US$60m could be saved in fuel bill

Samisoni Pareti
Up to half-a-million kilowatts of energy can be produced by Pacific Islands nations if they resort to renewable energy, a regional-wide audit has discovered.

The assessment put the total potential energy that could be generated through hydro, solar and other renewable sources at 365,349 kWh.

This is equivalent to half of Fiji's power consumption in 2004. Put another way, if a medium-sized home consumes 100 to 250 kWr per month, then approximately 120,000 homes can be serviced by the 365,349 kWh.

Working on the assumption that a diesel plant conversion can be in the order of 0.25 litre per kWr, islands countries can save 90 million litres, or US$60 million.

The Apia-based Secretariat of the Pacific Regional Environmental Programme, which conducted the audit under its Pacific Islands Renewable Energy Project, said the energy volume should be more since data out of Papua New Guinea, the largest of all islands nations, was not available. This was true in the volume of energy PNG gets from biomass (agriculture, forestry or biofuel) and wind power.

The only other country that has the potential of tapping into biomass in some real way is Fiji.

The United Nations Development Programme-funded audit shows that Fiji can produce 11,000 kWe from agriculture, 3000 kWe from forestry and 125 kWe from biofuel.

For wind power, Fiji has the potential of producing 75 kWr, which is so much more than the less than 1 kWr it got from this source in 2003.

Papua New Guinea, given its size and topography, holds great promise in hydropower. The SPREP audit reveals it enjoyed 910,000 Mwh from hydro in 2001. But if properly harnessed, some 222,000 Mwh more could be found and exploited, the audit says.

PNG is also the only country in the region that holds some promise in utilising geothermal. SPREP believes it can produce 6000 kWe of geothermal power.

No data was available on PNG's use of solar energy, yet the audit asserts that 15,000 kWe could be produced through solar water heaters and 525 kWp in solar home systems.

Solar energy also holds a lot of promise for Fiji, the Cook Islands and Tonga, with each holding the potential of producing 3000, 2000 and 1000 kWe respectively.

Apart from PNG, five other islands countries have the potential to exploit hydro energy, the audit says.

Fiji can produce 90,185 kWe more, Samoa 11,060, Federated States of Micronesia 2060, Vanuatu 600 and the Solomon Islands 455.

Said Solomone Fifita, SPREP's energy adviser: “Rising oil prices, and this is not the first time, has given the clear signal that Pacific Islands countries must look for alternatives besides fossil fuel.

The countries have individually and collectively made their commitments to embark on a renewable energy path at various international, regional and national fora.

Cost and maintenance, admitted Fifita, were identified as factors that hamper the wider use of renewable energy in the Pacific. This factor was made clear in the audit SPREP did.

“The obstacles or barriers are many and are intertwined. There are institutional, financial, market, awareness and capacity, technical, policy and regulatory.

“PIGGAREP will address this through target packages of activities in each country.”

PIGGAREP will also initiate cost analysis which Fifita hopes would show savings each country would make if they turned to renewable energy, instead of fossil fuel.

Added Fifita: “At a time of rising oil prices and any other time, it is important to look for alternative fuels like renewable energy and equally important too to be energy efficient, regardless of whether you are using fossil fuel or renewable energy.

“It is always said that it is more cost effective to save a unit of energy than to generate an additional unit of energy.”

BP stays mum over Shell sale Too much government interference could turn multinationals out of the Pacific region, a leading oil company believes. British Petroleum South West Pacific made the inference when its views were sought on the recent announcement by Shell to withdraw from the islands. Whilst BP Oil refused to declare whether it is interested in buying Shell's Pacific interest, the company did say that the regulatory framework islands governments forced them to work with in the region could be a disincentive. “Operating in the Pacific Islands, unlike elsewhere in Australasia, requires adherence to a specific regulatory environment that creates additional business risks,” says Isikeli Tuituku, BP South West Pacific general manager. “Whilst BP currently sees no immediate reason to cease its operations in the Pacific, regulatory risks are certainly one factor considered in any decision regarding our future operations in the region.” In announcing its decision last November to withdraw from seven Pacific countries including Papua New Guinea and Fiji, Shell said its returns from its business in the region were too small. It wanted to concentrate on its major and more lucrative markets in China and India. Shell is not alone in this. Tuituku said BP Oil had also announced significant investments in the two Asian countries but there was no link between this and its interests in the Pacific. Like Shell, BP also serves seven islands in the region-American Samoa, Cook Islands, Fiji, Kiribati, Tonga, Tuvalu and Vanuatu. Asked about the likely implications of Shell's pullout, Tuituku said: “There are a number of major oil companies which continue to operate in the Pacific which along with more recent participants act to provide substantial supply security to customers.”