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

Background

Samoa, northeast of Fiji, has 2,934 km 2 of land area, mostly in the islands of Savai’i (58% of land) and Upolu (38%). The climate is warm, humid and tropical with distinct wet and dry seasons. In 2001 Samoa had a population of 176,848 with national average growth of 0.56% per year, and urban growth of 1.5% per year since 1991. In 2001, 22% of the population resided in the Apia urban area, 30% in northwest Upolu, 24% elsewhere in Upolu, and most of the remaining 24% in Savai’i.

In 2003, an International Monetary Fund study concluded that the Samoan economy has been transformed into ‘ one of the best-managed in the Pacific islands’ … with ‘ perhaps the most successful example of reform in the region.

Baselines

About half of Upolu’s electricity is from hydro, other commercial energy needs met primarily from petroleum fuels. Cooking with biomass probably accounts for half of gross energy demand but there are no reliable or recent data to confirm this. There has been limited use in Samoa of solar photovoltaics (PV) on a very small scale.

From 1989-1998, petroleum imports grew 7.3% annually

In 2001, 93% of Samoa’s households were electrified and most of those unelectrified live relatively close to distribution lines.

EPC has eight small hydroelectric plants (950–2000 kW, mostly run-of-river) at five locations on Upolu totalling 11.5 MW of effective capacity and about 18 MW of diesel. Dry season hydro capacity is 4.2 MW. Overall, the derated dry season capacity of all systems is about 22 MW of which 81% is diesel and 19% hydro. The peak Upolu load in 2002 was 15.8 MW. The Savai’i peak was 2.85 MW with 4.5 MW of (derated) capacity. A 2003 Japan International Cooperation Agency (JICA) study estimates that generation will grow in the next few years at 6.5% per year.

The government estimates that Samoa emitted 102.8 gigagrammes (Gg) of CO 2 -equivalent greenhouse gases (GHGs) in 1994, which is consistent with Greenpeace estimates of 97 Gg in 1993. By 2003, emissions reached 187 Gg, an average annual growth rate of 7% since 1994, equivalent to a doubling time of ten years. Assuming that population continues to grow less than 1% per annum, and the economy grows at 3-4%, then fuel use and GHGs are likely to increase about 6.3% per year, with emissions of 345 Gg by 2013. This is a ‘business-as-usual’ estimate, assuming no significant new investment in renewable energy or energy efficiency. In principle, by 2013 Samoa could reduce emissions through renewable energy investments by 81 Gg, equivalent to 43% of 2003 emissions and 23% of projected 2013 emissions. This is based on proven technologies and more-or-less known resources but does not consider economic, financial, political, social, technical, environmental or other practical constraints.

The PIGGAREP Support

The PIGGAREP activities identified for Samoa will build on 3 key initiatives: (1) The ADB Power Sector Expansion Project , (2) the Pacific Islands Cooperation Programme with the Government of Italy, and (3) Joint PIEPSAP, UNDP and SOPAC Energy Projects.

The ADB Power Sector Expansion Project

The project involves a TA - Preparing the Power Sector Expansion Program - that will (i) develop a comprehensive reform program, including a regulatory framework, that would enable private sector participation and enhance the efficiency in the sector; (ii) develop a program to reform the Electric Power Corporation's (EPC) internal business and management procedures to enhance governance and cost efficiency; and (iii) prepare an investment road map to diversify the country's energy resources, meet future load growth, and reduce the burden of diesel imports.

This TA will then lead to 2 very important initiatives:

The Power Sector Expansion Project will comprise of (i) three investment components under the Electric Power Corporation's (EPC) investment plan, (ii) assistance to project management, and (iii) technical assistance (TA) programs to (a) improve EPC's financial performance; (b) establish effective regulation of the power sector; (c) establish a designated national authority; and (d) establish a clean energy fund. The investment components include two core and 16 candidate investment subprojects, and a project management component which will be implemented from 2008 to 2015. Component A comprises the Hospital feeder upgrading project-Stage 1 which forms part of EPC's underground cabling program for the transmission network to provide protection from cyclones. Component B comprises the supply and installation of pre-payment meters for all consumers by 2012. Component C comprises five generation and eleven transmission candidate subprojects identified under EPC's investment plan. The proposed ADF IX grant of $18.1 million to the Government will ease the macroeconomic impact of the large financing requirements for the power sector expansion project. A loan in the amount of $23.9 million is being provided in conjunction with this grant.

A TA to implement Samoa's National Energy Policy. The TA will consist of a:

Component 1- Regulatory Reform in the Power Sector

Component 1 will support the Government's overarching goal for the power sector to provide sustainable and reliable electricity services to all consumers at affordable prices. Component 1 will help establish the regulatory requirements for the power sector, including the drafting of a new electricity act to govern the sector and amendments to the EPC Act (1980), and establishment of a regulatory body and its roles and functions.

Component 2 - Establishment of a Clean Energy Fund

Component 2 will contribute to the Government's vision to enhance the quality of life for all Samoans through sustainable energy development. The CEF will promote and facilitate development of clean energy of initiatives for clean energy, environmental improvement, and climate change adaptation.

Component 3 - Establishment of a Designated National Authority

Component 3 will contribute to the Government's vision to enhance the quality of life for all Samoans through sustainable energy development.

Component 4 - Resident Financial Management Advisor to the Electric Power Corporation

The financing needs for the power sector and EPC to meet growing electricity demand places substantial requirements on EPC to improve internal financial management controls, accounting and reporting. As part of EPC's forward looking investment plan and need to improve timeliness of tariff adjustments, EPC will commence preparing 5-year financial projections. There is an opportunity to improve the existing tariff structure and introduce bulk power purchase agreements with large consumers to provide incentives for energy conservation and demand-side managements.

Government of Italy and PIC Cooperation Programme

The Ministry of Natural Resources and Environment is coordinating this programme, which will be delivered through the IUCN Oceania office is Suva. A USD 600,000 proposal has been developed and submitted. Project is focussing on reducing GHG emission in the transport sector.

Joint PIEPSAP, UNDP and SOPAC Energy Projects

The PIEPSAP Project (2004-2008) has assisted Samoa with the following activities:

•  Draft policy statements and strategies produced in September 2005 including renewable energy targets

•  National Energy Policy endorsed by Samoa Cabinet in June 2007

•  GIS/MIS consultancy for power utility incepted in December 2006 with GIS/MIS system fully operational by 2nd quarter 2007

•  Cost-shared with UNDP TRAC the Preparatory Phase for the Samoa PV Rural Electrification Programme.

Since the PIEPSAP will continue to operate for just another year (up to mid August 2008), discussions of the collaborations between PIEPSAP and PIGGAREP has resulted in the suggestion of some activities to be picked up by PIGGAREP.

PIGGAREP's follow-up support to the PIEPSAP's activities will focus on the following activities:

•  Co-operation in developing strategic energy action plan

•  Follow-up in cooperation with UNDP on the Preparatory Phase for the Samoa PV Rural Electrification Programme including support for the implementation of such PV program

•  Support for EPC wind energy development including comprehensive feasibility studies (including geotechnical analysis) and identification of funding sources, possibly CDM

Furthermore, UNDP, SOPAC, RISOE, EPC and the government of Samoa is working on the Upolu wind resource assessment project (US$32,000). The project will select, install, and operate two (2) wind monitoring stations and after 1-2 years with successful minimum data recovery rates analyze the data and assess the wind resource potential on Upolu. The expected main outcome of the Project is to assess the wind resources in Upolu, Samoa.

The Government of Samoa through the Electric Power Corporation (EPC) and in cooperation with UNDP and the Danish NGO the Organisation for Sustainable Development have replaced the current diesel generator with photovoltaic (PV) based power systems on Apolima Island. The expected overall outcome is to improve livelihoods through a reliable, effective and environmentally friendly 24-hours power supply for the nine (9) households and one (1) church on Apolima Island including PV based streetlights.

In relation to the above, UNDP Samoa, PIEPSAP and SOPAC have undertaken a preparatory phase for the Samoa Photovoltaic (PV) Electrification Programme. The preparatory phase (US$47,000) will undertake a household survey of un-electrified households in Samoa; determine the resources available and the technical, economical, financial, and institutional feasibility of carrying out a Samoa Rural Electrification Program based on PV; and prepare a Program Document (i.e. investment plan) for a Samoa PV Rural Electrification Program. The expected outcome of the preparatory phase is a properly formulated and detailed PV based rural electrification program to provide the remaining up to 1,200 non-electrified households in Samoa with 24-hours power.

Samoa, UNDP and SOPAC have been working on a CocoGen project, looking at the feasibility of using copra oil for power generation. Following discussions between EPC Management, UNDP and SOPAC representatives on 19 July 2007 the Work Plan and Budget for the EPC CocoGen Phase II has been revised to accommodate suggestions and concerns of the EPC Board. The revised Work Plan and Budget acknowledges that given revised maximum blend mixtures of 5% CNO on the one hand and increased supply cost for diesel may change the economics of the project significantly. Revised scheduling also considers the critical nature of the supply chain. In addition an analysis of various options for institutional arrangements for CNO production now takes precedence over technical design issues. The work plan is based on the assumption that EPC’s preferred supplier of new generation equipment for Savaii power station will allow a 5% CNO addition to the diesel fuel without negative consequences for warrantees or operational characteristics of the diesel engines.

April 25 th 2008 was dedicated as the Samoa National Energy Awareness Day (SNEAD) with activities targeting mostly school children. The theme for this event was “ Energy for Life, Use it Wisely”. The events during the SNEAD involved speech, poster and renewable energy model competitions among the primary and secondary schools. About 400 students participated in this event plus members of the general public who were mostly part-time participants throughout the event. The report on this event and its evaluation by the PIGGAREP PMO can be viewed at the PIGGAREP web page http://www.sprep.org/climate_change/piggarep.htm