FIVE YEAR DEVELOPMENT PLAN 2017-2021 3.1.2 25 ENERGY “A resource-efficient, cost-effective and environmentally sustainable energy sector” ELECTRICITY With substantial investments in electrification initiatives over the years, almost 90 percent of the population now has proper access to electricity. Lack of access in the unserviced rural and maritime areas will be addressed over the next 5 years. To achieve 10 percent electrification by 2021, grid extension programmes will be accelerated in Viti Levu, Vanua Levu, Ovalau and Taveuni. Government will continue with the policy to fully fund rural electrification projects. Electricity from renewable sources will be increased further. Currently, over 60 percent of electricity generated is from renewable sources such as hydro, biomass, wind and solar energy. Over 50 MW of renewable energy generation capacity has been added in the last 10 years. Further investments in renewable energy will be undertaken to ensure that over 80 percent of all electricity is generated from renewable sources by 2021. Concessional financing and grants for these projects will continue to be accessed under climate finance funds together with carbon credits under the Clean Development Mechanism (CDM). Three major hydro projects are currently being developed by the Fiji Electricity Authority (FEA). These are the Qaliwana Hydro Project, Upper Wailoa Diversion Hydro Project and Lower Ba Hydro Project. Future sites are being investigated, including the Upper Ba River, the Waivaka Hydropower Scheme in Namosi, and Wailevu River in Cakaudrove. Further detailed studies are required to confirm the viability of these sites for hydro projects. The research and development of new and renewable energy technologies will continue. This includes further exploration of ocean energy, geothermal energy, wave energy and the generation of energy from waste. Decentralised renewable energy sources such as solar, mini-hydro, and wind systems will be used to electrify rural areas and maritime zones where feasible. Contingency plans to address prolonged periods of dry weather have been put in place with installation of an additional 40 MW of diesel generators. Independent Power Producers (IPP) are supplementing electricity production. To encourage further private sector participation in the electricity sector, partial divestment of FEA is underway. In developing an IPP framework to increase private sector generation of electricity from both renewable and non-renewable sources, government will ensure that a system of fair pricing and a transparent process are maintained. Tax incentives aimed at investments in renewable energy technologies will continue. There are also opportunities for the private sector and households to invest in smallscale renewable systems that will be supported by government. FEA will also explore the possibility of adopting smart grid technologies, allowing for greater customer participation in managing demand. Electricity conservation and efficient technology to support energy saving will be promoted. The codes and standards for buildings and industry will be updated to require mandatory minimum standards for energy use for ventilation, cooling and lighting, among other improvements. These can typically reduce electricity consumption by around 25 percent. Because Fiji is vulnerable to adverse climate changerelated events, it will ensure that electricity infrastructure is made disaster-resilient. Options for further underground cabling for grid distribution are being explored. Government will also work closely with the private sector to improve designs, offer practical training and possibly support mandatory certification of designers/installers in order to improve resilience to cyclone conditions for renewable energy systems. Environmental considerations will be factored into the appraisal of future hydro power, geothermal and other energy resources. To meet the human-resource needs of the future electricity sector, government will support education for civil, electrical and hydrological engineers and other required skill needs of the sector. In-service training for the existing technical staff will continue. PETROLEUM AND BIOMASS The high reliance on imported petroleum remains a challenge and is being continually addressed. The transport sector (land, sea and air) is the principal consumer of imported fossil fuel. To ensure energy efficiency improvements in the transportation industry, government has incentivised the importation of hybrid and electric cars over the last few years. Fiji is complying with the Euro 2 emissions standard of 500 parts per million (PPM) of sulphur content and is moving towards the Euro 5 emission standard of 50 PPM. This initiative intends to reduce carbon emissions and concurrently attract new vehicle technologies with high fuel efficiency. Government will continue to promote and encourage the use of environmentally friendly fuel standards. Significant efficiency gains have also been made in the aviation sector as Fiji Airways has upgraded its fleet with more fuel-efficient aircrafts. Government will continue research and development on biofuel and its use in the transport sector. Incentives to