Download Energy Security in Pacific Island Countries EGM: Sustainable Energy Development

Energy Security in Pacific
Island Countries
EGM: Sustainable Energy Development
in Asia and the Pacific
Bangkok 21-23 November 2012
Who is the Pacific ?
14 ESCAP Members in the Pacific Subregion
7 Associate Members.
ESCAP Pacific Members are Australia, Fiji, Kiribati, the Marshall
Islands, Micronesia (Federated States of), Nauru, New Zealand,
Palau, Papua New Guinea, Samoa, the Solomon Islands, Tonga,
Tuvalu and Vanuatu.
Pacific Associate Members are American Samoa, the Cook
Islands, French Polynesia, Guam, New Caledonia, Niue, and the
Northern Mariana Islands.
• Pacific Island Countries (PICs): the Cook Islands, Fiji, Kiribati,
the Marshall Islands, Micronesia (Federated States of), Nauru,
Niue, Palau, Papua New Guinea (PNG), Samoa, the Solomon
Islands, Tonga, Tuvalu and Vanuatu
Geography
Over 3,000 islands spread over an area of sea covering nearly one-third of
the planet’s surface, extending about 8,000 km from Palau to French
Polynesia.
Development Challenges in the Pacific
• Several factors make the Pacific region economies very vulnerable:
- Distance from major markets and from other Pacific islands leading to high
transport costs
- Scale: Very limited markets to realize economies of scale and disincentive for
private sector investments
- Heavily dependent on trade: narrow export base and dependent on primary
commodities that exhibit price fluctuation. Also heavily dependent on imports
of food and fuel.
- Natural disasters: Prone to cyclone, floods, earthquakes/tsunamis, climate
change
- Young Independent Political States with Democratic Systems
• The Pacific faces development challenges which will be exacerbated by climate
change
Energy Situation in the Pacific
•
•
•
•
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Extreme Petroleum Dependence (> 95%)
PIC energy use/GDP increasing
Fuel prices high and vary widely by country
Electricity prices are high (>10% above Caribbean)
Macroeconomic impact of dependence on imported fossil fuel: rising
trade deficits, inflation, limits fiscal space
Energy Challenges in the Pacific
•
Limited range of indigenous energy resources
•
High cost of developing energy resources and extending service to remote
populations
•
Poor quality of energy data and trends, particularly patterns of end-use
•
Small base of skilled people to address the issues
•
Weak bargaining positions with petroleum suppliers
•
High past dependence on development agencies for most energy
infrastructure finance
Energy Challenges in the Pacific (Cont)
•
Electricity charges which are often below actual cost, leaving inadequate
resources for effective maintenance
•
Many of the institutions, laws, technical standards, and regulatory systems are
out-dated
•
Develop energy infrastructure which is both affordable and resilient to
unknown but likely severe climate change impacts
Importance of Negotiated and Agreed
National Energy Plans
• Program Planned Approach (1 Plan)
• Government & All Development Partners Involved in Energy
• National Energy Plans
• Whole of Sector
• Developed and Agreed upon by DP’s and the Government
• Develop/Reformation Institutional Framework
Importance of Negotiated and Agreed
National Energy Plans (Cont)
• Implementation/action components of NEPs need to address/strengthen:
─ Priorities, actions and time required
─ Evaluation of least-cost RE investments (and oil & EE)
─ Budget allocation & actual or potential funding sources
─ Clear responsibilities for action
─ Link between energy office and utility plans
─ Sufficient good energy and resource data for national planning
─ Monitoring, evaluation and plan updating mechanisms
Pacific Regional Cooperation on
Energy Security
• Pacific Plan is a master strategy for regional integration and coordination
in the Pacific
• Leaders Summits have pledged strong commitments to developing
sustainable energy in the Pacific.
• Framework for Action on Energy Security in the Pacific (2010-2020):
Implemented through SPC. Established clear priority areas for action:
 Accessibility
 Affordability
 Efficiency and productivity
 Environmental quality
• Regional meetings of Pacific Island Ministers of Energy are held every 2-3
years. Tonga will be hosting a Pacific Leaders Energy Summit in March
2013 focusing on the planning approach and Development Partner support
to ensure implementation, Tonga Energy Road Map Model, followed by the
investment aspects of energy to be held in New Zealand.
Key Messages for Asia Pacific Energy
Forum
 Areas for Ministerial Declaration and Regional Action Plan could include:
 The importance of a National Energy Plan agreed to by Development
Partners and the Government
•
Reduction in dependence on imported petroleum fuels, with renewable
energy developed wherever it is socially, economically and
environmentally preferable to petroleum
•
A balanced approach relying on the two pillars of sustainable energy,
more efficient use of existing sources of energy and increased use of
indigenous renewable energy resources.
•
Rapid expansion of affordable modern energy services to those who
currently lack access.
•
Developing and implementing practical mechanisms to secure petroleum
fuel supplies at the best available prices.
•
•
Building climate change resilience into energy sector investments.
Stronger focus on sustainable energy and energy security in the post2015 development agenda
Malo,
Thank You