ALM UNDP

Summary:

The development objective of the Fiji Renewable Power Development Project is to help the Borrower continue to meet the growing demand for electricity in the Republic of Fiji at least cost by further developing a reliable diversified sustainable energy portfolio. In particular, the Bank will assist the Fiji Electricity Authority (FEA) in diversifying its energy portfolio to reduce its dependence on diesel oil. Key indicators include: 1. The renewable energy capacity (MW) added to the grid; 2. Amount of actual generation added to the grid (GWh); 3. Increased reliability measured by the increased number of hours that the Viti Levu Interconnected System (VLIS) and Savusavu systems are available; and 4. The reduction in greenhouse gas emissions. This project is part of a larger FEA investment program. A recent power sector analysis has shown that the proposed investments in renewable energy generating capacity are the least cost solution for the expansion of the energy sector. Three international financial institutions (IFIs) will provide financing for the first investment package. The Asian Development Bank (ADB) will be financing the required expansion in transmission and distribution facilities, the EIB will finance FEA's equity contribution in a joint venture with Pacific Hydro Limited, which will develop the Nadarivatu run-of-river hydro facility with a capacity of 38.6 MW. The Bank will finance the expansion of the Wailoa Power Station and the development by FEA of two generation units utilizing biomass.

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