Methods for assessing the contribution of renewable technologies to energy security: the electricity sector of Fiji

In recent years, renewable energy technologies have been advocated in Fiji on the basis that they improve energy security and serve as a risk-mitigation measure against oil price volatility. Despite this, there have been no published attempts to measure the impact of renewable technologies on energy security or to assess the major threats to that security. This analysis is important if the benefits of renewable energy sources in Fiji are to be evaluated adequately. This article considers the key threats to the security of electricity supply in Fiji for grid-connected and off-grid areas and uses these as a basis for a definition of energy security that is relevant to Fiji. It proposes a method for assessing the potential contribution of renewable technologies to the security of electricity supply in Fiji, based on mean-variance portfolio theory used in financial markets

Electricity Generation in Fiji: Assessing the Impact of Renewable Technologies on Costs and Financial Risk

In recent years, renewable energy technologies have been advocated in Fiji on the basis that they improve energy security and serve as a risk-mitigation measure against oil price volatility. Despite this, there have been few attempts to measure the impact of renewable technologies on energy security. That analysis is important if the benefits of renewable energy technologies in Fiji are to be adequately evaluated. This paper develops and applies a method for assessing the potential contribution of renewable technologies to the security of electricity supply in Fiji. The method is based on an application of portfolio theory, traditionally used in financial markets, to the electricity generation mix in Fiji. The results demonstrate the impact of different renewable technologies on both portfolio generation cost and risk for Fijian electricity grids.renewable energy technologies, energy policy, electricity sector, Fiji, oil prices, portfolio analysis, Pacific islands, Resource /Energy Economics and Policy,

Regional service delivery among Pacific Island countries: an assessment

Experience with pooling service delivery among Pacific Island countries has not met the optimistic expectations of advocates, finds this study. Abstract Pacific Island countries face a range of development challenges, including smallness, distance from major markets and capacity constraints. Regional service delivery, or pooling, has been advocated as a means of addressing these challenges. This article presents the findings from the first comprehensive study of pooling initiatives in the Pacific. It draws on a review of the literature pertaining to 20 pooling initiatives identified in the region and on interviews with stakeholders involved in many of those initiatives. The study finds that experience with pooling among Pacific Island countries has not met the optimistic expectations of advocates, including development partners. This is the result of the challenges inherent in voluntary regionalism, which are exacerbated by the diversity of Pacific Island states and political economy constraints. The article concludes that an incremental approach to expansion of regional service provision in the Pacific is both likely and appropriate given these factors

Renewable technologies for energy security: institutions and investment in Fiji's electricity sector

Renewable energy technologies have been advocated in Fiji's electricity sector on the basis that they improve energy security and serve as a risk-mitigation measure against oil price increases. This follows a decade of significant oil price volatility and historically high oil prices, which negatively affected the oil-dependent electricity sector in Fiji and other Small Island Developing States in the Pacific. This dissertation examines the extent to which renewable technologies can improve energy security in the electricity grid and in rural off-grid areas of Fiji. The main contributions from the research are a novel empirical analysis of generation cost-risk in the electricity grid; an analysis of institutions governing power sector investment; a survey, interview and focus group-based analysis of rural electricity supply; and an evaluation of implications of the research findings for policy. In Fiji's electricity grid, threats to energy security are primarily the result of increased generation costs and their impact on electricity prices. Risk is therefore financial. In this thesis, it is assessed using portfolio theory. Detailed data on costs and variability is fed into a stochastic portfolio model, which is developed to analyse the impact of renewable technologies on generation costs and financial risk in Fiji's electricity grid looking forward to 2025. The analysis demonstrates that renewable technologies can be expected to significantly improve the security of electricity supply through diversification, as the cost streams of renewable technologies are neither correlated with those of oil-based power generation, nor strongly correlated with each other. Importantly, investment in hydro, geothermal, biomass and bagasse-based power generation is found to lower expected average generation costs in the electricity grid. The implementation of energy efficiency measures also lowers generation costs and risk in the electricity grid. Renewable technology investment that is forecast in Fiji's electricity grid is found to fall short of what would be desirable based on the analysis, despite being significant. This investment deficit can be explained by institutional arrangements in the power sector. The research shows that barriers to investment in renewable technologies include political uncertainty, lack of available finance, and historically low feed-in and retail tariff rates. Regulatory reform now occurring is found to be promising in this regard, and is likely to attract increased investment in renewable technologies. Continuing political uncertainty nonetheless remains a barrier to investment, given the regulatory risk it entails. In rural off-grid areas of Fiji, energy security needs to be understood differently, with fuels such as kerosene commonly used as substitutes for electricity in the provision of services. This dissertation examines energy security and power generation in four rural communities in Vanua Levu (in northern Fiji), where there is widespread use of village diesel generators and household solar photovoltaic systems installed under government rural electrification programs. A survey, interviews and focus group discussions conducted for this dissertation show that un-electrified households were disproportionately impacted by oil price volatility in recent years, due to their reliance on fossil fuels. Power outages in electrified households were also found to be common. For village diesel systems, collective responsibility for financing fuel and maintenance is problematic. Informal norms and governance arrangements at the village level only partially resolve these issues. Solar photovoltaic systems in these communities also commonly perform poorly, primarily as a result of inadequate arrangements for maintenance established by government. A number of policy implications are identified in the dissertation. Forecast renewable technology investments in the electricity grid are worthwhile in light of their financial and risk mitigation benefits. Regulatory reform now underway and high retail and feed-in tariff rates already in place are facilitating such investment. Policy measures that could further encourage investment in renewable technologies include those designed to strengthen political and regulatory certainty; improve access to finance, land, and renewable energy resources; reform the sugar industry; and support research on renewable energy resources. Mechanisms designed to encourage the use of energy efficiency technologies should also be adopted. In rural off-grid areas, there are strong financial and social benefits from electricity provision, but reform of rural electrification programs is needed

Vanuatu and cyclone Pam: an update on economic, fiscal and development impacts

[Extract] During March 2015, Tropical Cyclone Pam charted a course of destruction through the southwest Pacific. The effects of the storm were felt in Kiribati, Solomon Islands, and Tuvalu. But the greatest impact was in Vanuatu, many of whose islands were battered by the Category 5 system. It is still too early to know the full economic, fiscal, and developmental impacts of Cyclone Pam on Vanuatu. As data come to hand, they will add to existing literature on the economic impacts of disasters. Cross-country econometric studies have produced mixed and often contradictory findings when examining the impacts of disasters. This is not unexpected given that disasters come in many forms and affect both economic sectors (e.g., agriculture and services) and geographic areas differently. Cyclone Pam was unique given the breadth of its impact, but even in this case, some islands in Vanuatu such as Santo were not severely affected. In this article, we provide an update on estimated fiscal, economic, and development impacts of the cyclone on Vanuatu. We commence by establishing projections for the Vanuatu economy before the onset of the storm and move on to an examination of the immediate and short-term impacts. We then consider the medium-to longer-term impacts of this event, including risks and opportunities associated with reconstruction efforts whether by government or development partners. We conclude with some recommendations for the future

Foreign Aid to the Pacific: Trends and Developments in the Twenty-First Century

The Pacific islands is one of the most aiddependent regions in the world. This article examines developments in the delivery of foreign aid to the region since the year 2000, a period in which there has been considerable change in both the amount and way in which aid is delivered internationally. Although Pacific island countries have seen a scale-up in development assistance, it has been modest relative to that enjoyed by other developing countries. Improvement has been mixed in areas identified as a concern by the aid effectiveness agenda, with high levels of volatility and lack of predictability particularly problematic

More Chinese loans to Pacific islands but no debt forgiveness

Earlier this week, Chinese Vice Premier Wang Yang pledged increased assistance to eight Pacific island countries at the 2nd China-Pacific Islands Countries Economic Development and Cooperation Forum in Guangzhou. There were similarities with the first such forum held seven years ago in Nadi, Fiji. Both forums were attended by leaders from China and the Pacific. Both saw a commitment by China to increase trade and share expertise in areas such as healthcare, education, tourism and disaster relief. And both meetings saw a substantial commitment to provide financing to the region

What's in a term? “Green growth” and the “blue‐green economy” in the Pacific islands

The term “green growth” and its sister concepts, “bluegreen growth,” the “green economy,” and the “bluegreen economy,” have gained considerable traction in the Pacific island region in a short space of time. Pacific island governments, regional organisations, and development agencies all use the terms, which originate outside of the Pacific. What (and who) has driven the adoption of green growth terminology within the region? How has its usage in the region mirrored international? This paper presents findings from research on the vernacularisation of green growth terminology in Fiji and Vanuatu. We find a contested policy space, where Pacific actors deploy competing meanings of green growth terms in ways that both reflect their worldviews and support their agendas. Thisdiversity has helped to underpin the rapid spread ofgrowth terminology in the region, while differentiatingfrom international usage

What's in a term? "Green growth" and the "blue-green economy" in the Pacific islands

The term "green growth" and its sister concepts, "blue-green growth," the "green economy," and the "blue-green economy," have gained considerable traction in the Pacific island region in a short space of time. Pacific island governments, regional organisations, and development agencies all use the terms, which originate outside of the Pacific. What (and who) has driven the adoption of green growth terminology within the region? How has its usage in the region mirrored international usage? This paper presents findings from research on the vernacularisation of green growth terminology in Fiji and Vanuatu. We find a contested policy space, where Pacific actors deploy competing meanings of green growth terms in ways that both reflect their worldviews and support their agendas. This diversity has helped to underpin the rapid spread of green growth terminology in the region, while differentiating it from international usage.We acknowledge financial support from the Australian aid program