Promoting Sustainable Energy Entrepreneurship in the PICTs - Mafalu Lotolua - PCREEE

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Promoting Sustainable Energy Entrepreneurship in the PICTs - Mafalu Lotolua - PCREEE
Promoting Sustainable Energy Entrepreneurship
                 in the PICTs

                                       Mafalu Lotolua
                                               Tuvalu
Promoting Sustainable Energy Entrepreneurship in the PICTs - Mafalu Lotolua - PCREEE
Background

• In June 2008, the cost of a barrel was at its highest peak, and the
• Tuvalu National Energy Policy (TNEP) was born.
  - with the Government 100% renewable energy and 30% energy
      efficiency target by 2020, and also leads
  - to the development of the “RE & EE Master Plan” for the
      Electricity Sector.
• The existing Government has extended the target dateline to 2025

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Promoting Sustainable Energy Entrepreneurship in the PICTs - Mafalu Lotolua - PCREEE
RE Space
No              Island                  Technology            PV Capacity        Batt. AH
                                                                 (kW)
1    Funafuti                   Solar PV grid-connected            756              Nil
2    Vaitupu, Niutao,     Solar PV mini-grid                     1,042            159,000
     Nanumaga and Nanumea                                    (410,232,205,    (60,000,36,000,
                                                                 195)         33,000,30,000)
3    Nukulaelae, Nukufetau      Solar PV mini-grid                182             46,020
     and Nui                                                   (45,77,60)     (12,228,18,432,
                                                                                  15,360)
4    Amatuku, TMTI              Solar PV mini-grid                  8             2,000
5    Niulakita and Funafala     Standalone Home System
                                (SHS)
6    Motufoua                   Solar PV mini-grid                 46             12,000

        •   Funafuti – 756kWp installed capacity
            (Controlled (SMA Fuel Saver)– 436kWp and Uncontrolled – 320kWp)
        •   Outer islands – 1,270kWp PV installed capacity
        •   Share of RE in the Generation mix – 29%                                             3
Promoting Sustainable Energy Entrepreneurship in the PICTs - Mafalu Lotolua - PCREEE
Energy Efficiency Portfolio
No            Activity                     Progress         Development Partners
1    Energy Efficiency Act      Endorsed by Parliament in   Australian Govt. through
                                April’16                    PALS Programme with
                                                            SPC
2    RE & EE Low Carbon Fund    Launched end of June’16     GEF through IUCN
     Initiative
3    RE&EE Demo Fale            Inaugurated March 2017      SIDS Dock through
                                                            UNDP
4    Prepayment Meters          Finalizing Specifications   World Bank
5    Window Tinting for Govt.   Yet to start                World Bank
     Main Office building
6    Replacing of container     Yet to start                World Bank
     refeers with Cool Rooms

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Promoting Sustainable Energy Entrepreneurship in the PICTs - Mafalu Lotolua - PCREEE
BAU vs RE & EE
3,000,000

2,500,000

2,000,000

1,500,000                                       BAU
                                                REEE Master Plan
1,000,000

 500,000

       -
            2012   2014   2016   2018   2020   2022
                                                                   5
Promoting Sustainable Energy Entrepreneurship in the PICTs - Mafalu Lotolua - PCREEE
Tuvalu Electricity Corporation (TEC) involvement with
                                     the Private Sector
• TEC involved with all renewable energy projects and the Energy
  department with policies
• TEC has been directly involved in securing funds to provide a conducive
  environment for the Private Sector in RE & EE
• Funding secured so far:
  o GEF-5 US$110K- under the project Low Carbon Fund, is now
                         implementing.
  o GEF-6 US$320K - under the project “Facilitation of the Achievement of
                        Sustainable National Energy Targets of Tuvalu
                        (FASNETT)”, will soon implement.

                                                                        6
Promoting Sustainable Energy Entrepreneurship in the PICTs - Mafalu Lotolua - PCREEE
Private Sector Development in Tuvalu
•   Under the Tuvalu National Strategy for Sustainable Development 2016-2020 (Te
    Kakeega III):
    o Stresses the importance of the Private Sector and have a set Goal of “ To be
        the engine of economic growth, employment and export trade”
•   Last month of September’17, consultation works begin with the aim in developing
    the “Tuvalu Private Sector Development Plan (TPSDP) 2017-2019”
•   Tuvalu National Private Sector Organisation (TNPSO)
    o Office – manned by 2 x Permanent Officers and 2 x Temporary Officer
    o >100 registered members
    o To become a members, need to register with the Organisation.
•   Government annual grant - $30K
•   Member of the PIPSO
•   Directly linked to the Government Business Centre
    o Offered advisory role to all entrepreneurs, if needed
                                                                                 7
Promoting Sustainable Energy Entrepreneurship in the PICTs - Mafalu Lotolua - PCREEE
RE & EE Entrepreneurs

• None, that is directly linked to RE & EE but have the potential to
  diversify their businesses:
• We have;
  o 2 x registered refrigeration and air-conditioning business, and
  o 2 x registered electrician, mainly doing domestic and commercial
     wiring.

                                                                       8
Promoting Sustainable Energy Entrepreneurship in the PICTs - Mafalu Lotolua - PCREEE
Existing RE & EE Legal Framework
•   Tuvalu National Energy Policy (TNEP) 2009
•   10-Year Master Plan 2012
•   The Energy Efficiency Act approved by
    Parliament in 2016
    o Energy Efficiency appliance to be regulated
        under the act:
         3.5- stars refrigerator and chest freezers
         4- stars for washing machine
         T8 & T5 LED Lights
         Air-conditioning unit

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Promoting Sustainable Energy Entrepreneurship in the PICTs - Mafalu Lotolua - PCREEE
Existing Opportunities for Private Entrepreneurs
•   Government Credit Guarantee Scheme
    o   Providing a conducive environment for
        entrepreneurs
    o   How the scheme works:
         Wide consultation had been done around
          the country:
            -    Participant attended, were issued with a
                 certificate
            -    With the certificate, you can access to
                 the scheme
         Partnership in guaranteeing the Loan:
            -    50% Government
            -    30% DBT
            -    20% Borrower
                                                            10
con’t
•   Low Carbon Fund Initiative for RE & EE
    o Funded by the GEF-5
    o Capital investment – USD$110K
      - 80% disbursed
      - 20% still retained, awaiting submission of
        Q2/Q3 financial report
    o Managed and Operated by the Development
      Bank of Tuvalu (DBT)
    o Targeted EE Appliances included:
      - 3.5 - stars for refrigerator and chest freezers,
      - 4 - stars for washing machine,
       - LED Lights – T8 & T5, and
       - Solar water pump
                                                           11
con’t
• How it works
  o Subsidy
     10% subsidy of the asset value and 3% interest rate
     Term of repayment – 2-3years
  o Refund
     Purchase of the EE appliance mentioned above, 25% of the
         asset value will be refunded.
  o Business Loan
     Maximum of AUD$30K
     Selling Price for the EE appliance is to be the same as the price
         of the appliance at the country where the item is bought.
        - No Public interest with the initiative
                                                                     12
Additional Opportunity for RE & EE Entrepreneurs
•   The project “Facilitation of the Achievement of
    Sustainable National Energy Targets of Tuvalu
    (FASNETT)”
    o Secured US$2.6million from GEF-6
    o >US$300K towards the existing Low Carbon
       Fund
      - Financial incentive mechanism for
          replacement program for old, inefficient
          household and commercial appliances and
          equipment, e.g. refrigerators, freezers,
          lights, and other major electricity-
          consuming devices to more efficient
          models through incentives and rebate
          schemes.

                                                          13
Barriers in establishing RE & EE Entrepreneurs
•   Public attitude towards energy conservation
    and application of RE in people’s daily social
    and economic activities.
•   Low level of knowledge of opportunities and
    obstacles to the application RE technologies for
    productive and social uses
•   Lack of policies regarding financial/fiscal
    incentives that would encourage private sector
    (local and/or foreign) capital in sustainable
    energy projects in the country
•   Limited initiatives for the general public and
    private sector to implement RE & EE projects
•   Lack of Space

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Way Forward
•   Net Metering Policy
•   Surveying of households/commercial
    rooftop
•   Aggressive Awareness Programme
•   Energy Act
•   Provide initiative for the Private sector
    and the general public
•   Changing of existing guidelines and
    procedures for the business loan scheme
    under the Low Carbon Fund Initiative.

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Some Innovative Ways to Install PVs

 Natural bond - potential for
 floating PV’s system and
 can accommodate 2MW
 capacity
                                                            Space can be used for parking/recreation

• Under the FASNETT Project 100kWp of floating      Floating Solar Power Plant for the Sea at Maldives
  PV capacity will be piloted in the natural bond                                             16
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