IEEJ: April 2010

Republic of Palau"No Island left behind"

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IEEJ: April 2010

Outline Palau – National Circumstance Current Energy Policy & measures Energy Demand & Supply (Stats) Gaps & Constraints
 Policy Difficulties
 Q&A"No Island left behind"

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IEEJ: April 2010

Palau - National Circumstance
Palau consist of 386 islands, of which 9 areinhabited;Land area: 535 sq. km/ 25 % is below sealevel;

Made up of 5 geological island types: volcanic,high limestone, low limestone, atolls, and a
combination of volcanic and limestone;

Climate: Tropical rainy climate;Temperature: mean is 82F;

Rainfall: 150 inches per year;

Population: 20,273 (median projections)

Main industry: Tourism Industry"No Island left behind"

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IEEJ: April 2010

Current Energy Policy & Measures
VISION: “GREEN ENERGY MICRONESIA” (GEM)
GOAL: 20-30-20
20% Renewable Energy
30% EE & EC
Year 2020
I. Provide clear direction on the future of Palau’s Energy
sectorII. Appropriate regulation to securely deliver energy services
at competitive prices.
III. Maximize cost-effective EE , EC & RE resources whilesafeguarding our environment
IV. Promoting environmentally sustainable energy
technologies with the aim to substitute fossil fuels
V. Supporting consumers through the transition towards anew energy sector.
"No Island left behind"

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IEEJ: April 2010

Policy & Measures continued
1. Improved Institutional Arrangements for Energy Sector
Management• Upgrade to a Division or Bureau
2. Energy Efficiency (EE) & Energy Conservation (EC)
• 30% improvement by year 2020
3. Renewable Energy• 20% by year 2020
4. Imported Fuel & Hydro carbons• Pursue opportunities / mechanisms for obtaining
competitive fuel prices• Legal framework
1. Electric Power• Laws & Regulations that will ensure Security,Reliability & efficiency of power supply by theUtility.
• Private sector participation (IPP)"No Island left behind"

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IEEJ: April 2010

Energy Supply
 Palau Public Utility Corporation
 Sole power producer (by legislation)
 Installed Capacity – 36MW Current available output – 20MW
o95% of energy consumers supplied bycentral grid consisting of two power plantsoRest are independent plants on 3
isolated outer islands.
oAll are Diesel based generators"No Island left behind"

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IEEJ: April 2010

Continued•

99.3% of electricity is produced by diesel basedgenerators.

•

Estimated at 12 million gallons per annum of diesel
import.
Consumption (TJ)
Lubricants
1%

FUEL BREAKDOWN

Fuel Type
Consumption (TJ)
Gasoline
267.26
Other Kerosene
14.16
Gas / Diesel Oil
840.07LPG
6.18
Lubricants
10.73
Total
1,138.41

LPG
1%

Gasoline
23%

Other Kerosene
1%

Gas / Diesel Oil
74%"No Island left behind"

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IEEJ: April 2010

Energy Demand
Percentage of connectionbase

Percentage ofconsumption base

"No Island left behind"

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IEEJ: April 2010

Vulnerability to price fluctuations"No Island left behind"

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IEEJ: April 2010

Solar PV Technology
 100kw Grid connected Solar PV – Capitol Building• Installed & producing since December 2008
 153kw Grid connected Solar PV – National Hospital•Installed & producing since December 2008 180kw Grid connected Solar PV – International Airport• To be installed by mid 2011
• Funded Cool Earth Japan Technology has a proven track record
 Proven to be successful in PIC
 World Market prices are becomingeconomically viable.

"No Island left behind"

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IEEJ: April 2010

Untapped Energy Sources
RE Resource

Present Information Data Gaps/Remarks

Solar

Estimated 5.5 – 5.9
kW/m2/day solarradiation

Need to be verified by further data gatheringin specific sites. Relevant in existing sites.

Wind

Estimated 2.5 m/s

Limited information, may not be useful for
power generation
Need to be validated using wind data
gathering system in specific sites at thedesired hub height. Available meteorological
data can be used for correlation

Biomass

Estimated 75% forest No statistics
cover, 15% coastal
Need to conduct a survey on biomass intended
mangroves, 6%for fuel use
swamps, 60% of landarea is densely
forested

MicrohydroSome small streams
in Babeldaob
Ocean
No available estimate
Thermal/Wave on potential andenergy
possible sites

Need for survey of potential areas
Need for survey
Appear good for development, but not yet
economical"No Island left behind"11

IEEJ: April 2010

Gaps andConstraints
 There is currently no officially energy policy to coordinate

energy-related activities
 Grid electricity is heavily reliant on diesel, making Palauvulnerable to fluctuations in the price of oil.
 Lack of consistent statistical data for the energy sector.
 Untapped potential RE sources Lack of Capacity building at the Local Level"No Island left behind"

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IEEJ: April 2010

Policy Difficulties
There are several policy issues that need to be addressed in the formulating an energy policy for Palau. These issues include:•Institutional arrangements
Regulatory agency to enforce and implement energy policy (Energy Office)Implementing agency to carry out energy strategic action plan
Strategic power sector planning•Regulation
Government administrative endorsement
Legal framework•Renewable Energies
how to promote RE in the absence of financial viability•Operation of PPUCCapacity building into the maintenance and operation of RE technology into the overall operations
Future operational forecast (conventional diesel generation vs. RE/clean energy)•Net metering program
Adoption through parliament
Integration into operational implementation with local utility company•Tariff setting
Utility company’s cost recovery vs. Demand side customer base hardships
Integration of RE base tariff (grid connected solar systems)•Pre-paid meters
Mandatory for delinquent utility customers•How to manage oil and gas exploration•Interface with donors
Maximize Palau's benefits from aid and donor contributions•Environmental impacts of energy operations & Exploration
Further detailed environmental impact assessments on potential energy sources•Energy Conservation and Efficiency
Development of local market in energy efficient technology products
Strengthening of education and awareness"No Island left behind"

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IEEJ: April 2010

Kom kmal mesulang(thank you very much)"No Island left behind"

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Contact:report@tky.ieej.or.jp