PEAG MEETING 16 – 18 NOVEMBER 2015 SUVA, FIJI UPDATE ON VANUATU NATIONAL ENERGY ROADMAP Jesse Benjamin, Director, DoE

NERM VISION “ TO ENERGISE VANUATU’S GROWTH AND DEVELOPMENT THROUGH THE PROVISION OF SECURE, AFFORDABLE, WIDELY ACCESSIBLE, HIGH QUALITY, CLEAN ENERGY SERVICES FOR A JUST, EDUCATED, HEALTHY, AND WEALTHY VANUATU ” TIMEFRAME: the roadmap to set the direction and framework for developing Vanuatu’s energy sector; - enable better alignment of the resources with government policies - investing in renewable energy and energy efficiency can only be realised when they are part of an overall plan for a sustainable energy sector - improvements in the petroleum supply chain and consideration of price hedging instruments - increased efficiency both in electricity supply and use, - improved access to quality electricity services in remote areas - reduced environmental impacts both locally and globally and; - enhanced energy security

FIVE ENERGY SECTOR PRIORITIES:  Access to secure, reliable and affordable electricity for all Citizens by 2030  Reliable, Secure and Affordable Petroleum Supply throughout Vanuatu  A more affordable and low cost of energy services in Vanuatu  An Energy Secure Vanuatu at all times  Mitigating climate change through renewable energy and energy efficiency.

UPDATES: INSTITUTIONAL STRENGTHENING  Upgraded from Unit to Department in 2011  DoE previously under Ministry of Lands now moved to Ministry of Climate Change  Increased staff from 2 Permanent staff in 2011 to 10 Permanent staff and 7 project officers in 2015  Compared to 2011/2012 Budget of DoE triples in 2015 due to better recognition by Gov  New DoE Website and Database operational on this address:  Institutional strengthening attracts project portfolio of >USD40M directly managed under DoE

1. Review of the National Energy Roadmap (Funded by GGGI) - incorporate green growth strategies, add more detail to energy efficiency strategies, and updated goals and targets for use of renewable energy, energy access and energy efficiency 2. Review of Energy Related Legal Frameworks (Funded by WB) - to draft and/or amendments to legislation, regulations, standards or guidelines, and compliance frameworks) as appropriate. 3. Renewable Readiness Assessment (Funded by IRENA) - help in formulating Vanuatu’s renewable energy development action plan in order to mobilise the resources necessary to carry out the actions identified and to flag the potential issues that need to be further addressed. 4. Nationally Appropriate Mitigation Actions (Funded by UNDP) - the Vanuatu NAMA is to provide off-grid electrification for households, public buildings and institutions as well as businesses. 5. Establishment of a Financial Mechanism (Funded by GGGI) - Developing a financial mechanism framework for supporting rural electrification and EE 6. Intended Nationally Determined Contributions (Funded by UNDP) - captures and summarises Vanuatu’s mitigation contributions and adaptation priorities and strategies 7. Energy Efficiency Act (MEPSL) - An Act to provide for minimum energy performance standards, energy labelling and for registration of an electrical appliance, equipment, and lighting products that are energy efficient and for related purposes. UPDATES: POLICY, LEGAL AND REGULATORY

UPDATES: ACCESS TO ELECTRICITY 2013: OVERALL 27% ACCESS TO ELECTRICITY GOAL : 90% BY 2020 AND 100% BY 2030 New and Emerging Projects 1. Improved Electricity Access Project (WB funded project, USD 4.85M) - increase sustainable access to formal grid-based electricity services within Vanuatu’s electricity concession service areas for low income customers through targeted subsidies. - cover up to 80 percent of the cost of connecting 4,375 households to the national grid through post-paid and pre-paid (where available) metered connections. 2. Vanuatu Rural Electrification Project – Phase 1 (WB Funded Project, USD 4.7M) - increase access to electricity services for rural households, aid posts and community halls located in dispersed off-grid areas - targeting 17,500 households, 230 aid posts and 2,000 community halls nationwide 3. Biofuel Rural Electrification Project (EU and GoV funded Project, ~USD3.5M) - Increase access to electricity services for rural households of Penama, Torba and Malampa Province - Targeting 300 households in Torba, 350 households in Penama and 500 households in Malampa Province - 2 hospitals, 4 dispensaries, 10 schools, business house s and government facilities 4. Talise Hydro Project (IUCN & GoV Funded Project, USD 1M) - Increase access to electricity services in Maewo - Targeting 300 households, 1 health center, 3 schools, small shops

Updates: Access to electricity (New and Emerging Projects continued) 5. Melanesian Million Miracle Project (M3P)- (SPC Funded Project, ~FJD 250,000) - Works with women group in providing access to low cost, low maintenance solar lanterns on Tanna island - Targets 200 households in Tanna 6. Brenwei Hydropower Project (ADB & GoV Funded, USD12M) - Construction of 400kW hydro system in Malekula with transmission and distribution lines - Targets 700 households in Malekula 7. Contributions by Utility (Unelco and Vanuatu Utility Infrastructure (VUI) As at 31/12/2008As at 31/12/2009As at 31/12/2010As at 31/12/2011As at 31/12/2012As at 31/12/2013As at 31/12/2014 Total No. Of Electricity Customers in Vanuatu 12,14912,64512,89913,30013,89515,06416,124 This figure may increase dramatically by 31/12/15 with WB Increase Electricity Access Project

UPDATES: RENEWABLE ENERGY AND CLIMATE CHANGE 2013: 19% RENEWABLE ENERGY GENERATION GOAL: 40% OF RENEWABLE ENERGY GENERATION BY 2015 AND 65% BY 2020 New and Emerging Projects 1. The Vanuatu Intended Nationally Determined Contributions (INDC) aims for 100% RE by 2030 conditional on availability of funding and TA 2. A 3.75MW Grid Connected Wind System installed in Port Vila (Unelco Initiative, USD 9 million) 3. A 767kW Solar Grid Connected System installed in Port Vila (Funded by UAE, USD 5 Million) 4. Unelco 500kW Solar Grid-Connected System Installed at Hunting Bay, Port Vila (Unelco initiative, costs unknown) 5. Another 1.5MW solar grid connected system to be installed (tendering in process) in Port Vila (EU, Unelco and GoV, USD 4.3M) 6. Talise 70kW Hydropower Project 7. Brenwei 400kW Hydropower Project (SREP,ADB and GOV, USD 12 M ) 8. Takara Geothermal 5-10MW project (potential still exist but funding constraints) 9. Vanuatu Rural Electrification Project (WB funded, USD 4.7M) 10. A total of 400kW Biofuel Project for Penama, Torba and Malampa Province 11. Unelco Initiative on Biofuels ( 8MW Genset running on 25-30% Biofuel )

UPDATES: ENERGY EFFICIENCY AND CONSERVATION New and Emerging Projects 1. Pacific Appliance Labelling and Standards Project (SPC Funded, ~USD 150k)  designed to assist Vanuatu to implement labelling and standards for energy-using equipment such as refrigerators, freezers, air conditioners and lighting.  Bill awaiting approval by Parliament 2. Vanuatu has signed up for Pacific Efficient Lighting Strategy (PELS) in July Pacific Energy Efficiency Programme- Phase 2 (ADB Funded, Cost unknown)  Distribution of 10,000 EE lights in Port Vila and 5,000 EE Lights Luganville  7,100 EE lights for public buildings including schools and 320 LED street lights 4. Further consideration to coordinate with Hotel Industies for EE and Conservation initiatives

Thank you Q&A