, air conditioners and fluorescent light ballasts - Prepare quantitative efficiency targets for the next 5 years for 3 product classes: refrigerators, air conditioners and lighting systems - Establish the procedure to remove the foreign labels and apply the proper Samoa lable on the appliances after their import T2.3 Define the marketing tools - Define the contents of a marketing strategy and program sustaining the analysis and objectives obtained in task 2.1 - Define the contents of the training program for the vendors and plan the training sessions; design it together with the private sector T2.4 Set up the monitoring and evaluation system - Define the indicators to be used for monitoring the results with regard of the objectives - Identify the sources of information for the indicators - Define and implement sustainable procedures for the data collection and quality control - Define and implement the process of evaluation of results PHASE 3: SUSTAIN THE EE & LABELLING PROGRAM Launch the marketing program Monitor the results and organize semestrial reviews 8 9 10 11 12 1 2007 2 3 4 5 6 7 2008 8 9 10 11 12 1 2 3 4 5 6 7 2009 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Appendix 4 - 1 APPENDIX 4 REVIEW OF PAST AND PRESENT FIJI DOE ENERGY EFFICIENCY ACTIVITIES AND RECOMMENDATIONS FOR THE FUTURE Appendix 4 - 2 REVIEW OF FIJI DOE ENERGY EFFICIENCY ACTIVITIES AND RECOMMENDATIONS FOR THE FUTURE I. BACKGROUND 1. The Department of Energy (DOE) is a part of the Ministry of Works and Energy. DOE was established in early 1981 with its major purpose being to reduce the rate of growth of the country’s imported energy costs, increase the use of indigenous forms of energy and reduce the impacts of energy use on the local and global environment. To accomplish this, DOE promotes the use of indigenous renewable energy resources and the efficient use of energy. 2. In practice, DOE has assumed a number of responsibilities: • Facilitating the provision of energy to domestic, commercial and industrial users through public enterprises and the private sector by developing and using a policy, regulatory, planning and implementation framework; • Encouraging the FEA to operate on a commercial basis, with economic regulation where necessary. • Re-orienting the approach to rural electrification emphasizing informed community choice, sustainability and containment of Government subsidy to achieve greater penetration of electrification into rural areas; • Researching and promoting the development of local energy resources such as hydropower, biomass, biofuel, solar, wave and wind energy; • Promoting energy conservation measures which improve both technical and economic efficiency in energy use; and • Participating in the preparation of national fuel standards and smoke emission levels and promoting more efficient and environmentally sound transport practice. 3. To accomplish its mission, DOE organizes its activities under the following programs: • Renewable energy development • Energy conservation/efficiency • Petroleum and transport • Energy information and database • Power sector development • Rural electrification • Environment/gender 4. Among these programs, an “Energy Conservation” program directly and explicitly targets energy efficiency. However, other programs – “Petroleum and transport”, “Energy information and database”, “Power sector development”, and “Environment” – should all be considered as important components of an energy efficiency policy, either because they constitute target areas for energy efficiency improvements (transport, the power sector), or because they provide energy efficiency indicators (energy information and database), or because they provide leverage for the attainment of energy efficiency objectives (environment). Appendix 4 - 3 1. Institutional framework 5. The legitimacy of DOE and of its mission is not based on a well defined institutional framework or national energy policy though a National Energy Policy is in the process of preparation. There is no legislation relating to energy that governs the DOE activities or provides it with specific mandates or regulatory authority. However, there are specific laws and legal tools that regulate: • The activities of supply-side operators including the Electricity Act, the Petroleum Act, the Fuel and Power Emergency Act, and the Public Enterprise Act. • The use of electricity production equipment in certain sectors, particularly the Hotels Aid Act, which authorizes the installation of power generation equipment within tourism complexes and the possibility to sell the surplus produced to the grid. • Energy tariffs through the “Commerce Commission” established by the 1998 Commerce Act. • Environmental Issues, the Environmental Management Act of 2005 impacts on energy development. 6. A draft legal framework aimed at developing energy services in rural areas based on the Renewable Energy Service Company (RESCO) structure is under discussion but has not yet been sent to Parliament for consideration. 7. Elements of a proposed revised regulatory structure for the FEA have been developed but not approved by Cabinet. The Land Transport Authority (LTA) Act gives the LTA the power to regulate road-based vehicle emissions and implicitly vehicle energy efficiency. 8. There is no legislative or regulatory framework in the field of energy efficiency: no quantified national objective for energy saving or energy intensity improvement exists in Fiji’s legislation, in the Government’s “Strategic Development Plan for 2003 - 2005”, nor in DOE’s “Strategic Development Plan 2005 - 2007”. 9. In these two documents, there is only a “target” relating to energy saving in the public building sector: • 30% - 40% total energy savings from identified government buildings by 2005 (“target” value in the Strategic Development Plan for 2003 - 2005), a goal that was not achieved. • 20% total energy savings from identified buildings by 2007 (“target” value in DOE’s Strategic Development Plan for 2005 – 2007). 10. As there has been no recent comprehensive energy use survey for public buildings, there is no baseline from which a program can be developed to achieve and document these target savings. 11. With the assistance of Australia, work is underway to implement mandatory labeling that shows the relative energy efficiency of imported refrigerators and freezers but at present there are no norms or standards relative to the performance of equipment and appliances. Though the DOE has no legal basis for imposing standards and regulations of this type, the legal components of the appliance standards and labeling process are being facilitated through the Ministry of Commerce as they have the legal basis for imposing such standards. B. Past DOE activities related to energy efficiency 12. The DOE has carried out a number of energy efficiency improvement projects for government (Table 1). The impact on the individual institutions has generally been significant, at least in the short term, though on a national scale the projects have had little effect on annual Appendix 4 - 4 energy imports. In addition to these activities there have been supply side energy efficiency improvement programs, in which DOE has been involved, by FEA and demand side efficiency improvement programs by SOPAC and the Forum Secretariat though the details were not available to the team. Table 1: DOE Energy Conservation Projects (1993 – 2004) PROJECT PLACE/PROVINCE YEAR AMOUNT DESCRIPTION (FJ$) Gas cookers Lautoka Hospital 1993 21,000 Steam pipe replacement CWM Hospital 1994 1998 634,000 Lighting system Lautoka Hospital 1995 101,119 Lautoka Teachers College Fiji College of Advanced Education 1996 135,315 1996 100,000 Lighting and airconditioning system Boiler Fiji School of Nursing Twomey Hospital, Tamavua Boiler efficiency 1996 Installation of three 6-burner gas stoves and 12 open cast iron burners. Savings of $12,000 annually. Boiler efficiency audit by Sinclair Knight in 1994. Steam pipe replacement work commenced in 1994 by CR Engineering at the Boiler House and the Laundry. Works completed. Fuel savings of about $30,000 annually. The steam reticulation system was upgraded in 1998 at the CWM's Old Hospital, New Wing and Maternity Annex. System upgraded Savings of $27,000 annually. Audits conducted. Lighting system upgraded. Annual savings; LTC – $14,676, FSN – $10,000 and FCAE – $4,284. Replacement of old boilers. Savings of $22,000 annually. Questionnaires sent out to institutions using boilers. The information gathered was used to prepare a one-day training workshop for Fiji's Boiler Operators. Replacement works commenced late in the year and was completed in 1998, which saw the installation of a new boiler system. Audit of steam reticulation system. The upgrading of the existing steam pipes commenced in 1999 and will be completed in 2000. Estimation of $40, 000 yearly savings. Boiler Labasa Hospital 1997 150,000 Steam pipe reticulation system Lautoka Hospital 1999 50, 000 180,000 Labasa hospital 2003 80,000 Labasa hospital steam reticulation upgrade on-going Energy Audit Koronivia Research Station & Commissioner Central’s Complex 1999 60, 000 Audit of lighting and air-conditioning systems. Energy Audit Fiji Museum 2001 7, 150 Energy Audit Nasilivata House (PWD Headquarters) & Labasa Hospital 2002 20, 000 Air-Conditioning system audit Fiji Museum 2002 15, 677 Energy audit conducted. Air-conditioning systems currently being undertaken. Estimation of $2, 000 savings annually. Nasinu/Naboro 2003 25,000 Energy audit preformed on lighting systems. Lautoka-Natabua Prison 2004 30,000 Energy assessment revealed quantitative lighting savings through new improved lighting systems. New energy efficient lighting Steam pipe reticulation system Prisons Audits – Lighting systems Prisons Lighting Preliminary Audit and Upgrading Report on appliance labeling program for refrigerators and freezers in Fiji 2004 Audit of lighting and air-conditioning systems. Audit of the lighting and air-conditioning systems at Nasilivata House and the steam reticulation system at the Labasa Hospital Market study about main factors leading to purchase of refrigerators or freezers.. Appendix 4 - 5 13. There has apparently been no attempt to assess the actual immediate savings achieved by some of these projects and, until 2005, no monitoring of longer-term impacts. C. Current DOE activities related to energy efficiency 14. DOE energy efficiency activities were summarized by Mr. Intiyaz Khan (DOE Senior Scientific Officer) and the ICE consultants at DOE on 21 April 2005. 15. These activities cover the following fields: • Training for DOE staff • Audits • Appliance labeling • Energy balance calculation • Contribution to the energy strategy policy • Contribution to the 2005-2007 Strategic Development Plan (SDP) • Energy indicators (at an early stage) • Publication of informational brochures • Organization and support of events that relate to energy • Preparation of annual reports • Monitoring of the supported energy audit projects (activity started in 2005) • Comments on the country strategy and position concerning international negotiations on climate change. (The Ministry of Environment is the lead Ministry; the DOE is not directly involved.) 16. Some of the activities listed above are referenced in DOE’s annual reports. Others, in particular DOE’s contributions to the Strategic Development Plan or in the elaboration of the national position in international negotiations were identified during the discussion. 17. DOE is unfortunately not included in Government discussions concerning certain sector policies that could strongly influence the country’s energy future such elaborating national positions in the international negotiations on climate change even though the development of indigenous energy resources and improvement of the efficiency of energy use must be key components of any effort to reduce greenhouse gas production. D. Staff 18. The DOE has had a relatively rapid staff turnover in recent years. As a result, the number of staff with long term tenure is small. DOE currently has five professional staff to implement and follow up its various activities. The professional team would be extended to eight members if all vacant posts are filled. One staff member is on extended study leave. With the small number of professional staff, it is clear that there cannot be extensive direct involvement in implementation of projects at any scale. 19. The organization chart presented in DOE’s 2003 Annual Report showed a staff of 10 operational employees of a total of 22 persons (the other 12 are mostly administrative personnel). 20. In the field of energy efficiency, most of DOE’s employees’ time has been spent on energy audits, energy efficiency improvement and studies in the following fields: Appendix 4 - 6 • Gas cookers • Steam pipe replacement • Lighting systems • Air-conditioning systems • Boiler efficiency • Steam pipe reticulation systems • Mandatory appliance labeling program for refrigerators and freezers. 21. These activities (16 projects were reported) were conducted between 1993 and 2004. Their reported cost was F$1.5 million (excluding staff salaries). A complete list of energy conservation projects is given in Appendix 1. The accumulated savings are estimated at around 180,000 F$ per annum for those projects which were evaluated1. Over the 11-year period of 1993-2004, the number of audits performed is relatively small and their effects on the national energy balance are not large. E. DOE’s Budget 22. The 2002 and 2003 Annual Reports present the distribution of the budget allocated to DOE as follows: 2003 FJ$ 000 2002 % FJ$ 000 % DOE Expenditure Allocation Running costs Established staff 330.60 4.7% 399.80 6.9% Unestablished staff 32.40 0.5% 37.70 0.7% Travel and Communication 20.80 0.3% 20.80 0.4% Maintenance and operation 19.10 0.3% 19.10 0.3% Sub-total running costs 402.90 5.8% 477.40 8.2% Purchase of goods and services 14.80 0.2% 11.60 0.2% Energy conservation assessment 50.00 0.7% 55.80 1.0% Energy database 25.50 0.4% - 0.0% Energy Conservation implementation 82.00 1.2% - 0.0% Muani Wave 176.50 2.5% - 0.0% Renewable Energy Development Program 60.00 0.9% 69.30 1.2% Promotion of sustainable energy technologies 65.00 0.9% 90.00 1.6% Maintenance of Energy Development projects 17.10 0.2% 17.10 Operating budget 0.3% Rural Electrification 6 000.00 85.6% 5 000.00 86.3% sub-total operating budget 6 490.90 92.7% 5 243.80 90.5% 111.70 1.6% VAT Total 1 Savings were not evaluated for some projects. 7 005.50 100.0% 72.10 5 793.30 1.2% 100.0% Appendix 4 - 7 23. The 2003 budget reached FJ$7 million versus FJ$5.8 million in 2002. About 6% was for running costs and 94% (VAT is not taken into account) for operations. Similar proportions are observed for the year 2002. 24. The very modest amounts allocated to the Department’s running costs, in particular the salaries of the professional staff, well reflect the weakness of DOE’s operational capacities. It raises the question of the capacity of the DOE as currently structured to properly administer an operating budget that is more than 17 times higher than the running costs. 25. The distribution of the operating budget among the various DOE programs is strongly skewed toward the rural electrification program that alone consumes more than 85% of all allocated funds (FJ$6 million). The allocation for the other programs has been about FJ$0.5m. Programs that directly or indirectly relate to the energy efficiency program represent less than 3% of the operating budget. The meager level of funding allocated to energy efficiency does not reflect the level of importance given to energy efficiency in DOE’s activity reports and discourse. However, the budget of DOE’s rural electrification program results from Governmental priorities that go well beyond just energy sector policy since rural electrification aims at poverty alleviation, economic and social cohesion, economic development, health improvement and education. In reality, the primary activities that were the basis for the creation of the DOE – reduction of dependence on imported fuels and in the environmental effects of energy use – receive less than 15% of the total budget since the rural electrification program is strongly oriented toward the use of imported diesel fuel or connection to the existing FEA grid where the added demand is met by diesel based generation. 26. The small allocation for energy efficiency in the budget shows that this field is not considered a Government priority. II. DISCUSSION AND LONG TERM RECOMMENDATIONS 27. Although DOE’s creation in 1981 was motivated by the Government’s desire to control the country’s level of dependence on imported petroleum products by developing energy efficiency and renewable energies, no legislation was adopted to back up this mission. There is thus no formal framework that legitimizes DOE’s activities vis-à-vis other ministries, administrations and public enterprises in the energy sector. If DOE is to regulate energy production and use in a legal and consistent manner, it must have the legal mandate to do so. Legislation is also needed to clearly define the scope of those activities vis-à-vis other government agencies and the FEA. 28. This institutional weakness has a direct effect on the nature and the organization of the activities of the DOE. The activity reports show that DOE simultaneously takes on tasks of a strategic nature (the participation in the development of legislation and national fuel standards and smoke emission levels, the promotion of more efficient and environmentally sound transport practices or input to the preparation of a national strategic plan, etc.) and the direct implementation of projects of a technical nature such as providing energy audits and installing renewable energy equipment. In a context where the human and financial means are limited, this lack of a clear positioning contributes to reducing the visibility of DOE and limiting its ability to affect government decisions on energy. 29. A national institution in charge of energy efficiency should have sufficient and competent staff. To ensure this, DOE should be able to offer sufficiently attractive conditions of work and salary to attract skilled, motivated and self-directed employees. In the short term, such profiles are absolutely indispensable in order to effectively and efficiently use the relatively small funding allocated to the Department. In the long run, the quality of human resources can have a fundamental lever effect by permitting the development of fruitful and sustainable co-operation with national or international bodies in energy efficiency and renewable energies and also by Appendix 4 - 8 mobilizing the financial means of international aid through well-constructed programs and projects. Under the existing conditions, the DOE appears to be more a training ground for regional and international organizations than a career choice for energy professionals. 30. Finally, an experienced and high quality team should permit DOE to increase its participation in debates and discussions relating to the national energy policy in general and to sector policies that have a strong energy impact (transport, buildings, domestic appliances, decentralized energy production, etc.) The visibility and legitimacy of the institution can only be improved with these changes. Furthermore, such an evolution constitutes in turn a necessary condition of an improved capacity to negotiate with the Ministry of Works and Energy and the Ministry of Finance to obtain supplementary budgetary support. 31. The budget allocated to DOE to promote and improve energy efficiency is critically low. This contributes to a relatively dispersed and ineffective strategy: • The audits have produced tangible results at the unit level but over an 11-year period, has saved no more than 500 toe per year, i.e. less than 0.1% of the country’s current energy consumption. The following example indicates the level of commitment required to have a real impact at the national level: Let us suppose that Fiji sets as a national target a reduction of energy imports of 5% in 2007 compared to 2003 through energy efficiency measures. This would represent a savings in imported fuels of about 25,000 toe. If these savings are produced by investments with an average payback period of 4 years, Fiji would need to mobilize at least $US 30 million in new investments. In today’s context of rocketing oil prices, the Government and DOE need to work to dramatically increase the pace of energy efficiency improvements and the means to implement them. • Awareness raising and communication are vital activities needed to help economic actors determine the stakes and means of improving energy efficiency. In the context of severe budgetary restrictions, it is important to devote efforts towards the targets and sectors where the impact will be the strongest. Communication, as an instrument to help orient consumer choice, is effective only if the consumer can actually make a choice in a market situation. Before engaging in consumer awareness raising, it is vital that the market offers the consumer the means to achieve a higher efficiency of energy use once the consumer is motivated to do so. • A national energy balance is an information and decision-making tool. The preparation of the national energy balance should respect international standards and serve to inform the various economic actors (Government, utilities and industrial operators) of the situation in the energy sector. The energy balance should be published each year and it should be accompanied by an analysis of the evolution of consumption in the various sectors and an analysis of changing energy costs and tariffs. It is also useful that every 2-3 years, the energy analysis is coupled with an energy forecast that highlights the energy and environmental stakes that result from demographic, economic, technical and international changes. This does not require a large budget but does need a qualified and motivated person, reliable and comprehensive data resources and a dedicated effort. It constitutes the essential starting point of the more elaborate activity of establishing global and sector-based energy performance indicators. It is an activity of high priority for DOE in the present context where budgetary restrictions prevail and are likely to continue. It offers, at a reasonable cost, an efficient means to influence the policies and decisions of other ministries and the Government in a direction more favorable to energy efficiency. It would also permit DOE to reinforce and legitimate its discourse and arguments in the national development debates in which it participates. Appendix 4 - 9 • DOE’s energy auditing activities should be done through the private sector and based on market demand. The mobilization of technical resources and measurements should be handled by an engineering firm, not directly by DOE staff. The audits are a detailed and time-consuming task that undermines the real mission of DOE, which is to act on a national scale, not through micro-level case by case efforts. On the other hand, at the macro level, a new activity should be developed alongside the energy balance, energy indicators and energy forecast activities described above: the monitoring and evaluation of governmental action in the field of energy efficiency. 32. International co-operation programs should not be considered as substitutes to national energy efficiency efforts but should be integrated into a comprehensive national strategy. If these programs are to have a genuine impact, they will have to be inscribed within the framework decided by the Government and implemented by DOE in conjunction with other national institutional and economic actors. Program content should be developed by DOE, not proposed by international agencies for acceptance by DOE. Regional programs also have the disadvantage of temporarily increasing the financial means available for various types of action. Once the project is completed, the local initiative in the affected sector quickly disappears. A small budgetary allocation is required specifically to develop strategies and communicate them to external funding sources. This would help the DOE to receive the maximum benefit from international co-operation and to preserve its own assets by reducing the “stop and go” effect. 33. As a conclusion, at national level, any institution established to bear the responsibility for improving energy efficiency should have a small but high qualify staff, be endowed with legitimacy and regulatory power through legislation, and have broad autonomy and suitable human and financial resources to carry out its tasks. Furthermore, It should not be the task of DOE to carry out projects itself, but to create suitable conditions for projects to be executed by public and private agents and to ensure that they have maximum impact in terms of technical, economic, financial, social and environmental efficiency. III. IMMEDIATE STRATEGY RECOMMENDATIONS 34. Although the structural changes noted above are needed for the DOE to become the major national force for the improvement of energy efficiency in Fiji, those changes are likely to be slow in coming and are also not likely to occur at all unless DOE is able to show that its existing resources are utilized effectively. The strategy for energy efficiency activities needs to be one that leverages the modest resources presently available through the motivation of businesses and individuals to participate in a program for the improvement of energy efficiency. There are several ways DOE can do this: • Through the use of bilateral and multilateral donor money for activities that the DOE does not have resources to perform by itself. This can be done through the preparation of a strategic energy efficiency plan and then writing project proposals that follow the plan (Leveraging donor money) • By improving the business climate for the development of private sector involvement in the promotion of energy efficiency in commerce and industry. Promotion of the EESCO project developed by the REEP is an example of this. (Leveraging private investment) • By insisting on participating in the development of building codes, transport systems and other activities that have a major impact on energy use to ensure that their development considers energy efficiency. (Leveraging through regulation) • By working with importers and retailers to assist in their marketing of energy efficiency improvement products through high leverage actions such as the development of Appendix 4 - 10 advertising for energy efficient products that can be included in retailer media advertising, the inclusion of advertising for energy efficiency products with utility bills, appliance labeling, requiring increased import duties on low efficiency appliances, etc. (Leveraging through the marketplace) • Through development of school programs that involve children in the improvement of home energy use (Leveraging through family participation) • Through the support of training programs at FIT, TPAF and other training facilities that focus on energy efficiency improvement technologies (Leveraging through implementer awareness) • Through adjustments in import duties, tax structures and regulations to place energy efficient products in a better market position than inefficient products. (Leveraging through market structuring) • Development of revised guidelines and procedures for Government’s existing program of subsidies , tax holidays and tax rebates to include an energy efficiency incentive for business investments (Leveraging through investment policies) • Development of an energy efficiency improvement plan for government that is mandated by Cabinet and managed by DOE but carried out by individual government departments using their own budgets (Leveraging through mandate) 35. Each of the above actions can be carried out with limited funds and a small number of professional staff but can yield significant improvements in national energy efficiency, far more than can be achieved by using DOE resources for direct interventions such as energy audits of individual premises or the purchase of energy efficiency equipment and its installation. 36. To develop and carry out programs of this type, DOE staff do not need high level technical competency. That is available in the private sector, if necessary through short term contracts. What is needed at DOE are planning and management skills, an ability to set realistic goals and the skills necessary to design a process to reach those goals while engaging as many external resources as possible. 37. Additionally, it is important to include a process for monitoring and assessing the programs that are put into action. The resulting information is important for the improvement of future activities and for justifying future budget allocations as well as simply giving DOE and Government feedback regarding the relative success of their efforts. A. Recommendations for immediate action 38. The first action that needs to be taken is to prepare a detailed energy efficiency development strategy/plan for the next five to ten years with great detail included in the first and second year and decreasing detail as the plan extends farther into the future. The strategy should focus on achieving the maximum results possible with the available staff and financial resources while gradually increasing staff and budget allocations for energy efficiency programs. 39. If there is to be high leverage of the modest resources at DOE, staff at DOE should have minimal involvement with the actual implementation of energy efficiency interventions. The rate of return on energy efficiency investments are typically very good and the private sector will take action to gain those high returns provided the barriers that have prevented their implementation in the past are removed. DOE’s primary role should be lowering those barriers and smoothing the way for private implementation. The type of activities to be engaged in directly by the DOE should only be ones that are important but are unlikely to be carried out by the private sector. In general, household energy efficiency improvements are unlikely to be addressed by the private Appendix 4 - 11 sector, at least without specific incentives. Non-commercial transport efficiency improvement is also unlikely to be carried out by the private sector. Yet both private transport and household energy use have large opportunities for improvement. In those cases the DOE will need to directly administer the programs though the activities should be mostly done under contract, not done directly by DOE staff. In the case of transport, DOE should work closely with the LTA. 40. Once the most efficient time line of activities is determined and agreed by Government, specific programs should be developed to carry out the plan. This may be in the form of project proposals to donor agencies, allocation of time and budget within DOE for the programs, contracting to external organizations for services or interaction with other Government agencies. 41. The strategy also should consider the time scale for the preparation and implementation of each activity. For example, the highest leverage opportunity probably is the involvement of the private sector in implementing energy efficiency through EESCOs or comparable private sector actions. However, this is a relatively long term process with several years needed to develop the necessary external funding support, the local training capacity and the legal structures necessary for its success. Activities are likely to be spread out over several years so at any given time the resources needed are small. On the other hand, market leverage through mandatory appliance labeling, retailer involvement and tax structuring is already well along in development and can be implemented fairly quickly but a concentrated effort will be needed. School programs, if oriented toward actual home efficiency improvements (e.g. student home energy audits with vouchers for the subsidized purchase of CFLs or other efficiency improving devices) can be implemented in a year or less using mostly outside contractors with little staff time necessary. The objective of the plan should be to interleave several high leverage and high visibility programs, each having different time and resource schedules, so that staff are continuously engaged and available funding most efficiently utilized over the fiscal year. 42. The plan should provide for DOE involvement in all aspects of an activity. For example, encouraging EESCO development will require market surveys (to show companies that there is sufficient market for their services and to determine the type of services needed), working with financial institutions (to educate them regarding the technologies and risks associated with energy efficiency investments and to determine if other types of support are needed), arranging for training for EESCO personnel (to lower the risk of failed implementations and to improve the confidence of recipients that the interventions will work), development of a process for measuring the performance of an intervention (to show that the payment for the intervention is appropriate to the benefits) and working with recipients and EESCOs to ensure that a process is in place to maintain the benefits provided by the intervention. Engaging in just one component, such as just doing energy audits, has a high risk of failure due to problems in other associated areas such as finance, monitoring, component selection, maintenance, etc. In the example given of a school program, providing information to students about energy efficiency improvement will have little effect if there is no follow-up home action tied to the information and the home action will have little effect if the components to carry out the efficiency improvement are not immediately available for purchase at an acceptable price. 43. It is also recommended that the initial activities chosen have a high probability of success and good publicity value. Future government funding for the DOE energy efficiency activities will be largely determined by the perceived success of the DOE programs. Choosing high return but obscure program types may result in lower budget allocations than lower return programs that are very visible and clearly beneficial. Once DOE gains a good reputation for its energy efficiency activities, projects that are lower in visibility but offer high returns will be more acceptable to the people who allocate Government funds. Appendix 4 - 12 44. Considering the above criteria, a reasonable five year action plan would be: Year 1: • Fast track efforts on mandatory appliance labeling for refrigerators and freezers with attention to all segments of the process from foreign exporters through customs, importers/wholesalers, retailers, finance institutions, and ending at the consumer level. • Initiate a high visibility, low risk program for consumers such as the school student audit program outlined above. • Carry out a market survey to determine the type and extent of EESCO services that are needed in commerce and industry. Using that market information, lobby for the concept of EESCO development with donors, ADB and SOPAC with the goal of getting the necessary resources to get the REEP program funded and operational over the next two years. • Design a comprehensive government facilities energy efficiency improvement program that can be administered by DOE but carried out through investment by each agency to improve its own energy use. This may require cooperation with the Ministry of Finance to develop a program of incentives for various departments and government bodies. • Draft legislation to formalize the mandate for DOE to be the focus for energy efficiency improvement activities. Include the necessary regulatory powers as relates to appliance labeling and import controls, government facility energy efficiency programs, EESCO operations, etc. • Survey commercial/industrial technical training institutions to determine their need for facilities, instructor training and training materials to provide energy efficiency training for implementing and monitoring technicians. Develop a project proposal for the development of the energy efficiency training capacity. • Work with the FTIB to develop a practical program which links government investment incentives to improved energy efficiency in the company receiving subsidies. Year 2: • Complete the comprehensive program for appliance efficiency improvement and implement the basic labeling process whereby all imported refrigerators and freezers have a label showing their relative energy efficiency. • Get Cabinet support for the DOE designed government energy efficiency program and work with agencies to develop plans and budgetary allocations for their efficiency improvement programs. • Follow up on the consumer program carried out in year 1 with further publicity and incentives. • Continue to promote the development of an EESCO support program to international funding institutions. • Work to get the legislation passed that was submitted in year 1 • Work in association with the rural electrification program to improve fuel efficiency of village diesel generators and to improve the efficiency of the use of the energy provided by the installed generators. Appendix 4 - 13 Year 3: • Assist government agencies in obtaining auditing services and establishing a program for agency energy efficiency improvement. Do a base-line survey of energy use in each agency. • Assuming funding has been found for EESCO development, initiate the program by requiring government agencies to use EESCOs for the development of their energy efficiency actions. • Assuming the proposed legislation is passed, develop import regulations that are designed to increase the average efficiency of imported air-conditioning equipment and household appliances. • Using the experience gained through the refrigerator and freezer labeling program, commence development of an expanded labeling process covering additional appliances. • Request additional staff and budget to handle the expanded energy efficiency activities • Work with the Land Transport Authority to prepare programs to improve private transport efficiency through incentives and regulations. Year 4: • Support the EESCOs by assisting in the marketing of their services through market surveys and inexpensive “walk through” audits that show users the general scope for improvement. • Implement the broader range of appliance labeling. Put into effect the year 3 import regulations that are intended to improve the average energy efficiency of air-conditioners and other high energy use commercial equipment. • Initiate a dialogue with local shipping companies and airlines to determine the possible actions that can improve the energy efficiency of sea and air transport. • Seek funding for land transport efficiency programs designed by and to be carried out jointly with the LTA. • Monitor government agency energy use and determine the effectiveness of the interventions. Year 5: • Carry out a household energy use survey in urban areas with significant samples from low income, middle income and high income households. Using the survey data determine the gaps in knowledge and application of energy efficiency measures for households. Determine the current barriers to further implementation of energy efficiency activities at the household level. • Design a program to address lowering of the barriers found and seeks funds for its implementation. • Administer existing programs for appliance efficiency improvement, EESCO regulation, training, air-conditioner efficiency improvement and land transport efficiency improvement. • Develop proposals for air and sea transport energy efficiency improvements and seek funding for their implementation. Appendix 5 - 1 APPENDIX 5 SURVEY OF STANDARDS AND CERTIFICATION SYSTEMS FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY Appendix 5 - 2 Survey of Existing Standards and Certification Methods Used for Renewable Energy and Energy Efficiency. I. CONCEPTS A. Energy efficiency labels 1. The purpose of energy efficiency labels is to provide customers with accurate information on energy consumption of the appliances that are offered on the consumer market. It is expected they will then be encouraged to choose the most efficient products. 2. The mode of operation of a labelling strategy is to influence consumer’s purchase decisions through large public information campaigns explaining the value of energy savings at the consumer level. The quality of design of a label is a key aspect of its acceptance by the public at large. Labels are also intended to influence manufacturers, importers and retailers in production processes and marketing strategies toward more efficient appliances. 3. Energy labels can be categorized in three types: • Information-only labels: they provide information on energy performance or energy efficiency of an appliance, but do not give any numerical basis for direct comparison with competing products. • Comparison labels : in addition to information on energy performance or energy efficiency, these labels provide a basis for comparison between products of similar types ranked on a categorical scale (e.g. Class A, B, C,) or a continuous scale (e.g. energy consumption in kWh/year). These labels are particularly suitable when energy consumption may vary widely for the same category of product. Typical cases for this type of label application are refrigerators and air conditioners. • Endorsement labels : these labels work like a seal of approval that the product belongs to the an energy efficient class of products. They do not give any more detailed information on energy performance other than meeting basic class criteria. 4. Table 1 (tables are at the end of this Annex) shows examples of information-only labels, comparison labels and endorsement labels, in different countries. B. Standards 5. Standards consist of regulations and procedures that products or systems must comply with. Sets of standards are designed specifically for each product class (refrigerator, lighting appliances, solar water heater, etc.). 6. There are three main types of standards : prescriptive standards: these standards require a particular feature or device to be installed in all new products. They can also require a product to pass specific testing procedures. minimum energy performance standards (MEPS): the MEPS prescribe minimum efficiencies (or maximum energy consumption) values that products must meet before they can be legally sold. fleet-average or class-average standards: these standards prescribe that a sales-weighted average energy efficiency, based on all the models of the same product class, must be achieved or exceeded by each manufacturer. Appendix 5 - 3 7. Prescriptive standards and MEPS may be combined and attached to the same product class. For instance for a PV solar home system, prescriptive requirements can be put on PV modules and MEPS criteria prescribed for daily energy output of the whole system. 8. MEPS and fleet-average standards represent two different ways to measure energy performance of electric appliances. In general MEPS are used mostly in Europe and North America while fleet-average standards have been used mainly in Japan and Switzerland. MEPS or fleet-average standards define only the performance targets and not the technologies or design to use, that remains the manufacturer’s responsibility. Thus standards of these types do not deter technological innovation. C. Regulatory issues 9. The main regulatory issues are to decide: • which labels and standards are to be implemented • whether labels and standards should be voluntary or mandatory. • Whether MEPS should be set at high or low levels 10. Because they apply to mass produced goods, labels and standards can have a very large impact on the energy consumption structure at the national level. The key point is to identify what are the best targets. For instance in Samoa where lighting, refrigeration and air conditioning represent 67% of domestic consumption and 38% of total sales of electricity, it can reasonably be expected to achieve mid to long term substantial benefits on the energy balance by introducing labels and standards for these categories of appliances and actively promoting them through public information programs. 11. It can be tempting to impose mandatory labels and high levels of standards to impact the energy consumption on the short term. But doing so can be inefficient if the actors and the market structure are not prepared to these changes. For instance, in Samoa where many of the refrigerators purchased are second hand (mainly from New Zealand and Australia) units because price is the most important buying criteria for the purchasers, setting immediate high mandatory MEPS that apply to all refrigerator imports would result in severely restricting the choice of consumers to new, much more costly – and possibly unaffordable – refrigerators a situation that would be unacceptable from a social perspective. 12. Decisions about labels and standards must be taken by the authorities at the country level based on the best compromise between energy savings targets, the economic situation, social and cultural data, political orientations and the ability of the government to enforce them. For this reason, these decision should be the result of a consultative process among all the actors including consumers, the private business sector, industry and Government. Ref. [4] gives an example of such a process for labelling room air conditioners as was used in Ghana. 13. Experience indicates that a good way to start with is to combine labelling and rather low MEPS strategies. Labelling alone will have only limited impact and putting too high a level of MEPS right from the start may block the expected market transformation. 14. Table 2A and Table 2B (tables are at the end of this Annex), extracted from Ref. [2], reflects the diversity of approaches found in the world regarding the mandatory or voluntary nature of labels and standards . From the table it can be seen that: Appendix 5 - 4 endorsement labelling is generally on a voluntary basis, while comparison labels are rather mandatory ; MEPS are already made mandatory in a large number of countries. D. Implementation schemes 15. The success of labelling programmes is dependent on fully implementing all aspects of the process. In [Ref.1], the following step-by-step procedure to develop standards and procedure is proposed: I. decide whether and how to implement energy-efficiency labels and standards: such a decision needs to be based on clear assessments including (i) social, institutional and regulatory environment regarding labels and standards, (ii) the government’s capacity to implement and enforce labelling, (iii) the availability of statistical data needed to design the labels and standards, and (iv) the products to target with the highest priority. II. develop a testing capability, which means designing test procedures and building a testing centre for the selected products. That does not mean starting from zero, but rather adapting existing work to the specificities of the country, and even relying on testing centres from outside or on private laboratories (this approach be particularly relevant in the context of small-scale economies like those of Fiji and Samoa) III. design and implement labelling programs: the detailed knowledge of consumer sociocultural preferences and the way they are reflected in the label design is a key condition for a successful impact. IV. analyse and set standards programs : setting standards will be the result of different types of analyses : (i) engineering analysis (energy performance), (ii) national impact analysis (energy balance, environmental benefits, social cost-benefits), (iii) consumer analysis (impact on the consumer's welfare), (iv) manufacturers and retailers analysis (impact on the commercial activity). V. maintain and enforce compliance : ensuring the effective application of the labels and standards will need the implementation of controlling and regulating capacities at the national level by an agency having adequate capacity and competence. The requirements for achieving this capacity and competence have to be identified. VI. Monitor and continuously evaluate the label and/or standards setting program: after the labels and standards are set, feedback information will be needed to assess their impact and identify possible corrective measures where problems are seen. Monitoring and analysis procedures have to be designed for this purpose and resources assigned to carry them out. II. STANDARDS AND CERTIFICATION METHODS 16. Tables 3A and 3B (tables are at the end of this Annex) present a summary of standards and certification methods used internationally for energy efficiency and renewable energy. Appendix 5 - 5 17. The main international organizations issuing standards and certification methods at the international level are: • The International Organization for Standardization (ISO). It is the world's largest developer of standards. • The International Electrotechnical Commission (IEC). The IEC is the leading global organization that prepares and publishes international standards for all electrical, electronic and related technologies. • The Institute of electrical and electromechanical engineers (IEEE). A non-profit, technical professional association that is a leading authority for a wide range technical areas including computer engineering, biomedical technology, telecommunications, electric power, aerospace and consumer electronics. • The Global Approval Program for Photovoltaics (PV GAP). PV GAP is a non-profit international organization that certifies the quality of PV systems and components. It is dedicated to the sustained growth of global photovoltaics (PV) markets to meet energy needs world-wide in an environmentally sound manner. A. Energy efficiency 18. For energy efficient appliances, prescriptive requirements will generally be related to compliance with general safety ISO/IEC standards set for each product category of appliance. 19. Performance criteria will generally be expressed in MEPS for given standard operating conditions that should be representative of the environment in the country. For example, a MEPS performance criteria for room air conditioners is the Energy Efficiency Ratio (EER). 20. Standards and certification procedures for appliances are normally defined at the national level but are typically based on internationally accepted methods of implementation. Test protocols, for example, have been published by the ISO for numerous categories of appliances. B. Renewable energy 1. Solar water heaters 21. For solar water heaters (SWH), prescriptive requirements are typically related to component specifications regarding food and health regulations (use of drinkable water, authorized insulation material), corrosion resistance and other specific material and design tests that must be passed. 22. Performance criteria will be expressed through: • the yearly energy output under standard climatic conditions (energy delivered/year), • the solar energy factor (percentage of the energy provided by the SWH vs. total energy required for water heating), • or in the case of large commercial or industrial SWH, a guarantee of performance (minimum acceptable energy delivery/year) Appendix 5 - 6 23. Joint efforts at the regional level have lead to the design of international testing protocols and certification methods such as those developed by the ALTENER and Solarkeymark projects in Europe, or by the Solar Rating and Certification Corporation in the USA. 2. Photovoltaic systems 24. For photovoltaic systems, prescriptive requirements will typically concern: • component specifications: compliance to general ISO standards (e.g. for PV modules), specific requirements (e.g. linked to environmental constraints such as the marine environment of the Pacific islands), technical features of components, metering devices (e.g.. for grid-connected systems), etc. • sizing and balance-of-system rules such as reference to the solar radiation characteristics, the ratio between PV module power and battery capacity, and the maximum acceptable electrical losses. • installation rules including the agreement of technicians to follow the rules, on site training of users or beneficiaries, methodology for installation. • after-sales services: commercial warranties on components, and system energy availability and tariff, availability and location of basic spare parts and requirements for the proper training for service personnel. 25. Performance criteria will be mainly related to the mean daily or yearly performance (kWh/day or kWh/yr) and the time the system can operate from fully charged conditions with no sun (in days, applies only to stand-alone systems with energy storage). 3. Wind energy 26. For wind energy systems, prescriptive requirements will typically involve: • safety requirements, • design of components: rotor, blades, gearbox, mechanical structure, etc. • compliance with local environmental regulation: noise level, noise measurement procedures, noise declaration, etc. • performance: power performance and noise measurement techniques, etc. 27. Performance criteria will be mainly related to the total yearly energy output (MWh or TWh per year) and statistical power availability according to the wind resource. 28. Grid-connected wind farms are now a fully mature RE technology for which a full set of IEC norms and standards have been developed (IEC 61400) III. REFERENCES AND BIBLIOGRAPHY [1] Energy efficient labels and standards: a guidebook for appliances, equipment and lighting (Stephen Wiel and James E. MacMahon, Collaborating labelling and appliances standards program, CLASP USA, 2001) Appendix 5 - 7 [2] Energy labelling and standards throughout the world (Lloyd Harrington and Melissa Damnics, The National Appliance and Equipment Energy efficiency committee, Australia, 2001) [3] European test facilities for solar combisystems and heat store, (International Energy Agency, 2002) [4] Transforming the West African Market for Energy Efficiency: Ghana Leads the Way with Mandatory Standards and Labels (CLASP – Ghana Energy Foundation, 2001) [5] Operating guidelines and minimum standards for certifying solar water heating systems (SRCC Document OG-300, Solar Rating and Certificating Corporation, 2002) [6] Universal technical standards for solar home systems (Thermie B SUP 995-96, ECDGXVII, 1998) [7] Survey of national and international standards, guidelines and QA procedures for stand alone PV systems (IEA PVPS T3-07:2000, 2000) [8] Standards for renewable energy generation (Vergnet SA, 2004) Appendix 5 - 8 Table 1 – Samples of energy efficiency labels Appendix 5 - 9 Table 2A Appendix 5 - 10 Table 2B Appendix 5 - 11 Table 3A Appendix 5 - 12 Table 3B 2.1 Interconnection IEEE 1547 IEEE P1547.1 IEEE P1547.2 IEEE P1547.3 Standard for interconnecting Distributed resources with electric power systems Draft Standard for Conformance Test Procedures for Equipment Interconnecting Distributed Resources with Electric Power Systems Application Guide for IEEE Std.1547 Standard for Interconnecting Distributed Resources with Electric Power Systems Guide for monitoring, information exchange and control of distributed resources interconnected with electric power systems. 2.2 Hybrid Systems IEEE P1561 Guide for sizing Stand-Alone Hybrid Energy Systems 2.3 Photovoltaic IEC 60364-7-712 Electrical installations of buildings - Part 7-712: Requirements for special installations or locations - Solar photovoltaic (PV) power supply systems IEC-EN IEC-EN IEC-EN IEC-EN IEC-EN 60891 60904-1 60904-2 60904-3 60904-5 IEC-EN 60904-6 IEC-EN 60904-7 IEC-EN 60904-8 IEC-prEN 60904-9 IEC-EN 60904-10 IEC-EN 61173 IEC-EN 61194 IEC-EN 61215 IEC-EN 61277 IEC-EN 61345 IEC 61427 IEC-EN 61646 IEC-EN 61683 IEC-EN 61701 IEC-EN 61702 IEC-EN 61721 IEC-EN 61724 Procedures for temperature and irradiance corrections to measured I-V characteristics of crystalline silicon photovoltaic devices Photovoltaic devices. Part 1: Measurement of photovoltaic current-voltage characteristics Photovoltaic devices. Part 2: Requirements for reference solar cells Photovoltaic devices. Part 3: Measurement principles for terrestrial photovoltaic (PV) solar devices with reference spectral irradiance data Photovoltaic devices. Part 5: Determination of the equivalent cell temperature (ECT) of photovoltaic (PV) devices by the open-circuit voltage method. Photovoltaic devices. Part 6: Requirements for reference solar modules Photovoltaic devices. Part 7: Computation of spectral mismatch error introduced in the testing of a photovoltaic device Photovoltaic devices. Part 8: Measurement of spectral response of a photovoltaic (PV) device Photovoltaic devices. Part 9: Solar simulator performance requirements Photovoltaic devices. Part 10: Methods of linearity measurement Overvoltage protection for photovoltaic (PV) power generating systems. Guide Characteristic parameters of stand-alone photovoltaic (PV) systems Crystalline silicon terrestrial photovoltaic (PV) modules – Design qualification and type approval Terrestrial Photovoltaic (PV) power generating systems – General Guide UV test for photovoltaic (PV) modules Secondary cells and batteries for solar photovoltaic energy systems – General requirements and method of test Thin film terrestrial photovoltaic (PV) modules – Design qualification and type approval Photovoltaic systems – Procedure for measuring efficiency Salt mist corrosion testing of photovoltaic (PV) modules Rating of direct coupled photovoltaic (PV) pumping systems Susceptibility of a photovoltaic (PV) module to accidental impact damage (resistance to impact test) Photovoltaic system performance monitoring. Guidelines for measurement, data exchange and analysis Appendix 5 - 13 IEC-EN 61727 IEC-prEN 61730-1 IEC-prEN 61730-2 IEC-EN 61829 IEC 61836 IEC 61853 IEC-prEN 62093 IEC 62108 IEC 62109 IEC 62116 IEC-prEN 62124 IEC 62145 IEC 62234 IEC 62253 EN 50380 IEEE 928 IEEE 929 IEEE 937 IEEE 1013 IEEE 1144 IEEE 1145 IEEE 1262 IEEE P1361 IEEE 1374 IEEE P1479 IEEE 1513 IEEE P1526 IEEE P1562 UL 1703 Photovoltaic (PV) systems. Characteristics of the utility interface. Photovoltaic module safety qualification – Part 1: Requirements for construction Photovoltaic module safety qualification – Part 2: Requirements for testing Crystalline silicon photovoltaic (PV) array. On site measurement of I-V characteristics. Solar photovoltaic energy systems – terms and symbols Performance testing and energy rating of terrestrial photovoltaic (PV) modules Balance-of-systems components for photovoltaic systems – Design qualification and type approval Concentrator photovoltaic (PV) receivers and modules – Design qualification and type approval Electrical safety of static inverters and charge controllers for use in photovoltaic (PV) power systems Testing procedure – Islanding prevention measures for power conditioners used in grid connected photovoltaic (PV) power generation systems Photovoltaic (PV) stand alone systems – Design Verification Crystalline silicon PV modules – Blank detail specification Safety guidelines for grid connected photovoltaic (PV) systems mounted on buildings Direct coupled photovoltaic pumping systems – Design qualification and type approval Datasheet and nameplate information for photovoltaic modules IEEE Recommended Criteria for terrestrial photovoltaic power systems IEEE Recommended Practice for Utility Interface of Residential and Intermediate Photovoltaic (PV) Systems IEEE Recommended Practice for Installation and Maintenance of Lead-Acid Batteries for Photovoltaic (PV) Systems IEEE Recommended Practice for Sizing Lead-Acid Batteries for Photovoltaic (PV) Systems IEEE Recommended Practice for Sizing Nickel-Cadmium Batteries for Photovoltaic (PV) Systems IEEE Recommended Practice for Installation and Maintenance of Nickel-Cadmium Batteries for Photovoltaic (PV) Systems IEEE Recommended Practice for Qualification of Photovoltaic (PV) Modules Guide for the selection, test and evaluation of lead acid batteries for stand-alone photovoltaic (PV) systems IEEE Guide for terrestrial photovoltaic power system safety Recommended practice for the evaluation of photovoltaic (PV) module energy production IEEE Recommended Practice for Qualification of Concentrator Photovoltaic (PV) Receiver Sections and Modules IEEE Recommended Practice for Testing the Performance of Stand Alone Photovoltaic Systems Guide for array and battery sizing in Stand - Alone Photovoltaic (PV) Systems Flat-Plate Photovoltaic Modules and Panels 2.4 Wind Turbine IEC 60050-415 IEC WT 01 IEC-EN 61400-1 IEC-EN 61400-2 IEC 61400-3 IEC 61400-4 IEC-EN 61400-11 IEC-EN 61400-12 IEC 61400-13 International electrotechnical vocabulary – Part 415: Wind turbine generator systems IEC System for conformity testing and certification of wind turbines – Rules and Procedures Wind turbine generator systems. Part 1: Safety requirements Wind turbine generator systems. Part 2: Safety of small wind turbines Wind turbine generator systems. Part 3: Design requirements for offshore wind turbines Wind turbine generator systems. Part 4: Design requirements for gearboxes for wind turbines Wind turbine generator systems. Part 11: Acoustic noise measurement techniques Wind turbine generator systems. Part 12: Wind turbine power performance testing Wind turbine generator systems. Part 13: Measurement of mechanical loads Appendix 5 - 14 IEC 61400-14 IEC-prEN 61400-21 IEC 61400-23 IEC 61400-24 IEC 61400-25 IEC 61400-121 prEN50308 prEN50376 2.5 Fuel Cells IEC-EN 61982 IEC-prEN 62282 UL 2262 2.6 Small hydro IEC-EN 61116 IEC 62006 IEEE 1020 2.7 Converters IEC-EN 60146-1-1 IEC 60146-1-2 IEC-EN 60146-2 Wind turbine generator systems. Part 14: Declaration of sound power level and tonality values Wind turbine generator systems. Part 21: Measurement and assessment of power quality characteristics of grid connected wind turbines Wind turbine generator systems. Part 23: Full-scale structural testing of rotor blades Wind turbine generator systems. Part 24: Lightning protection Wind turbine generator systems. Part 25: Communication standard for remote control and monitoring of wind power plants Wind turbine generator systems. Part 121: Power performance measurements of grid connected wind turbines Wind turbines - protective measures – requirements for design, operation and maintenance Declaration of sound power level and tonality values of wind turbines Secondary batteries for the propulsion of electric road vehicles – Part 3: Performance and life testing (traffic compatible, urban use vehicles) Fuel cell technologies Portable proton exchange membrane (PEM) type fuel cell power plants with or without uninterruptable power supply (UPS) features and portable proton exchange membrane (PEM) type fuel cell modules for factory installation in original equipment manufacturer (OEM) type equipment for indoor use Electromechanical equipment guide for small hydroelectric installations Hydraulic machines - Acceptance tests of small hydro turbines IEEE Guide for Control of Small Hydroelectric Power Plants Semiconductor converters – General requirements and line commutated converters - Part 1-1: specifications of basic requirements Semiconductor converters – General requirements and line commutated converters - Part 1-2: Application guide Semiconductor converters – General requirements and line commutated converters - Part 2: Self – commutated semiconductor converters including direct d.c. converters IEC 60146-6 Semiconductor converters – General requirements and line commutated converters - Part 6: Application guide for the protection of semiconductor converters against overcurrent by fuses IEC 62109 IEC 62116 UL 1741 Electrical safety of static inverters and charge controllers for use in photovoltaic (PV) power systems Testing procedure – Islanding prevention measures for power conditioners used in grid connected photovoltaic (PV) power generation systems Inverters, Converters, and Controllers for Use in Independent Power Systems 2.8 Batteries IEC 60050-481 IEC 60050-486 IEC-EN 60086 IEC-EN 60095 IEC-EN 60254 IEC-EN 60622 IEC-EN 60623 International Electrotechnical Vocabulary – Part 481: Primary cells and batteries International Electrotechnical Vocabulary – Part 486: Secondary cells and batteries Primary cells and batteries Lead acid starter batteries Lead acid traction batteries Secondary cells and batteries containing alkaline or other non-acid electrolytes – Sealed nickel-cadmium prismatic rechargeable single cells Secondary cells and batteries containing alkaline or other non-acid electrolytes – Vented nickel-cadmium prismatic rechargeable single cells Appendix 5 - 15 IEC-EN 60896 IEC-EN 61056 IEC/TR2 61430 Stationary lead acid batteries – General requirements and test methods General purpose lead-acid batteries (valve-regulated types) Secondary cells and batteries – Test methods for checking the performance of devices designed for reducing explosion hazards – Lead-acid starter batteries IEC/TR3 61431 IEC-EN 61434 Guide for the use of monitor systems for lead-acid traction batteries Secondary cells and batteries containing alkaline or other non-acid electrolytes – Guide to designation of current in alkaline secondary cell and battery standards IEC-EN 61660-1 IEC 62060 EN 50272 IEEE 485 IEEE 1106 Short-circuit currents in d.c. auxiliary installations in power plants and substations – Part 1: Calculation of short-circuit currents Secondary cells and batteries – Monitoring of lead acid stationary batteries – User guide Safety requirements for secondary batteries and battery installations IEEE Recommended Practice for Sizing Lead-Acid Batteries for Stationary Applications IEEE Recommended Practice for Installation, Maintenance, Testing and Replacement of vented nickel-cadmium batteries for stationary applications IEEE 1115 IEEE Recommended Practice for Sizing Nickel-Cadmium Batteries for Stationary Applications 2.9 UPS IEEE 446 IEEE 1184 IEEE Recommended Practice for Emergency and Standby Power Systems for Industrial and Commercial Applications IEEE Guide for the Selection and Sizing of Batteries for Uninterruptible Power Systems 2.10 Cogeneration IEEE 502 UL 2200 IEEE Guide for Protection, Interlocking, and Control of Fossil-Fueled Unit-Connected Steam Stations STANDARD FOR SAFETY Stationary Engine Generator Assemblies 2.11 Power Quality EN 50160 IEC 61000-1-4 Voltage characteristics of electricity supplied by distribution systems EMC – Part 1-4: Rationale for limiting power-frequency conducted harmonic and interharmonic current emissions from equipment, in the frequency range up to 9 kHz IEC-EN 61000-2-2 EMC – Part 2-2: Environment. Section 2: compatibility levels for low frequency conducted disturbances and signalling in public low-voltage power supply systems IEC-EN 61000-2-4 IEC/TR3 61000-2-6 EMC – Part 2-4: Environment. Section 4: Compatibility levels in industrial plants for low-frequency conducted disturbances EMC – Part 2-6: Environment. Section 6: Assessment of the emission levels in the power supply of industrial plants as regards low-frequency conducted disturbances IEC/TR 61000-2-8 IEC-EN 61000-2-12 EMC – Part 2-8: Environment – Voltage dips and short interruptions on public electric power supply systems with statistical measurement results EMC – Part 2-12: Environment. Section 12: Compatibility levels for low-frequency conducted disturbances and signalling in public medium-voltage power supply systems IEC/TR 61000-3-1 IEC-EN 61000-3-2 IEC-EN 61000-3-3 EMC – Part 3-1: Limits - Overview of emission standards and guides - Technical Report EMC – Part 3-2: Limits – Limits for harmonic current emissions (equipment input current up to and including 16 A per phase EMC – Part 3-3: Limits – Limitation of voltage changes, voltage fluctuations and flicker in public low-voltage supply systems, for equipment with rated current <= 16 A per phase and not subject to conditional connection Appendix 5 - 16 IEC/TS 61000-3-4 EMC – Part 3-4: Limits – Limitation of emission of harmonic currents in low-voltage power supply systems for equipment with rated current greater than 16 A IEC/TR2 61000-3-5 EMC – Part 3-5: Limits – Limitation of voltage fluctuations and flicker in low-voltage power supply systems for equipment with rated current greater than 16 A IEC/TR3 61000-3-6 IEC/TR3 61000-3-7 IEC 61000-3-9 EMC – Part 3-6: Limits – Assessment of emission limits for distorting loads in MV and HV power systems – Basic EMC publication EMC – Part 3-7: Limits – Assessment of emission limits for fluctuating loads in MV and HV power systems – Basic EMC publication EMC – Part 3-9: Limits for interharmonic current emissions (equipment with input power <= 16 A per phase and prone to produce interharmonics by design) IEC 61000-3-10 IEC-EN 61000-3-11 EMC – Part 3-10: Emission limits in the frequency range 2 ... 9 kHz EMC – Part 3-11: Limits – Limitation of voltage changes, voltage fluctuations and flicker in public low-voltage supply systems – Equipment with rated current <= 75 A per phase and subject to conditional connection IEC-prEN 61000-312 EMC – Part 3-12: Limits for harmonic currents produced by equipment connected to public low-voltage systems with input current <- 75 A per phase and subject to restricted connection IEC-EN 61000-4-4 IEC-EN 61000-4-5 IEC-EN 61000-4-7 EMC – Part 4-4: Testing and measurement techniques – Electrical fast transient/burst immunity test EMC – Part 4-5: Testing and measurement techniques – Surge immunity test EMC – Part 4-7: Testing and measurement techniques – General guide on harmonics and interharmonics measurements and instrumentation, for power supply and equipment connected thereto IEC-EN 61000-4-11 IEC-EN 61000-4-13 EMC – Part 4-11: Testing and measurement techniques – Voltage dips, short interruptions and voltage variations immunity tests EMC – Part 4-13: Testing and measurement techniques – Harmonics and interharmonics including mains signalling at a.c. power port, low frequency immunity tests IEC-EN 61000-4-14 IEC-EN 61000-4-15 IEC-EN 61000-4-16 EMC – Part 4-14: Testing and measurement techniques – Voltage fluctuation immunity test EMC – Part 4-15: Testing and measurement techniques – Flickmeter – Functional design specifications EMC – Part 4-16: Testing and measurement techniques – Test for immunity to conducted, common mode disturbances in the frequency range 0 Hz to 150 kHz IEC-EN IEC-EN IEC-EN IEC-EN EMC EMC EMC EMC tests 61000-4-17 61000-4-27 61000-4-28 61000-4-29 IEC-prEN 61400-430 IEEE 519 IEEE 1159 IEEE 1250 IEEE 1346 IEEE P1409 IEEE P1453 IEEE P1495 IEEE P1564 – Part 4-17: Testing and measurement techniques - Ripple on d.c. input power port immunity test – Part 4-27: Testing and measurement techniques – Unbalance, immunity test – Part 4-28: Testing and measurement techniques – Variation of power frequency, immunity test – Part 4-29: Testing and measurement techniques - Voltage dips, short interruptions and voltage variations on d.c. input power port immunity EMC – Part 4-30: Testing and measurement techniques – Power quality measurement methods IEEE Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems IEEE Recommended Practices for monitoring electric power quality IEEE Guide for service to equipment sensitive to momentary voltage disturbances IEEE Recommended Practices for evaluating electric power system compatibility with electronic process equipment IEEE Guide for the application of power electronics for power quality improvement on distribution systems rated 1 kV through 38 kV IEEE Recommended Practice for measurement and limits of voltage flicker on AC power systems Standard for harmonic limits for single-phase equipment IEEE Recommended Practice for the establishment of voltage sag indices Appendix 5 - 17 2.12 Metering IEC 60870-5-102 IEC 62056 IEC 61334-4 Telecontrol equipment and systems – Part 5: transmission protocols – section 102: companion standards for the transmission of integrated totals in electric power systems Electricity metering – Data exchange for meter reading, tariff and local control Distribution automation using distribution line carrier systems – Part 4: Data communication protocols Appendix 6 - 1 APPENDIX 6 PROPOSED STANDARDS FOR RESCO SHS INSTALLATION AND MAINTENANCE Appendix 6 - 2 TABLE OF CONTENTS 1. BACKGROUND 3 2. GENERAL CONDITIONS 3 2.1. Service delivery indicators............................................................................................................3 2.2. System typology .............................................................................................................................3 2.3. Components of the SHS ................................................................................................................4 3. DOCUMENTATION 4 3.1. User manual .....................................................................................................................................4 3.2. Technician manual..........................................................................................................................5 4. REQUIREMENTS FOR INSTALLATION 6 4.1. General..............................................................................................................................................6 4.2. PV Array............................................................................................................................................6 4.3. Batteries ...........................................................................................................................................6 4.4. Lamps ...............................................................................................................................................7 4.5. Wiring................................................................................................................................................7 5. REQUIREMENTS FOR MAINTENANCE 7 5.1. Services ............................................................................................................................................7 5.2. Periodical routine visit ...................................................................................................................7 5.3. Repair visits .....................................................................................................................................9 6. MAINTENANCE REPORTING 9 6.1. Maintenance monthly report .........................................................................................................9 6.2. Maintenance annual report ...........................................................................................................9 Appendix 6 - 3 PROPOSED SPECIFICATIONS FOR RESCO SHS INSTALLATION AND MAINTENANCE 1. BACKGROUND Although these specifications could be used for any solar home system (SHS) application, they are written specifically for the Renewable Energy Service Company (RESCO) model implemented by the Fiji Department of Energy (DOE). This RESCO model can be summarized as follows: • Technical design, purchasing, and system ownership by DOE; • Users are self-selected and clustered in groups of a size that is appropriate for economically reasonable periodic maintenance by the RESCO; • Users are required to pre-pay a monthly fee that covers an appropriate portion of the capital cost of the installed system and the full cost of operation, maintenance and repair of the systems; • Maintenance and repair services are to be provided by private contractor RESCO operators with technical support, evaluation, certification and regulation by the DOE; • Financial controls and technical controls will be put into place and administered by the DOE to ensure continuing financial and technical responsibility by the RESCO contractors; • DOE will establish a continuing technical and business training process for personnel of the RESCOs 2. 2.1. 2.1.1. 2.2. 2.2.1. 2.2.2. GENERAL CONDITIONS Service delivery indicators The following service delivery indicators are to be provided for any proposed SHS : a) The daily energy service is the minimum energy daily available at the output of the battery charge regulator, as guaranteed by the supplier, under the Reference Climatic Conditions mentioned in the Tender documents. The daily energy service is expressed in Watt-hour per day (Wh/day) b) The SHS operating autonomy is the minimum number of days during which the system can provide the daily energy service starting from a 100% charged battery, the PV array being disconnected from the battery charge regulator. System typology The categories of SHS to be provided within the RESCO program are : a) Category A - « basic » : minimum daily energy service of 225 Wh/day b) Category B - « standard » : minimum daily energy service of 450 Wh/day The SHS operating autonomy must be at the minimum 5 days for any SHS category Appendix 6 - 4 2.3. 2.3.1. 2.3.2. 2.3.3. 3. 3.1. 3.1.1. Components of the SHS The mandatory components of the SHS are : a) PV module(s) b) PV array mounting structure c) Battery(ies) d) Battery charge and discharge regulator e) Lamps in quantities defined in 2.3.3 below f) All wiring accessories: switches, cables, fasteners, junction boxes, etc. g) Enclosures The optional components of the SHS are : h) DC outlet i) Prepayment system j) DC-AC inverters Unless specified differently in the tender documents, the maximum number of lamps to be provided in each SHS category are: k) SHS Category 1: four (4) lamps including one (1) outdoor l) SHS Category 2: seven (7) lamps including one (1) outdoor DOCUMENTATION User manual The RESCO must provide all users a User’s Manual with simple functional descriptions for the end-user. The manual must be in English and in local language. The documentation should be simple and easy to understand. Sketches or graphics should be used to make the manual user friendly. The documentation is to include the following: a) How the SHS works: battery charging by the array, functions, battery low voltage protection, and battery overcharge protection. The relationship between energy available on a daily basis and sunlight conditions should be clearly and simply explained. b) A description of all interactive hardware including disconnect switches and status indicators. c) Procedures for proper system operation, including a list of load limitations and any problem loads. These procedures should include suggested operation, including load conservation, during periods of inclement weather, and/or a low voltage disconnect event. The procedures for checking that the photovoltaic array is not shaded and how to prevent shading must be explained. For portable SHS, instructions must be given on how to orient the PV module to maximize energy generation. d) Any user maintenance items. Appendix 6 - 5 3.2. 3.2.1. e) Emergency shut down procedures and recommendations for extended periods of system non-use. f) A user trouble shooting guide to be followed before calling the field technician. g) A block diagram showing the main components Technician manual The RESCO must prepare a Technician’s Installation, Operations and Maintenance Manual to be used by the service technicians. The manual must be in English. The manual will include the specific details on installation, operation and maintenance. This will include: a) A detailed technical description of the system. b) A complete copy of the Users Manual. c) A complete list of all system components, with associated manufacturers literature, specifications, and warranties. d) Complete installation instructions. e) Recommended post-installation acceptance test procedures, including all appropriate set points and test procedures. f) They will include: · Verification that the installation of the photovoltaic array with regard to position, direction, inclination and shading avoidance will maximize energy generation. · Procedures to ensure that the battery has received an equalization charge just before installation. · How to use a shunt to measure the current and voltage from the array under charging conditions to verify the array charging current. The shunt resistor rating should be approximately equal to Vmp2/Wp. Where Vmp is the voltage at maximum power point of the PV module and Wp is the Peak Watt rating of the module. The wattage rating of the shunt resistor should be equal to the peak watt rating of the module. · Procedures to test all of the loads for proper operation. · How to make system-wide voltage drop measurements in the sub-circuits to verify that connections meet the required maximum allowable voltage drop. · How to measure voltage drop across switches to ensure their continued quality · Require that technicians note all measurements in the system log. · Explanation to the technician the system operating principles, load management requirements, impact of shading of the array and how to check and avoid it, as well as technician maintenance checks and how to conduct them. g) A recommended annual maintenance schedule, with complete maintenance instructions for each level of maintenance. This must include battery-watering requirements. h) A detailed troubleshooting guide referencing all the system components. This shall include repairs and diagnostic procedures that can be done by the technician in the field. Repairs and procedures not to be attempted by field technicians shall be identified. Appendix 6 - 6 4. 4.1. i) A functional block diagram, electrical single-line drawing showing the placement of all hardware and ratings of all component will be prepared along with a physical layout diagram. j) Emergency shut down procedures. k) Procedures to follow when a system will be left unused for more than a one month period. REQUIREMENTS FOR INSTALLATION General 4.1.1. The SHS components must be packaged to provide convenient installation at a remote customer home site by a qualified technician 4.1.2. All the necessary installation materials (screws, connectors, fittings, etc.) must be included into the SHS supply. 4.1.3. The battery and associated containers should be packaged to handle transport down rough dirt roads 4.1.4. All installations details should respect professional mounting techniques 4.2. PV Array 4.2.1. The PV modules must face the geographic North (not magnetic North), with a tolerance of ± 10°. 4.2.2. The PV modules shall be tilted to an angle from the horizontal that is between 10° and 20° 4.2.3. On each location, the site of the PV array shall be chosen so that minimal shade occurs on the array between 9 AM and 3 PM at any time of the year. 4.2.4. The modules must be at least 2.5 meters off the ground. The pole must be anchored in concrete or tightly packed soil at least 1meter deep in the ground. 4.3. Batteries 4.3.1. For dry-charged batteries, the electrolyte must be transferred to the battery at the time of battery installation on the site. 4.3.2. A complete equalization charge of the battery is mandatory before first use for supplying a load and that must occur just after it has been filled with electrolyte. Each of these operations must be recorded into a logbook. 4.3.3. The battery enclosure must be located in a well ventilated space. 4.3.4. Provisions must be taken to avoid an accidental short circuit of the battery terminals. 4.3.5. Failed batteries must be properly recycled and procedures for recycling must comply with Fijian environmental regulation. Appendix 6 - 7 4.4. 4.4.1. 4.5. Lamps Lamps will be installed strictly according to the manufacturer’s requirements at a height no greater than 3 meters from floor level. Wiring 4.5.1. All wiring, independent switches, sockets and junction boxes should be surface mounted. When buried, cables should be protected by an appropriate cable conduct 4.5.2. Wiring must be secured to support structures or walls to fully avoid mechanical forces on other elements (connection boxes, ballasts, switches, etc) 4.5.3. Cables must be fixed on walls and other supports at appropriate and constant intervals (minimum 0.30 m) . 4.5.4. In general, all cable lays must be horizontal or vertical, never oblique. 4.5.5. The use of 2 or more cables laid in parallel for a single connection is allowed if needed to meet voltage drops requirements. 4.5.6. In the connection boxes, there should be one single cable per cable gland 4.5.7. Outdoor connection box and switches, if any, should use a bottom cable entry (water drop mounting) 4.5.8. Switches will be wall mounted at a level of 120 cm from ground level 4.5.9. The control switch of lamp installed outside the house should preferably be placed inside the house. 4.5.10. The cable between array pole and building and between two different buildings must be buried using the proper type of direct burial cable or in conduit at a depth of not less than 30cm 5. 5.1. 5.1.1. 5.2. 5.2.1. REQUIREMENTS FOR MAINTENANCE Services The contractor will carry out : a) Periodical routine maintenance visit to each SHS b) Repair visits upon warning of the customers Periodical routine visit The tasks to be carried out during the periodical routine visit are: a) Inspect the system battery and record the battery voltage b) Record any changes to the installation since the previous routine visit c) Inspect system controls d) Check solar panels e) Replace and repair any faulty equipment Appendix 6 - 8 f) 5.2.2. 5.2.3. 5.2.4. 5.2.5. 5.2.6. 5.2.7. Inform customers on the proper procedures of operating the system A general inspection will be first carried out to review the system condition and operation, including: a) Mounting Bracket: no visual damage, properly fixed, b) PV panel wiring: no visual damage, properly fixed c) Battery: no visual damage, electrolyte level, charge level, battery terminals d) Wiring : no visual damage, properly fixed e) Appliances : no visual damage, operational f) Enclosures: no visual damage, properly installed/ fixed, operational, seals Intact The solar panel has to be checked on following points: a) Check the solar panel for damage (front and back side) b) Check the junction box for sealed lids and glands (do not open the junction box). c) Check the solar panel operation, only upon indication of malfunction: open circuit voltage and short-circuit voltage The metal support structure has to be checked on the following points: a) Check that all nuts and bolts are sufficiently tightened b) Check the metal structure for damage or excessive corrosion (if necessary replace or paint parts) The battery has to be checked on the following points: a) Check the seal or lock of the battery enclosure. If removed by the customer, record it on the logbook b) Remove the seal and check that no water or insects are present inside c) Check the level of electrolyte and if necessary, add distilled water to the cell(s) until they are filled up to the correct maximum level d) Measure the specific gravity of the electrolyte and record it on the logbook, in order for the RESCO supervisor to decide whether or not the battery needs to be replaced. e) After checking, relock or put a new seal on the enclosure The battery charge regulator has to be checked on the following points: a) Replace any controller clearly showing a fault, do not attempt a field adjustment or repair b) If the controller includes operational indicators ensure that their indication is consistent with the level of charge in the battery. The appliances and switches have to be checked on the following points: c) Check for proper operation d) Ensure wires are properly fixed and connections are tight Appendix 6 - 9 5.3. Repair visits 5.3.1. Repair visits are made on request of the customer, following an agreed procedure that is to be described in the service contract between the customer and the operating and maintenance contractor. 5.3.2. In case of a system failure preventing the customer from using the SHS, the repair visit has to be made within a maximum delay of three (3) days following the day when notification of the problem was received at the operating and maintenance contractor’s office. 6. MAINTENANCE REPORTING 6.1. Maintenance monthly report 6.1.1. 6.2. 6.2.1. The operating and maintenance contractor must provide a monthly report including : a) The list and location of the routine maintenance visits made during the month b) The list and location of the repair visits made during the month c) The number of components replaced during the month, for each component category d) The work program for the next month e) Any other useful data and information Maintenance annual report The operating and maintenance contractor must provide an annual report including : a) A consolidation of the monthly reports b) A statistical analysis of the component behaviour and of the mean availability of the SHS c) Any other useful data and information Appendix 7 - 1 APPENDIX 7 PROPOSED STANDARD SPECIFICATIONS FOR RESCO MANAGED SOLAR HOME SYSTEMS (SHS) Appendix 7 - 2 TABLE OF CONTENTS 1. BACKGROUND 4 2. GENERAL CONDITIONS FOR THE SHS 4 2.1. Service delivery indicators............................................................................................................4 2.2. System typology .............................................................................................................................4 2.3. Components of the SHS ................................................................................................................5 3. WARRANTIES 5 3.1. PV modules ......................................................................................................................................5 3.2. Other components ..........................................................................................................................5 3.3. Certification requirements ............................................................................................................6 COMPONENT SPECIFICATIONS 7 1. REFERENCE CLIMATIC CONDITIONS 7 1.1. Global solar radiation.....................................................................................................................7 1.2. Ambient temperature......................................................................................................................7 1.3. Relative humidity ............................................................................................................................7 1.4. Wind speed ......................................................................................................................................7 1.5. Other conditions .............................................................................................................................7 2. PHOTOVOLTAIC MODULES 7 2.1. Eligible technology .........................................................................................................................7 2.2. Certification......................................................................................................................................7 2.3. Mechanical specifications .............................................................................................................8 2.4. Electrical specifications ................................................................................................................8 2.5. Labelling ...........................................................................................................................................8 3. PV ARRAY MOUNTING STRUCTURE 8 3.1. Design ...............................................................................................................................................8 3.2. Fasteners..........................................................................................................................................9 4. STORAGE BATTERIES 9 4.1. Type of batteries .............................................................................................................................9 4.2. Design ............................................................................................................................................ 10 4.3. Electrolyte ..................................................................................................................................... 10 4.4. Enclosure ...................................................................................................................................... 10 4.5. Labelling ........................................................................................................................................ 10 5. BATTERY CHARGE REGULATOR 11 Appendix 7 - 3 5.1. Type of charge regulators .......................................................................................................... 11 5.2. Functions....................................................................................................................................... 11 5.3. Protections .................................................................................................................................... 11 5.4. Set points ...................................................................................................................................... 12 5.5. Internal losses .............................................................................................................................. 12 5.6. User interface ............................................................................................................................... 12 5.7. Labelling ........................................................................................................................................ 13 6. LAMPS 13 6.1. Types of lamps and design ........................................................................................................ 13 6.2. Mechanical specifications .......................................................................................................... 13 6.3. Electrical specifications ............................................................................................................. 13 6.4. Protections .................................................................................................................................... 14 6.5. Labelling ........................................................................................................................................ 14 7. NIGHT LIGHTS 14 7.1. Types of night lights and design............................................................................................... 14 7.2. Mechanical specifications .......................................................................................................... 15 7.3. Electrical specifications ............................................................................................................. 15 7.4. Protections .................................................................................................................................... 15 7.5. Labelling ........................................................................................................................................ 15 8. CONDUCTORS AND OTHER EQUIPMENT 15 8.1. Types of conductors ................................................................................................................... 15 8.2. Technical characteristics ........................................................................................................... 16 8.3. Other equipment .......................................................................................................................... 16 9. OPTIONAL EQUIPMENT 16 9.1. Description.................................................................................................................................... 16 9.2. DC power point socket................................................................................................................ 17 9.3. DC/DC converter .......................................................................................................................... 17 9.4. DC/AC inverter.............................................................................................................................. 17 9.5. Prepayment system..................................................................................................................... 18 10. DOCUMENTATION 10.1. 19 Technician manual .................................................................................................................... 19 Appendix 7 - 4 SYSTEM SPECIFICATIONS 1. BACKGROUND Although these specifications should be useful for any solar home system (SHS) application, they are written specifically for the Renewable Energy Service Company (RESCO) model implemented by the Fiji Department of Energy (DOE). This RESCO model can be summarized as: • Technical design, purchasing, and system ownership by DOE; • Users are self-selected and clustered in groups of a size that is appropriate for economically reasonable periodic maintenance by the RESCO; • Users are required to pre-pay a monthly fee that covers a DOE designated portion of the capital cost of the installed system and the full cost of operation, maintenance and repair of the systems; • Maintenance and repair services are to be provided by private contractor RESCO operators with technical support, evaluation, certification and regulation by the DOE; • Financial controls and technical controls will be put into place and administered by the DOE to ensure continuing proper financial and technical responsibility by the RESCO contractors; • DOE will establish a continuing technical and business training process for personnel of the RESCOs 2. 2.1. 2.1.1. 2.2. 2.2.1. 2.2.2. GENERAL CONDITIONS FOR THE SHS Service delivery indicators The following service delivery indicators are to be provided for any proposed SHS : a) The daily energy service is the minimum energy daily available at the output of the battery charge regulator under a global daily irradiation and a mean ambient temperature as defined at 1.1.1 and 1.2.3. of the Reference Climatic Conditions. The daily energy service is expressed in Watt-hour per day (Wh/day) b) The SHS operating autonomy is the minimum number of days during which the system can provide the daily energy service starting from a 100% charged battery, the PV array being disconnected from the battery charge regulator. System typology The categories of SHS to be provided within the RESCO program are: a) Category A - « standard » : minimum daily energy service of 225 Wh/day b) Category B - « shigh capacity » : minimum daily energy service of 450 Wh/day The SHS operating autonomy must be at the minimum 5 days for any SHS category Appendix 7 - 5 2.3. 2.3.1. 2.3.2. 2.3.3. 3. 3.1. 3.1.1. 3.2. 3.2.1. Components of the SHS The mandatory components of the SHS are : a) PV module(s) b) PV array mounting structure c) Battery(ies) d) Battery charge/discharge regulator e) High luminous efficiency lamps in quantities defined in 2.3.3 below f) All wiring accessories: switches, cables, fasteners, junction boxes, etc. g) Enclosures The optional components of the SHS are : h) DC outlet i) Prepayment system j) DC/DC converter intended for radio operation k) DC-AC inverter intended for video systgem or TV operation Unless specified differently in the tender documents, the maximum number of lamps to be provided in each SHS category are: l) SHS Category A: four (4) lamps including one (1) outdoor m) SHS Category B: seven (7) lamps including one (1) outdoor WARRANTIES PV modules The minimum warranty period applicable to solar modules should be 20 years. Warranties will provide for compensation should module output fail more than 15% below stated manufacturer specifications or should a defect in manufacture result in corrosion or degradation of the structure of the module. Module defects are defined as those which are recognized as the failures listed in the CEC specifications N° 501/502, and include frame separation, broken glass, electric connections broken or unmade, cell in contact with the metallic frame, presence of bubbles between cell and the edge forming a continuous linkage, broken cell or any other defect that may interfere with the correct operation of the module and cannot be repaired in the field. Other components The minimum warranty period of components from the date of installation will be: • PV array mounting structures • Batteries 10 years 2 years • Charge/discharge controllers 5 years • Prepayment meters 5 years • Inverters 2 years Appendix 7 - 6 3.3. 3.3.1. 3.3.2. • Battery enclosures 10 years • Others (excluding bulbs) 2 years • Lamp Bulbs 1 year Certification requirements PV GAP Quality Mark a) All components bearing the PV GAP Mark will be acceptable b) PV GAP (www.pvgap.org) is a worldwide organization created on initiative of the PV industry associations, research and development bodies, the World Bank and the United Nations Development Program to promote quality for the assurance of performance of PV products (components and systems). PV GAP established the PV Quality Mark for PV components and the PV Quality Seal for PV systems. Requirements to obtain the license to display the PV Quality Mark on products requires an IECQ (IEC Quality Assurance System for Electronic Components) (www.iecq.org) certification that the manufacturer has a valid ISO 9001:2000 or similar Quality Management System (QMS) certification, and that the product(s) have a certificate that it was successfully tested according to an applicable International Standard or Specification by an accredited PV testing laboratory or in the manufacturer's in-house testing laboratory under the surveillance of IECQ. An important additional requirement is that the manufacturer completes PV GAP's Product Quality Assurance Specification (PQAS), which prescribes when the modules have to be re-tested. When equipment does not bear the PV GAP quality mark, they should have a certificate from an accredited testing and certification organization acceptable to the DOE or have a proven record of at least five years of reliable service in a similar type of installation in the Pacific Islands. Appendix 7 - 7 COMPONENT SPECIFICATIONS 1. 1.1. REFERENCE CLIMATIC CONDITIONS Global solar radiation 1.1.1. The reference value of global solar radiation to be used for the expression of performances and services delivered by a SHS is 4500 Wh/m² per day. If solar radiation measurements are made in the installation area for one year or more, those values may be used for the sizing of SHS for that installation area. 1.1.2. The above reference value is that on a surface with a tilt angle of 15 degrees oriented toward geographic North. 1.2. Ambient temperature 1.2.1. The maximum operating ambient temperature of the SHS is 40°C. 1.2.2. The minimum operating ambient temperature of the SHS is 10°C. 1.2.3. The reference temperature to be used for the expression of performance and services delivered by a SHS is 25°C. 1.3. 1.3.1. 1.4. 1.4.1. 1.5. 1.5.1. 2. 2.1. 2.1.1. 2.2. 2.2.1. Relative humidity The maximum operating relative humidity of the SHS is 100% but without condensation Wind speed Where there are cyclone risks, the reference wind speed to be considered for the design of the support structures and their anchoring is 180 km/h. Other conditions The entire system shall be designed and built to withstand the environmental conditions found in tropical, coastal countries. Aggressive marine conditions (e.g., salt laden air) are frequently encountered. PHOTOVOLTAIC MODULES Eligible technology The PV modules shall be either of mono-crystalline or poly-crystalline technology unsing at least 36 series connected cells for 12V battery charging. Other solar photovoltaic technologies shall not be accepted. Certification The mono-crystalline or poly-crystalline PV modules PV shall be tested and certified according to IEC-61215 standard. Appendix 7 - 8 2.2.2. The homologation of type shall be certified by a testing report issued by an accredited testing laboratory. The homologation shall be made according to the IEC QC 001002 standard. 2.2.3. The certification documents shall be made available on simple request of the contracting authority. 2.3. Mechanical specifications 2.3.1. The modules must be framed in such a way as to ensure their rigidity and allow secure attachment to the module mounting structure. The material of the mounting frame must be fully protected against corrosion. 2.3.2. The PV modules must be factory equipped with a weather-proof junction box with screw type terminals that allow safe and long lasting wiring connection to the module using 4mm2 wire. The junction box shall be compliant with IP54 standard; it will be equipped with cable glands for all cable passages. The polarity of the terminal strip will be clearly signalled inside the junction box. 2.4. Electrical specifications 2.4.1. The PV modules shall comprise no less than 36 series-connected single or polycrystalline silicon solar cells. 2.4.2. The actual peak power of any delivered PV module shall not be less than 90% of the nominal peak power when operated at standard conditions. 2.4.3. The voltage-current curves shall be provided for of each proposed model of PV module for the following conditions: radiation of 1000 W/m² and cell temperatures of 25°C, 40°C and 60°C. 2.4.4. If multiple PV modules are used in one SHS, all shall be of the same model. It is forbidden to associate PV modules of different models or peak rating powers within one SHS. 2.4.5. Each PV module shall be equipped with by-pass diodes to protect against "hotspots". 2.5. 2.5.1. 3. 3.1. Labelling Each module must be labelled indicating at a minimum: Manufacturer, Model Number, Serial Number, Peak Watt Rating, Peak Current, Peak Voltage, rated voltage or amperes at the maximum power point, Open Circuit Voltage and Short Circuit Current, country of manufacture. PV ARRAY MOUNTING STRUCTURE Design 3.1.1. The PV array mounting structure must be of the "pole mounting" type. 3.1.2. No manual tracking or seasonal adjustment device is to be installed. 3.1.3. The tilt angle of PV modules must be 15°, with a tolerance of ± 5° Appendix 7 - 9 3.1.4. Array orientation must be adjustable in the field for both tilt and direction within the allowable raqnge of ± 5° in tilt and ± 360° in direction 3.1.5. The design of the mounting pole structure must assure stable and secure attachment of the PV array while withstanding the reference maximum wind speed in § 1.4.1 3.1.6. The length and type of the pole must ensure stability on any kind of soil and provide a minimum of 2.50 meters between ground level and the lower extremity of the PV array. 3.1.7. The array mounting structure must be made of materials that must resist at least 20 years of outdoor exposure without corrosion or damage due to the environment. Any treatment against corrosion employed must be clearly described. The following are acceptable : a) Marine grade stainless steel b) Double hot dipped galvanised iron with a minimum layer of 30 µm of galvanization. All holes and cuts must have been made before galvanisation. c) Anodised aluminium d) Anti-rot treated wood for the pole 3.1.8. In case of different metals being used in the mounting system, proper electrical isolation has to be ensured between those different metals to avoid corrosion. 3.1.9. Full technical specifications of the PV array mounting structure shall be provided by the supplier. These must specifically include physical size, and details of materials used in construction, complete drawings showing the construction and assembly of the mounting structures and the mounting of the modules thereon. This should include, if relevant, wood species and chemical treatment characteristics. 3.2. 3.2.1. 4. 4.1. Fasteners Only marine grade stainless steel fasteners (screws, nuts, locking rings, etc.) should be used . STORAGE BATTERIES Type of batteries 4.1.1. The type of battery to supply with the SHS is at the minimum to be deep-cycle rated, flat plate type lead-acid flooded battery that is specifically designed for SHS applications. 4.1.2. The SHS may alternatively be equipped with deep cycle, tubular plate lead-acid flooded batteries. 4.1.3. Sealed batteries, “maintenance free” batteries, automotive batteries and engine starting batteries are not acceptable. Appendix 7 - 10 4.1.4. Batteries should be supplied dry charged with sufficient acid supplied separately for filling at the time of installation. 4.1.5. The rated capacity of the battery is the 20-hour nominal battery capacity in amphours, measured at 20°C and discharged to a voltage of 1.8 V/cell 4.2. 4.2.1. Design The battery as described in 4.1.1 must meet the following requirements: a) The thickness of each plate must exceed 2 mm b) Electrolyte volume must be equal or higher than 1.15 litres/cell per 100 Ah of C20 rated capacity. c) The maximum permissible self-discharge rate is 6% of rated capacity per month at 25 ºC. 4.2.2. The cycle life of the battery (i.e., discharge cycles possible before its residual capacity drops below 80% of its nominal capacity) at 25°C must exceed 300 cycles when discharged down to a depth of discharge of 50%. 4.2.3. The 20-hour nominal battery capacity in amp-hours should not exceed 30 times the PV generator short-circuit current in amps (measured at Standard Test Conditions) 4.2.4. The maximum depth of discharge should not exceed 50% of the rated capacity of the battery supplied. 4.3. Electrolyte 4.3.1. The density of the electrolyte should be intended for tropical use and must not exceed 1.25 kg/l 4.3.2. The electrolyte must be prepared from concentrated sulphuric acid and distilled water, according to DIN 43350 or equivalent 4.4. Enclosure 4.4.1. Each battery bank must be supplied with a battery box constructed of impact and acid resistant material and designed for outdoor exposure. The material and design should be resistant to water, UV and shocks. Wooden boxes are not acceptable. 4.4.2. The battery box should prevent insect penetration. 4.4.3. The battery box should be designed to lock or to allow use of lead or other type of seals to restrict the access to the batteries to approved staff. 4.4.4. All passages of cable into the box should be through appropriate cable glands to avoid any insect and water penetration and mechanical stress on the cable terminals 4.4.5. The battery box should be equipped with venting holes near the top of the enclosure. 4.5. 4.5.1. Labelling Each battery terminal must be labelled indicating its polarity + or - The label must be undeletable. Appendix 7 - 11 4.5.2. 5. 5.1. 5.1.1. 5.1.2. 5.1.3. 5.2. 5.2.1. 5.3. 5.3.1. 5.3.2. Each battery must be labelled indicating at a minimum: Manufacturer, Model number, and capacity. BATTERY CHARGE REGULATOR Type of charge regulators The mode of generator regulation implemented in the regulator may be one of the following : a) Series regulator b) Shunt regulator The mode of battery charge regulation implemented in the regulator may be one of the following : a) Two-step(on-off) regulation b) Pulse Wave Modulated (PWM) regulation c) Regulation based on a algorithm that is based of the type and state of charge of the battery All the charge regulator terminals should easily accommodate 4 mm² section wire. Functions The functions of the battery charge regulator is to provide protection against: a) Battery overcharge and excessive water consumption b) Battery undercharge and excessive deep discharge Protections The enclosure of the regulator must comply to the following requirements : a) its protection degree is at least IP32 according to IEC 529 b) its design must prevent inside condensation c) its design should protect against insect penetration d) it should be provided with integrated mounting brackets or fixtures The battery charge regulator must include the following protections: a) Circuit protection against reverse polarity of any load b) Circuit protection against reverse polarity of panels or battery c) Circuit protection against short circuit of any load: this protection must be ensured by a fuse or equivalent device that may be replaced/reset by the user, d) Protection of controls against lightning induced transients e) Circuit protection against damage by the high PV panel open circuit voltage when it is connected to the controller without a battery. Appendix 7 - 12 5.3.3. 5.3.4. 5.4. 5.4.1. 5.4.2. 5.5. The charge regulator must handle without any damage for a minimum one-hour duration: a) A charging current equal to 125% of the array's rated short circuit current b) A discharging current equal to 150% of the maximum expected continuous load (e.g., assuming all end use devices are simultaneously on) The charge regulator must not produce radio frequency emission in any operational condition that causes AM, FM, TV or communications radio interference beyond a distance of 1 meter from the regulator. Set points The charge controller set points must be factory preset with the set points applicable to the specified battery characteristics, according to the following requirements: a) The “load-disconnection” voltage should correspond to a maximum depth of discharge of the value equal to values defined in § Error! Reference source not found. when the discharge current, in amps, is equal to the daily load consumption, in amp-hours, divided by 5. b) “Load-disconnection” and “load-reconnection” should be accurate to within ±1% (±20 mV/cell, or ±120 mV/battery of 12 V) and remain constant over the full range of possible ambient temperatures If electro-mechanical relays are used, the resetting of the control conditions should be delayed for between 10 seconds and 5 minutes Internal losses 5.5.1. Internal voltage drops between the battery and generator terminals of the charge regulator must be less than 4% of the nominal voltage (≈ 0.5 V for 12 V) in the worst operating conditions, i.e., with all the loads “off” and the maximum current from the PV array generator. 5.5.2. Internal voltage drops between the battery and load terminals of the charge regulator must be less than 4% of the nominal voltage (≈ 0.5 V for 12 V) in the worst operating condition, i.e., with all the loads “on” and no current from the PV array generator. 5.5.3. Maximum current drawn by the controller and pre-payment meter in combination should not exceed 10 mA under normal operating conditions 5.6. 5.6.1. 5.6.2. User interface Provided 5.5.3 is met, the charge/discharge controller may include battery level indicators. If included they shall provide the following minimum user information : a) Battery connected, sufficient battery state of charge b) Battery disconnected, too low state of charge Where indicators are present, an intermediate warning indication is recommended that indicates when there is a near term risk of battery disconnection due to decreasing battery charge. Appendix 7 - 13 5.7. Labelling 5.7.1. Each terminal of the regulator must be labelled indicating its polarity + or - The label must be undeletable. 5.7.2. Each regulator must be labelled indicating at a minimum: Manufacturer, Model number, rated voltage, input and/or output current in amperes, set points, country of manufacturing. 6. 6.1. 6.1.1. LAMPS Types of lamps and design The types of lamps to be proposed with SHS are : a) Fluorescent lamps with straight or circular tubes b) Compact fluorescent lamps (CFL type including PL lamps) 6.1.2. Lamps wattage should be in the range 6 – 15 watts 6.1.3. Unless specified in the tender document, the reference norms for the characteristics of electronic ballasts are IEC 458, IEC 921, IEC 924 and IEC 925. 6.1.4. The lights must meet at a minimum, the following requirements: 6.2. c) Each fluorescent lamp should have its own ballast d) The rated life of the ballast must equal or exceed 10000 hours when operating at rated voltage. e) Rated bulb lifetime must equal or exceed 5000 hours Mechanical specifications 6.2.1. The lamp must be provided with suitable mounting bracket to be either wall or overhead mounted. 6.2.2. The terminals of the ballast : 6.2.3. a) Should allow a screw type connection of the power wires, b) Should easily accommodate at least 2,5 mm2 wires c) Should be clearly marked with polarity indicators If the lamp includes a cover, its fixing should provide: a) Protection against insect penetration b) Easy dismantling for bulb replacement 6.2.4. The electronic ballast/lamp combination should withstand at least 5000 switching cycles with each cycle consisting of 60 seconds on and 150 seconds off 6.2.5. Outdoor lamps should have a IP 54 protection or be mounted in an IP 54 enclosure. 6.3. 6.3.1. Electrical specifications The minimum operating frequency of the ballast is 20 kHz Appendix 7 - 14 6.3.2. The luminous yield for the total ballast and fluorescent lamp system must be at least 35 lumens per rated watt (= rated voltage times rated current of the lamp) at nominal voltage 6.3.3. Ballasts must ensure safe and regulated ignition in the voltage range from –15% to +25% of the nominal voltage (10.3 V to 15 V for 12 V battery) 6.3.4. The minimum operating voltage when the tube will strike (start) should be at least 85% of the rated input voltage when using the fluorescent lamp specified by the supplier 6.3.5. The maximum continuous operating voltage without damage to the inverter circuit must be at least 125% of the rated voltage 6.3.6. The minimum electrical efficiency of the ballasts must be 70% in all the range of the operating voltage (–15% to +25% of the nominal voltage) 6.3.7. The electrical waveform at the fluorescent lamp terminals must be symmetrical in time to within 10 percent (i.e., 60%/40% waveform maximum difference in symmetry) over the voltage range of 11.0 to 12.5 VDC at an ambient temperature of 25°C 6.3.8. The maximum crest factor (ratio of maximum peak to RMS voltage of the waveform applied to the fluorescent tube) should be less than 2 over the voltage range from 11 to 12.5 V at an ambient temperature of 25°C 6.3.9. The direct current components of the lamp operating current may not exceed 2 % of the RMS 6.4. 6.4.1. 6.4.2. 6.5. 6.5.1. 7. 7.1. 7.1.1. Protections Ballasts must be protected against destruction when: a) the lamp is removed during operation or the ballasts are operated without the lamp. b) the lamp does not ignite. c) the supply voltage polarity is reversed. d) the outputs of the electronic ballast are short circuited. Ballast must not produce radio frequency interference that causes AM, FM, TV or communications radio interference beyond a distance of 1 meter from the ballast.. Labelling Lights must be marked with the manufacturer, model number, rated voltage, wattage and date of manufacture or batch number. NIGHT LIGHTS Types of night lights and design Night lights to be illumination provided with SHS are to use one or more white LEDs for Appendix 7 - 15 7.1.2. Night light wattage should be in the range 0.5 to 1 Watt 7.1.3. A manual on/off switch is acceptable but an ambient light sensor to automatically turn off the night light during the daytime is preferred. 7.1.4. The lights must meet at a minimum, the following requirements: 7.2. e) The rated life of the night light must equal or exceed 50000 hours when operating at rated voltage and temperature. f) Be constructed of maerials and in a manner that does not degrade under marine, tropical conditions Mechanical specifications 7.2.1. The lamp must be provided with a suitable mounting bracket to be either wall or overhead mounted. 7.2.2. The terminals of the lamp: 7.2.3. 7.3. 7.3.1. 7.4. 7.4.1. 7.5. 7.5.1. 8. 8.1. g) Should include screw type connection for the power connections, h) Should easily accommodate at least 2.5 mm2 section wires i) Should be clearly marked with polarity indicators If the light includes a cover, its fixing should provide protection against insect penetration Electrical specifications Lamps must function normally and without damage between 10.2VDC and 16VDC Protections Lamps must be protected against destruction when the input polarity is reversed Labelling Lights must be marked with the manufacturer, model number, rated voltage, wattage, country of origin and date of manufacture or batch number. CONDUCTORS AND OTHER EQUIPMENT Types of conductors 8.1.1. Only stranded and flexible insulated copper wiring must be used. 8.1.2. External cables must be specifically adapted to outdoor exposure according to the international standard IEC 60811 or to the national standard in Fiji. 8.1.3. All cable terminals must allow for a secure and mechanically strong screw type electrical connection. They must have low electrical resistance; leading to voltage losses less than 0,5% of the nominal voltage. This applies for each individual terminal at the maximum current condition Appendix 7 - 16 8.1.4. Cable terminals should not be prone to corrosion arising from junctions or dissimilar metals 8.1.5. Crimp type terminal lugs shall not be used 8.1.6. All wiring shall be colour coded and/or labelled as to polarity. 8.2. 8.2.1. 8.2.2. Technical characteristics Minimum acceptable cross-section of the wire in each of the following sub-circuits is as follows: a) From PV module to battery charge regulator: 2-conductor, no earth, 4 mm² cross-section b) From to battery charge regulator to battery: 2-conductor, no earth, 4 mm² c) From to battery charge regulator to loads: : 2-conductor, no earth 2.5 mm² Notwithstanding the above minimum wire size requirements, all wiring must be sized to keep line voltage losses to, at the maximum current conditions (i..e. with all loads switched on): a) less than 3% of voltage losses between PV modules and charge regulator, b) less than 1% between battery and charge regulator, c) less than 5% between charge regulator and any load in the worst conditions, ie all appliances on and a 5 ampere load drawn on the DC outlet if such outlet is installed. 8.2.3. All indoor and outdoor cable connections should use screw type terminals and be housed in connection boxes. 8.2.4. Colson rings and appropriate concrete and wooden walls fixation devices are recommended for all cable attachments 8.3. Other equipment 8.3.1. Connections boxes must cornform to IP 54 8.3.2. Switches must conform to IP 54, and be appropriately sized for use with the DC current consistent with the loads to be applied. 9. 9.1. 9.1.1. OPTIONAL EQUIPMENT Description Following devices are not part of standard supplies but may be proposed as options in the tenders.: a) DC power point socket b) DC/DC converter with 3V, 4.5V and 6V and 9V adjustable output c) 12V DC / 230 V 50Hz AC inverter Appendix 7 - 17 9.1.2. 9.2. Audio and Video equipment are not part of the standard tender supply but a list of recommended type of products available on local market should be provided to the SHS users. DC power point socket 9.2.1. The DC power point socket should be of a different design than that normally used for AC wiring and prevents insertion in any but the correct polarity of connection 9.2.2. The DC power point should be IP 54. 9.2.3. The power point must accommodate 2x2.5 mm² cable. 9.3. DC/DC converter 9.3.1. The DC/DC converter will include the appropriate connector so it can be plugged into the system DC power point socket 9.3.2. The minimum input voltage range should be 11V – 15 V. 9.3.3. The minimum protection should be IP 32 9.3.4. The nominal input current should be in the range 0.7 A – 1.2 A. 9.3.5. The DC/DC converter should require less than 30 mA of operating current when no output load is connected. 9.3.6. The operating efficiency of the converter should exceed 85% 9.3.7. The DC socket on the converter should be protected against reverse polarity. 9.4. DC/AC inverter 9.4.1. The DC/AC inverter must not be used as the installation central power supply but only to power specific devices for which no DC alternatives are presently available on local market. 9.4.2. The DC/AC inverter will be hard wired to the device to be powered at the time of installation to prevent general use of the inverter as an AC supply for other appliances 9.4.3. The DC/AC inverter will be used only with the larger category B SHS 9.4.4. The DC/AC inverter should meet following criteria a) Matched to the load requirements but with a maximum rated power 150 VA b) Minimum Input Voltage range between 10.5V – 16 V c) True or pseudo sine wave output d) AC output frequency range : ± 2% e) AC output voltage range: ± 8% f) Minimum Efficiency should be 80% at 50% of nominal load power g) A 200% overload current for 5 seconds should be tolerated without diceonnection or damage Appendix 7 - 18 9.5. h) protection against output short circuit i) protection against overtemperature during operation j) protection against reversed polarity of input connection k) standby power consumption should be less than 2% of nominal power l) ability to start operation under full load of the connected appliance m) On/Off switch Prepayment system 9.5.1. A prepayment system may be installed to help ensure timely payment of fees 9.5.2. The prepayment system is intended to require the customer to pay in advance for a period of utilisation of the solar system (typically one month) which may vary according to the amount paid. As soon as there is no more time credit available, the prepayment unit disconnects the load. 9.5.3. The prepayment system includes the following items 9.5.4. 9.5.5. a) The prepayment units, each SHS being equipped with such a prepayment unit b) The prepayment vending terminals, managed to sell the services to the customers The prepayment units must meet the following specifications: a) It can be combined with the battery charge controller or be an independent unit. If combined with the charge/discharge controller, the unit must meet all specifications for both the charge/discharge controller and the prepayment meter. b) It should provide a proven and high level of protection against user attempt of any form of tampering. c) The system used should be highly user-friendly for the customers and the suppllier of the services. The prepayment vending terminals must meet the following specifications: a) As many vending terminals as necessary should be disseminated in the operating zone of the RESCO contractor, as to be available at a reasonable distance from the customers. b) It should allow to sell at least a one month period credit to the customer. c) It should include all the required software and side equipment, namely power supply source if required. 9.5.6. Credit card type, code type, data token type or any other prepayment technology can be acceptable if a proven reliability in large scale SHS projects in similar tropical coastal context is demonstrated. 9.5.7. Any component of the prepayment system must be able to permanently operate reliably under the climatic conditions mentioned in 1.2 and § 1.3 9.5.8. The supplier must provide, with the prepayment system: Appendix 7 - 19 a) All the technical documentation required to operate and maintain the system, both in paper and electronic form. b) All the required training to the RESCO contractor's staff. The training must be done in Fiji, with a minimum of one month duration of on site training, monitoring and demos. The training program has to be fully described in the supplier's proposal. c) A one year full technical support to the RESCO contractor, with a permanent phone hotline and a program of control visits to Fiji, that has to be described in the supplier's proposal. d) A full replacement warranty of 2 years or more must be provided 10. DOCUMENTATION 10.1. Technician manual 10.1.1. The supplier must provide a Technician’s Installation, Operations and Maintenance Manual to be used by the service technicians for all components supplied. The manual must be in English. The manual will include the specific details on installation, operation and maintenance. a) A detailed technical description of the system. b) All associated manufacturer’s literature, specifications, and warranties. c) Complete installation instructions. d) Recommended post-installation acceptance test procedures, including all appropriate set points and test procedures. e) A recommended maintenance programme to cover each component ssupplied with complete maintenance instructions. f) A detailed troubleshooting guide referencing all the components supplied. This shall include repairs and diagnostic procedures that can be done by a qualified third party (e.g., RESCO technician). g) A clear description of any safety hazards or issues relating to the components supplied witll be provided and will include a description of procedures appropriate to minimise those hazards. h) Requirements that are to be met for proper storage of components and for the maintenance of components installed in an SHS that is not to be used for an extended period. i) Emergency shut down procedures for components where appropriate. Appendix 8 - 1 APPENDIX 8 TRAINING COURSE FOR SOLAR PHOTOVOLTAICS INSTRUCTORS IN FIJI (910 FEBRUARY 2006) CURRICULUM FOR SOLAR PV AT FIT (2005) Appendix 8 - 2 Overview With expectations of rapidly increasing numbers of solar home systems for rural electrification in Fiji, there isa need for training of technicians to service the installations. The Centre for Appropriate Technology and Development (CATD) has provided basic technical training in solar PV for home electrification since 1989 but the course content and facilities have not changed since 1989 and are in need of modernizing. The Fiji Institute of Technology (FIT) in 2005 began to initiate curriculum development for solar photovoltaics training with courses to start in midFebruary 2006. The Trade and Productivity Authority of Fiji (TPAF) also has a demonstrated interest in developing a training capability for solar photovoltaics but has not yet developed formal training courses. To support this expansion in PV training, the REEP consultants reviewed PV training course curricula and delivered a two day course in solar PV technology for rural electrification designed for instructors at FIT, TPAF and CATD. Additionally, the Fiji DOE, Fiji Telecom and two private companies with an interest in solar photovoltaics sent participants to the training course. The two days available for the training were arranged so that the course consisted of about 75% lectures and 25% practical works and demonstrations. The primary need for support for instructors was seen to be in the theory and computational aspects of the training rather than the laboratory work. Future solar technology training that will be provided by CATD, FIT and TPAF will be integrated into their regular ongoing training programmes. Also all three institutions will provide intensive short courses to be delivered on demand when there is a need for technician training. The curriculum for integrating the solar training as a part of ongoing courses has been developed and is in place at FIT and CATD with the first courses at FIT underway the first term of 2006. Appendix 8 - 3 Solar Photovoltaics Training – FIT 9-10 February, 2006 Course Content Location: FIT (Ratu Mara Road, Suva) Electrical Trades Section. Day 1: Solar PV Basics Theoretical 0830-1030 Background of solar PV development and use Introduction to solar PV with comparison of solar PV and rainwater collection systems Quick review of DC electricity basics Solar Panel, theory and construction Panel characteristics, physical and electrical Panel mounting and maintenance 1015-103- Morning tea and discussions Batteries for solar use, types and characteristics Battery safety, installation and maintenance Controllers for charging and discharging Lunch Break (1300-1400) Practical Works 1400-1445 Solar Panel experiments and demonstrations, battery preparation Theoretical 1500-1630 Appliances and loads for SHS Installation rules SHS maintenance Day 1 comprehension examination Appendix 8 - 4 Day 2: Advanced Theoretical (0830-1300) Wire sizing and connections Estimating energy requirements for SHS System sizing for independent power systems (with battery) Tea break 1045-1100 AC systems using PV – independent power systems (with battery) Grid connected PV principles Problems on sizing and wire size calculations Lunch Break (1300-1400) Practical Works 1400-1500 Battery capacity test, inverters, voltage drops in wires, CFL tests, Theoretical 1500-1630 Special problems and discussions Appendix 8 - 5 Course Participants Name Address email Akanisi Varani FIT-Mechanical Engineering [email protected] Anish Pratap Telecom [email protected] Ashwin Kumar FIT-Electrical Engineering [email protected] David Clay Engineering [email protected] Elenoa Baleinaniudrau FIT-Electrical Engineering [email protected] Eli Fong FIT-Electrical Engineering [email protected] Eremasi Tamanisau FIT-Electrical Engineering [email protected] Gyanend Singh FIT-Electrical Engineering [email protected] Jiten Lal FIT-Electrical Engineering [email protected] Jope Rokotuibau CATD [email protected] Lawrence Delanimati FIT-Electrical Engineering [email protected] Liang Wai Qiang FIT-Electrical Engineering [email protected] Marfaga Solomone TPAF [email protected] Meli Rabaro FIT-Electrical Engineering [email protected] Moritekei Ravulala FIT-Electrical Engineering [email protected] Patersio Laliqavoka FIT-Electrical Engineering [email protected] Paula Katirewa DOE pkatirewa#fdoe.gov.fj Paula Tuivanuyalewa FIT-Electrical Engineering [email protected] Paula Vuli FIT-Electrical Engineering [email protected] Peni Vinakadina CATD [email protected] Peni Volavola Telecom [email protected] Radesh Lal USP [email protected] Ravindra Singh FIT-Electrical Engineering [email protected] Saimoni Matawalu FIT-Electrical Engineering [email protected] Sebiuta Rakanace FIT-Electrical Engineering [email protected] Semi Kendrawaca DOE [email protected] Sitiveni Daunakamakama FIT-Electrical Engineering [email protected] Sovaia Vakasoqo FIT-Electrical Engineering [email protected] Susana Pulini DOE [email protected] Tevita Manamana DOE [email protected] Ulaiasi Halofaki FIT-Electrical Engineering [email protected] Ulaiasi Gudru FIT-Electrical Engineering [email protected] Wilimone Quinawasa FIT-Electrical Engineering [email protected] Vinil Sudhir FIT-Electrical Engineering [email protected] T. Vonivate FIT-Electrical Engineering [email protected] Appendix 8 - 6 Proposed FIT Solar PV Curriculum (2005) All certificate candidates must have completed Basic Electricity courses E1101 through E1201 before commencing specialty courses in Solar Technology 1. PROGRAMME: SOLAR POWER GENERATION SYSTEM DESIGN and INSTALLATION 2. CODE: E2115 3. UNIT NAME: SOLAR PHOTOVOLTAIC SYSTEM (Theory) 4. LEVEL: 2 5. CREDITS: 7.5 6. LEARNING HOURS: 7. ISSUED: Class Contact 60 - 90 Self Directed 90 – 60 JUNE 2005 8. PURPOSE of the UNIT This unit is to provide students the principles of the solar photovoltaic system, its components, operation, application, construction and maintenance(TPM). 9. LEARNING OUTCOMES On the completion of this unit the student should be able to: 9.1 Appreciate and explain the solar photovoltaic system and what is its purpose 9.2 Know the component parts of the system. 9.3 Identify components of the solar power generation system 9.4 Know the types of wire and connections 9.5 Know the purpose of solar panels and name their characteristics 9.6 Determine the method of obtaining optimal voltage or current 9.7 State the purpose of batteries and name the types for solar use 9.8 State the use of controllers and name the types. 9.9 List the electric appliances suitable for solar systems and their features. 9.10 Select the right appliance for the solar power systems 9.11 Explain the types of inverters 9.12 List the characteristics of inverters 10. CONTENTS TOPIC 1 The Solar Photovoltaic System 1.1 Purpose of solar photovoltaic systems – solar cells (briefly), 1.2 Systems components. 1.3 Principles of operation - storage, controller, wiring. 1.4 Appliances TOPIC 2 Electricity & Wire Sizing and Selection Appendix 8 - 7 2.1 Electricity- power, energy, application of Ohms Law, resistance 2.2 Circuits – series, parallel; current generator, voltage generator 2.3 Direct current (dc), RMS, alternating current (ac). 2.4 Conductors (electrical wires) – relation of wire size to power loss, voltage drop across wires 2.5 Determine correct wire size – types of wires TOPIC 3 Photovoltaic Panels 3.1 Purpose of photovoltaic panels – reliability. 3.2 Physical characteristics, electrical characteristics; current characteristics 3.3 The relation of load, current, voltage 3.4 Panel Connection and power/energy outputs – series, parallel 3.5 Factors affecting panel (maximum) output TOPIC 4 Battery 4.1 Purpose of battery – types 4.2 How batteries work – for lead-acid type, chemical reaction during charging; discharging. 4.3 Selecting type of battery for Solar System: Electrical capacity, measurement of charge level; measurement of ampere-hour capacity 4.4 Safety measure for battery and personnels. 4.5 Installation of battery – battery failure modes. 4.4 Maintenance – three steps. TOPIC 5 Controllers 5.1 Purpose of controllers – regulators, load controllers 5.2 Charge controllers – types: parallel, series. Principles of controller operating cycles 5.3 Discharge controller – principles of operation; reset process. 5.4 Other control features – lights, meters, alarm etc. 5.5 Controller specifications TOPIC 6 Appliances 6.1 Solar Lights – 6.1.1 Lamp characteristics 6.1.2 Types of lamps and choosing lights for solar systems 6.1.3 Installing and maintenance 6.2 Photovoltaic Refrigerators – 6.2.1 Refrigeration principles – compression refrigeration; evaporator; condenser; expansion valve; accessories (thermostats etc.). 6.2.2 Photovoltaic Compression Refrigerators – cabinets, compressor unit; duty cycle; 6.2.3 Maintenance 6.3 Pumping Systems 6.3.1 Use of pumping systems – drinking water, irrigation etc. 6.3.2 Basic hydraulics for pumps – Flow and total pump head; friction losses 6.3.3 Pumps – types: positive displacement, centrifugal; (propeller type) 6.3.4 Installation of solar energy type pumps – surface mounted; submersible 6.3.5 Solar powered Pumping systems design: Pump selection. Appendix 8 - 8 TOPIC 7 Inverters 7.1 Inverters – classes 7.2 Characteristics – input & output voltage, o/p voltage regulations, transient load response, starting characteristics, ac frequency, frequency stability, Waveform, etc. 7.3 Inverter selection – appliances with most load from motors - appliances without significant load from motors 7.4 Maintenance 1. PROGRAMME: CERTIFICATE IN PHOTOVOLTAIC ENERGY 2. CODE: E2116 3. UNIT NAME: PROJECT 4. LEVEL: 2 5. CREDITS: 6. LEARNING HOURS: 7.5 Class Contact 20 – 15 Self Directed 40 - 45 7. ISSUED: JUNE, 2005 8. PURPOSE of the UNIT In this unit students are taught to undertake largely self directed work, which involves the analysis of data, construction and testing of circuit, system or pieces of equipment. The unit also enables students to learn specific techniques for designing photovoltaic systems for a given amount of loads, and also install or construct the appropriate system according to the design as the solution. The unit will also teach students about scientific report writing. 9. LEARNING OUTCOMES On completion of this unit, the student should be able to: 9.1 Plan and document a logical and sequential process to enable a project to be completed within a specified time according to specified requirement. 9.2 Specify key performance parameters to be used in assessing electric appliances for the project specifications 9.3 Analyse circuit/system to determine expected performance parameters, using computer based tools or test instruments where appropriate Appendix 8 - 9 9.4 Perform tests to determine key performance parameters and to evaluate compliance with specified performance criteria. 9.5 Present oral report of analysis, construction and testing, in a seminar environment to FIT staff and students. 9.6 Produce a final report of the project. 10. CONTENT TOPIC 1. 1.1 Loads Calculate the load (electrical equipment) to be driven. TOPIC 2. 2.1 Inverter Determine the inverter capacity and specification TOPIC 3 3.1 Battery Determine the battery capacity and specification. TOPIC 4. Initial Presentation 4.1 Present an oral report of the stages 1 to 3 in a seminar environment to FIT staff and the students. 4.2 Use of appropriate visual aids to support explanation of project outcome 4.3 Answering of questions from FIT staff and students TOPIC 5. 5.1 Determine the photovoltaic array capacity and specifications TOPIC 6. 6.1 Charge/Dischrage Controller Determine the charge controller specifications TOPIC 7. 7.1 Photovoltaic Array Wiring Determine the wiring specifications Appendix 8 - 10 TOPIC 8. 8.1 8.2 8.3 8.4 Complete other installation/construction requirements Test circuit/system Document test results Compare measured performance parameters with those predicated TOPIC 9. 9.1 9.2 9.3 9.4 FINAL PRESENTATION Present an oral report in a seminar environment to FIT staff and students Use of appropriate visual aids to support explanation of project outcomes Demonstration of circuit/system operation Answering of questions from FIT staff and students TOPIC 10. 10.1 10.2 10.3 10.4 10.5 Installation/Construction FINAL REPORT A comprehensive and systematic documented account of all stages of project Progress report detailing outcome from previous stages Summary of project outcomes References Table of contents Appendix 9 - 1 APPENDIX 9 FACILITY REQUIREMENTS FOR PV TECHNICIAN TRAINING Appendix 9 - 2 Facility Requirements for PV Technician Training (CATD, FIT, TPAF) STUDENT LABORATORY KITS Laboratory exercises are expected to be carried out in two person teams so the facilities listed represent those needed for each pair of students. 2 - Solar panels 25Wp to 50Wp, polycrystalline or monocrystalline type. The smaller panels are preferred since they provide the same training experience as the larger ones and take less storage space 1 - Aluminum rack to support two of the above solar panels with adjustable stand to allow for positioning at various tilt angles. 1 - 45Ah-65 Ah open cell lead acid battery. An ordinary car battery is satisfactory for the purpose of laboratory experiments 1 - Basic charge/discharge controller, relay type such as those manufactured in Kiribati by the Solar Energy Company for use in their rural electrification projects. A relay type controller is proposed since its operation is easy to monitor with simple equipment and provides both a visible and an audible indication of operation. That type is also the most common type in the Pacific due to its high reliability. 1 - 12V fluorescent light that has an electronic ballast that can be separated from the bulb and has wire leads, not a socket type of mounting. Two pin PL type bulb and ballast for 7W to 11W bulb is recommended since that is widely used in the Pacific and a light of this type has been manufactured in quantity in Fiji by Poly Products and Clay Engineering for 1993 and 2000 EU PV projects. 1 - Hydrometer for battery testing 1 - 12V automobile head lamp that requires from 4A to 5A to operate 2 - Battery terminal clamps with bolt type connectors for wire attachment 1 - in-line automotive type fuse socket 5 - 10A automotive type fuses 1 - DC toggle switch of the type used in solar installations for appliance switching 1 - roll of 2.5mm2 red wire (50 meters) 1 - roll of 2.5mm2 black wire 1 - Plastic tool box containing: Good quality wire stripper Electrician’s pliers Needle nose pliers Diagonal cutting pliers Small adjustable spanner wrench Small blade type screwdriver suitable for tightening terminal block screws Medium cross-head (Phillips) type screwdriver suitable for panel wiring connections Simple inclinometer and level (for setting solar panel angles) 2-Basic digital millimeters capable of measuring 0-50 DV volts and 0-250 AC volts, basic resistance measurements and DC amperes up to 10A Appendix 9 - 3 Tape measure (at least 5 meters) two wire, screw type terminal blocks large enough for joining 2.5mm2 wires 4-1,200 ohm 5% resistors for demonstrating series, parallel and combination connection of resistance 4-2,400 ohm 5% resistors for demonstrating series, parallel and combination connection of resistance 2-single battery holders with lead wires suitable for “D” type dry cells 2-single battery holders with lead wires suitable for “AA” type dry cells Lockable wooden box with handles for carrying sufficient in size to hold the above equipment with internal clamps to hold the panel, toolbox and battery from shifting during carrying ADDITIONAL LABORATORY EQUIPMENT FOR GROUP DEMONSTRATIONS AND EXPERIMENTS Assumes 20 students, larger classes will need additional equipment to allow multiple demonstrations 1 - 12V-230V square wave type inverter (cheapest variety), 50 Watt capacity or larger 1 - 12V-230V modified square wave type inverter (cheapest variety) 50 Watt capacity or larger 1 - 12V-230V good quality pure sine wave type inverter, 50 Watt capacity or larger 1 - Commercial semiconductor type charge/discharge controller-basic type, such as a low end Morningstar controller 1 - Commercial microprocessor type charge/discharge controller, complex type such as Plasmatronics or STECA type controllers. 10 - Well regulated but low cost variable voltage/current power supplies 0-20VDC 0-5ADC. No panel meters requires. Basic type units with locally added 10 turn type fine control in series with the single turn voltage control included with the unit (needed for precise voltage adjustment to allow exact measurement of voltages for controller experiments). 1 - inexpensive oscilloscope to show 50HZ wave shape of inverters and charging patterns of semiconductor controllers. 2 - High quality millimeters to allow the demonstration of the calibration of the inexpensive meters provided with laboratory kits 5 - high power variable resistors 0-50 ohms, 100Watt capacity (for showing IV curve of panels) 1 - 50-75Wp solar panel, poly crystalline or mono-crystalline, 36 cells. 1 - 50-75Wp solar panel, amorphous silicon type 1 - 100Wp Demonstration system installed on a school facility showing proper pole type mounting, wiring, battery and controller mounting, switches, proper light installation and fuse protection. Appendix 9 - 4 ESTIMATED COST OF EQUIPMENT FOR PV TECHNICIAN TRAINING Quantity 2 1 1 1 1 1 1 2 1 5 1 1 1 1 1 1 1 1 1 1 1 1 1 5 4 4 2 2 1 Student laboratory kits 25Wp solar panels dual panel frame 45Ah car battery Relay type controller 12V PL Light Hydrometer 12V car head light Battery connectors Fuse socket 10A fuses Switch Roll of red wire Roll of black wire Tool box Wire stripper Electrician's pliers Needle nose pliers Diagonal cutting pliers Small adjustable spanner Small blade screwdriver Medium cross-head screwdriver Inclinomter/level Tape measure Two wire terminal blocks 1,200 Ohm resistors 2,400 Ohm resistors "D" cell battery holders "AA" cell battery holders Wooden box Student Laboratory Kit TOTAL COST OF 10 KITS (20 students) Each (US$) 175.00 75.00 55.00 120.00 25.00 15.00 17.00 2.00 1.00 0.50 3.00 2.50 2.50 7.50 15.00 8.00 7.00 8.00 6.00 3.00 3.00 9.00 7.50 1.25 0.25 0.25 2.50 2.50 250.00 TOTAL Total (US$) 350.00 75.00 55.00 120.00 25.00 15.00 17.00 4.00 1.00 2.50 3.00 2.50 2.50 7.50 15.00 8.00 7.00 8.00 6.00 3.00 3.00 9.00 7.50 6.25 1.00 1.00 5.00 5.00 250.00 $1,014.75 $10,147.50 Appendix 9 - 5 1 1 1 1 1 10 1 2 5 1 1 1 Additional Laboratory Equipment 12VDC to 230V AC square wave inverter 12VDC to 230VAC modified sine inverter 12VDC t0 230VAC sine wave inverter Basic semiconductor controller Microprocessor type controller Variable voltage/current supplies with vernier control Basic oscilloscope High quality millimeters as references High power variable resistors 50Wp solar panel - mono or poly crystalline 50Wp solar panel-amorphous silicon 100Wp complete home lighting system TOTAL COST FOR ALL PV TRAINING HARDWARE Each US$ 35.00 40.00 75.00 50.00 75.00 Total US$ 35.00 40.00 75.00 50.00 75.00 175.00 250.00 450.00 75.00 350.00 300.00 1,200.00 TOTAL 1,750.00 250.00 900.00 375.00 350.00 300.00 1,200.00 $5,400.00 $15,547.50 Appendix 10 - 1 APPENDIX 10 REGIONAL WORKSHOP ON RENEWABLE ENERGY AND ENERGY EFFICIENCY FIJI, 20-24 FEBRUARY, 2006 Appendix 10 - 2 Overview of the Pacific Regional Renewable Energy and Energy Efficiency Workshop 2024 February 2006, Suva, Fiji The final workshop for the REEP was held on 20-24 February, 2006 with 20-23 February consisting of a technical workshop on renewable energy and energy efficiency and 24 February a regional agency and donor meeting. The participants were invited from each of the 12 Pacific Forum Island Countries (Cook Islands, Federated States of Micronesia, Fiji, Nauru, Niue, Marshall Islands, Palau, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu) plus Tokelau. Funding for the workshop came from the REEP budget in the amount of $50,000 and from the Technical Centre for Agricultural and Rural Cooperation (CTA) in the amount of $20,000. The participant from Tokelau was funded by UNDP, Apia. Additionally SOPAC provided the considerable administrative support needed for the workshop. All the persons who were accepted to participate are directly responsible for designing and/or implementing rural energy policy and/or development projects that have renewable energy and energy efficiency as a focus. They were typically persons from governments, utilities or the private sector who have an energy or environmental focus and their work supports natural resource development in the form of indigenous energy resources and their management as it relates to energy provision. Though there have been several regional and sub-regional workshops on specific renewable energy technologies, notably solar, wind and biofuels, the last regional workshop that reviewed all forms of renewable energy technology and their relative applicability to the Pacific was over 15 years ago. Therefore the 20-23 February technical sessions focused on the changes in renewable energy technologies and on the progress of renewable energy implementation in the Pacific over the past decade. The workshop targeted renewable energy, energy use efficiency and independent rural power development, each having strong links to poverty reduction through agricultural production (e.g. production of the feedstock for biofuels) or agricultural processing (e.g. solar powered water pumping, crop drying, rural energy delivery systems to allow the use of electricity and biofuels for processing energy) and gender (e.g. replacement of wood fuels with more efficient and less harmful energy sources, increased income generating opportunities for women). The four days of technical presentations were held at the Fiji Centre for Appropriate Technology and Development (CATD). The Centre is a boarding school for training Fijian villagers in basic technical skills (including solar photovoltaics, engine repair, basic carpentry, metal work and plumbing) located away from urban areas approximately 45 minutes by bus from Suva. The participants remained at the CATD rural campus full time from early 20 February to early 24 February and were then transferred by bus to Suva for the regional agency and donor sessions held at the Southern Cross Hotel. From Fiji, Government, academe, NGOs, regional agencies and the private sector were invited to send representatives to the workshop with no fee required and with lunch provided. The workshop was honoured to have as a regular participant the Ambassador to Fiji from France. From Samoa, participants from Government, the private sector, academe and the utility were funded by the workshop to participate. Special evening sessions were scheduled at CATD to allow other organizations to take advantage of the presence of energy officers, utility personnel and private sector participants from around the region. The Secretariat of the Pacific Regional Environment Programme (SPREP) used the opportunity to obtain input for a proposed renewable energy support program and a meeting was scheduled for the Pacific Energy Group (PEG), a group focused on gender and energy. On the morning of 24 February, a meeting of the Fiji REEP Steering Committee was held that reviewed the REEP Draft Final Report and the progress of the REEP efforts in Fiji. Appendix 10 - 3 The goals of the workshop were to: • Disseminate the lessons learned from the REEP that were pertinent for the region • Introduce the donor community and regional agencies to the projects proposed by the REEP and seek funding for their further development • Transfer technology and experience among the Pacific countries, particularly as relates to institutional structures for renewable energy powered rural electrification • Provide a review of, and update the participants on, the renewable energy and energy efficiency technologies that can be economically developed in the Pacific Islands • Introduce new (for the Pacific) forms of renewable energy use, notably grid connected wind and grid connected solar PV. • Update the participants on the state of the art of ocean energy systems (OTEC, tidal and wave power) • Provide a forum for problem solving, project development and interactive discussions of the topics presented in the workshop. • Place the participants in direct contact with world class experts in the fields of renewable energy important to the Pacific (Solar, Wind, Biomass, Biofuels) The evaluation of the workshop by the participants indicated that the workshop met those goals and that the information received would be of value throughout the region for the development of renewable energy and energy efficiency efforts. Appendix 10 - 4 WORKSHOP PROGRAM MONDAY 20 FEBRUARY 2006: Opening, Renewable Energy Overview and Energy Efficiency 8.00 – 9.00 Transfer of overseas participants and resource persons from Peninsula Hotel to CATD by bus1 9.00 – 10.00 Arrive at CATD Opening Ceremony – Master of Ceremonies, Herb Wade, REEP Team Leader 10.00 – 10.05 Opening Prayer Pastor Isimeli 10.05 – 10.10 Opening Statement Hon. Col. Savenaca Draunidalo Minister for Works and Energy Mr. Fernando Garcia 10.10 – 10.20 Opening remarks 10.20 – 10.30 Opening remarks 10.30 – 10.50 Official Photograph 10.50 – 11.15 MORNING TEA Regional Deputy Director, South Pacific Sub-regional Office, Asian Development Bank Ms. Cristelle Pratt, Director, SOPAC Session 1: Renewable Energy Update 11.15 – 12.00 Renewable Energy Technology Update Status of solar, wind, biomass, biofuel, biogas, gasifier, OTEC, wave energy Mr. Herb Wade, 12.00 – 12.30 Trends in the use of renewable energy in the Pacific Mr. Jan Cloin, Energy Adviser, SOPAC 12.30 – 13.30 LUNCH 1 REEP team leader Most participants arrived in Fiji by the evening of 19 February and resided at the Peninsula hotel in Suva. Transfer was by bus (about a one hour journey) from the hotel to CATD and departed at 0800 on 20 February. Those arriving by plane early on 20 February were picked up at the Nausori Airport. Appendix 10 - 5 Session 2: Energy Efficiency 13.30 - 14.15 Demand side energy efficiency update Commercial, industrial, and transport efficiency improvement Domestic sector energy efficiency improvement Mr. José Lopez REEP Consultant Energy Efficiency Service Company (EESCO) design 14.15 – 15.00 15.00 – 15.30 15.30 – 16.00 Barriers to implementing industrial and commercial energy efficiency measures. Using the Energy Efficiency Service Company (EESCO) concept to lower them. The Roles of Government, utilities and the private sector. Domestic Energy Efficiency Programmes The governmental and private sector roles in domestic DSM Mr. Felix Gooneratne, International Institute for Energy Conservation IIEC Mr. Felix Gooneratne, International Institute for Energy Conservation IIEC AFTERNOON TEA Green Productivity Demonstration Project on Energy Efficiency Ms. Ranjana Lal, By the Training & Productivity Authority of Fiji (TPAF) Training Officer, Env. Mgmt. Trade and Productivity Authority of Fiji (TPAF) 16.30 – 17.00 Improving Energy Efficiency in the Transport Sector Mr. Rupeni Mario, Energy Adviser, SOPAC 17.00 – 17.30 Informal discussion groups: Government and private sector roles in DSM Chair: Rupeni Mario, 17.30 – 18.30 Traditional Fijian Welcome with Sevusevu 18.30 – 19.30 EVENING MEAL 16.00 – 16.30 Panel of resource persons Evening Programme with posters, videos and discussions Appendix 10 - 6 TUESDAY 21 FEBRUARY 2006: Solar Energy 7.00 – 8.00 BREAKFAST Session 3: Solar Energy Components for Solar Home Systems 8.00 – 8.45 Specification of panels, controllers, switches, batteries, wiring. Use of inverters with SHS. Larger SHS to do more than lighting. Mr. Luc Hoang-Gia, REEP Consultant PV SHS Rural electrification. 8.45 – 9.30 Private sector involvement. The Renewable Energy Service Company (RESCO) approach in Kiribati 9.30 – 10.00 MORNING TEA 10.00 – 10.45 10.45 – 11.30 11.30 – 12.30 12.30 – 13.30 SEC Kiribati RESCOs – The Fiji Experience Mr. Paula Katirewa, Update on the RESCO experiences and an outline of future plans for replication Energy Analyst, Fiji Department of Energy Nabouwalu Hybrid System Experiences Mr. Inia Saula, Update on the history, experiences and outlook for hybrid power systems in Fiji Energy Analyst, Fiji Department of Energy Stand-Alone Systems PV mini-grids, their concept and application Mr. Heinz Böhnke Technosol, Germany LUNCH Grid Connected Solar PV 13.30 - 14.30 Mr. Terubentau Akura, Concept and application of solar PV for grid connection. The German experience Solar Thermal – Technical Options 14.30 – 15.00 Trends in solar water heating and their appilcations 15.00 – 15.15 AFTERNOON TEA 15.15 – 17.00 Country Presentations 17.00 – 18.30 Walking tour: visit to neighbouring village 18.30 – 19.30 EVENING MEAL Mr. Heinz Böhnke Technolsol, Germany Mr. Herb Wade, REEP Team leader Palau, Cook Islands, Greenpeace Appendix 10 - 7 WEDNESDAY 22 FEBRUARY 2006: Biofuels 7.00 – 8.00 BREAKFAST Session 4: Biofuels 8.15 – 8.35 Opportunities for Biofuels in the Pacific Introduction Mr. Jan Cloin, Energy Adviser, SOPAC 8.35 – 10.00 Biofuel Fundamentals From plants to fuel Dr. Gilles Vaitilingom, CIRAD, France 10.00 – 10.30 MORNING TEA 10.30 – 11.00 REEP proposal for biofuel in Fiji (Rotuma) Mr. Herb Wade, REEP Team leader 11.00 – 11.30 Petroleum Fuel Outlook for the Pacific Current situation and outer island supply problems; hidden subsidies Mr. Jared Morris, Pacific Islands Forum Secretariat 11.30 – 12.30 Experience with Biofuels by SPC, in the Pacific & Evaluation of Welagi and Lomaloma biofuel projects, Fiji. Mr. Patrice Courty REEP Consultant & Rupeni Mario, Energy Adviser, SOPAC 12.30 – 13.30 LUNCH 13.30 – 14.30 Community Development and Biofuels The Philippines experience 14.30 – 15.00 Group discussion on Small Scale biofuel applications 15.00 – 15.15 AFTERNOON TEA 15.15 – 16.15 Biofuels for the Pacific – Technical Options Coconut biofuel options: raw, filtered, blends, esters. 16.15 – 17.00 Questions & Answers on Biofuels Expert panel and interactive discussion Ms. Perla Manapol UN Foundation (UNF) Consultant Panel of experts Dr. Gilles Vaitilingom CIRAD, France Dr. Gilles Vaitilingom, Mr. Jared Morris, Mr. Patrice Courty, Ms. Perla Manapol 18.00 – 19.00 EVENING MEAL 19.00 – 20.00 Evening Programme with social gathering and kava drinking. Appendix 10 - 8 THURSDAY 23 FEBRUARY 2006: Wind, Biomass and Ocean Energy 7.00 – 8.00 BREAKFAST 8.15 – 8.45 Overview of Wind Energy in the Pacific What is happening with wind energy in the Pacific? Mr. Thomas Jensen Associate Programme Specialist ReP-PoR UNDP 8.45 – 9.30 Wind Resource Assessment Theory, software, tools; from meters per second to kWh Mr. Jan Cloin, Energy Adviser, SOPAC 9.30 – 9.45 Wind Yield Analysis Experience with the wind turbine in Nabua, Suva Ms. Winnie Veikoso, Project Officer, SOPAC 9.45 – 10.15 MORNING TEA 10.15 – 10.55 Grid connected, stand alone and hybrid wind systems The advantages and disadvantages of each configuration. Characteristics of technology needed Session 5: Wind Energy Mr. Jerome Sudres, Manager, Vergnet Pacific Session 6: Biomass Gasification, Ocean Energy, Future Alternatives 10.55 – 12.00 Biomass Gasification State of the art, state of the industry. Environmental issues. CPC Biomax Gasifier experience in Philippines. Dr. Gilles Vaitilingom CIRAD, France & Ms. Perla Manapol, UNF Consultant 12.00 – 12.30 Country Presentations Solomon Islands, Tonga 12.30 – 13.30 LUNCH 13.30 – 14.20 Country Presentations Vanuatu, Papua New Guinea 14.20 – 15.00 Ocean Energy Tidal, wave and OTEC technologies and their application to the Pacific Mr. Anthony Derrick, Co-Director, IT Power 15.00 – 15.15 AFTERNOON TEA 15.15 – 15.45 Hydrogen, Fuel Cells and Other Energy Technologies State of the art, commercialization, Problems for PICs; siting of conversion equipment; economics. Mr. Rupeni Mario, Energy Adviser, SOPAC 15.45 – 16.15 Country Presentations Tuvalu, Samoa 16.15 – 16.20 Closing Prayer for the CATD Sessions Peni Delai 17.30 – 18.30 EVENING MEAL (Fiji Traditional Lovo) 19.00 – 20.00 Informal evening programme with kava drinking and music. Appendix 10 - 9 FRIDAY 24 FEBRUARY 2006: Regional Programme Progress Review and Consultations 7.00 – 8.00 BREAKFAST at CATD 8.00 – 9.00 Transfer from CATD to Suva by bus2 9.00 – 10.00 Participants book into Peninsula Hotel and walk down to the Southern Cross Hotel 10.00 – 11.30 Welcoming Tea at the Southern Cross Hotel 11.30 – 13.00 REEP Programme review 13.00 – 14.00 LUNCH 2 REEP Consultancy Team Overseas participants were housed in the Peninsula Hotel in Suva on the evening of the 24th. Transfer was by bus (1 hour ride) from CATD to the hotel departing at 8.00 am on 24th February. Appendix 10 - 10 Regional Agency and Donor Meeting at the Southern Cross Hotel, Suva Programme Friday 24 February 2006 14.10 – 14.40 REEP Results Presentation 14.40 – 14.50 European Commission activities in the energy sector in the Pacific region 14.50 – 15.00 PPA Regional Energy Activities REEP Consultancy Team Mr. Horst Pilger Adviser, Infrastructure and Energy, Delegation of the European Commission for the Pacific Mr. Tony Neil Executive Director, Pacific Power Association Mr. Thomas Jensen 15.00 – 15.10 Activities of ReP-PoR in the Pacific Associate Programme Specialist ReP-PoR UNDP Mr. Solomone Fifita 15.10 – 15.20 PIGGAREP – Update on progress 15.20 – 15.30 PIEPSAP – Highlights 15.30 – 15.40 Small Scale Electrification Initiative for the Pacific islands 15.40 – 15.50 ESCAP Activities on Renewable Energy 15.50 – 16.00 Pacific Islands and Renewable Energy 16.00 – 16.30 Discussions on the way forward for Renewable Energy in the Pacific 16.30 – 17.00 Closing Tea Chief Technical Adviser, Secretariat of the Pacific Regional Environment Programme (SPREP) Mr. Gerhard Zieroth Manager PIEPSAP, SOPAC H.E. Eugène Berg, Ambassador of the republic of France to Fiji Mr. Antti Piispanen, Programme Officer, UNESCAP Pacific Operations Centre (UN-EPOC) Mr. Paul Fairbairn, Manager Community Lifelines Programme, SOPAC Moderator: Mr. Herb Wade Appendix 10 - 11 PARTICIPANT LIST COOK ISLANDS Department of Energy Alistair Newbigging Samabula, Suva G.P.O. Box 2493 Government Buildings Suva, Fiji Islands Tel: [679] 338 6006 Fax: [679] 338 6301 Te Aponga Uira o Tumu-Te-Varocaro Box 112 Rarotonga Tel: [682] 20054 Fax: [682] 21944 Email: [email protected] Tangitamaiti Tereapii Energy Division P.O.Box 129 Rarotonga Tel: [682] 24484 Fax: [682] 24483 Email: [email protected] Alternative Email: [email protected] Inia D Saula Senior Scientific Officer Email: [email protected] Intiyaz Khan Senior Energy Analyst - Energy Efficiency, Biofuels, Renewables Email: [email protected] Jimione Fereti Scientific Officer E-mail: [email protected] Makareta Sauturaga FEDERATED STATES OF MICRONESIA Acting Director Email: [email protected] Ms Carleen Solomon Manager Alternate Energy Division Pohnpei Utilities Corporation Kolonia, Pohnpei FM96941 Federated States of Micronesia Tel: [691] 320 3236 Fax: [691] 320 3235 E-mail: [email protected] Mika Belena FIJI ISLANDS Coconut Industry Development Authority (CIDA) Centre for Appropriate Technology and Development (CATD) Nadave, Nausori Private Mail Bag Fiji Islands Tel: [679] 347 7699 / 3479776 Email: [email protected] Energy Analyst - Renewables Email: [email protected] Paula Katirewa Acting Senior Energy Analyst - Renewables Email: [email protected] Susana Pulini Scientific Officer Email: [email protected] 1st Floor Garden City, Raiwaqa P.O Box 5160 Tel: [679] 327 5030 Fax: [679] 327 5035 Email: [email protected] Sekope Bula Inosi Navoto Coconut Technical Specialist Instructor CATD Tevita Kete Peni Delai Instructor CATD Coconut Development Specialist Appendix 10 - 12 TRAINING & PRODUCTIVITY AUTHORITY OF FIJI KIRIBATI Ranjana Lal Acting Energy Planner Ministry of Works & Energy P O Box 498 Betio, Tarawa Tel: [686] 26192 Fax: [686] 26172 Email: [email protected] Training Officer – Env. Mgmt Productivity & Quality Training Department PO Box 6890 Nasinu Fiji Islands Tel: [679] 339 2000 Ext 289 Fax: [679] 339 8973 Email: [email protected] Web site: www.tpaf.ac.fj/pqtd ORGANIC PACIFIC LIMITED Peni Drodrolagi Organic Pacific Limited PO Box 12813, Suva Fax: [679] 330 5693 POLY PRODUCTS (FIJI) LTD Jitendra Mehta Managing Director P.O Box 5171, Raiwaqa Suva, Fiji Islands Tel: [679] 3385 544 Fax: [679] 3370 052 Email: [email protected] Kireua Bureimoa Kaiea Terubentau Akura Manager Kiribati Solar Energy Company Solar Energy Company Betio, Tarawa Email: [email protected] [email protected] MARSHALL ISLANDS William (Billy) Schutz Solar Engineer Marshall Energy Company P.O. Box 1439 Majuro, Marshall Islands Tel: [892] 625 5885 Fax: [892] 625 5886 Email: [email protected] Fiji Prime Minister’s Office P.O.Box 2353 Government Buildings Suva, Fiji Islands Tel: [679] 321 1699 Fax: [679] 331 5751 Akuila Ratu Julia Tamane Rakesh Prasad Saipora Mataikabara NAURU Abraham Aremwa Utilities Superintendent Central Utilities Ministry of Utilities Government Offices Boe District Republic of Nauru Central Pacific Tel: [674] 444 3521 Email: [email protected] RES, Ltd. Krishn Raj Director RESCO Limited P.O Box 5045 Labasa, Fiji Islands Tel: [679] 881 2618 Fax: [679] 881 5018 Mobile: [679] 992 3018 Email: [email protected] NIUE Speedo Hetutu General Manager Nuie Power Corporation P.O Box 198 Alofi, Niue Island Ph: [683] 4119 Fax: [683] 4385 Email: [email protected] Appendix 10 - 13 PALAU Greg Decherong Energy Programs Manager Ministry of Resources & Development Bureau of Public Works PO Box 100 Koror Republic of Palau Tel: [680] 488 96940 Fax: [680] 488 2536 E-mail: [email protected] PAPUA NEW GUINEA Collin Kalimba Department of Petroleum & Energy Energy Division PO Box 494 Waigani NCD Papua New Guinea Tel: [675] 325 3233 Fax: [675] 325 1678 Idau Kopi Department of Petroleum & Energy P O Box 494 Waigani, NCD PNG Tel: [675] 325 3233 Fax: [675] 325 1678 Email: [email protected] SAMOA Grant Percival PO. Box 1872 Apia, Samoa Tel: [685] 24177 / 20368 Email: [email protected] Mau Simanu Head of the Electrical Division Samoa University, Institute of Technology Email: [email protected] Sili`a Kilepoa-Ualesi Energy Coordinator Economic Policy and Planning Division Ministry of Finance Tel: [685] 34 333/34341 Fax: [685] 21 312/24779 Email: [email protected] Siloma Tago Mechanical Team Leader Power Generation Electrical Power Corporation Tel: [685] 65611/7786314 Fax: [685] 23430 Email: [email protected] SOLOMON ISLANDS John Korinihona Director of Energy Department of Mines & Energy PO Box G37 Honiara, Solomon Islands Tel: [677] 21521 Fax: [677] 25811 E-mail: [email protected] [email protected] David Iro Technician Willies Electrical P.O.Box R169 Ranadi-Honiara Solomon Islands Tel: [677] 30508 / 75126 Fax: [677] 30477 Email: [email protected] TONGA ‘Ofa Sefana Energy Officer Energy Planning Unit Ha'apai PV Project Manager Pangai Ha’apai, Tonga Tel: [676] 60 510 Fax: [676] 60 200 Email: [email protected] Wesite: www.lands.gov.to Talanoamoeloto `Aholahi Energy Officer EPU/Niuafo’ou PV Project Manager Ministry of Lands Survey and Natural Resources P.O. Box 5, Nuku’alofa, TONGA Tel: [676] 23-611 Fax: [676] 23- 216 Email: [email protected] Website : www.lands.gov.to Appendix 10 - 14 TOKELAU Kapuafe Lifuka John Bosco Petelo Energy Officer Email: [email protected] Chief Engineer Department of Energy Fakaofo, Tokelau Tel: [690] 3124 Fax: [690] 3103 Email:[email protected] VANUATU Donald Wouloseje Energy Economist Energy Unit PMB 9067 Port Vila Vanuatu Tel: [678] 25201 Fax: [678] 23586 E-mail:[email protected] TUVALU Ministry of Works & Energy Funafuti, Tuvalu Tel: [688] 20056 Fax: [688] 20207 Molipi Tausi Energy Planner E-mail: [email protected] CROP- EWG Secretariat of the Pacific Regional Environment Programme (SPREP) Solomone Fifita Chief Technical Advisor Secretariat of the Pacific Regional Environment Programme (SPREP) PO Box 240, Apia, Samoa Tel: [685] 21929 Fax: [685] 20231 Email: [email protected] Website: www.sprep.org Pacific Power Association Naibati House Goodenough Street Private Mail Bag Suva Tel: [679] 330 6022 Fax: [679] 330 2038 Tony Neil Executive Director Email: [email protected] Gordon Chang Assistant Director Email: [email protected] Pacific Islands Forum Secretariat Jared Morris Import Management Advisor Trade & Investment Division Pacific Island Forum Secretariat Private Mail Bag Suva, Fiji Tel: [679] 331 2600 Fax: [679] 331 2226 Email: [email protected] Web site: www.forumsec.org.fj South Pacific Applied Geoscience Commission (SOPAC) Private Mail Bag GPO Suva, Fiji Tel: [679] 3381 377 Fax: [679] 337 0040/338 4461 Website: www.sopac.org Cristelle Pratt Director E-mail: [email protected] Appendix 10 - 15 Paul Fairbairn ‘Emeline Veikoso Manager Community Lifelines Programme E-mail: [email protected] Project Officer Energy E-mail: [email protected] Allison Woodruff Gerhard Zieroth Resource Economist E-mail: [email protected] PIEPSAP Manager E-mail: [email protected] Jan Cloin Anare Matakiviti Energy Adviser E-mail: [email protected] Energy Adviser PIEPSAP E-mail: [email protected] Pooja Pal Yogita Chandra Project Assistance E-mail: [email protected] Project Officer - PIEPSAP E-mail:[email protected] Rupeni Mario Adviser - Energy E-mail: [email protected] INTERNATIONAL ORGANIZATIONS PARTICIPATING ASIAN DEVELOPMENT BANK South Pacific Subregional Office Level 5, Ra Marama Building 91 Gordon Street, Suva, Fiji Islands Tel: [679] 331 8101 Fax: [679] 331 8074 Webssite: www.adb.org/spso EUROPEAN COMMISSION Delegation of the European Commission of the South Pacific Horst Pilger Tina Seniloli Infrastructure and Energy Advisor Private Mail Bag GPO Suva Fiji Islands Tel: [679] 331 3633 Fax: [679] 330 0370 Email: [email protected] Assistant Project Analyst E-mail: [email protected] GREENPEACE Fernando Garcia Regional Deputy Director, South Pacific Subregional Office IT POWER Anthony Derrick Grove House Chineham Court Lutyens Close, Chineham, Basingstoke - Hampshire RG24 8AG, UK Tel: 44 (0)1256 392700 Fax: 44 (0)1256 392701 website: www.itpower.co.uk Email: [email protected] Koin Etuati Climate / Energy Campaigner Green peace Suva, Fiji Tel: [679] 331 2861 Fax: [679] 331 2784 Email: [email protected] TRANSITION INSTITUTE P/L Dr. Karl Mallon Transition Institute P/L PO. Box 440, Church Point NSW 2105, Australia Tel: [61-0] 412 25 75 21 Email: [email protected] Appendix 10 - 16 UNDP ESCAP Roderic Evers Pacific Regional Entrepreneurship Development Specialist Private Mail Bag, Suva Tel: [679] 330 0399 (0) Fax: [679] 330 1976 E-mail: [email protected] Web: www.regionalcentrepacific.undp.org.fj Antti Piispanen Programme officer UNESCAP Pacific Operations Centre (UN-EPOC) Suva, Fiji SUSTAINABLE RURAL ENTERPRISE Thomas Jensen Associate Programme Specialist Asia-Pacific Regional Energy Programme for Poverty Reduction (REP-PoR) UNDP Samoa Private Mail Bag Apia, Samoa Tel: [685] 23 670 Fax: [685] 23 555 E-mail: [email protected] Perla L Manapol President Sustainable Rural Enterprise Alkan State University, Main Campus – Banga, Aklan, Philippines Tel: [63 3] 6 267 6811 Mobile: [63 9] 16 316-1094 Fax: [63 3] 6 268 4765 Email: [email protected] Web: http:/coconutsgalore.blogspot.com OVERSEAS RESOURCE PERSONS Dr.Gilles Vaitilingom Biofuels Biomass Energy Forestry Department-CIRAD French Agricultural Research Centre for International Development TA 10/16. 73, rue. J.-F.Breton 34398 Montpellier Cedex 5, France Tel: [33 4] 67 61 5762 Fax: [33 4] 67 61 65 15 Email: [email protected] Website: www.cirad.fr Felix Goonerate Asia Director International Institute for Energy Conservation Asia Regional Office 12th Floor UBC II Building Suite 1208 591 Sukhumvit Rd Wattan Bangkok 10110, Thailand Tel: [66 2] 662 3460 5 Fax: [66 2] 261 8615 Email: [email protected] Heinz Böhnke Technosol Dipl.-Ing. H.-W. Böhnke Yachthafenstraße 17, D-21635 Jork Tel: [49 4] 162 942 707 Fax: [49 4] 162] 942 708 Mobile: 0179- 22 68 693 Email: [email protected] Appendix 10 - 17 REEP TEAM BURGÉAP Herbert Wade 27, Rue de Vanves 92772 Boulogne – Billancourt. France Tel: 33 146 10 2540 Fax: 33 1 46 10 2549 Email: [email protected] Web site: www.burgeap.fr E-mail: [email protected] Jose Lopez Email:[email protected] Luc Hoang Gia Email:[email protected] Patrice Courty Email: [email protected] Peter Johnston E-mail: [email protected] Appendix 11 - 1 APPENDIX 11 CASE STUDIES OF RENEWABLE ENERGY AND ENERGY EFFICIENCY FINANCIAL MECHANISMS AROUND THE WORLD Appendix 11 - 2 A. INTRODUCTION 1. This study develops two aspects of energy policy: access to energy, particularly through renewable energy, and energy conservation. 2. Access to energy is the subject of the first part of this report, and deals with the development of renewable energy technologies in rural areas. To reach a satisfying rate of electrified population in remote areas, it is necessary to structure supply through schemes allowing to take into account the local population will (technology and service) and constraints (capacity and willingness to pay). Case studies present the possible ways of doing so while taking into account the lessons learned and the obstacles observed in other developing countries. 3. Energy conservation amelioration through implementation of financial mechanisms is the subject of the second part of this report. The studied funds have different functioning, and target different types of projects. However, they have one major characteristic in common: they will mainly operate in urban areas, since they all need sufficient concentration of energy consumption in order to minimise the transaction costs compared to the return expected by both the funds themselves, and their targets. 4. The common aspect of all case studies lies in fact that they depend on the local government capacity and willingness to develop a sustainable energy policy. The politician will to do so is a critical condition of success. B. Access to energy in remote areas 5. A major difficulty concerning rural electrification in the Pacific Developing Member Countries (PDMCs) comes from the fact that the cost of providing electricity is very high, because consumers are dispersed and domestic markets are small. 6. Overmore, remote communities from the islands are the most disadvantaged because of their isolated locations. Because the level of energy consumption depends on the availability of energy services and their affordability, adaptation of energy supply costs to the communities’ financial capacity is critical for poverty alleviation. 7. In the remote rural areas, greater use of renewable energy, coupled with improved energy efficiency offer populations the possibility of meeting their energy requirements. In addition, as most of the islands are well endowed with a great potential for renewable energies, renewable energy technologies are potentially competitive with conventional energy, especially when environmental externalities are factored into the cost of the analysis. 8. We have included four case studies that fit the following categories of possible institutional arrangements: 9. Strategic partnerships, generally between private companies and NGOs, or photovoltaic service companies, that help to finance, supply, install and maintain photovoltaic systems in exchange of periodic payments. A case study shows the functioning of strategic partnerships between NGOs and retail business operators in Sri Lanka (Case study n°1). 10. Village committees, lobbying for the access to electricity in their communities. Once a system is in place, the committee operates and maintains it, collects payments or replacement charges, amortises credits, and procures replacement parts. Committees are rarely formal legal entities, have particular decisionmaking methods, and own no assets, but they are easy and inexpensive to organise and run, they tend to legitimate representatives of their communities, and they can work even if not all users participate. Such an arrangement is illustrated in the case study n°2 (in Northeast Brazil). Appendix 11 - 3 11. Local vendor representatives: some photovoltaic vendors use local agents to perform basic maintenance and encourage adequate battery replacement. These agents also troubleshoot and give advice. Although their fees add to the cost of the systems, they provide a necessary understanding of local needs and problems. Illustrating this model, a sizable, private, largely unregulated photovoltaic industry has been developed in Kenya (case study n°3). 12. Rural energy corporations. Compared with other rural energy organisations, they are more expensive to develop and require greater managerial sophistication and more centralised decisionmaking. But they have a formal legal structure, well-defined administrative and accounting procedures, and flexible capitalisation mechanisms. Argentina rural electrification programme gives good ideas of what can be done in order to grant concessions to private companies while minimising subsidies and promoting renewable energy (RE) sources (Case study n°4). 13. Rural electric cooperatives. This type of administration requires a willing attitude among most users and intensive organisational development and training. They provide a formal legal structure, have well-defined administrative and accounting procedures, tend to be selfregulating, and use democratic decisionmaking. An interesting legal framework for such entities, named SCIC (Sociétés Coopératives d'Intérêt Collectif) was created in France in 1999, one of these cooperatives, SINCO, operating in the rural electrification field in Senegal and Mali, shall be interviewed to gain from its experience. 14. The consultant introduces the main lessons to be learned at the international level concerning institutional arrangements and financing mechanisms that could possibly be replicated in the PDMCs. It will be necessary in the near future to deepen the analysis in order to select the schemes compatible with existing policies, socioeconomic structures, and socio cultural traditions prevailing in the PDMCs. To achieve this objective, a selection of institutions that shall be interviewed is presented in appendix. C. Energy conservation financial mechanisms 15. The implementation of energy efficient programmes leads to a significant potential reduction of the running costs for companies and institutions and helps governments achieve their energy development goals. This fact is true in general, but is particularly accurate in the case of countries with high energy dependancy, and which costs to access energy services are high. 16. The Pacific Islands illustrate perfectly this situation, and political action should compensate the difficulty of obtaining the necessary financing, which constitutes too often a major barrier to the achievement of energy conservation projects, by promoting efficient financial mechanisms in the field of energy conservation. 17. For a few years, various financial mechanisms have been set up, mainly in the western countries, in order to break up this barrier. But innovative funds have also been developed in emerging and developing countries, such as in Thailand or in Eastern Europe. They try to adapt to the specificity of developing countries and countries in transition as these countries face several barriers to the development of energy efficiency projects. Those innovative financial mechanisms are often opposed to classic or traditional Funds. Yet, the relation between them is rather a complementarity than an opposition, since they need each other to work efficiently or develop their projects portfolio. A selection of three funds illustrating four mechanisms (the investment fund example including the creation of an ESCO) implemented in different part of the world will be presented in this report: 18. Equity participation and indirect investment through ESCOs illustrated by the DEXIA– FONDELEC fund (Case study n°1). Appendix 11 - 4 19. Grants and low interest loans to municipalities exemplified by the Canadian Green Municipal Investment Fund (case study n°2). 20. Zero-interest loans to banks developed by the Thai Revolving Fund for Energy Conservation (case study n°3). II. A. CASE STUDIES: RURAL ELECTRIFICATION Rural electrification framework 21. The cost for the production of new technologies is constantly and drastically reducing. But transmission costs are still a major barrier to the expansion of networks in isolated or not very populated areas. As a result, it is mainly the urban poors who stand the greatest chance of benefiting from network reforms. For the rural poor, alternative solutions encompassing organisational innovations are required. 22. Three key factors could drive service improvements in rural areas: 23. Technological advances that reduce costs and increase ease of use and maintenance of small-scale electricity systems by households and communities, 24. Organisational innovations that help communities choose, implement, and maintain improved systems, 25. Innovations in financing that help poor households overcome the hurdle of high capital costs for new services. a. Technology limits and need of local involvement 26. Off grid development raises difficult questions for the policy designers: 27. Technology: what technology is most appropriate to bring electricity service to a given population? What are the costs and benefits of the options, and how should the choice among them be made? 28. Organisation: a distribution utility, with professional management, may not be involved in delivering off-grid electricity service. Who is going to introduce, operate, maintain, and repay the costs of the institutions and technologies for service provision? 29. Financing: off-grid electricity service tends to have much higher capital costs than grid service. How are these to be financed, given the limits of short-term credit and the low incomes of most who live off-grid? Many off-grid electricity sources have a long useful life, but their installation must be amortised over much shorter terms. b. Technology drivers 30. By contrast with grid-based supply, the technology options off-grid are very diverse - in generation technique, in cost characteristics, and in the kind and quality of electricity service delivered. 31. Governments’ decisions about which off-grid technology to develop in priority are based on four main criterias: 32. Kilowatt-hour per kilometer of line. Consumption density is used as a criterion to decide whether to build a line or not. The decision must be adjusted to reflect prevailing net revenues and line construction costs. 33. Distance from the line. Where density, consumption, and construction costs are similar. Appendix 11 - 5 34. Least cost. Some algorithms estimate the cost of providing a kilowatt-hour to consumers using different technologies under different conditions. However, they generally fail to take full account of the potential benefits from each source. 35. Highest net economic benefit. Estimates of net economic benefit take into account quality differences between energy sources and compare their potential benefits. But they must be prepared for every project by qualified staff and are expensive. 36. The central planning–type approach by governments and donors to technology selection does not work in most places. Customers and service suppliers are not consulted in any meaningful way, there is no strong sense of ownership of projects, and users lack an understanding of the true costs of supply. The government should allow customers and service companies to make the technology decisions, while assuming a facilitating role. c. Limits of renewable energy technologies 37. Off-grid electricity differs from grid electricity in that consumption must be actively adjusted to supply: 38. Some systems provide service for only a few hours a day and thus would not allow refrigeration and other continuous or off-peak electricity uses. Households and businesses would use kerosene or LPG for cooking, and fossil fuels to power productive equipment. 39. A mini-hydro plant either supplies insufficient power to meet peak demand or has excess off peak capacity. So consumers must ration their electricity or develop uses for off-peak supply to ease the financial burden. 40. Wind – or solar – powered minigrids require an expensive bank of batteries, which puts a financial cap on the system’s capacity. Electricity service is often limited to fluorescent lights, radio, and television, and mechanisms are needed to prevent excessive consumption by users. 41. A variety of energy sources can be used to meet off-grid communities’ energy needs. Lighting and some electronics might be powered by photovoltaic systems, while refrigeration and cooking depend on LPG or kerosene. Markets for alternative energy sources such as LPG and kerosene can be stimulated in parallel with limited-supply electricity sources. d. A successful electrification programme 42. Energy policy aiming at making energy accessible to remote areas must put in place the proper environment: 43. A broad universe of projects to choose from. With many diverse projects, a funding agency can select the projects with the best demand profile and organisational make up and an adequate willingness and capacity to pay. As the market develops, projects aiming at reaching more marginal users will become increasingly feasible. 44. Appropriate system designs. System designs must meet the customer’s functional requirements - no more, no less. 45. Technical support. Training and organisational development must be part of the initial investment package. e. Conclusion 46. Successful off-grid energy projects must understand and address, at the local level, the nature of the demand and its interaction with: 47. The local energy source. Appendix 11 - 6 48. The local operating organisations. 49. All possible project development actors, beginning with the communities. 50. Other market agents, such as local vendors. 51. Other energy suppliers. 52. For off-grid to develop, it needs an expanded role for users, a diversity of organisational models, a greater reliance on local organisations, and a greater knowledge on both the energy supply in the broadest sense and the energy demand on site. B. A programme suited for strategic partnerships in Sri Lanka 53. Since the mid 90s, end-user finance of solar home systems has widely developed through different and complementary schemes in Sri Lanka. There are many lessons to learn from the relative success and failure of existing schemes. However, this case demonstrates that microfinance institutions may well be the most suitable entities to facilitate finance for rural energy services. 1. Government/Donor Initiative 54. In 1996, the funding of the Energy Services Delivery Project (ESD) by World Bank’s Asia Alternative Energy Unit and the Sri Lankan government opened the door for many types of renewable energy project developers and participating credit institutions (PCIs) to provide solar home systems to the rural market. A key component of the scheme xas the credit program (the two others being pilot wind farm and capacity building) that consisted in providing medium and long term financing to private sector firms, non-governmental organisations, micro finance institutions and community co-operatives for (a) grid-connected mini hydro projects (typically < 5 MW), (b) off- grid village hydro (VH) schemes, (c) solar home systems (SHS), (d) other renewable energy investments and (e) energy efficiency/demand side management investments. 2. Organisations a. Private-Sector SHS Vendors 55. Solar Power & Light Company, which has installed over 150 SHSs since 1997, had its dealers serve as lenders and collection agents for loans to buyers. Another vendor, Alpha Thermal, installed 100 SHSs in a similar manner. Difficulties were reported concerning repayments collection from customers. 56. One of the difficulties under this model is the varying degree of ability and commitment each dealer feels toward financing. b. Large Microfinance NGO 57. Sarvodaya Shramadana Society is one of the largest NGOs in Sri Lanka. It has an extensive rural network and is involved in education, health care, and social, agricultural, financial, and energy-related activities. Sarvodaya Rural Technical Services, the technical division of Sarvodaya, had been involved in SHS since its initial demonstration projects with the Solar Electric Light Fund in 1991. Sarvodaya already had a rural lending programme administered by the Rural Enterprises Programme. These organisations were managed by village residents and provided microfinance for agriculture, home improvement, and small business. 58. Two divisions within Sarvodaya coordinated to implement the SHS project, the Rural Enterprises Programme, and the Sarvodaya Rural Technical Services. The Rural Enterprises Appendix 11 - 7 Programme negotiates with the PCI to secure the ESD funding while Sarvodaya Rural Technical Services markets, installs, and services the SHS. Both divisions ensure that repayments are made on time. c. Private Finance Companies 59. The Finance Company (TFC), a private company quoted on the Colombo Stock Exchange, provides funds for consumer goods in rural areas. TFC has an extensive regional network and operates in remote regions. Currently, TFC continues to finance SHS through the local dealers of Solar Power & Light Company. Ironically, the financing of SHS does not have the sanction of TFC’s head office; the decision to finance is made by the regional offices. As such, it does not get much publicity. d. Rural Cooperatives and Banks 60. The most prominent specialised rural lending organisation in Sri Lanka is the Thrift and Credit Cooperative (SANASA). Established in 1906, SANASA boasts more than seven million member households. The organisation has three tiers (village cooperatives, regional centers, and the country-level federation). A unique feature of SANASA is the autonomy the village-level cooperatives have in their operations. All the collected savings only get utilised in the village, except for the membership fees for the federation. The federation, in turn, provides the financial management systems, training, and other infrastructure inputs. 61. One of the latest developments with SANASA is the establishment of the SANASA Development Bank, which is a legitimate entity to access the ESD funds as a PCI. e. Commercial Banks 62. Hatton National Bank (HNB) lends directly to SHS customers, with an SHS vendor supporting the marketing and technical sides of the operation. 63. The vendor, Solar Power & Light Company, identifies interested SHS customers from an area near an HNB branch. Potential customers have to be an HNB customer or open an account with the branch. Then, after the bank does the necessary credit evaluation, it finances 70% of the cost of the SHS. 64. Grant Scheme: as part of the ESD project, there is a $100 grant per system provided by the GEF. This amount is to be held in the customer’s account at the HNB branch until the loan is repaid, thus giving the bank some financial guarantee while serving as an incentive for the customer to pay the loan. This amount is returned at the end of the three-year period - which acts as a bonus for the customer, as part of it could be used to replace the existing battery. Further, HNB secured a guarantee from Solar Power & Light Company, which ensures that the product will be repurchased by the company in the event of a customer default. 3. Lessons learned from the current mechanism 65. As the lending culture of private-finance companies tends to be urban-oriented, such institutions frequently view rural borrowers as offering returns too small to be worth their attention. Moreover, rural people may distrust the "urban formalities." 66. Private, supplier-led initiatives have had more success because they tend to work more closely with the villagers to provide reliable customer service. Moreover, their pricing policies reflect market rates that foster sustainable market growth. These initiatives, however, often experience difficulty in carrying out the functions of rural finance and cost recovery. 67. SEEDS (Sarvodaya Economic Enterprise Development Services), has shown good progress by using its strength in both rural finance and technology transfer. Finance schemes Appendix 11 - 8 are most successful when operated at a "grassroots" level with some central supervision. A "bottom-up" approach empowered the rural community to understand the technology as well as manage the micro-credit programmes. 4. Obstacles 68. A number of obstacles exist including: • • • • • The market is isolated in remote areas of the country. The cost of doing business in rural areas is high. The cost of SHS is relatively high for the target rural market. The urban-based banking system is uncomfortable lending in rural areas and for rural projects. Solar technology is relatively new to the financial institutions, policy makers, and the market. C. A programme based on village committees in Brazil 1. Donor Initiative 69. In mid-1998, FTV, a private nonprofit foundation established in 1984 in Brazil, requested financing and technical cooperation funding from the Inter-American Development Bank (IADB) for the Luz do Sol programme in order to introduce and strengthen solar energy service microenterprises in rural, northeastern Brazil. Under this proposal, FTV is specifically prohibited from becoming a financial intermediary; nevertheless, it may act as the conduit between finance and equipment sources and solar energy microentrepreneurs at the community level. FTV arranges financing for community leaders through the Northeast Bank of Brazil (BNB) and the Golden Genesis Company (GGC). By maintaining the involvement of formal financial intermediaries, FTV reduces its risk and creates favourable conditions for expanded financing in the future. 2. Organisations a. Northeast Bank of Brazil 70. BNB made $10.4 million ($U.S.) available to the Luz do Sol project, sourced from a special government line of financing targeted to promote renewable energy. The rate payable by the community leader on the BNB line of credit is around 8% lower than the open-market rate (of around 20%). BNB finances half of each community leader’s initial equipment investment and the loan is amortised over 12 years. b. Golden Genesis Company 71. GGC finances the other half of the initial investment and charges the community leader a rate comparable to BNB’s. GGC pays 2% to BNB as a fee for funds management. GGC financing is amortised over 5.5 years. c. FTV 72. FTV installs the battery-charging systems on the property of the community leader and the electrical fixtures in the homes of users. GGC financed the start-up of the Luz do Sol programme in 1996–1997, and pays FTV a fixed amount for each system installed. This fee-forservice payment is made in return for FTV’s services of identifying and mobilising communities, establishing PV enterprises, providing business and technical training to community leaders, and monitoring the finances of the programme. Appendix 11 - 9 d. Community leaders 73. Community leaders are selected by the community members to become energy service microentrepreneurs. They borrow funds necessary to the project implementation, are responsible for the payments of the service for the whole community and act as an intermediary with the others actors. 3. Lessons learned 74. Prior to the first installation, FTV carried out significant work identifying and qualifying communities. A community must meet the following criteria to be considered for the Luz do Sol project: It must be at least 3 kilometers from the electricity grid and have no electricity supply. It must indicate a willingness and ability to financially support an energy service microenterprise. FTV makes this determination through meetings with family leaders from the community. • A minimum of 50 families must be willing and able to pay a $10 ($U.S.) monthly energy bill in order for the microenterprise to be commercially viable. 75. After screening and prior to establishing a project, FTV requires at least 50 of the prospective energy customers to pay $10 ($U.S.) each, which is used as a down payment on the energy equipment. • • 4. Obstacles 76. The main obstacle to the implementation of such a scheme lies the risk of low loan repayment rate by community leaders. Current and potential financing agents, including banks and energy suppliers, will not finance a community leade if they do not have confidence that the loans will be repaid. There are two main causes for poor repayment: • • Technical problems with the equipment, Shortcomings in the financing model. D. Private development of the PV market in Kenya 77. Kenya offers an interesting example of PV market development mainly through private initiative. There have been donours initiatives since the 80s, focusing on demonstration projects. However, this has progressively led to a market of over 100 000 installed solar photovoltaic systems for household use (lighting, radio, or television). Apart from local socio-economic criterias (GDP, distribution of wealth…), the main reason explaining such success isn’t a specific government policy, but rather local entrepreneurs capability, that allowed them to play a key role in the market development process by adapting their products to the needs of the lower-income market. 78. This case study doesn’t focus on a particular organisation or donor program. It highlights the importance of local vendor representatives providing suppliers a good understanding of market opportunities. 1. Market development 79. Market development occurred in three steps: • 1. Upper-class rural innovators and nongovernmental organisations (NGOs) working offgrid installed the first complete photovoltaic systems that generated demand for the technology, Appendix 11 - 10 • • 2. Large numbers of rural people bought small photovoltaic panels and batteries, primarily to power televisions. 3. Hire purchase and finance agencies began to offer systems, allowing far more rural Kenyans to buy them on credit. a. Innovators and NGOs 80. In the 80s, donors installed demonstration systems in off-grid schools and missions. After several initiatives trained rural photovoltaic agents to install and sell systems, local companies went after this household market. At that stage, most common systems were well-engineered, complete systems, up to 100 peak watts, with one battery powering up to ten lights and a black and white television. They were targeted to upper-class farmers or businessmen owning a permanent stone house or urban-based Kenyans with disposable income to purchase photovoltaic systems for their rural homes. b. Private companies 81. When the market of large solar home systems saturated, photovoltaic dealers realised that, as much as electric light was a priority, rural people also wanted television. The rapid massmarket growth of the photovoltaic industry had much to do with the expanded reach of the local television network. 82. By the mid-1990s, 10 percent of local battery production - as many as 60,000 units a year was being sold in the rural television and photovoltaic system market. More and more photovoltaic systems were being purchased a piece at a time, and vital system parts - such as charge regulators, which help protect batteries - were being left out. Yet the poor performance of smaller photovoltaic modules and systems did not slow sales because many consumers learn to conserve their modules’ output by using the television and lights less. In addition, many purchase additional modules later when they can afford them. c. Financial institutions 83. Under hire purchase mechanism, a wage employee signs up with a hire purchase company that automatically deducts monthly payments from his or her salary. In 1996, a leading photovoltaic company tried to build sales through hire purchase agencies. The company offered attractive credit terms to hire purchase retailers and sought a wide base of agents. In 1998, the company sold more than 1,500 systems (and modules) on credit. Today at least four leading photovoltaic importers supply systems to hire purchase agents, and 15 percent of the solar home system business passes through hire purchase. 2. Lessons learned 84. The main conditions permitting to replicate Kenya’s experience are: • • • • • A well-developed middle class and a large number of rural people who want lights and power for their televisions. A good flow of customer feedback to local entrepreneurs. A relatively progressive financial sector that has slowly incorporated photovoltaic equipment into its consumer goods portfolio. 3. Obstacles Duties and VAT must be withdrawn not only from conventional rural electrification equipment and photovoltaic modules, but also from other components of households energy equipement (batteries, charge regulators, inverters, and efficient appliances). Erratic equipment and installation standards. Dealers tend to undersize or leave out vital components to win contracts, and there is little incentive for proper engineering. Appendix 11 - 11 • • Prevalent sales and installation practices undermine consumer confidence in photovoltaic equipment, especially larger systems. Lack of trained technicians. Without systematic technician training, installation, and hence system quality, will remain poor. There is a need to develop financing for photovoltaic systems in order to make the technology more widely available and functional. E. IV Innovative scheme for rural energy corporations in Argentina 85. Argentina rural electrification programme gives good ideas of what can be done in order to grant concessions to private companies while minimising subsidies and promoting renewable energy sources. Here are the main features of this on-going innovative policy: • • • • Concessions are granted to private bidders that require the lowest subsidy for serving a given area. Renewable energy technologies are favoured wherever possible. Higher subsidies are paid for renewable energy options. A model concession contract applicable to all provinces ensures that the concessionaire maximises private investment and minimises public subsidies. The concessions don’t have an obligatory coverage target, but concessionaires are required to provide service to consumers who ask for it. The subsidy paid to the concessionaire and the customer is means-based and depends on the energy service level and chosen technology. Subsidies decline over the fifteen-year concession period. 1. Donor initiative 86. A misfunctioning of Argentina electricity policy quickly appeared: grid extensions were favoured to off-grid projects. In 1999, the World Bank implemented the PERMER (Proyecto de Energía Renovable en el Mercado Eléctrico Rural) project in several provinces in order to provide electricity for lighting, television and radios to households. The subsidies delivered to the concessionaires are financed by the Electricity Development Fund, a World Bank loan, and a Global Environment Facility grant (the portion of this grant will be decreasing over time). The province of Jujuy was one of the first in which PERMER began implementation, and will be the focus of this case study. 87. The main difference with the dealership approach used in many other countries is that the PERMER concessions are exclusive regulated monopolies, while dealerships allow open entry. Consequently, the selection and regulation of the concessionaire are vital to the success of the approach. Main advantages of such a mechanism are the following: Creating a market with sufficient critical mass for commercially sustainable business by granting exclusive rights over a large geographic area. • Attracting better-organised private companies with their own sources of financing. • Permiting easier administration and regulation. • Offering better chances of covering a large number of customers in a few years. • Good potential for reducing unit costs of equipment (through volume discounts), transactions, operations and maintenance (through economies of scale), and overhead. • Ensuring service to the consumer over a long period - the fifteen-year contract life of the concession. 88. Main obstacles: • • • • • Implementation challenges in provincial areas where regulatory expertise is less developed Quality of service is hard to monitor. Formal competitive bidding takes time and is costly. Negotiated contracts may be much quicker but may be less politically acceptable. Appendix 11 - 12 2. Jujuy concession functioning a. Tariffs and subsidies 89. Considerable analytical work was done under PERMER to assess consumers’ ability to pay, set the correct tariff levels, estimate required subsidies, decide how subsidies will be paid, and design incentives to keep these subsidies to a minimum over time. This is intended to serve as a model for future PERMER concessions. 90. In the case of the Jujuy concession, subsidies have been set so that rural consumers do not spend more than they now spend on energy. 91. Capacity and willingness to pay: household spending on kerosene, candles, bottled gas, and dry batteries are a good indicator of the upper limit of electricity tariffs that households can afford. However, contrary to expectations, surveys have shown that willingness to pay is lower than capacity to pay. Households may believe that switching to electricity is worthwhile only if it lowers their energy spending, regardless of the other benefits that come with electricity. b. Bidding process 92. The bidding process is intended to provide incentives to minimise subsidies: • • • First, the regulatory agency calculates tariffs for off-grid electricity supplies by level of service - for example, 50, 70, 100, 150, or 200 peak watts for solar home systems. For this purpose the agency estimates costs based on indicative quotations and national and international experience. Second, the concession is awarded to the most qualified bidder - based on technical, financial, and management criteria - offering the largest rebate to the unsubsidised tariff schedule. The rebate is applied to reduce the subsidy. The concession must be awarded through international competitive bidding. Third, where there is bidding for the concession contract, the concessionaire must procure (following its own procurement rules) and install solar home systems and obtain certification by the regulatory agency of having done so to receive payment of the consumer subsidy from the provincial government. 3. Lessons learned 93. Some details in the functioning of the scheme are critical to its success: • • • Generally, the local technician is responsible for O&M of the outside parts of the system. The client has the right to upgrade the inside installation. During the outside installation, user training must be offered, and a short user manual is provided to the customer with basic information on functioning, O&M and use of the system. The customers are asked to pay their monthly invoice with the technicians or in any office of the local electricity company. No special financial intermediaries exist. The monthly fees are to be paid within three months as customers are invoiced three months in advance. In case of nonpayment, the local technician is responsible for the customer follow-up. In every office of a local technician, a claim and recommendations book from SuSePu enables the clients to write down their concerns regarding the provided service. In reference to the separation definition, only claims concerning the generation part oblige the concessionaire to repair the defect. Appendix 11 - 13 4. • • • • • Obstacles Customers understanding of the set-up of the programme and their responsibilities within it depend on the technicians who are responsible for customer care in a certain area. Even if the restrictions of the systems are well understood, difficult or even lacking access to converters may lead to an overuse of the systems. Separation of the generation and internal installation part is rarely understood and respected by the clients Use of too many appliances on the clients’ part, which causes frequent failures on the generation side. O&M, as well as fee-collection, is costly. Appendix 11 - 14 III. A. CASE STUDIES: FINANCIAL MECHANISMS SUPPORTING ENERGY CONSERVATION PROJECTS Energy conservation financing framework 94. Energy conservation in remote areas is a matter of rational use of public funds: when access to energy is so costly (in the case of PV panels for example), one can not afford to waste energy. In urban areas, every toe delivered to the end user is cheaper. However, urban areas concentrate the most part of energy consumption, so that issues such as dependance on energy imports and trade deficits must be fought there. 95. This part of the study deals with energy conservation development through financial mechanisms, as illustrated by a selection of three funds operating in different parts of the world. 96. The most difficult part in the implementation of funds such as those presented thereafter consists mainly in the accurate analysis of the local market and the dialogue with potential fund managers. Therefore, contrary to the first part of the report, case studies focus on projects panel, financing mechanisms and conditions of success instead of market stakeholders and obstacles facing local authorities. B. Investment fund and ESCo in Eastern Europe 1. Presentation 97. The Dexia Fundelec EEER Fund mainly operates in Eastern Euope. Its purpose is to promote investments in energy conservation and renewable energy and to contribute to the reduction of greenhouse gas emissions. The fund’s investment strategy includes the valorisation of these emission reductions as carbon credits. The fund began its operations in 2000. Its management is ensured by Fondelec Clean Energy Management Corp. a. Donor EBRD, at 20 M€ (28% of the capital), DEXIA (via its subsidiary company Dexia Public Finances Bank), at 20 M€ (28% of the capital), • KPIC Singapore, Kansai Electric and MARUBENI Corporation at 10 M€ each one (14% of the capital for each one), • Mitsui & Co Europe (for 1 M€), • Fondelec C.E.E. Corp. management (at 0,1 M€). 98. The French Global Environment Fund (FFEM) supports the fund by covering part of the additional cost of the operations arrangement in a region which, although in progress at the economic and legal level, still remains difficult to access regarding private business. • • b. Beneficiaries / projects 99. It targets small and average size projects requiring a 1 to 10 M€ investment, which: improve energy efficiency in existing plants and equipment, e.g. plant retrofits and fuel conversions, heat recovery systems, electric transmission grids, gas and district heating system improvements, illumination, other public facilities and industrial energy efficiency enhancement; • valorise the use of renewable energy. 100. Until now, the fund has more developed operations from the first category. The "renewable" projects (two projects to date) are projects of biomass valorisation. The funds • Appendix 11 - 15 managers have the will to enlarge their "renewable" portfolio to other types of energy (wind and hydraulic in particular). The expected average internal rate of return is 20%. 2. Mechanism a. Project Selection 101. The projects on which the fund wishes to invest are submitted to the principal investors for opinion. The two sponsors have fifteen days to give an opinion. If the opinion is favourable, the project is submitted to the Investment Committee. If it is negative, the fund manager can nevertheless present the project at the Investment Committee but with the mention "project refused by the sponsor". b. Mode of intervention 102. The fund can intervene either directly on an energy conservation project or a renewable energy production project (heat network, industrial process, etc.) or through equity participation in companies (existing or new) specialized in the realisation of this type of projects (ESCOs). The fund, through an ESCO, enters into contracts with individual companies or municipalities to provide the capital, project build-out, and ongoing technical monitoring for specific projects. c. Project illustration 103. Example of direct intervention: in Poland, in the town of Gorlice, the fund intervened for the retrofitting and the optimisation of the heat production infrastructures of the district heating company, EC. Gorlice. The funds brought 3,7 M€ in capital and 3,3 M€ in convertible debt to the company. The resources thus invested allowed the realisation of energy conservation operations on the heat generating stations, the putting into commission of an existing turbine of 7 Mwe and of a cogeneration plant, as well as the extension of the heat network to new industrial and residential customers. 104. Example of intervention through specialised companies: in Hungary, the fund repurchased in December 2000 the consulting and engineering company in energy technology EETEK Limited. This company then was capitalized and transformed into an energy service company (ESCO). EETEK is now able to reach potential customers, to lead feasibility studies for the realisation of energy efficiency projects or renewable energy valorisation projects, to finance and carry out the investment operations identified in an turn-key approach and to refund them on the energy savings realised. On this basis, EETEK developed a project portfolio in the private and public sectors (industry, hospital, street lighting, networks of heats, etc). d. Follow-up 105. In Poland and Hungary where most of the investment operations were carried out, Fondelec detached an associate who, from day to day, ensures the follow-up of the projects at the administrative and financial level. This restricted team takes the whole decisions relating to the management of the investment operations carried out and to the new investments and organises the work and the studies of canvassing new opportunities of investment. The canvassing work of the manager in the countries where the funds has not invested yet can imply external consultants. From the end 2001, subsidiary companies or representations of the ESCO EETEK Hungary (developed by the fund) were created in Bulgaria, Croatia and Slovakia. In 2003, such structures were installed in Poland and Romania. Appendix 11 - 16 3. Key findings An experienced management team a. Fondelec, the fund manager, has already worked with the World Bank, and thus has a knowledge of the principles and methods of intervention of a development bank; • Fondelec has already worked in the emergent countries (Latin America and to a lesser extent Eastern Europe) and is presently creating a new fund in Asia; • Fondelec has specialized in the management of funds dedicated to the investments in the “utility” sector and in particular in the electricity sector within the framework of privatisation program. 106. The local teams are highly qualified in financial issues, have a perfect knowledge of English and are very dynamic. This constitutes are prerequisite for the fund success. • Relevant size of the project b. This size of the project selected enables the fund to place itself on the market of SME and municipalities of average size on which strategic investors (as Dalkia or Elyo) as well as development banks (EBRD, the World Bank, IFC, etc.) are not very present. Moreover, the fork of investment selected contributes to an allocation of the fund resources on a more significant number of projects and thus to a better spread of the risk. 107. Conditions of replication c. • • • • • • Favourable policy and regulatory environment Reliable legal framework A favourable business climate A sophisticated banking system A local high experienced staff Economic relative stability C. II Green municipal funds in Canada 1. Presentation 108. The Green Municipal Funds provides the Canadian municipal governments with tools to implement innovative environmental projects since the yeear 2000. a. Donors 109. On the initiative of the Federation of Canadian Municipalities (FCM), the Canadian Federal Government signed in 2000 an agreement with the Federation of Canadian Municipalities in which it has engaged itself to bring 125 MCA$ (around 80 M€) to Green Municipal Funds (GMF). The endowment was doubled to 250 MCA$ in the federal 2001-2002 budget. b. Fund Management 110. The FCM manages the Green Municipal Funds through its Centre for Sustainable Community Development (20 persons). The agreement with the federal government imposes a limitation of the annual administrative costs at 5 MCA$ (3,2 M€). They are financed by the interest rates. Appendix 11 - 17 c. Beneficiaries / projects 111. Beneficiaries: The Funds are open to all Canadian municipalities (even those not belonging to the federation) and their public sector or private-sector partners. The partnership between a municipality and a private organisation has to be clearly stated either by the financial participation of the municipality in the investment, by its participation in the input (for instance by procuring a land for a wind farm project) or by its participation in the output (by contracting a long term renewable electricity purchase agreement with the firm for example). 112. Projects: the five eligible sectors are: energy and energy services, water, solid waste management, sustainable transportation services and technologies and integrated community projects. The project must significantly improve environmental performance or energy efficiency in these areas of municipal infrastructure. 2. 2Mechanism description a. Project Selection 113. Completed applications are reviewed by a Peer Review Committee of two or three independent experts in the field addressed by the project. These experts come from government, institutions and/or the private sector. A system of quotation ranging from 0 to 1000 gives a mark to each project. Criteria as environmental improvement (150 points), replication possibilities (100 points), partnership quality, innovation (230 points) intervene in the notation. Most of the time, projects with a mark superior to 600 points are recommended by staff. Recommendations from the FCM’ staff are made to the 15-member Green Municipal Funds Council. The Council includes representatives from the Government of Canada (one-third), FCM (one-third), and non-governmental institutions and the private sector (one-third). The council supports or rejects staff recommendations. Final approval rests with the Board of Directors of FCM. In theory, not more than 30% of the fund can be allocated to one of the 5 eligible activity sectors. b. 114. Mode of intervention Two types of funds with similar objectives and criteria: The Green Municipal Enabling Fund (GMEF): it provides up to 100 000 CA$ (64 000 €) to cover half the cost of feasibility studies for innovative environmental projects. The fund helps the Canadian municipalities and their public or private-sector partners to determine the technical, environmental and/or economic feasibility of municipal projects. The total amount of GMEF is 50 MCA$ (32 M€). The government should stop providing the fund in 7 or 10 years. • The Green Municipal Investment Fund (GMIF): GMIF has two main products: the primary product is loans and the secondary product is grants. Green Municipal Funds Council decided as a policy to direct half of the Fund’s capital in loans to municipalities and the other half towards the private sector. The total federal government contribution to GMIF is 200 MCA$ (128 M€). It is revolving and fixed for an undetermined period. There are three types of loans: 115. Direct loans to municipalities with very low risk at the preferred interest rate of 1,5% below the Government of Canada bond rate (which is the Country’s lowest rate: currently 4,8% per annum for a 10 year term). • 116. Corporate loans to private-sector partners; Appendix 11 - 18 117. Project finance through loans: this type of loan is more risky as, in case of project failure, the project promoter is not bound to reimburse the loan. The interest rate is thereby higher. 118. GMIF finances up to 25% of the capital costs of a qualifying project. GMIF can also provide loan guarantees. Loan payback periods may range from four to ten years. 119. If money is still available after the covering of the administrative costs from the interest rates, the remaining is dedicated to the allocation of grants for GMIF Pilot Projects: environmental projects that are highly innovative, but have a payback period in excess of 10 years. Special grant funding permits these projects to be structured in ways that offer acceptable payback periods and levels of risk. 120. The Fund is constantly seeking to develop new loan products to overcome barriers to the implementation of valuable projects. For example, it is developing two other special tools: • • The “Emission Reduction Rights based financing”: loans will be reimbursed not in terms of financial flux but by transferring to GMIF the carbon credits gained thanks to the project’s emission reductions. GMIF will sale those credits to reimburse the loan and the interest rate. The remaining proceeds from the sale of the credits will be to the benefit of the project sponsor. The “Reinvestment loans”: the Fund can lend to projects which are not a priori innovative if the municipality commits itself to place the economic savings earned by the difference between GMIF’s interest rate and another financial institutions interest rate into small but very innovative projects. c. Project illustrations 121. City of Ottawa – Integrated Facility Retrofit Pilot – Phase I: Retrofitting of 49 city facilities, implementing alternative technology applications such as solar hot water and space heating, solar wall technology, strategic planting, shading and green roofs, rainwater collection, combined heat and power systems. 122. The city has already achieved a 17% reduction in energy use in its facilities and has reduced CO2 emissions by 29% since 1990. The retrofit measures will pay for themselves in approximately 10 years and will cut energy use by 38% over 1990 levels. 123. City of Bécancour – Modernization of the Public Lighting System: this project will replace over 1 000 existing high-pressure sodium street lights in the City of Bécancour with newly developed induction lamps. This will cut maintenance costs and reduce electrical consumption, for street lighting by more than 35%. The new system promises 100 000 hours of service compared with 24 000 hours for the high-pressure sodium lights. d. Follow-up 124. After approbation of the project, a standardised convention is signed between the GMIF and the municipality (or private organisation) in which a few conditions are settled. Among them, the municipality has the obligation to sign a “Project Results Reporting Agreement” in which it commits itself to create a monitoring system, tools to check the results of the project and to report one year after the project achievement. A grant of 30 000 CA$ (19 000 €) is provided by the GMIF for this purpose. Staff from the GMIF is especially dedicated to the supervision of the evaluation process . 3. • Key findings Self-financing: the fund functioning is financed by the investment returns. Appendix 11 - 19 • • • Highly experienced staff: half of the staff has a specialisation in financial issues and the other half in environmental issues. A thruthful fund manager Need to find a good “niche”: The GMIF must offer really interesting products (very low interest rates or intervention into risky innovative projects) to attract municipalities or private partners to compete with offers from other financial institutions. D. III A revolving fund for energy conservation in Thailand 1. Presentation 125. The Thai Revolving Fund for Energy Conservation promotes and develops investment in energy conservation projects since 2002. i. Donors 126. Department of Alternative Energy Development and Energy Efficiency (DEDE) received approval from the ENCON Fund Committee to use 2 billion Baht (approximately 43 M€) to set up an EE Revolving Fund. The ENCON Fund is a special fund created by Encon Act 1992 by collecting small taxes from the use of benzene, diesel, fuel oil and kerosene. At present, the Fund has been accumulated to the amount of around 17 billion Baht (app. 365 M€). ii. Fund Management 127. The Department of Alternative Energy Development and Energy Efficiency (DEDE). A couple of people from the DEDE are dedicated to manage the Fund and cooperate with the participating financial institutions. As for the financial institutions, they manage risks related to the loans, they realise the book-keeping, the credit checking and the customers’ selection. iii. Beneficiaries / projects 128. Beneficiaries: Buildings and factories classified as Designated Facilities (buildings and factories) according to the 1992 ENCON Act. They are defined as facilities which have an installed capacity of 1175 kVA of transformers and have a peak demand of 1 MW and above, consume 20 million MJ or more of electricity annually, use steam power and other nonrenewable energy sources. These Designated Facilities have to comply with government regulations requiring them to manage their energy use, including lighting energy, air-conditioning energy, and the building envelope. 129. Projects: Improvement in combustion efficiency of fuels, protection of energy loss, recycling of energy wastes, substitution of one type of energy by another type, more efficient use of electricity through improvements in power factors, use of energy - efficient machinery or equipment as well as use of operation control systems and materials that contribute to energy conservation, etc. 2. Mechanism description a. • • Loan modalities Term of loan: Not more than 7 years and/or the simple payback period (SPP) shall not be more than 7 years Maximum loan size: 50 MBaht per project (1,1 M€). No minimum size for the investment projects has been set. Appendix 11 - 20 Maximum interest rate: Not more than 4% per year (amount charged by financial institute to borrower). This interest rate is intended to cover the financial institutes' management fees and risk associated with the loan. 130. Costs included in the EE Loan: equipment and installation costs, consulting fee for design, supervision, and guarantee of savings (e.g., for an energy service company, or ESCO), construction of a gas pipeline from the main pipeline to the Designated Factory or Building, transportation and demolition costs, import duties and taxes, and value-added tax (VAT) for the above costs. • b. Project Selection 131. Interested owners of Designated Facilities need to request a loan application form through a participating financial institute. Financial institutes approve the EE project loans according to their regular lending criteria and perform an initial financial analysis of the project. DEDE considers and approves projects according to the its criteria and conditions. 3. • • • Key findings The participation of banks is a key point of the whole scheme as the objective of the Fund is to give the financial institutions experience on energy conservation projects. In the middle and long term, DEDE hopes that this mechanism would function with a lesser public support. A favourable legal framework: the Energy Conservation Promotion act (ENCON Act) has fostered energy efficiency awareness in factories and buildings. A tough competition: saving costs has become a key action to increase competitiveness. Appendix 11 - 21 IV. • MAIN REFERENCES Rural electrification www.rsvp.nrel.gov/rsvp resum.ises.org 2000, Energy Services for the world’s poor, World Bank, ESMAP, Energy development Report 2000 Energy conservation funds • www.fondelec.com www.fcm.ca 2003, FCM, Green Municipal Annual Report 2001-2002 • Institutions to be interviewed September 2002, UNEP Finance Initiatives, Financing Sustainable Energy Directory Appendix 11 - 22 V. FINANCIAL INSTITUTIONS PROVIDING RENEWABLE ENERGY FINANCE 1 E+Co FUND MANAGER Source of Funds: Multilateral and Foundations FUNDS AND FINANCING TO SERVE All, Energy Efficiency GEOGRAPHIC FOCUS Asia, Africa, Central and South America DURATION 2-5 years TERMS Provide early stage risk capital. Will only work with projects that have a clear social and environmental benefit. Must also be commercially viable (i.e. competitive with conventional alternatives). Must have potential to be self sufficient in order to attract private investment in the next stages of the development cycle. COMMENTS E+Co is a US based group focused on the provision of business development services and seed capital. Their interest is in supporting indigenous enterprises that are working to provide those in developing countries with a reliable and affordable source of clean energy. To date E+Co has provided such support to over 60 enterprises in Africa, Asia and Latin America. Typically, investment (debt or equity) is limited to US$250,000, but the company is different from other sources of funding because it is willing to take a higher (but measured) investment risk by providing a combination of business services and seed capital during the earliest stages of an enterprise’s growth. E+Co believes that the combination of business services, seed capital and commitment to local entrepreneurs is the key to success. E+Co comanages UNEP’s Rural Energy Environment and Development programmes (see www.areed.com) in Africa, Brazil, and China. CONTACT Phil Larocco 383 Franklin Street, Bloomfield, New Jersey USA Tel: +1 973 680 9100 / Fax: +1 973 680 8066 [email protected] www.energyhouse.com Appendix 11 - 23 2 Fundacja Ekofundusz SOURCE OF FUNDS Debt-for-environment swaps FUNDS AND FINANCING TO SERVE All types GEOGRAPHIC FOCUS: Central and Eastern Europe COMMENTS The EcoFund is a foundation established in 1992 by the Minister of Finance for the purposes of the effective management of funds obtained through the conversion of a part of Polish foreign debt with the aim of supporting environmental protection-related endeavours (so-called debt forenvironment swaps). To date, Polish debt-for-environment swap decisions have been taken by the United States, France, Switzerland, Italy, Norway and Sweden; hence the EcoFund is managing funds provided by all the aforementioned countries (a total of USD 571 million to be spent in the years 1992-2010). The task of the Foundation is to co-fund environmental protection-related projects which not only are of crucial importance on a regional or national scale, but also influence the process of achieving environmental objectives recognised as priorities by the international community on a global as well as European level. Such EcoFund specifics, which distinguish the Foundation from other funds providing support to environmental protection-related investment in Poland, exclude the possibility of providing co-funding to undertakings targeting the solving of local problems only. Another task of the Foundation is the transfer of the best technologies from donor countries to the Polish market, as well as the stimulated development of the Polish environmental protection industry. CONTACT Bracka 4 St., 00-502 Warsaw, Poland Tel: +48 (22) 621 27 04 / Fax: +48 (22) 629 51 25 Climate protection [email protected] Air protection [email protected] Appendix 11 - 24 3 FMO SOURCE OF FUNDS Private, public FUNDS AND FINANCING TO SERVE All types GEOGRAPHIC FOCUS Global COMMENTS FMO promotes sustainable development of the private sector in developing countries. Realising sufficient returns on its risk capital is a prerequisite. Only then can FMO continue to act as an effective risk partner and ensure the continuity of the organisation. These two aims – sustainable development and financial returns – are therefore inextricably linked. FMO has an investment portfolio of € 1.79 billion, making it one of the largest bilateral development banks. FMO has excellent access to capital markets, in part attributable to the Triple A status that was conferred in 2000. FMO’s core activity is to provide local businesses and financial institutions in developing countries with long-term financing, ranging from loans to equity investments in enterprises. FMO does this on market terms and only when financing by commercial financiers is either unavailable or inadequate. Its present portfolio covers 78 countries. CONTACT Mrs. B. Hamelynck Postbus 93060, 2509 AB Den Haag, NL Tel: +31 (0) 70 314 96 96 / Fax: +31 (0) 70 314 97 64 [email protected] www.fmo.nl Appendix 11 - 25 4 Global Environment Fund FUND MANAGER Source of Funds: The Fund is partially capitalised with proceeds raised through the issuance of promissory notes guaranteed by the Overseas Private Investment Corporation. FUNDS AND FINANCING TYPE Private equity, project finance, legal structuring, corporate governance, environmental technologies, and business enterprise development. FUNDS AND FINANCING TO SERVE Clean energy, potable water, wastewater treatment, resource recovery, natural gas development and distribution, sustainable forestry, and healthcare infrastructure sectors. GEOGRAPHIC FOCUS Latin America, Asia, Eastern Europe, Africa, North America COMMENTS Global Environment Fund is currently managing a group of private equity investment funds, including: two funds dedicated to basic environmental infrastructure in emerging markets and a U.S. fund focusing on technologies that promote improved efficiency in industrial processes, energy generation and telecommunications fields. In addition, through its own capital investment vehicle, Global Environment Capital Company, LLC, GEF develops, finances, and takes controlling interests in principal investments for its own account. The capital available for investment through GEF’s equity investment programmes exceeds $300 million. CONTACT Benjamin Sessions, Global Environment Fund 1225 Eye Street NW, Suite 900, Washington, DC 20005 USA [email protected] Tel: +1 (202) 789-4500 / Fax: +1 (202) 789-4508 www.globalenvironmentfund.com Appendix 11 - 26 5 IFC Photovoltaic Market Transformation Initiative FUND MANAGER Impax Capital and IT Power SOURCE OF FUNDS GEF FUNDS AND FINANCING TO SERVE: Solar GEOGRAPHIC FOCUS Africa, Asia COMMENTS The IFC/GEF Photovoltaic Market Transformation Initiative (PVMTI) is a strategic intervention to accelerate the penetration of photovoltaics (PV) as a renewable and emission-free source of electric power in developing countries, especially for offgrid applications. The Global Environment Facility (GEF) has approved $30 million for the project, of which $25 million is intended for concessional investments in PV market development projects in India, Kenya, and Morocco. The remaining $5 million is reserved for implementation costs. PVMTI is expected to have a significant impact in increasing sales of PV in-country, but its main impact is expected to be in facilitating the success of several ‘beacon companies’ that will provide examples of viable PV businesses. The successful investments will demonstrate financial structures and business approaches that work, thus forming the basis for long-term sustainability and replicability of projects. CONTACT Daniel Edmonds Broughton House, 6-8 Sackville Street, London W1X 1DD, United Kingdom Tel: +44 207 434 1122 / Fax: +44 20 7437 1245 [email protected] www.impax.co.uk Appendix 11 - 27 6 (REEF) IFC Renewable Energy and Energy Efficiency Fund FUND MANAGER EIF Group, Environmental Enterprises Assistance Fund, Energy House Capital Corp. (see E+Co) SOURCE OF FUNDS GEF FUNDS AND FINANCING TO SERVE All types GEOGRAPHIC FOCUS Developing countries COMMENTS The $65 million Renewable Energy and Energy Efficiency Fund (REEF) is an investment fund targeting renewable energy and energy efficiency projects in developing countries. REEF targets investments below 50 Megawatts (MW) and small-scale PV operations. REEF’s investments may take a variety of forms including common and preferred stock, partnership and limited liability company interests, and convertible or subordinated debt with equity warrants/options. REEF may also make loans to projects or project sponsors on a bridge or permanent basis. Equity transactions are typically structured so that the entrepreneur retains the majority of shares and/or management of the company. CONTACT Projects over 7MW: Attn: K.R. Locklin EIF Group 727 15th St., NW – 11th floor, Washington, DC 20005 USA Tel: +1 (202) 783-4419 / Fax: +1 (202) 371-5116 [email protected] Off-Grid Projects & Development Projects < 7MW: Attn: Phil LaRocco Energy House Capital Corp. (see E+Co) 383 Franklin Street, Bloomfield, NJ 07003 Tel: +1 (973) 680-9100 / Fax: +1 (973) 680-8066 [email protected] www.ifc.org/enviro/EPU/Renewable/REEF/reef.htm Appendix 11 - 28 7 (PPIAF) Public-Private Infrastructure Advisory Facility SOURCE OF FUNDS ADB, Canada, Germany, France, Italy, Japan, Norway, Netherlands, Sweden, Switzerland, UK, USA, UNDP, World Bank FUNDS AND FINANCING TO SERVE Technical assistance GEOGRAPHIC FOCUS Developing countries COMMENTS PPIAF pursues its mission through two main mechanisms: - channeling technical assistance to governments in developing countries on strategies and measures to tap the full potential of private involvement in infrastructure - Identifying, disseminating, and promoting best practices on matters related to private involvement in infrastructure in developing countries. PPIAF can finance a range of country-specific and multi-country advisory and related activities in the following areas: - Framing infrastructure development strategies to take full advantage of the potential for private involvement. - Building consensus for appropriate policy, regulatory, and institutional reforms. - Designing and implementing specific policy, regulatory, and institutional reforms. - Supporting the design and implementation of pioneering projects and transactions. - Building government capacity in the design and execution of private infrastructure arrangements and in the regulation of private service providers. CONTACTS Regional Coordination Office-Eastern/Southern Asia c/o World Bank Liaison Office 10 Shenton Way, #15-08 MAS Building Singapore 079117 Tel: 65 6225 0829 Fax: 65 6324 4615 Email: [email protected] Appendix 11 - 29 8 Société d’INfrastructures Collectives (SINCO) SOURCE OF FUNDS All types FUNDS AND FINANCING TO SERVE Collective infrastructure GEOGRAPHIC FOCUS Mali and Burkina Faso COMMENTS SINCO is an established cooperative company that aims at providing communities with infrastructure, such as electricity local networks, or water and telecom infrastructures. It has adopted a newly introduced legal framework in france named SCIC (Sociétés Coopératives d'Intérêt Collectif) that permits to bring together public and private actors that usually don’t have formal links, such as service providers and consumers.have not was created in France in 1999, one of these cooperatives, SINCO, operating in the rural electrification field in Senegal and Mali, shall be interviewed to gain from its experience. In the field of rural electrification, its strategy is to build local networks aiming at attracting the public electricity operator in the mid term. CONTACT Pierre Saclier Ouagadougou - 565 Avenue de Loudun PO Box: 11 BP 452 CMS OUAGADOUGOU Tel: (226) 30 14 79 / 63 34 00 E-mail: [email protected] Appendix 11 - 30 9 Inter American Development Bank SOURCE OF FUNDS IADB member countries and capital markets GEOGRAPHIC FOCUS Central and South America COMMENTS The Bank will actively promote energy development in the region by means of loans and technical cooperation for technically, socio-economically, and financially feasible projects aimed at: • developing alternative sources of energy, especially from renewable resources, • reducing and/or replacing the utilization of hydrocarbons in the production of energy, • promoting the efficient use of energy, • creating and/or strengthening the institutional and technological base of the energy sector. CONTACT Daniel Sheppard, Project Specialist 1300 New York Avenue, NW / Washington, DC 20577 USA Tel: +1 (202) 623-2708 [email protected] Appendix 11 - 31 10 Triodos Renewable Energy for Development Fund SOURCE OF FUNDS Cordaid, Dutch Ministry of Foreign Affairs, Hivos Foundation, Joyce Mertz-Gilmore Foundation, Rockefeller Brothers Fund, Rockefeller Foundation, Swiss State Secretariat of Economic Affairs, Stichting Triodos Fonds, World Bank FUNDS AND FINANCING TO SERVE Solar (photovoltaic and thermal) systems, Small-scale wind turbines, Biomass, Small-scale hydro projects, Hybrid projects GEOGRAPHIC FOCUS Developing countries COMMENTS Triodos Bank is a social bank lending only to organisations and businesses with social and environmental objectives. Triodos Renewable Energy for Development Fund is a source of finance and business development support to private sector enterprises, financial institutions and organisations that facilitate the introduction of and widespread access to off grid renewable energy services to underserved people in developing countries. CONTACT Triodos Bank NV Utrechtseweg 60, 3700 AB Zeist, The Netherlands Tel: +31 30 693 65 00 / Fax: +31 30 693 65 55 Appendix 12 - 1 APPENDIX 12 PERSONS CONTACTED IN THE COURSE OF REEP ACTIVITIES Appendix 12 - 2 FIJI Name Position Address Contact Director Barefoot Power Pty. Ltd. 8/20 Pine St. West Hobart Tasmania 7000, Australia Tel. [613] 6231 0251 Fax. [613] 6231 0591 Email: [email protected] Mr. Tevita Banuve Chief Executive Officer (since replaced) Ministry of Finance and National Planning Ra Lalabalavu House Victoria Pde PO Box 2212 Suva, Fiji Tel. [679] 331-3411 Fax. [679] 330 0834 Email: [email protected] Mr. .Tukana Bavoro Managing Director Fiji Development Bank 360 Victoria Parade Suva, Fiji Tel.: [679] 331 4866 Mr. John Bennett Local oil producer/businessman Itu'muta Rotuma, Fiji Email: [email protected] Mr. Harry Andrews H.E. Ambassador Eugène Berg Ambassador of France Mr. Shlendra Prasad Bilash Economic & Aid Researcher Ms. Shivangini Chand Bishwa Project Engineer Mr. Biulailai Biutiviti Price Control Officer Ms. Carolyn Blacklock Manager, Rural Banking, Mr. Ray Bower General Manager Dominion House Thomson street Private Mail Bag Suva, Fiji Embassy of Japan GPO Box 13045 Suva, Fiji Fiji Electricity Authority 2 Marlow St. Suva, Fiji Prices and Incomes Board (PIB) PO Box 1312 Suva, Fiji ANZ Banking Corporation ANZ building, 25 Victoria Parade Advanced Power Systems, Fiji, Ltd. PO Box 10376 Nadi Airport, Fiji Tel. [679] 331 22 33 Fax. [679] 330 18 94 Email: [email protected] Tel. [679] 330 4633 Tel. [679] 331 3333 Email: [email protected] Tel. [679] 330 9266 Fax. [679] 330 9271 Email: [email protected] Tel. [679] 321 3702 Tel. [679] 672 1160 Email: [email protected] Lecturer in Chemistry USP Chemistry Room 002 Laucala Bay Campus Suva, Fiji Tel. [679] 331 3900 Email: [email protected] Mr. Simon Boxer Director PacifcFree Energy Ltd. PO Box 3520, Lami Suva, Fiji Tel. [679] 336 1849 fax [679] 336 1849 Mobile [679] 922-3817 Email: [email protected] Mr. Ross Brodie Managing Director Hydro Development Ltd. PO Box 3258 Lami, Fiji Tel. [679] 330 1882 Fax. [679] 330 0866 Email: [email protected] Dr. Vincent Bowry Appendix 12 - 3 Name Position FIJI (Continued) Address Contact Appliance labelling & efficiency standards resident consultant [AusAID/AGO) c/o Intiyaz KhanEnergy Efficiency OfficerDepartment of Energy79 Ratu Mara RoadGPO Box 2493Samabula, Fiji Tel. [679]448 6006Fax. [679] 448 6301Email: [email protected] Mr. Sekope Bula Coconut Technical Specialist Coconut Industry Development Authority (CIDA) 1st Floor Garden City Raiwai PO Box 5160 Suva, Fiji Tel. [679] 327 5030 Fax. [679] 327 5035 Email: [email protected] Mr. David Campbell Managing Director Ms. Nalini Chand Graduate Engineer Mr. Alvin Chandra Environment / GEF / Energy Associate Mr. David Brunoro, Ms.Yogita Chandra Mr. Gordon Chang CocoFresh (Fiji) Ltd PO Box 122 Savusavu, Fiji Fiji Electricity Authority 2 Marlow St. Suva, Fiji UNDP Fiji Tower Level 6 Reserve Bank Bldg. Pratt Street Suva, Fiji Email: [email protected] Tel. [679] 331 2386 Email: [email protected] Tel. [679] 331 2500 Fax. [679] 330-1718 Email: [email protected] PIEPSAP Project Officer PIEPSAP-SOPAC Mead Road Nabua Private Mail Bag Suva, Fiji Tel. [679] 338 1377 Fax. [679] 337 0040 Email: [email protected] Deputy Executive Director Pacific Power Association Private Bag Naibati House Goodenough St. Suva, Fiji Tel. [679] 330 6022 Fax. 330 2038 Email: [email protected] Tropik Wood Industries Ltd. Private Mail bag Lautoka, Fiji Fiji Chamber of Commerce & Industry 178 Lakeba St. Samabula, Fiji Office: [679] 666 1388 Email: [email protected] Mr. Alec Chang CEO Mr. Humphrey Chang V/President Mr. Chris Cheatham Consultant 10 Allardyce Road Suva, Fiji Tel. [679] 330 4524 Fax. [679] 330 4524 Email: [email protected] Manager Telesource (Fiji) Ltd. 25 Gorrie St. GPO Box 17289 Suva, Fiji Tel. [679] 331 3750 Fax. [679] 331 3003 Email: [email protected] Mr. Kord Christianson Tel. [679] 338 5788 Appendix 12 - 4 Name Position FIJI (Continued) Address Contact Fiji Representative, Tinytech Oil Mills, India PO Box 11098 Laucala Beach Estate Suva, Fiji Tel. [679] 359-3272 Mobile: [679] 999-6550 Email: [email protected] Mr. Bruce Clay Managing Director Clay EngineeringLot 2 Wailada SubdivisionLamiP.O. Box 2395Government BuildingsSuva Tel. [679] 336 3880Fax. [679] 336 3882Email: [email protected] Mr. Jan Cloin Renewable Energy Adviser SOPAC Mead Road Private Bag Suva Tel. [679} 338-1377 Email: [email protected] Ms. Marylyn Cornelius Assistant Resident Representative (GEF) Mr. Sitiveni Daunakamakama Senior Lecturer, Electricity Mr. Sunil de Silva Chief Financial Officer Mr. Ian Chute UNDP, Suva Central Bank Building Private Bag Suva, Fiji Fiji Institute of Technology Ratu Mara Road Samabula, Fiji Fiji Electricity Authority 2 Marlow St. Suva, Fiji Tel. 331 2500 Tel. [679] 338 1044 Email: [email protected] Tel. [679] 331 1818 Email: [email protected] Instructor Centre for Appropriate Technology and Development Nadave Private Bag Nausori, Fiji Tel. [679] 347 7699 Fax. [679] 347 9776 Email: [email protected] Manager EU-REP-5 IT Power level 2 Garden City Raiwai Suva, Fiji Tel. [679] 327 5047 Fax. [679] 327 5046 Mobile. [679] 990 4154 Email: [email protected] Minister for Works & Energy Ministry of Works & Energy, Nasilivata House Ratu Mara Road Samabula Suva, Fiji Tel. [679] 338 4111 Mr. Peni Drodrolagi Director Organic Pacific ltd. PO Box 12813 Suva, Fiji Ms. Koin Etuati Climate/Energy Campaigner Greenpeace Victoria Pde. Suva, Fiji Mr. Peni Delai Mr. Anthony Derrick Hon Col. Savenaca Draunidalo Tel. [679] 992-0504 (mobile) Fax. [679] 330 5693 Email: [email protected] Tel.[679] 331 2861 Fax. [679] 331 2784 Email: [email protected] Appendix 12 - 5 Name Position FIJI (Continued) Address Contact Senior Training Officer (Electronics/Electrical) Training & Productivity Authority of Fiji (TPAF) Lot 1 Beaumont Rd Narere PO Box 6890 Nasinu, Fiji Tel. [679] 339 2000 ext 260 Email: [email protected] Mr. Roderic Evers Pacific Regional Entrepreneurship Specialist UNDP FijiPacific Subregional Centre2nd Floor, YWCA BuildingRatu Sukuna ParkPrivate Mail BagSuva, Fiji Tel. [679] 330 0399 Fax. [679] 330 1976 Email: [email protected] Mr. Rod Evers Sustainable Livelihoods Programme Mr. Paul Fairbairn Programme Manager, Community Lifelines Programme Dr. John Faitaki Chairman Mr. Jimione Fereti Scientific Officer Mr. Tulemaaga Fereti Filipe Petroleum and Environment Consultant Ms. Sharyne Fong Asst. General Manager Support Services Justin Fuller General Manager Operations Mr. Wade Evans Mr. Thomas GloerfeltTarp Head Dr. Hugh Govan Sustainable Livelihoods Programme, UNDP Mr. Goeff Green Director UNDP YWCA building, 2nd level, Sukuna Park Suva, Fiji SOPAC Mead Road Suva, Fiji Rotuma Investment Ltd., Fiji 199 Ratu Sukuna Road Suva, Fiji Department of Energy (DOE) Ratu Mara Road Samabula GPO Box 2493 Suva, Fiji 3a Stirling Place Lami, Fiji Colonial National Bank 1st. Flr. Parade Bldg. 67-69 Victoria Pde. Suva, Fiji Tropik Wood Industries, Drasa Private Mail Bag Lautoka, Fiji Project Administration Unit –ADB South Pacific Subregional Office Level 5 Ra Marama Bldg. 91 Gordon St. Suva, Fiji YWCA building, 2nd level, Sukuna Park Suva, Fiji Green Consultancy ltd. PO Box 300 Suva. Fiji Tel. [679] 331 2250 Tel. [679]338 1377 Fax. [679] 337 0040 Email: [email protected] Tel.[679] 330 4958 Fax.[679] 331 4669 Tel. [679] 338 6006 Fax. [679] 338 6301 Email: [email protected] Email: [email protected] Tel. [679] 321 4169 Fax. [679] 330 4122 Email: [email protected] Tel. [679] 666 1388 Fax. [679] 1561 Tel. [679] 331 8101 Fax. [679] 331 8074 Email: [email protected] Web: www.adb.org/spso Tel. 331 2250 Tel. [679] 330 8849 Mobile: [679] 929 9260 Email: [email protected] Appendix 12 - 6 Name Mr. Rafiq Hamid Position FIJI (Continued) Address Transport Pool Public Works Department Mechanical Section Walu Bay Suva, Fiji Regional Secretariat, Foundation for the Peoples of the South Pacific International 6 Des Vouex Road Private Fiji Broadcasting Corp.. PO Box 334 Suva, Fiji ADB Subregional Office 91 Gordon St. Suva, Fiji Contact Tel. [679] 330 2211 Mr. Rex Haroi Executive Director Mr. Malcolm Harrison Businessman Mr. Francis Herman CEO Dr Sophia Ho Principal Country Programs Specialist Mr. Rex Horoi Executive Director Foundation for the Peoples of the South Pacific International6 Des Voux RoadSuva, Fiji Tel. [679] 331 2250 Fax. [679] 331 2298Email: [email protected] Managing Director Natural Power Ltd (subsidiary of Asia Pacific Resources, Ltd.) Savusavu, Fiji Email: [email protected] Ms. Sirpa Jarvenpaa Regional Director ADB Subregional Office 91 Gordon St. Suva, Fiji Tel. [679] 331 8101 Email: [email protected] Mr. Peter Johnston REEP consultant 111 Prince's Road Samabula, Fiji Tel. [679] 337 0861 Email: [email protected] General Manager Management and Technology TPAF PO Box 6890 Nasinu, Fiji Tel. 339-2000 x 305 Fax.339 8973 Email: [email protected] Acting Senior Energy Analyst (Renewables) Department of Energy (DOE) Ratu Mara Road Samabula GPO Box 2493 Suva, Fiji Tel. [679] 338 6006 Fax. [679] 338 6301 Email: [email protected] Coconut Development Specialist Coconut Industry Development Authority (CIDA) 1st Floor Garden City Raiwai PO Box 5160 Suva, Fiji Tel. [679] 327 5030 Fax. [679] 327 5035 Email: [email protected] Mr. Matthew Huggan Mr. Jogesh Karan Mr. Paula Katirewa Mr. Tevita Kete Tel. [679] 331 2250 Tel. [679] 992 1294 Tel. [679] 331 4333 Fax. [679] 330 2643 Email: [email protected] Tel. [679] 33 8101 Email: [email protected] Appendix 12 - 7 Name Position FIJI (Continued) Address Mr. Intiyaz Khan Senior Energy Analyst (Energy Efficiency) Mr. Matai Korosaya Business Banking Dr. Sander Kroes Technical Manager Ms. T. Kubo AID Coordinator Hon. Ratu Jone Yavala Kubuabola Minister of Finance Mr. Davendra Kumaran Deputy Secretary Mr. Paula Kunabuli Acting Commissioner Eastern Ms Ranjana lal Training OfficerEnvironmental Management Department of Energy 79 Ratu Mara Road GPO Box 2493 Samabula, Fiji Colonial Bank Private Mail Bag Suva, Fiji Fiji Sugar Corporation Weatern House Private Mail Bag Lautoka, Fiji Japanese Embassy Floor 2 Dominion House Suva, Fiji Ministry of Finance and National Planning Ra Lalabalavu House Victoria Pde PO Box 2212 Suva, Fiji Ministry of Works & Energy, Nasilivata House Samabula Suva, Fiji Ministry of Regional DevelopmentOffice of the Commissioner Eastern 61 Carnavon St. Suva, Fiji Trade and Productivity Authority of Fiji (TPAF) Lot 1 Beaumont Rd Narere PO Box 6890 Nasinu, Fiji Contact Tel. [679]448 6006 Fax. [679] 448 6301 Email: [email protected] Tel. [679] 321 4600 Fax. [679] 321 4497 Email: [email protected] Tel. [679] 666 2655 FAX. [679] 666 4685 Email: [email protected] Tel. [679] 330 4633 Tel. [679] 330 7011 Tel. [679] 338 4111 Email: [email protected] Tel. [679] 331-8299 Fax. [679] 331 8290 Tel. [679] 339 2000 ext 289 Email: [email protected] Area Manager (North) Shell Oil, Fiji Rona Street Walu Bay PO Box 168 Suva, Fiji Tel.[679] 322 9209 Mr. Waqa Lepolo Transport Pool Public Works Department Mechanical Section Walu Bay Suva, Fiji Tel. [679] 330 2211 Mr. Jeff Lieu Sustainable Livelihoods Programme, UNDP YWCA building, 2nd level, Sukuna Park Suva, Fiji Tel. 331 2250 Email: [email protected] Mr. Railala Ligabalavu Legal Officer Mr. Mataiasi Lomaloma Deputy Secretary Mr. Daniel Lal Ministry of Health PO Box 2223 Suva, Fiji Ministry of Fijian Affairs PO Box 2100 Suva, Fiji Tel. [679] 322 1445 Tel. [679] 331 3400 Email: [email protected] Appendix 12 - 8 Name Mr. Moses Lum Position FIJI (Continued) Address Senior Electrical Engineer Mr. Asala Makabuna Coconut Development Officer Gagaj Ljimo Managreve Chairman Dr. Safu Manueli Superintendent/Medical Officer Mr. Carl Mar Manager, Property Investments Mr. Josiah Mar Chairman of the Board Mr. Robert Mario General Manager Mr. Rupeni Mario Energy Adviser Mr. Josua Mataika Deputy Director Mereoni Mataika Project Technician – Coral Gardens Initiative Project Mr. Anare Matakiviti PIEPSAP Energy Adviser Ratu Suliano Matanitobua Assistant Minister For Fijian Affairs Mr. Nemani Mati Chief Asst Sec (Economic Services) Public Works Department Mechanical Section Walu Bay Suva, Fiji Coconut Industry Development Authority (CIDA) 1st. Floor Garden City Raiwai, Suva Rotuma Island Council Rotuma, Fiji Rotuma Hospital Rotuma, Fiji Fiji National Provident Fund (FNPF) Bldg. 2 Level 3 Provident Plaza Suva, Fiji Fiji Electricity Authority 2 Marlow St. Suva, Fiji Sisters AirCool, Fiji Lot 5 Bulei Rd Laucala Beach Estates Suva, Fiji SOPACMead RoadSuva, Fiji Fiji Institute of Technology Ratu Mara Road Samabula, Fiji Partners In Community Development Fiji (PCDF) 8 Dennison Road Suva, FIJI PIEPSAP-SOPAC Mead Road Nabua Private Mail Bag Suva, Fiji Ministry for Fijian Affairs PO Box 2100 Government Buildings Suva, Fiji Prime Minister's Office Box 2353 Government Buildings Suva, Fiji Contact Tel. [679] 330 2211 Email: [email protected] Tel. [679] 330 0503 Email: [email protected] N/A N/A Tel. [679] 330 7811 Email: [email protected] Tel. [679] 331-1133 Email: [email protected] Tel. [679] 339 6935 Fax. [679] 334 0895 Email: [email protected] Tel. [679] 338 1377Email: [email protected] Tel. [679] 338 1044 Email: [email protected] Tel. [679] 330 0392 Fax. [679] 3304315 Email: [email protected] Tel. [679] 338 1377 Fax. [679] 337 0040 Email: [email protected] Tel. [679] 331 5969 Fax. [679] 3312 530 Tel. [679] 321 1454 Fax. [679] 331 5751 Email: [email protected] Appendix 12 - 9 Name Position FIJI (Continued) Address Mr. Ross McDonald Managing Director Credit Corporation (Fiji) Ltd & Chair, Fiji Sugar Corporation Mr. Ross McDonald Chairman Mr. Andrew McGregor Team Economist Mr. Jitendra Mehta Managing Director Mr. Joe Montu Technical Officer Mr. Jared Morris Import Management Advisor Mr. Jared Morris Petroleum Import Management Adviser Mr. Rokoseru Nabalarua CEO Ms. Sainimile Nabou Manager, Planning Mr. A. Naidu Deputy CEO Ms. Vandana Naidu Senior Environmental Officer Mr. Paceli Nakavulevu Rural Electrification Unit Ms. Sala Nakeke Human Resources Development Ms. Ane Naulivou Executive Secretary Credit House Gordon Street GPO Box 14070 Suva, Fiji Fiji Sugar Corporation Ltd 3rd floor, Western House Lautoka, Fiji ADB Rural and Outer Islands Project (TA 4589FJ) Poly Products, Ltd. P.O Box 5171, Raiwaqa Suva, Fiji Islands Public Works Department Mechanical Section Walu Bay Suva, Fiji Pacific Islands Forum Secretariat Private Mail Bag Suva, Fiji Pacific Islands Forum Secretariat Ratu Sukuna Road Suva, FIJI Fiji Electricity Authority 2 Marlow St. Suva, Fiji Land Transport Authority Valelevu, Nasinu PO Box 6677 Nasinu, Fiji Office of the Prime MinisterBox 2353Suva, Fiji Department of Environment PO Box 2131 Suva, Fiji Department of Energy Private Bag 79 Ratu Mara Road Samabula, Fiji Fiji Broadcasting Ltd. 69 Gladstone Road PO Box 334 Suva, Fiji Prices and Incomes Board (PIB) PO Box 1312 Suva, Fiji Contact Tel. [679] 330 5744 Fax: [679] 330 5747 Email: [email protected] Tel. [679] 666 2655 Email: [email protected] Tel. [679] 3385 544 Fax. [679] 3370 052 Email: [email protected] Tel. [679] 330 2211 Ph. [679] 331 2600 Email: [email protected] Tel. [679] 331-2600 Email: [email protected] Tel. [679] 332 4301 Fax. [679] 321 1882 Email: [email protected] Tel. [679] 339 2166 Fax. [679] 339 5474 Email: [email protected] Tel. [679] 321 1201 Tel. [679] 331 1699 Fax. [679] 331 2879 Email: [email protected] Tel. [679] 338 6006 Email: [email protected] Tel. [679] 331 433 Fax. [679] 330-4518 Email: [email protected] Tel. [679] 330 9266 Email: [email protected] Appendix 12 - 10 Name Position FIJI (Continued) Address Contact Instructor Centre for Appropriate Technology and Development Nadave Private Bag Nausori, Fiji Tel. [679] 347 7699 Fax. [679] 347 9776 Email: [email protected] Executive Director Pacific Power Association Private Bag Naibati House Goodenough St. Suva, Fiji Tel. [679] 330 6022 Fax. [679] 330 2038 Email: [email protected] Fiji Manager Ian MaCallan Engineering Consultants 340 Waimanu Road Suva, Fiji Tel. [679] 331 3388 Fax. [679] 330 2903 Email: [email protected] Director Irwin Alsop Consulting Engineers 19 Domain Road Suva, Fiji Tel. [679] 330 2619 Email: [email protected] Adviser, Infrastructure and Energy European Commission 4th Floor Development Bank Centre, Suva Private Mail Bag GPO Suva, Fiji Phone: [679] 331 3633 Fax. [679] 330 0370 Email: [email protected] Mr. Xavier Pinsolle Attaché European Commission 4th Floor Development Bank Centre, Suva Private Mail Bag GPO Suva, Fiji Phone: [679] 331 3633 Fax. [679] 330 0370 Email: [email protected] Mr. Robert Pole Fiji Institute of Engineers Ian MaCallan Engineering Consultants 340 Waimanu Road Suva, Fiji Tel. [679] 331 3388 Email: [email protected] Mr. Amit Prakash Building Services Manager Sinclair Knight Merz Engineering Waimanu Road Suva, Fiji Tel. [679] 331 5770 Email: [email protected] Mr. Krishna Prasad Acting Chief Economic Planning Officer (Sectoral/Regional) Ministry of Finance and PlanningRo Lalabalavu HouseVictoria Parade, PO Box 2212Government BuildingsSuva, Fiji Tel. [679] 331-3411 Email: [email protected] Officer Prime Minister's Office PO Box 2353 Government Buildings Suva, Fiji Tel. [679] 321 1699 Fax. [678] 331 5751 Mr. Inosi Navoto Mr. Tony Neil Mr. Robin Palmer Mr George Peterson Mr. Horst Pilger Mr. Rakesh Prasad Appendix 12 - 11 Name Position FIJI (Continued) Address Department of Energy Ratu Mara Road Samabula GPO Box 2493 Suva, Fiji Office of the Prime Minister, Government Buildings, Suva Ministry of Finance and Planning Ro Lalabalavu House Victoria Parade, PO Box 2212 Government Buildings Suva, Fiji Ms. Susana Pulini Scientific Officer Hon. Laisenia Qarase Prime Minister of Fiji Mr. Mosese Qasenivalu Senior Economic Planning Officer (Sectoral/Regional) Ms. Rachel Three Sisters Fuel Distribution Rotuma, Fiji Mr. Krishn Raj Managing Director RES, Ltd. PO Box 5045 Labasa, Fiji Mr. Luke Ratuvuki Chief Executive Officer Ms. Asenaca Ravuvu Development Services Unit Team Leader Mr. Raj Reddy Operations Hon. Ms. Marieta Rigamoto, MP (Rotuma) Minister of Communications and Media Relations Mr. Ken Roberts Chairman of the Board Ministry of Agriculture, Sugar & Land Resettlement Private Mail Bag Raiwaqa, Fiji UNDP Fiji Tower Level 6 Reserve Bank Bldg. Pratt Street Suva, Fiji Fiji Electricity Authority 2 Marlow St. Suva, Fiji Ministry of Communications and Media Relations PO Box 2225 Government Buildings Suva, Fiji Coconut Industry Development Authority (CIDA) 1st Floor Gunu House 25 Gladstone Rd Suva, Fiji Contact Tel. [679] 338 6006 Fax. [679] 338 6301 Email: [email protected] Tel. [679] 321 1201 Tel. 331-3411 Email: [email protected] Tel. [679] 881 2618 Fax. [679] 881 5018 Mobile: [679] 996 2032 Email: [email protected] Email: [email protected] Tel. [679] 331 2500 Fax. [679] 330-1718 Email: [email protected] Tel. [679] 322 4113 Email: [email protected] Phone: [679]321-1700 Tel. [679] 330 0503 Email: [email protected] Mr. Ken A. J. Roberts Chief Executive Fiji Employers' Federation PO Box 75 Suva, Fiji Tel. [679] 331 3188 Fax. [679] 330 2183 Email: [email protected] Dr Jimmy Rodgers Senior Deputy Director General Secretariat for the Pacific Community (SPC)Private mail bagSuva, Fiji Tel. [679] 337 0733 Ext 308 Fax. (679) 337 0021 Appendix 12 - 12 Name Position Mr. Samuela Rokocakau Head of Electrical Engineering Mr. Jope Rokotuibau Training / Workshop Manager Mr Maurice Ruggiero Managing Director Mr. Tony Sansom Managing Director Ms. Makereta Saturaga Acting Director FIJI (Continued) Address Fiji Institute of Technology (FIT) PO Box 3722 Samabula, Fiji Centre for Appropriate Technology and Development (CATD) Private Bag Nausori, Fiji Tritech Consulting 152 Ragg Ave. Suva, Fiji Sansom Design Architecture 17 Naimawi St Lami, Fiji Department of Energy 79 Ratu Mara Road Private Bag Samabula, Fiji Department of Energy (DOE) Ratu Mara Road Samabula GPO Box 2493 Suva, Fiji ADB South Pacific Subregional Office Level 5, Ra Marama Building 91 Gordon St. Suva, Fiji Department of Environment PO Box 2131 Suva, FIJI Land Transport Authority Valelevu, Nasinu PO Box 6677 Nasinu, Fiji Contact Tel. [679] 338 1044 Email: [email protected] Tel.[679] 347 7699 Email: [email protected] Tel. [679] 332 3503 Email: [email protected] Tel. [679] 359 0025 Mobile: [679] 992 2120 Email: [email protected] Tel. [679]338 6006 Email: [email protected] Tel. [679] 338 6006 Fax. [679] 338 6301 Email: [email protected] Ms. Makareta Sauturaga Acting Director Ms. Tina Seniloli Assist Project Analyst Mr. Isoda Shinichi JICA Expert (EIA) Mr. Abraham Simpson CEO Ms. Suilana Siwatibau Community Development Adviser Rakesh Solanki Engineer Mr. Ron Steenbergen General Manager, Major Projects and Strategy Fiji Electricity Authority 2 Marlow St. Suva, Fiji Tel. [679] 322 3484 Email: [email protected] Mr. Eremasi Tamanisau Senior Lecturer, Electronics Fiji Institute of Technology Ratu Mara Road Samabula, Fiji Tel. [679] 338 1044 Email: [email protected] 7 Naulauvatu Road Samabula PO Box 5074 Samabula, Fiji FEA 2 Marlow St. Suva, Fiji Tel. [679] 331 8101 Fax. [679] 923 2947 Email: [email protected] Tel. [679] 333 1169 Email: [email protected] Tel. [679] 339 2166 Fax. [679] 339 5474 Email: [email protected] Tel.[679] 338 4074 Email: [email protected] Tel. [679] 999 2412 Email: [email protected] Appendix 12 - 13 Name Position FIJI (Continued) Address Cultural Adviser Rotuma Island Council Rotuma, Fiji Mr. John Teaiwa CEO Coconut Industry Development Authority1st. FloorGarden CityRaiwaiSuva, Fiji Mr. Fakmanoa Tigarea Technical Officer Mr. Ravuni Uluilakeba General Manager Marketing / Innovation Mr. Max Underhill Director Gagaj Taimanau Taukave Mr. Jone Usamate Director General Mr. William Valentine Copra Purchasing Officer Mr. Peni Valevale Director Department of Agriculture Rotuma, Fiji Fiji Electricity Authority 2 Marlow St. Suva Maxumise Ltd Level 4, FNPF Place 343 Victoria Parade PO Box 12499 Suva, Fiji TPAF Lot 1 Beaumont Rd Narere PO Box 6890 Nasinu, Fiji Punja & Sons Laucala Beach Estates Nasinu, Fiji Solar & Alternative Energy Supplies Lot 9, Kalabo Industrial Estate Nasinu, Fiji Ms. 'Emeline Veikoso Project Energy Officer SOPAC Mead Road Nabua Private Mail Bag Suva, Fiji Ms. Ruth Verevukivuki Programme Portfolio Manager UNDP Reserve Bank Building Private Bag Suva, Fiji Mr. Jovesa Vocea District Officer, Rotuma Rotuma, Fiji Mr. Anasa Vocea CEO Mr. Josefa Vosanibola Manager, Traffic Management Services Ministry of Works & Energy, Nasilivata House Samabula, Suva Land Transport Authority Valelevu, Nasinu PO Box 6677 Nasinu, Fiji Contact Tel. [679] 330 0503Email: [email protected] Tel. [679] 322 4101 Email: [email protected] Tel. [679] 330 3137 Fax. [679] 330 5510 Email: [email protected] Tel. [679] 339 2000 Fax. [679] 224 0184 Email: [email protected] Tel. [679] 327 5030 Email: [email protected] Tel. [679] 339 8006 Tel. [679] 338 1377 Fax. [679] 337 0040 Email: '[email protected] Tel. [679] 331 2500 Fax. [679] 330 1718 Email: [email protected] Tel. [679] 338 4111 Email: [email protected] Tel. [679] 339 2166 Fax. [679] 339 8925 Email: [email protected] Appendix 12 - 14 Name Position FIJI (Continued) Address National Biofuel Development Committee, Fiji PO Box 2454 Government Buildings Suva Fiji Chamber of Commerce & Industry 178 Lakeba St. Samabula, Fiji Environment Fiji Ltd. 259 Prince's Road Tamavua, Fiji Contact Mr. Charles Walker Chairman and consultant to the Office of the Prime Minister Mr. Taito Waradi President Dr. Dick Watling Managing Director Mr. Christopher J. Wensley Senior Project Implementation Specialist ADB Pacific Subregional OfficeLevel 5, Ra Marama Building91 Gordon St.Private Mail Bag-SPSOSuva, Fiji Tel. [679] 331-8101Fax. [679] 3318074Email: [email protected] Treasurer, CEO Fiji Manufacturer's Association 49 Gladstone Rd. Box 2308 Suva, Fiji Tel. [679] 331 8811 Email: [email protected] Mr. Desmond Whiteside Mr. Pita Wise Chief Planning Officer Mr. Gary Wiiseman Team Leader Mr Warren Yee Partner / Managing Director Mr. Gerhard Zieroth PIEPSAP Manager Ministry of Finance and National Planning Ra Lalabalavu House Victoria Pde PO Box 2212 Suva, Fiji UNDP Pacific Subregional Centre 2nd Floor, YWCA Building Ratu Sukuna Park Private Mail Bag Suva, Fiji Irwin Alsop Consulting Engineers 19 Domain Road Suva, Fiji PIEPSAP-SOPAC Mead Road Nabua Private Mail Bag Suva, Fiji Tel. [679] 321 1274 Tel. [679] 999 7899 Tel. [679] 338 3189 Email: [email protected] Tel. [679] 331-3411 Fax. [679] 330 0834 Email: [email protected] Tel. [679] 330 0399 Fax. [679] 330 1976 Email: [email protected] Tel. [679] 330 2619 Email: [email protected] Tel. [679] 338 1377 Fax. [679] 337 0040 Email: [email protected] Appendix 12 - 15 SAMOA Name Position Address Contact Sam I. A. Aiono Managing Director Samatic Co. Samoa Ltd. PO Box 9386 Apia, Samoa Tel. [685] 26213 Fax. [685] 25908 Email: [email protected] Mr. Nonumalo Akereisalesa Head of School (technology) Samoa Polytechnic PO Box 861 Apia, Samoa Tel. [685] 21428 Fax. [685] 25489 Email: [email protected] Mr. Patila Malua Amosa Head of Science Department National University of Samoa PO Box 1622National University of Samoa Apia, Samoa Tel (685) 20072 ext 112 Fax. (685) 20938/21440 Email: [email protected] Mr. Mulipola Ausetatio Assistant CEO, Meteorology Division Apia Observatory POBox 3020 Apia, Samoa Mr. Steve Baker General Manager Westpac Bank Samoa PO Box 1860 Apia, Samoa Manager, Research & Statistics Central Bank of SamoaCentral Bank BuildingBeach RoadPrivate BagApia, Samoa Mr. Iosefo Bourne Mr. Marc Burns Manager Mr. Atanoa Crichton Television operations Mr. Iosefatu Eti section Mr. Solomone Fifita Chief Technical Adviser Mr. Frank Fong Forestry Officer Mr. Junji Ishizuka Resident Representative ANZ Bank (Samoa) Ltd. Main Office Matafele Apia, Samoa Samoa Broadcasting Corporation PO Box 1868 Apia, Samoa Apia Observatory POBox 3020 Apia, Samoa Pacific Islands Renewable Energy Project SPREP PO Box 240 Apia, Samoa Ministry of Agriculture, Forests, Fisheries and Meteorology Private Bag Apia, Samoa JICA PO Box 1625 Apia, Samoa Tel. [685] 21711/2/3/4 Email: [email protected] Tel. [685] 20000 Fax. [685] 22848 Email: [email protected] Tel. [685] 34100Fax. [685] 20293Email: [email protected] Tel. [685] 22422 Fax. [685] 24595 Tel. [685] 22641 Fax. [685] 24789 Tel. [85] 21711/2/3/4 Email: [email protected] Tel. [685] 21929 Fax. [685] 20231 Email: [email protected] Tel. [685] 22561 Email: [email protected] Tel. [685] 22572 Fax..[685] 22194Email: [email protected] Appendix 12 - 16 SAMOA (Continued) Name Position Address Contact Mr. Thomas Jensen Sustainable Energy Adviser UNDP/UNESCO Private Bag Apia Tel. [685] 23670 Fax. [685] 23555 Email. [email protected] Mr. Marco Kappenberger President, Rotary Club PO Box 247 Apia, Samoa Tel. [685] 42014 Fax. [685] 42055 Email: [email protected] Energy Coordinator Economic Policy and Planning Division Ministry of Finance Apia, Samoa Tel. [685] 34333/34341 Fax. [685]21312/24779 Email: sili'a Kilepoa-Ualesi Mr. Poloma Komti Officer Prime Minister's Department Private Mail Bag Apia Tel. [685] 63222 Iulai Lavea-Deputy CEOMOF Deputy CEO-Ministry of Finance Ministry of Finance, Private Mail Bag, Apia Lusia Sefo Leau-Deputy CEO-MOF Deputy CEO-Ministry of Finance Ministry of Finance, Private Mail Bag, Apia Ms. Sili'a Kilepoa-Ualesi Mr. Sami Lemalu Assistant CEO-Forestry Mr. Perive Tanuvasa Lene CEO Samoa Polytechnic Mr. Andrew Ah Liki Managing Director Mr. Fuimaono Falefa Lima General Manager Angus MacDonald Graduate Engineer Alexanda (Lecki) MacDonald Managing Director Fiu Mata'ese Elisara-Laulu Executive Director/President of Sungo Ministry of Agriculture, Forestry, Fisheries and Meteorology Private Bag Apia, Samoa Samoa Polytechnic PO Box 861 Apia, Samoa Bluebird Lumber PO Box 1612 Apia, Samoa Development Bank of Samoa Private Bag Apia PO Box 576 Macdonald’s Building Apia MacDonald Distributors MacDonald Building Savalalo Apia, Samoa O Le Siosiomaga Society, Inc. PO Box 2282 2nd floor Welsley Arcade, Matalele Apia, Samoa Tel. [685] 34333/34344 Fax. [685] 21312/24779 Email: [email protected] Tel. [685] 34333/34336 Fax. [685] 21312/24779 Email: [email protected] Tel. [685] 22561 Fax. [685] 29707 Email: [email protected] Tel. [685] 21428 Fax. [685] 25489 Email: [email protected] Tel. [685] 76777 Fax. [685] 20643 Email: [email protected] Tel. [685] 22861 Fax. [685] 23888 Tel. [685] 22022 Fax. [685] 23754 Email: [email protected] Tel. [685] 20957 Fax. [685] 23754 Tel. 25697 Fax..21993 Email: [email protected] Appendix 12 - 17 SAMOA (Continued) Name Position Address Contact Mr. Mauiliu Magele Mauiliu Vice Chancellor & President Institute of Technology Samoa University Vaivase, Apia Tel. [685] 21428 Fax. [685] 25489 Paul Meredith - Assistant CEO - Economic Policy and Planning Division, MOF Assistant CEOMinistry of Finance Ministry of Finance, Private Mail Bag, Apia Tel. [685] 34333/34324 Fax. [685] 21312/24779 Email: [email protected] Dr. Jacinta Moreau Senior Lecturer Chemistry Faculty of Science National University of Samoa PO Box 1622 Apia, Samoa Tel (685) 20072 ext 140 Fax. (685) 20938/21440 Email: [email protected] Mr. Bola Nacanieli Petroleum Expert Mr. Masifanae Ngau-Chun Head of Hydrology section Mr. Ierome Paletasala Research Officer Ms. Hinauri Patana Financial Secretary Papali'I Grant Percival President Tel. [685] 54239 Tel. [685] 21711/2/3/4 Email: [email protected] Tel. [685] 34325 Fax. [685] 21312 Email: [email protected] Tel. [685] 34309 Fax. [685] 21312 Tel. [685] 24177 Fax. [685] 23380 Email: [email protected] Mr. Afoa Ray Pereira Head of Customs Private Apia Observatory POBox 3020 Apia, Samoa Ministry of Finance Central Bank Building Private Bag Apia, Samoa Treasury Department Apia Samoa Association of Manufacturers and Exporters Ministry of Revenue (Customs and Tax) PO Box 44 Apia, Samoa Hinauri Petana (CEOMOF) CEO-Ministry of Finance Ministry of Finance, Private Mail Bag, Apia National Bank of Samoa, Ltd. Beach Road, Matafele Apia Don Bosco Technical School Apia, Samoa Tel. [685] 21561 Fax. [685] 23209 Tel. [685] 34333/34332 Fax. [685] 21312/24779 Email: [email protected] Tel. [685] 23077 Fax. [685] 23085 Email: [email protected] Mr. Bruce Philips Manager Mr. Timo Pio Plumbing Instructor Leiataua Isikuki Punivalu Managing Director Isikuki Punivalu Associates, Ltd.PO Box 3686Apia, Samoa Tel. [685]20842 Fax..[685]20843 Email: [email protected] Mr. Aukusitino Rasch Manager Research & Development Development Bank of Samoa Private Bag Apia, Samoa Tel. [685] 22861 Fax. [685] 23888 Email: [email protected] Talalelei Tevita Ripley Samoa consultant for PREGA Private Mr. James A. (Jim) Robinson Registered Engineer PO Box 6578 Apia, Samoa Tel. [679[ 24637, Fax. [679] 21768 Tel. [685] 32307 Fax. [685] 24179 Email: [email protected] Tel. [685] 21634 Fax. [685] 21701 Email: [email protected] Appendix 12 - 18 SAMOA (Continued) Name Position Mr. Stephen Rogers Head of Office Mr. Nonumalo A. Salesa Head of School Papali'I Tom Scanlan General Manager Foniova Sealiitu Sesega General Manager Mr. Mau Simanu Head, Electrical Division Ms. Margaret Soon Officer Mr. Eric Stanley Private Tu'u'u Luafatasaga Dr. Ietitaia Setu Taule'alo CEO Mr. Namulauulu Tavita Head of Plumbing Technology Mr. Greg Taylor Managing Director Mr. Ieti Tifaga Project Manager Mr. Thomas Tinai Partner Mr. Taule'a'e'ausumai Aumalaga Tiotio Engineering Manager Fr. Mosese Vitolio Tui Principal Mr. Epa Tuioti co-managing director Address Delegation of the European Commission for the Pacific Office in Samoa PO Box 3023 Apia, Samoa Samoa Polytechnic Institute PO Box 861 Apia, Samoa Central Bank of Samoa Private Bag Apia, Samoa Samoa Trust Estates Corporation (STEC) PO Box 1849 Apia. Samoa Samoa University Institute of Technology Apia, Samoa Taylor Electrical Ltd. Apia, Samoa PO Box 510 Apia, Samoa Ministry of Natural Resources and Environment Beach Road Private Bag Apia, Samoa Samoa Polytechnic Institute Private Bag Apia, Samoa Taylor Electrical Ltd. Apia, Samoa ESP-Ministry of Education Private Bag Apia, Samoa Tinai, Gordon and Associates Architects and Engineers Apia, Samoa EPC P.O. Box 2011 Apia, Samoa Don Bosco Technical School Apia, Samoa KVA Consult, Ltd.PO Box 1882 Apia, Samoa Contact Tel. [685] 20070 Fax. [685] 24682 Email: [email protected] Tel. [685] 21428 Fax. [685] 25489 Email: [email protected] Tel. [685] 34100 Fax. [685] 23149 Email: [email protected] Tel [685] 22077 / 21515 Fax. [685] 21947 Email: [email protected] Email: [email protected] Tel. [685] 21299 Email: [email protected] Email: [email protected] Tel. [685] 30963 Fax. [685] 23176 Email: [email protected] Tek. [679] 21428 Fax. [679] 25489 Tel. [685] 21299 Email: [email protected] Tel. [685] 28085 Fax. [685] 28082 [email protected] Tel. [685] 22906 Fax. [685] 22913 Tel. [685] 22261 Fax. [685] 23748 Email: [email protected] Tel. [685] 24637 Fax. [685] 21768 Email: [email protected] Tel. [685] 25345/21207 Fax. [685] 22087 Email: [email protected] Appendix 12 - 19 SAMOA (Continued) Name Position Siueva Vaaelua Accountant Dr. Nigel Walmsley Water Resources Specialist Muaausa Joseph Walter General Manager John Worall Managing Director Ms. Violet Wulf Principal Climate Change Officer Mr. Seti Ah Young Director Address Ministry of Works, Transport & Infrastructure Private Bag Apia, Samoa Technical Assistant to the National Authorising Officer Top Floor, ABM (Peter Ah Him's) Bldg. P.O. Box 1289 Apia, Samoa EPC P.O. Box 2011 Apia. Samoa John Worrall Pty., Ltd. PO Box 2068 Apia (Vaoala Village), Samoa Ministry of Natural Resources & Environment Beach Road Private Bag Apia, Samoa Alternative Energy (NZ) Ltd. Apia, Samoa Contact Tel. [685]21611 Fax. [685] 23504 Email: [email protected] Tel. [685] 26659 Fax. [685] 26659 Email: [email protected] Tel. [685] 22261 Fax. [685] 23748 Email: [email protected] Tel. [685] 22520 Fax. [685]-20659 Email: [email protected] Tel. [685]23701/02 Fax. [685] 25856 [email protected] Tel. [685] 21091 Email: [email protected] OTHER COUNTRIES Name Position Engr. Robert C. Ables Biodiesel Program Officer Dr. Peter Adams Executive Director Mr. Terubentau Akura General Manager Mr. Heinz Böhnke Director Address Philippine Coconut Authority Product Development Department 5/F R&D Bldg. Elliptical Road Quezon City 1101 Philippines NZAid New Zealand Int'l Aid & Development Private Bag 18901 Wellington, New Zealand Solar Energy Company PO Box 493 Betio Tarawa, Kiribati Technosol Yachthafenstraße 17 D-21635 Jork, Germany Contact Tel. [632] 928 1085 Fax. [632] 426 7726 Email: [email protected] Tel. [64] 439 8027 Email: [email protected] Tel. [686] 2058 Fax. [686] 26210 Email: [email protected] Tel. [49 4[162 942 707 Fax. [49 4[162 942 708 Mobile: [494] 179- 22 68 693 Email: [email protected] Appendix 12 - 20 OTHER COUNTRIES (Continued) Name Position Mr. Jason Chau Sales Representative Mr. Roger Collier Team Leader Mr. Patrice Courty Senior Consultant Rural Energy Development Mr. Felix Gooneratne Director Dr. Hubert Hildebrand Senior Manager Civil & Hydraulics Mr. Jean-Paul Huraut Technical Director Mr. Steve Kromer Efficiency Valuation Organizartion Ms. Perla Manipol President Address Method Machine MalaysiaLtd.Suite 26.3, Level 26Menara IMCNo 8, Jalan Sultan Ismail50250 Kuala Lumpur, Malaysia ADB Rural and Outer Islands Project (TA 4589FJ) 183, Ave de Montpelier 34 270 Claret, France International Institute for Energy Conservation Asia Regional Office UBC II Bldg. Suite 1208 591 Sukhumvit Rd Bangkok, Thailand FICHTNER GmbH PO Box 101454 70013 Stuttgart Germany Contact Tel. [603]-2039 04763Fax. [603]2031-8359 Email: [email protected] Web: coconutmachine.com Email: [email protected] Tel. [33] 467 559 645 Email: [email protected] Tel. [66 2] 662 3460-5 Fax. [66 2] 261 8615 Email: Email: [email protected] Tel. [49] 711 8995 311 Fax. [49] 711 8995 459 Email: [email protected] SOGREAH BP 172 Grenoble Cedex 9 France Tel [33] 4 76 33 41 08 Fax. [33] 4 76 33 40 94 Email: [email protected] USA Tel. [510] 288 0285 Mobile. [510] 847 8535 Email: [email protected] Sustainable Rural Enterprise Aklan State University Banga, Aklan Philippines Economic and Energy Analysis Pty. Ltd Suite 49 Level 3 330 Wattle St. Ultimo NSW 2007 Australia Lavin Centrifuge AML Industries, Inc. USA 3500 Davisville Rd. Hatboro, PA, USA Tel. [66] 36-256-6811 Fax. [66] 36-268-4765 Email: [email protected] Tel. [612] 9280 0515 Fax. [612] 9280 0844 Email: [email protected] Warwick Richards .Managing Director Mr. Robert Rocha International Sales Mr. 'Ofa Sefana Ha'apai PV Project Manager Energy Planning Unit Pangai Ha'apai, Tonga Tel. [676] 60510 Fax. [676] 60200 Email: [email protected] Mr. Manuel Soriano Regional Coordinator Climate Change UNDP / GEF Regional Service Unit Bangkok, Thailand Tel. [66 2] 288 3032 Email: [email protected] Tel. [1-215] 674-2424 Fax.. [1-215] 674-3252 Email: [email protected] Appendix 12 - 21 OTHER COUNTRIES (Continued) Name Position Mr. Jérôme Sudres Directeur Mr. Gilles Vaitilingom Biofuels and Biomass Energy Dr. Jerome Weingart Proprietor Address Vergnet Pacific 24 rue de l’Alma 98800 Noumea New Caledonia Centre for Research in Agriculture for International Development (CIRAD) Forestry Department TA 10/16. 73, rue J.F.Breton 34398 Montpellier Cedex 5, France Consultancy Services for Sustainable Development 4001 North 9th St. Suite 1108 Arlington, VA, 22203 USA Contact Tel. [687] 283 283 Fax. [687] 283 283 Email: [email protected] Tel. [334] 67 61 57 62 Fax. [334] 67 61 65 15 Email: [email protected] Tel. [1-703]524 8372 Email: [email protected] Appendix 13 - 1 APPENDIX 13 TERMS OF REFERENCE FOR THE RENEWABLE ENERGY AND ENERGY EFFICIENCY PROGRAM Appendix 13 - 2 ASIAN DEVELOPMENT BANK TAR: OTH 36259 TECHNICAL ASSISTANCE (Financed by the Danish Cooperation Fund for Renewable Energy and Energy Efficiency in Rural Areas) FOR THE RENEWABLE ENERGY AND ENERGY EFFICIENCY PROGRAM FOR THE PACIFIC April 2003 Appendix 13 - 3 ABBREVIATIONS ADB CDM GEF ITE NTE PDMC PEPP PICCAP PIREP PREFACE – – – – – – – – – – PREGA – TA TOR – – Asian Development Bank Clean Development Mechanism Global Environment Facility international technical expert national technical expert Pacific developing member country Pacific Energy Policy and Plan Pacific Islands Climate Change Assistance Program Pacific Islands Renewable Energy Project Pacific Rural Renewable Energy France-Australia Common Endeavour Promotion of Renewable Energy, Energy Efficiency, and Greenhouse Gas Abatement Projects technical assistance terms of reference NOTE In this report, "$" refers to US dollars. This report was prepared by D. Ponzi. Appendix 13 - 4 I. INTRODUCTION 1. The Pacific islands region has a high degree of ecosystem and species diversity and is very vulnerable to a wide range of natural and environmental disasters. The region also has a high degree of economic and cultural dependence on the natural environment with an extraordinary diversity of cultures and languages, traditional practices, and customs centered on the marine and coastal environment. The Pacific islands, except for Papua New Guinea, are among the world’s smallest and most remote states, and generally have isolated populations living in very low concentrations. 2. Only a few Pacific island communities have access to modern energy sources, and those with access rely heavily on imported fossil fuels. An estimated 70% of the people in Pacific developing member countries (PDMCs) have no access to electricity.1 For those with access to electricity and transportation, imported petroleum products account for approximately 80% of primary commercial energy consumption. Half the imported petroleum products are consumed by the transport sector and 40% is used in diesel-fired power generation units. Renewable energy, mostly mini-hydro, contributes less than 10% of commercial energy use. 3. A fact-finding mission to Fiji Islands and Samoa was undertaken in May 2002. The mission met with senior government officials, representatives of bilateral and multilateral agencies, and senior staff of major regional agencies, 2 to discuss the regional technical assistance for the Renewable Energy and Energy Efficiency Program for the Pacific. 3 The TA framework is presented in Appendix 1. II. ISSUES 4. Access to modern forms of energy is an essential prerequisite for economic development and poverty reduction as well as a key determinant of the quality of life and the level of social development. While few data are available on the welfare impacts of different kinds of interventions in the energy sector, development practitioners agree on the links between energy and poverty reduction. The priority for the poor is the satisfaction of their basic human needs, such as food; employment; and access to health, education, housing, water, and sanitation. To meet these needs, access to modern, reliable, and affordable forms of energy is crucial. Therefore, one of the main challenges for a developing country is to increase energy availability in a cost-effective way. 5. The cost of providing energy is very high because consumers are dispersed and domestic markets are small. Despite the high cost, however, consumption of energy is expected to increase as PDMCs develop and modernize. In some of the less developed countries, such as Kiribati, Papua New Guinea, Solomon Islands, Timor-Leste, Tuvalu and Vanuatu, it is imperative, in order to improve access to basic services, to increase availability of modern energy supply. The outer island communities are the most disadvantaged because of their remote and isolated locations. The cost of conventional energy in these countries is 3-4 times that in PDMC capital cities, and is higher than in neighboring industrialized countries such as Australia and New Zealand. Because the level of energy consumption depends on the 1 2 3 th Forum Secretariat. 2001. Communiqué of the 30 Pacific Islands Forum, Nauru. ForSec: Suva, Fiji Islands. Regional bodies consulted include South Pacific Regional Environment Programme (SPREP), South Pacific Applied Geosciences Commission (SOPAC), Secretariat of the Pacific Community (SPC), Forum Secretariat, University of the South Pacific (USP), World Meteorological Organization (WMO). The TA is included in the 2003 regional TA program and the TA first appeared in ADB Business Opportunities (Internet edition) on 13 June 2002. Appendix 13 - 5 available energy services and their affordability, energy supply costs are critical for poverty alleviation. 6. In almost all PDMCs, renewable energy sources in the form of hydropower, wind, solar, biofuel, geothermal, ocean thermal, and wave/tidal energy hold high potential for contributing to sustainable development. This is particularly true in the remote rural areas, as renewable energy will reduce the dependence on fossil fuel for power generation and transportation. Greater use of renewable energy use, coupled with improved energy efficiency, offer PDMCs a major avenue toward meeting their energy requirements. In addition, as most of the islands are well endowed with a good renewable resource base, renewable energy technologies are potentially highly competitive with conventional energy, especially when environmental externalities are factored into the analysis. 7. Through the past 3 decades, many funding agencies have provided substantial technical and financial support to renewable energy and energy efficiency projects in the Pacific region, but in a rather fragmented and discontinuous way. Most initiatives were implemented as topdown, supply-driven demonstration/pilot projects, with the environmental benefits usually representing the main, and often the only, justification. While the establishment of appropriate institutional arrangements as well as a suitable enabling policy and private sector environment was identified as an important priority area, most of the projects had poorly designed nonpriority project components. Additional reasons for project failures are (i) unrealistic and often too ambitious project goals and objectives; (ii) immediate objectives and outputs too far-fetched and generalized; (iii) project activities and objectives often incompatible with existing policies, socioeconomic structures, and sociocultural traditions; (iv) lack of appreciation of local capacities and opportunities, as well as proper analysis of constraints and limiting factors with respect to the local private sector, household level participation, and local public and private institutions; (v) grant-funded supply of project equipment with resulting low sense of ownership; and (vi) insufficient support to improve policy frameworks at the country level. 8. The many remaining issues include: (i) insufficient understanding and awareness of the potentials of renewable energy and energy efficiency resources; (ii) inadequate institutional capacities and technical expertise to plan, manage, and maintain renewable energy and energy efficiency programs; (iii) the absence of a clear market-based policy, legislation, and regulatory framework; (iv) a lack of confidence in renewable energy and energy efficiency technologies by the main stakeholders due to the very limited success of technology demonstration programs; (v) limited policy commitment and financial support to the sector; and (vi) over-reliance on external aid-funded projects. 9. The main programs currently under implementation incorporate some of the lessons learned from past projects. Among these are two recent initiatives, the Pacific energy policy and plan (PEPP) developed by the Committee of Regional Organizations of the Pacific (CROP)4 and the Pacific Islands Renewable Energy Project (PIREP) supported by the United Nations Development Programme (UNDP) and Global Environmental Facility (GEF). PIREP5 builds on work undertaken under the Pacific Island Climate Change Assistance Program (PICCAP) and aims at supporting regional and national interventions that remove barriers to renewable energy development and facilitate promotion, use, and commercialization of renewable technologies 4 5 The CROP Energy Working Group comprises Pacific Islands Forum Secretariat (FORSEC), Pacific Power Association (PPA), Secretariat of the Pacific Community (SPC), South Pacific Applied Geoscience Commission (SOPAC) South Pacific Community (SPC), University of the South Pacific (USP) and the United Nations Development Programme. PIREP covers 14 countries and has a duration of 18 months with a budget of US$840,000. Implementation started in August 2002. Appendix 13 - 6 through the establishment of a suitable enabling environment. The South Pacific Applied Geoscience Commission (SOPAC) also implements a number of energy and renewable energy programs in: (i) energy resource assessment (wind, biomass, ocean-based resources, and geothermal); (ii) energy conservation, efficiency, and demand-side management; and (iii) energy and environment education through a new postgraduate course in wind energy at the University of South Pacific (USP). Another ongoing program is the Pacific Rural Renewable Energy France-Australia Common Endeavour (PREFACE). 6 Its goal is to increase utilization of Renewable Energy sources, in particular solar photovoltaic and wind energy, through the development of country-level sustainable financial and management arrangements. Finally, since 2001, the Asian Development Bank (ADB) with cofinancing from the Government of the Netherlands, is implementing in the Asia-Pacific region a TA for promoting renewable energy, energy efficiency, and greenhouse gas abatement projects.7 The TA supports renewable energy and energy efficiency development through among others, removal of policy and institutional barriers; preparation of renewable energy and energy efficiency country strategies, programs and work plans; generation of a pipeline of investment projects for consideration for financing; and development of financial schemes. 10. This TA will build on the results of PIREP, PREFACE, the ADB TA (footnote 7), and other projects in the region by supporting the establishment in two PDMCs of an appropriate environment for the development of a demand-driven and private-sector-based energy market. The TA, by focusing on removing barriers and allowing fair competition in only two PDMCs, will use a systematic, medium-term and in-depth assistance approach, in which the use of renewable energy and energy efficiency will be a major pillar. In this way, the TA will address most of the current constraints to development of renewable energy and energy efficiency, (para. 8) and will support the ultimate goal of significantly increasing PDMCs’ rural community access to commercially viable energy services. III. A. THE TECHNICAL ASSISTANCE Purpose and Output 11. The purpose of the TA is to help create an environment that will enable the development of a market-based rural energy sector, in which mature renewable energy and energy efficiency applications play a key and increasing role. This process will involve the development of the required policy, legal, and institutional framework. The TA will also facilitate mobilization of external financing by building a pipeline of potential renewable energy and energy efficiency projects for funding/cofinancing by ADB, GEF, and/or other sources. 12. The outputs in the two selected PDMCs will include (i) review of, consultations on, and dissemination of lessons from past renewable energy and energy efficiency assistance in the Pacific; (ii) an action plan for the adoption of appropriate policies, institutional arrangements, legal/regulatory measures, and financial schemes including venture capital, as well as private sector and household-level incentive mechanisms for promoting commercially viable renewable energy and energy efficiency services; (iii) a training needs analysis and training curricula for private and public sector key players in the two PDMCs; (iv) a pipeline of projects for funding by ADB, GEF, and/or other relevant financing sources; and (v) based on outcomes and progress made in the two selected countries, final consultations and dissemination of lessons learned 6 7 PREFACE, a program implemented by SPC and started in 2000 is jointly funded by France and Australia, and has a 3-year duration with a budget of A$3 million. ADB. 2001. Promotion of Renewable Energy, Energy Efficiency, and Greenhouse Gas Abatement Projects (PREGA). Manila. (Samoa is the only PDMC participating in the PREGA project.) Appendix 13 - 7 from the TA to other PDMCs with a focus on establishing policy frameworks, building capacity, and replicating/disseminating good practices. B. Methodology and Key Activities 13. Through the provision of technical support to the national implementing agency and a high level TA steering committee in each of the two participating PDMCs, the TA will introduce an effective approach for creating a policy environment enabling a demand-driven private sector market for rural energy services. In relation to this, the TA will develop local capabilities in the necessary policy, institutional, and legal/regulatory reforms. To avoid overlapping activities and replication of past mistakes, the TA will conduct, during inception, a comprehensive stocktaking of prior and ongoing related to renewable energy and energy efficiency initiatives in the region, as well as closely coordinate, during the implementation period, with other ongoing programs. During inception, the TA will establish solid links with existing country-level committees, working groups, and country teams, such as PICCAP country team, PIREP country teams, etc. Moreover, to ensure continuity and momentum of progress, the TA will generate a pipeline of rural energy projects based on renewable energy and energy efficiency, for possible financing by ADB, GEF, and/or other sources, even before termination of the TA. To ensure full commitment and TA success, the selected PDMC governments will prepare and issue a Cabinet-approved development policy letter on renewable energy and energy efficiency before activities start at the country level. This document will demonstrate the relevant governments’ willingness and commitment to (i) give high priority to the TA and take ownership of its approach and methodology, (ii) designate a national implementation agency to coordinate TA activities, (iii) constitute a high-level TA steering committee with representation from all relevant stakeholders, and (iv) provide counterpart staff and other inputs in kind. 14. The TA activities are those required to achieve TA outputs as given in paragraph 12, plus, development of appropriate institutional arrangements, necessary regulatory and legal framework, and a system of financing schemes targeted at both private sector and household end-users. Details of key activities are given in Appendix 2. C. Cost and Financing 15. The total cost of the TA is estimated at $750,000. ADB will administer an amount of $600,000 to be financed on a grant basis from the Danish Cooperation Fund for Renewable Energy and Energy Efficiency in Rural Areas. The two participating PDMCs will provide $150,000 equivalent as counterpart financing. Detailed cost estimates and financing arrangements are presented in Appendix 3. D. Implementation Arrangements 16. The TA will be executed by ADB over an estimated 24-month period, to commence in June 2003 and be completed by May 2005. ADB’s Pacific Department will be responsible for overall coordination of TA implementation, and the ADB’s Renewable Energy, Energy Efficiency and Climate Change (REACH) Committee will provide advisory guidance. A National implementing agency will implement TA activities in each participating PDMC. 17. The TA will be implemented in two phases. 18. The inception phase (4 months) will include: (i) review of past and ongoing initiatives related to Renewable Energy and Energy Efficiency in the region (PIREP, PREFACE, PREGA, etc); (ii) development of selection criteria, selection of the two participating PDMCs, and Appendix 13 - 8 preparation and Cabinet endorsement of a development policy letter on renewable energy and energy efficiency; (iii) preparation of a pipeline of renewable energy and energy efficiency projects for funding/cofinancing by ADB/GEF/CDM, and/or other sources, to follow up on the outcomes of this TA; (iv) in each participating PDMC, support for the identification of the national implementing agency, the establishment of the TA steering committee, and the selection of the national technical expert (NTE); and (v) preparation of and agree on detailed TA implementation plans and work programs. Each PDMC selected to participate in the TA will have confirmed in writing to ADB that it does not object to its participation in the TA, including to its participation to the financing of the TA as described in paragraph 15. 19. The main implementation phase (20 months) will include: (i) implementation of all key activities listed in paragraph 14 and Appendix 2; (ii) proactive participation in related national and regional workshops to disseminate information pertinent to renewable energy and energy efficiency, exchange of good practices and analytical work results, and collaboration on specific activities; (iii) facilitation of continued financing for renewable energy and energy efficiency projects after TA completion; and (iv) by the end of TA implementation, dissemination of lessons learned via a regional workshop and a non technical publication. 20. TA implementation will be assisted by a team of international (17 person-months) and domestic consultants (36 person-months), recruited through a consulting firm. The consultants will include (i) one international technical expert, (the Team Leader) with expertise in renewable energy and energy efficiency energy policy in small island countries, (ii) two short-term international technical experts, with expertise in developing financing models and designing and introducing technical norms and certification schemes, and (iii) two national technical experts (NTEs), 18 person-months per PDMC (36 person-months total), with experience in rural, renewable energy and energy efficiency energy projects. The two NTEs will be recruited after selection of the two participating PDMCs, and subject to ADB’s approval. Staff from the national implementing agencies will also support TA implementation. In addition, one assistant project manager (12 person-months), with expertise in energy, environment, and managing and coordinating ADB TA projects will be recruited by ADB in the Philippines, to assist in overall project management and implementation. All consultants will be engaged in accordance with ADB’s Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for the engagement of domestic consultants. Outline terms of reference for the consultants as well as reporting requirements are presented in Appendix 4. Given the innovative approach, methodology, and Terms of Reference, required for effective TA implementation, the consulting firm will be selected through the full technical proposal and the quality- and cost-based selection methods. IV. THE PRESIDENT'S DECISION 21. The President, acting under the authority delegated by the Board, has approved ADB administering technical assistance in an amount not exceeding the equivalent of $600,000 to be financed on a grant basis by the Danish Cooperation Fund for Renewable Energy and Energy Efficiency in Rural Areas for the Renewable Energy and Energy Efficiency Program for the Pacific, and hereby reports this action to the Board. Appendix 13 - 9 TECHNICAL ASSISTANCE FRAMEWORK Design Summary Performance Indicators/Targets Goals By year 2017, i.e. about 10 years after attainment of Purpose: 1. Rural populations in the Pacific Developing Member Countries (PDMCs) have access to commercially viable energy services using mature renewable energy and energy efficiency applications. a. At least 50% of rural and outer islands population in two PDMCs have access to affordable modern forms of energy. b. Significantly increased number and enhanced productivity of small and medium enterprises in rural communities. c. Increased energy consumption by rural population does not correspondingly increase PDMC’s dependency on imported energy. Purpose By May 2007, i.e. within 2 years of successful delivery of all outputs 1. Create an environment conducive for a demanddriven and private sector based market for rural energy services in two PDMCs with Renewable Energy and Energy Efficiency playing a major role. (i) Appropriate policies and strategies, institutional arrangements, and a regulatory and legal framework for creating a demand driven, private sector-based market place for rural energy services are in place; and Monitoring Mechanisms • Records on energy use in rural areas • National economic and private sector development reports • Records of government’s imports of energy • Asian Development Bank (ADB) project post-evaluation report and Country Strategy and Program Update inputs • Policy documents from relevant ministries. • Evidence that appropriate institutions are formally established. • Evidence that regulatory and legal framework models have been developed and adopted. • Evaluation reports from training sessions. • Asian Development Bank (ADB) Technical Assistance (TA) completion report • ADB Review mission • Progress in inception activities. (ii) sufficient institutional and organizational capacity exists at all relevant levels. Outputs By end of TA (2005) 1. A comprehensive stocktaking and lessons learned review in the (i) Stocktaking report completed and included in the inception report. Assumptions and Risks • PDMCs are willing to initiate the necessary supporting policy and institutional reform programs. • Political commitment to allow private sector to play a major role in provision of rural energy services. • All major renewable energy and energy efficiency stakeholders Appendix 13 - 10 Design Summary Performance Indicators/Targets renewable energy and energy efficiency sector. 2. Policy measures conducive for commercialization and privatization of delivery of rural energy services are developed. Adoption of action plan for the establishment of the proposed policy framework. 3. Appropriate institutional arrangements developed. Adoption of related action plan. (ii) A “Renewable Energy Development Policy Letter” is issued before end of inception phase. (iii) Target PDMC governments have adopted an action plan for the establishment of appropriate and conducive policies and strategies. Monitoring Mechanisms • Quality and coverage of the inception report. • Development policy commitment letter • TA progress reports and ADB review mission reports • Policy decisions by target PDMC governments. • Evidence that specific institutions, agencies, and associations have been established. (iv) Identification of a national implementation agency and establishment of TA steering committee in each participating PDMC. Assumptions and Risks and institutional players share and learn main lessons from the stocktaking exercise. • Private sector perceives the project as beneficial and profitable. • Clients will pay for modern energy services. • Cooperation of local industries • Minimal bureaucratic hindrances and delays. • Sufficient political will. (v) Appropriate institutional arrangements are developed in public and private sectors. (vi) Adequate industry associations are established. 4. Regulatory and legal framework prepared and possibly adopted. An action plan prepared for adoption. 5. A detailed concept and modalities for initiation of appropriate financing schemes have been prepared. (vii) Regulatory and legal frameworks and related action plan have been developed and adopted. • Tangible regulatory and legal framework models are developed. (viii) Financing schemes prepared and agreed among all key stakeholders. • Concept papers for financing mechanisms. • Training Needs Analysis, curricula and training evaluation reports completed. (ix) Memorandum of Understanding on modalities of financing mechanisms between Appendix 13 - 11 Design Summary Performance Indicators/Targets Monitoring Mechanisms Assumptions and Risks renewable energy and energy efficiency industries, and local financial institutions. 6. Training needs assessment, curricula, and facilitation of training conducted. 7. Prepare a pipeline of projects for energy services based on renewable energy and energy efficiency in the two targeted PDMCs. • Training Needs Analysis, curricula and training evaluation prepared. (x) Projects outline for at least two major renewable energy and energy efficiency based rural energy projects in each target PDMC, including preparation of concept papers and Project Development FinancingBlock B proposals. 8. Dissemination of lessons learned. (xi) Proactive participation in regional workshops and seminars. (xii) Workshop session at end of TA period. Activities (Times are indicated as months from project start date) 1. Preparation of stocktaking review. a. Start: M1 (Inception) Complete: M3 Responsibility: NIA 2. Policy strategies and incentives: a. Prepare and issue development policy commitment letter. b. Start: M5 Complete: M12 Responsibility: NIA/TA Steering Committee b. Develop and describe objectives and modalities c. Start: M1 Complete: M24 • Project concept papers and Project Development Financing-Block B Proposals prepared. • Workshop proceedings and presentations. • Continuity of process toward financing/ cofinancing by ADB/ Global Environment Facility/Clean Development Mechanisms of pipeline projects. • Project management progress reports. • ADB project/TA postevaluation reports. • ADB TA completion report. • ADB review missions. • ADB quarterly project performance reports. • TA inception report. • TA consultants progress reports. • TA interim report. • Close supervision of ADB staff. • Target PDMC governments give genuine priority to the projects rationale; take ownership over its approach and methodology; and cooperate actively in its implementation by allocating the necessary human, organizational, and financial resources. Appendix 13 - 12 Design Summary Performance Indicators/Targets Monitoring Mechanisms of new policy interventions. Responsibility: TA • TA consultants final report. c. Direct assistance to the policy/strategy development process. d. Start: M5 Complete: M8 Responsibility: NIA • ADB mission reviews. d. Definition, formation and initiation of working groups to substantiate and implement the various elements in the overall national policy/strategy. e. Start: M8 Complete: M12 Responsibility: TA To be determined during inception e. Ensure conformity of policy measures with eligibility criteria’s of renewable energy and energy efficiency and climate change funding mechanisms (ADB/GEF/CDM and others). f. Start: M4 Complete: M6 Responsibility: NIA (TA) To be determined during inception g. Start: M5 Complete: M20 Responsibility: NIC To be determined during inception a. Identify and organize relevant local industries in a branch organization. a. Start: To be determined (TBD) during inception Complete: TBD during inception Responsibility: To be determined during inception b. Establish or reform essential public and semipublic institutions to pilot and provide technical and financial support to the emergence and sustainable operation of a commercial market for rural energy services. b. Start: TBD during inception Complete: TBD during inception Responsibility: TBD during inception To be determined during inception a. Develop technical norms and standards for equipment and systems. a. Start: M4 Complete: M6 Responsibility: To be determined during inception b. Develop codes of practice for installation, operation, maintenance, and servicing of equipment. b. Start: TBD DI Complete: TBD DI Responsibility: TBD DI • ADB quarterly project performance reports. • TA inception report. • TA consultants’ progress reports. Assumptions and Risks • Private sector industries perceive the opportunity in the market and are willing and have the capacity to engage. • Local financial institutions perceive the business aspects and engage proactively in the development of financing mechanisms. • Target PDMC governments give genuine priority to the projects’ rationale, take ownership over its approach and methodology, and cooperate actively in its implementation by allocating the necessary human, organizational and 3. Establishment of an appropriate institutional framework: 4. Regulatory framework establishment: c. Develop certification scheme for practitioners, for individuals (technicians, engineers, planners, etc) c. Start: TBD during inception Appendix 13 - 13 Design Summary and for industries (suppliers). d. Prepare legal norms for the institutional linkages (sales and service contracts, loan agreements, etc), in order to instill confidence between the various stakeholders and investors. Performance Indicators/Targets Complete: TBD during inception Responsibility: TBD during inception d. Start: TBD during inception Complete: TBD during inception Responsibility: TBD during inception Monitoring Mechanisms Assumptions and Risks • TA interim report. financial resources. • Close supervision by ADB staff. • TA consultants final report. • ADB mission reviews. b. Conceptualize sustainable financing mechanism for private sector, that are based on normal commercial business relations between private ventures and financial institutions. c. Conceptualize microcredit schemes for endusers. d. Discuss and agree financing concepts with financial sector. 6. Capacity building: a. Training needs Private sector industries perceive the opportunity in the market and are willing and have the capacity to engage. • Local financial institutions perceive the business opportunities and engage proactively in the development of financing mechanisms. • Target PDMC governments give high priority to the rationale, take ownership over its approach and methodology, and cooperate actively in its implementation by allocating the necessary human, organizational and To be determined during inception 5. Financing schemes development: a. Assess the financial barriers facing the private industry and the end users of energy services • a. Start: To be determined during inception Complete: To be determined during inception Responsibility: To be determined during inception To be determined during inception b. Start: To be determined during inception Complete: To be determined during inception Responsibility: To be determined during inception To be determined during inception c. Start: To be determined during inception Complete: To be determined during inception Responsibility: To be determined during inception To be determined during inception d. Start: To be determined during inception Complete: To be determined during inception Responsibility: To be determined during inception To be determined during inception Appendix 13 - 14 Design Summary assessment in private and public sectors. b. Develop curricula Performance Indicators/Targets 7.Prepare a pipeline of ADB/GEF renewable energy and energy efficiency initiatives for ADB/GEF funding: c. Start: To be determined during inception Complete: To be determined during inception a. Start: To be determined during inception Complete: To be determined during inception Responsibility: To be determined during inception c. Prepare Project Development FinancingBlock B proposal for each project. • ADB quarterly Project Performance Reports. • TA inception report. • TA consultants’ progress reports. • TA interim report. • Close supervision of ADB staff. • TA consultants’ final report. • ADB mission reviews. Responsibility: To be determined during inception a. Identify and outline appropriate projects b. Prepare project Concept Papers in close consultations with Global Environmental Facility Focal Points and energy projects country teams in each target PDMC b. Start: To be determined during inception Complete: To be determined during inception Responsibility: To be determined during inception c. Start: M22 Complete: M24 Responsibility: To be determined during inception To be determined during inception To be determined during inception 8. Disseminate activities a. Synchronize activities with impending ADB/GEF/CDM project Assumptions and Risks financial resources. a. Start: M1 Complete: M4 Responsibility: TA b. Start: To be determined during inception Complete: To be determined during inception Responsibility: c. Identify and contract appropriate training institutions and trainers. Monitoring Mechanisms a. Start: To be determined during inception Complete: To be determined during To be determined during inception • Private sector industries perceive the opportunity in the market and are willing and have the capacity to engage. • Local financial institutions perceive the business aspects and engage proactively in the development of financing mechanisms. Appendix 13 - 15 Design Summary b. Participate in workshops and seminars c. Workshop session at end of project. Performance Indicators/Targets Monitoring Mechanisms Assumptions and Risks inception Responsibility: To be determined during inception b. Start: To be determined during inception Complete: To be determined during inception Responsibility: To be determined during inception c. Start: To be determined during inception Complete: To be determined during inception Responsibility: To be determined during inception To be determined during inception To be determined during inception Inputs • $600,000 • • $150,000 • International Consultants • Domestic Consultants • • ADB (Danish Cooperation Fund for Renewable Energy and Energy Efficiency in Rural Areas • Consultants progress reports • Timely disbursements, and PDMC support • Competent consultants with demonstrated ability hired Inception report Midterm report Interim report • Participating PDMCs Final Report • 17 person-months TA review missions Assistant TA manager • 36 person-months ADB Staff (TA project manager) • 12 person-months • 4 person-months Appendix 13 - 16 TECHNICAL ASSISTANCE KEY ACTIVITIES The Technical Assistance (TA) will implement the following activities: (i) The TA will prepare, discuss, and disseminate lessons from the past through a stocktaking review of past renewable energy and energy efficiency assistance in the Pacific. (ii) The TA will develop and prepare an action plan for the adoption of an appropriate policy framework, including a system of incentives promoting commercialization and privatization of renewable energy and energy efficiency services. Toward this goal, the TA will (a) during the inception phase, assist the participating Pacific developing member countries (PDMCs) to prepare and issue a development policy letter on renewable energy and energy efficiency; (b) develop and identify objectives and modalities of new policy interventions; (c) provide direct assistance to the policy/strategy development process, as requested and required by the countries; (d) facilitate definition, formation, and initiation of working groups responsible to substantiate and implement the new policy directions; and (e) ensure conformity of policy measures with eligibility criteria of renewable energy and energy efficiency and climate change funding/cofinancing sources, such as, Asian Development Bank (ADB), Clean Development Mechanism (CDM), Global Environmental Facility (GEF), and others. (iii) The TA will develop and prepare an action plan for the establishment of appropriate institutional arrangements by (a) facilitating, establishing, or reforming essential public and semi-public institutions to pilot and provide technical and financial support to the emergence and sustainable operation of a commercial market for renewable energy and energy efficiency services; and (b) identifying and organizing relevant local renewable energy and energy efficiency services and manufacturing industries in a central organization/network, which will represent the private sector. The industries association will, among other things, share with government agencies the responsibility for developing institutional, regulatory, and legal frameworks and mechanisms. (iv) The TA will develop and prepare an action plan for the adoption of the necessary regulatory and legal framework by supporting (a) development of technical norms and standards for equipment and systems; (b) development of codes of practice for installation, operation, maintenance, and servicing of equipment and services; (c) development of certification schemes for practitioners that are individuals (technicians, engineers, planners, etc) or industries (suppliers); and (e) preparation of legal models/formats covering the supply-demand institutional linkages (sales and service contracts, loan agreements, etc). (v) The TA will develop a system of financing schemes targeted at the private sector and household end-users by (a) assessing financial barriers constraining investment decisions and facing the private sector and end-users of energy services; (b) establishing sustainable financing mechanisms for the private sector, based on standard commercial business practices between private ventures and financial institutions; (c) developing microcredit schemes for endusers; and (d) consulting and reaching consensus on all proposed financing aspects with the finance and banking sector. Appendix 13 - 17 (vi) The TA will support capacity building and training development through: (a) preparation of the training needs analysis of the key private and public sector stakeholders; (b) curriculum development; and (c) identification of appropriate training institutions and trainers. (vii) The TA will prepare a pipeline of renewable energy and energy efficiency projects to be potentially funded by ADB/GEF/CDM or other funding sources, by (a) identifying and outlining, during inception, an appropriate pipeline of projects; (b) preparing project profiles/concept papers in close consultation with ADB staff as well as with ADB country program officers and GEF/CDM focal points in each target PDMC; and (c) preparing GEF block B grant applications and/or other required initial project preparation documents to follow-up on other funding sources opportunities. (viii) The TA will consolidate and disseminate lessons learned by (a) working in parallel and sharing approaches with ongoing renewable energy and energy efficiency and other rural energy TA programs and projects, (b) proactively participating in relevant workshops and seminars during the TA implementation period, (c) organizing and holding a final TA workshop session to share TA results and lessons with other PDMCs, and (d) preparing and distributing an ADB publication with all major lessons from TA implementation including a projects pipeline for future funding. Appendix 13 - 18 COST ESTIMATES AND FINANCING PLAN ($) Item A. Asian Development Banka 1. Consultants a. Remuneration and Per Diem i. International Consultants ii. Domestic Consultants b. International and Local Travel 2. Reports, Communications, and Publications 3. Regional Seminars and Workshops 4. Contingencies Subtotal (A) B. PDMC Financingb 1. Remuneration and per diem of counterpart staff 2. Administrative Support Subtotal (B) Total Total Cost 320,000 132,000 30,000 8,000 30,000 80,000 600,000 90,000 60,000 150,000 750,000 PDMC = Pacific developing member country a Financing by the Danish Cooperation Fund for Renewable Energy and Energy Efficiency in Rural Areas b Each of the two participating PDMCs financing 50% of the amounts indicated. Source: Asian Development Bank estimates. Appendix 13 - 19 OUTLINE TERMS OF REFERENCE FOR CONSULTANTS A. Scope of Work 1. The Technical Assistance will be implemented by six consultants: one international consultant (team leader); one domestic consultant locally recruited in the Philippines (assistant project manager); two domestic consultants (one national technical expert [NTE] in each participating Pacific developing member country [PDMC]); and two short-term international consultants (financial expert and norms and standards expert). The TA is divided in two phases: inception and implementation. Key TA activities are described in Appendix 2. 2. The international consultants will be responsible for all the outputs included in the Terms of Reference (TOR), and in the key activities listed in Appendix 2. They will coordinate preparation and finalize (i) the inception report (including detailed TOR, activities, revised TA framework, TA reports outlines, and work plan) by the end of week 4; (i) the midterm report (including the stock taking report) by the end of month 8; (iii) the second midterm report by end of month 16; and (iii) the final report by the end of month 23. Report outlines will be discussed and agreed upon with the Asian Development Bank (ADB) TA project specialist at TA implementation start-up. Outlines of the midterm reports and the final report will be agreed upon during inception. 3. During the inception phase, the TA will primarily focus on five activities: (i) stocktaking of prior and ongoing initiatives related to renewable energy and energy efficiency in the region (Pacific Islands Renewable Energy Project, Pacific Rural Renewable Energy France-Australia Common Endeavor, etc); (ii) develop selection criteria and select the two target PDMCs; (iii) assist the selected PDMCs to develop and issue a development policy letter on renewable energy and energy efficiency; (iv) in close coordination with the existing country level energy projects team (e.g. PIREP energy country team), establish an effective project implementation structure within the national implementing agency in each PDMC and develop detailed project implementation plans and arrangements; (v) recruit the 2 NTEs for the two participating PDMCs, and (vi) identify and prepare an initial pipeline of appropriate renewable energy and energy efficiency projects for funding by ADB, Global Environmental Facility (GEF), Clean Development Mechanism (CDM) and other funding sources. The inception phase will last for 4 months. In relation to technology choices, a holistic approach should be adopted while avoiding any bias toward solar photovoltaic, wind, biomass, grid extension, or any other particular technology. The applicable type of technology to meet this goal should be chosen freely from site to site, based on a lifetime least-cost analysis that weighs all relevant technologies against each other, and with due consideration for major issues such as sustainable operation and maintenance mechanisms, existing and planned infrastructure; financing schemes and subsidies; and economic, environmental, and social impacts at both local, national, and global level. 4. The implementation phase (20 months) will include all the TA activities remaining to realize the necessary set of policies and workable delivery mechanisms for providing commercially viable rural energy services. Further, in preparing the projects pipeline for funding by ADB/GEF/CDM and other sources, the TA will, within the first few months of the implementation phase, produce concept papers and Project Development Financing-Block B proposals for such projects. The succeeding ADB/GEF/CDM funded projects are to tentatively commence 3-4 months prior to termination of the TA, which will allow a period of parallel operation, with synchronization and handing-over of lessons learned. Sustainability of project outputs is further secured via a workshop by the end of the TA period. Appendix 13 - 20 5. TA implementation will be assisted by a team of international (17 person-months) and domestic (36 person-months) consultants, recruited through a consulting firm, and consisting of (i) one international technical expert (ITE), team leader, with expertise in renewable energy and energy efficiency policy in small island countries, institutional arrangements, regulatory and legal frameworks, and private sector participation; (ii) two short-term ITEs, with expertise in developing financing models and designing and introducing technical norms and certification schemes; and (iii) two NTEs, (18 person-months per PDMC, 36 person-months total), with experience in rural energy, renewable energy and energy efficiency projects and comprehensive knowledge of relevant national policies, institutional arrangements, and private sector aspects. The two NTEs will be recruited after selection of the two participating PDMCs, and subject to ADB’s approval. Staff from the implementing agencies will also support TA implementation. In addition, one assistant project manager (12 person-months), with expertise in energy, environment, and managing and coordinating ADB TA projects will be recruited by ADB in the Philippines to assist in overall TA management and coordination of TA implementation. All consultants will be engaged in accordance with ADB’s Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for the engagement of domestic consultants. Given the level of innovativeness required for effective TA implementation, with respect to approach, methodology and TORs, the consulting firm selection process will follow the full technical proposal and the quality- and cost-based selection methods. B. Terms of Reference 1. International Consultants (17 person-months) a. 6. Renewable Energy and Energy Efficiency Economist and Policy Specialist (Team Leader) The specialist will do the following: (i) (ii) (iii) Manage and coordinate overall TA implementation by preparing and completing TA reports as required (inception, midterm, interim, and final); developing a structure of work for the two phases of the TA, including work plans, timelines, and detailed cost estimates; briefing stakeholders on the TA implementation (ADB, development partners such as United Nations Development Programme (UNDP) and GEF, and regional organizations such as the Council of Regional Organizations of the Pacific-Energy Work Group (CROP-EWG); South Pacific Regional Environment Programme (SPREP); and South Pacific Applied Geosciences Commission (SOPAC) consulting and working with the national implementing agency and the TA steering committee in the two target PDMCs. Review and analyze previous and ongoing Renewable Energy and Energy Efficiency activities to take stock of progress achieved and lessons learned regarding technology use, program replication, and sustainability of inputs and outputs; and identify market, policy, financial, and technical barriers to renewable energy and energy efficiency technologies, especially taking into account the Pacific Islands Renewable Energy Project (PIREP) and its initial progress. Based on the results of the review, develop specific requirements and criteria for selecting target PDMCs for this TA, and consult with country-level energy agencies, other energy projects country teams and national GEF focal points on the TA approach. Based on the consultations, validate inputs and finally propose two participating countries to be selected for implementation of the TA. Appendix 13 - 21 (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) Identify and select an NTE in each participating PDMC and comprehensively introduce them to the TA and their specific roles and responsibilities. Develop detailed implementation plans and arrangements. Together with the NTEs, assist the two participating PDMCs to develop and issue a development policy letter on renewable energy and energy efficiency manifesting the countries’ commitments to (i) give genuine priority to the TA’s rationale and take ownership over its approach and methodology, (ii) designate an appropriate national implementation agency to coordinate TA activities, (iii) constitute a TA steering committee with representation from all relevant stakeholders, and (iv) provide counterpart contributions. Directly and through the NTE, introduce the national implementation agency and the TA steering committee in the selected PDMCs to a conceptual approach to the creation of an environment enabling a market for rural energy services that is demand-driven and based on the private sector, and guide the PDMCs, through the development and implementation of an appropriate action plan in the process of adapting the approach to local socioeconomic and cultural conditions. Directly and through the NTE, enhance local capability within the national implementing agency and the TA steering committee in developing and implementing the action plans for the necessary policy reforms, institutional measures, and regulatory legal frameworks. Prepare a needs assessment and detailed TOR for the short-term ITE on financing mechanisms. Prepare a needs assessment and detailed TOR for the short-term ITE on development of technical standards and certification schemes. In close consultations with national GEF focal points, Pacific Islands Climate Change Assistance Program (PICCAP) country teams, and other energy projects country teams, identify project opportunities, outline and prepare concept papers and Project Development Financing-Block B proposals, and help prepare (including initial financial and economic analysis) an appropriate pipeline of renewable energy and energy efficiency projects for financing/cofinancing by ADB/GEF/CDM and other funding sources. Coordinate a final workshop to present, discuss, and disseminate lessons and good practices from TA implementation. Other tasks as developed and agreed during inception. b. 7. Renewable Energy and Energy Efficiency Financing Schemes Specialist The specialist will do the following: (i) (ii) (iii) In the target PDMCs, prepare an overview of the financial sector’s relevance to the energy market and identify commercial banks with relevant experience and/or potential to participate in (a) microfinancing schemes for end-users (rural and outer islands banks with wide spread network of branches), and (b) a financing scheme for private sector small and medium enterprises. Review and analyze experience from previous and ongoing similar financing schemes, including progress achieved and lessons learned from addressing market, policy, and financial barriers. Together with the NTE, conduct qualitative and quantitative analyses of (a) the financial capability and willingness to pay for energy services by the targeted rural populations (end users); and (b) the financial capability and readiness to Appendix 13 - 22 (iv) (v) (vi) (vii) (viii) (ix) invest in expansion of business and business areas by local renewable energy and energy efficiency industries. Develop a microfinancing scheme for end users, based on normal commercial lending principles. If special incentives are deemed necessary, they will be designed as narrowly targeted and time-limited cross-subsidies, and must have a clear phase-out plan. Develop a financing scheme for small and medium enterprises engaged in supplying rural energy services. The scheme will be targeted to hardware suppliers of renewable energy and energy efficiency technology, and to operators of energy service companies in build, own and operate (BOO) concession-like arrangements. Develop and implement with an appropriate fund manager the concept of a credit guarantee fund to mitigate some of the perceived commercial and technical risks that the involved financial institutions are facing (risk sharing). Oversee and guide the preparation of draft specimens for agreements between the parties of the two or more financing schemes (borrowers, banks, fund managers, national implementing agencies, TA steering committees, etc.). Prepare comprehensive documentation on the financing models (possibly also in the form of a training manual). Other tasks as developed and agreed during inception. c. 8. The specialist will do the following: (i) (viii) Prepare an overview of international, national, and regional renewable energy and energy efficiency technology standardization initiatives. Guide a broad-based technical committee (chaired by the national bureau of standards or similar organization) in developing and adopting appropriate technical standards for equipment and systems for renewable energy and energy efficiency. Introduce certification schemes for practitioners in renewable energy and energy efficiency equipment, system and service delivery. Introduce the concept of mandatory warranty on supplied renewable energy and energy efficiency equipment and systems, including reassignment of manufacturers warranty from importers/suppliers to end-users. Provide guidance in preparing codes of practices for installation, daily operation and maintenance, and periodical servicing of equipment and systems based on renewable energy and energy efficiency. Introduce the concept of ethical standards in the industries association, to help instill confidence in end-users and raise overall industry performance. Compile an overview of the developed technical standards, codes of practices, and certification schemes. Other tasks as developed and agreed during inception. 2. Domestic Consultants (ii) (iii) (iv) (v) (vi) (vii) a. 9. Renewable Energy and Energy Efficiency Technical Standards Specialist Assistant TA Manager The assistant TA manager will do the following: Appendix 13 - 23 (i) (ii) (iii) (iv) (v) (vi) Assist the ADB staff (TA manager) and the consultants team leader with their duties, and the preparation, compilation, and editing of the TA inception, midterm, and final reports. Review and analyze previous and ongoing activities related to renewable energy and energy efficiency to take stock of progress and lessons learned regarding technology use, program replication, and the sustainability of the systems installed. Identify any remaining gaps. Identify market, policy, financial, and technical barriers to energy efficiency penetration, taking into account types of technologies used, including hybrid systems. Assist the ADB Staff (TA manager) and the consultants team leader as the contact person for the TA of the national implementing agency and the TA steering committee in the participating PDMCs. Ensure conformity of project implementation with regulations and common practices for similar ADB TA projects. Help prepare and implement the final workshop. Other tasks as developed and agreed during inception. b. 10. Two National RE and EE Technical Experts The experts will do the following: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Assist the team leader to identify and outline appropriate projects for the succeeding ADB/GEF/CDM funded initiatives. Together with the team leader, assist the PDMCs to develop and issue a development policy letter on renewable energy and energy efficiency. Identify private sector industries for activities related to renewable energy and energy efficiency. Oversee the establishment of an effective national implementing agency to coordinate and implement TA activities. Oversee and assist the national implementing agency to establish a TA steering committee with representation of all relevant stakeholders. Proactively assist the national implementing agency and TA steering committee in general planning and undertaking of their responsibilities under the TA. Provide an interface between key stakeholders, beneficiaries, government, departments of energy, etc., having a renewable energy mandate and energy working groups, Pacific Islands Climate Change Assistance Program country teams, energy projects country teams, and others to facilitate coordination of TA implementation. Help prepare and implement the final workshop and its dissemination activities. Other tasks as developed and agreed during inception.