Palau

Palau is one of the highest per-capita energy users of the Pacific Island Countries. Its population of 20,000 is mostly concentrated in the city of Koror and the neighbouring state of Airai. It has three outlying states in the main archipelago and five outer islands approximately 200-500 km from Koror. The electrification rate is near 100% and electricity is provided by the state-owned Palau Public Utilities Corporation (PPUC) except on the outer islands, which have no access to electricity. On the main islands of Koror and Babeldaob, peak demand is approximately 14 MW, and generation capacity 20 MW. Until the grid-connected PV systems were installed at the Capitol Complex, the only primary source of energy for power generation was diesel fuel. The utility has been installing prepayment meters for residential customers since October 2007, and hopes to have all residential customers on a prepayment system. However, it currently lacks the funds to do so. Electricity tariffs charged to customers depend on customer class (residential, commercial, government) and on monthly consumption: a higher consumption will entail a higher tariff. Fuel is imported and sold to retailers by Mobil Oil Micronesia and Shell Palau. The tax on fuel is relatively low (USD $0.05/USgal, or USD $0.013/L), and there is no pricing policy or subsidy.

Palau has had some experience with renewable energy, mostly with off-grid PV technology. In 2001, solar home systems were installed in the outer island states of Sonsorol and Tobi. However, these systems have since failed due to poor technical design and an absence of an institutional framework for maintenance. PV-powered navigation lights were installed at docks in Babeldaob to aid marine navigation before the Compact Road was completed and electricity provided to the entire island. These systems are no longer operational as they have not been maintained once they were no longer needed. Wind and woody biomass pilot projects have been implemented in the 1980s but were unsuccessful. Some hotels have recently turned to solar water heaters to provide hot water, although this was done of their own initiative rather than as part of a wider national project.

Renewable energy projects

Grid-connected PV system at Capitol Complex

A 100 kWp grid-connected PV system has been installed on top of car park shading at the Capitol Complex. It is expected to produce 120,000 kWh per annum, which translates into a decrease of USD $40,000 in electricity bills per year for the Government of Palau. The system became operational in December 2008. The Palau Public Utilities Corporation (PPUC) was involved in the installation of the system and received training on its operation and maintenance by the installation contractor.

An online monitoring system was installed in order to track the PV plant's production and notify PPUC if any problems arise. To access the monitoring webpage, click here.

The total cost of the project was € 1,040,000.

Two of the six PV arrays in the Capitol Complex car park
                                                                                                          Source: IT Power

One of the three inverter towers located next to a building transformer
                                                                                                         Source: IT Power

Solar Street Lights

Eight solar street lights are to be installed at intersections along the Compact Road that circles the main island of Babeldaob. These lights will improve the safety of driving along the road, as currently the road is unlit. The locations have been identified by the Government, and the  lights are expected to be installed by May 2010 and maintained by the Energy Office.

The total cost of the project is € 28,000.

Energy efficiency projects

Energy Planner

An Energy Planner was hired in October 2007 to work in the Energy Office as part of the Government. His position is expected to be funded by the Government when the REP-5 funding runs out at the end of May 2010. He is responsible for implementing the actions contained in the Energy Efficiency Action Plan and of promoting energy efficiency to the public, as well as carrying out some of the actions contained in the PIEPSAP-funded Palau Energy Conservation Strategy (PECS).

Download the Palau Energy Efficiency Action Plan

Energy Efficiency Action Plan

The Energy Efficiency Action Plan (EEAP) was drafted by the Energy Office with assistance from the PMU and finalized in February 2008. It contains short- and medium- term energy efficiency actions that are to be implemented by the Energy Planner. The actions are targeted both at the public and private sector, and include projects such as the distribution of CFLs, the retrofitting of Government buildings with energy efficiency measures, and an awareness campaign for the members of parliament.

Other projects

National Energy Policy

The REP-5 programme funded technical assistance to the Energy Office for the development of a national energy policy and a list of actions that need to be taken to fulfill the policy. A final draft was submitted to Cabinet for endorsement in October 2009. The policy and action plan were developed over a period of 7 months, and include aspects of the 2007 Palau Energy Conservation Strategy and the 2008 PPUC Master Plan. The policy covers energy sector management, renewable energy, energy efficiency and conservation, fossil fuel management, and electric power. The action plan proposes projects and actions for each of those policy sectors.

Download the Palau National Energy Policy
Download the Energy Sector Strategic Action Plan