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Pacific Islands Greenhouse Gas Abatement through Renewable Energy Project (PIGGAREP) - Niue Interventions

Background

Niue is a single raised coral island of 259 km2 located about the centre of a triangle consisting of Tonga, Samoa and the Cook Islands. The current population of ethnic Niueans in New Zealand is about 20,000 while the population on Niue is around 1,700. There has been some effort to encourage repatriation though there continues to be a slow loss of families to New Zealand.

GDP in 2000 was about $14.2 million with 3 million from agriculture, $311,000 from tourism and $204,000 from manufacturing. The remainder came from donor funding with about $6 million from New Zealand. Remittances from family members overseas are also an important input to the economy.

Baselines

Electricity is generated and delivered by the Niue Power Corporation, a government corporation reporting to the Secretary for Government. It has 16 employees with five in technical jobs, two as meter readers and nine in management and administration. Capacity is 2.4 MW using three 800 kW Caterpillar engines but have to be derated to 1.6 MW.

In FY2002-2003, about 1.5 ML of ADO, 570 KL of petrol, 540 KL of Jet Fuel, and 14 ,800 kg of LPG were imported. The bulk of diesel fuel is used for electricity generation, nearly 1 ML per year. 90% of petrol goes for land transport. Electricity sales were 3.37 GWhr in FY2002-2003. Energy production from renewable sources is less than 1% of the total, all in biomass for household use.

The expected growth in fuel use for petrol and jet fuel is 2% per year, 2% for ADO use for electricity and 3% for ADO used for transport. LPG is expected to grow rapidly at 6%. The 2002 baseline estimation of petroleum based GHG emissions is 6.9 GG and the 2012 forecast is 8.7 Gg. If renewable energy and energy efficiency measures are aggressively applied, about 15% of ADO used for electricity can be saved through efficiency measures, about 15% of ADO for electricity can be saved through solar and wind systems connected to the grid. About 5% of ground transport fuel use can be saved through energy efficiency measures. The total savings would be around .96 Gg in 2012 or about 11% of total CO 2 emissions.

The PIGGAREP Support

The PIGGAREP activities identified for Niue will build on 3 key initiatives: (1) REP-5 , (2) EDF 10 Renewable Energy Programme and (3) the Pacific Islands Cooperation Programme with the Government of Italy .

REP-5

Under the REP-5 Niue will implement the following:

•   Supply of solar water heaters

240 SWHs are currently being installed by local contractors under this programme. To be eligible for the discount, residents must hand in their existing electric water heaters. Total costs: 600,000 Euro.

• Grid-connected PV system

A grid connected PV system is to be installed on a public building. Capacity of the system is to be 35 – 55 kWp. Total costs: 400,000 Euro.

Forecast published, contract to be signed by end of May, installation to be completed by January 2009.

• Awareness Raising

Awareness raising to be carried out in conjunction with the SWH project. Total costs: To be confirmed. Activities has begun and will continue throughout 2008 and 2009.

EDF 10 Renewable Energy Programme

The financing agreement was signed in October 2007. 10 th EDF A envelope - € 3,000,000 this envelope will cover long-term programmable development operations under the strategy, of which:

Focal sector Renewable Energy and Energy Efficiency   €2,550,000   85%   EDF

Non-focal sector component: village economy development €450,000 15%   EDF

Pacific Islands Cooperation Programme with the Government of Italy

Niue has signed the Communiqué but and has identified Mr George Lakatani to be responsible for drafting Niue’s proposals.