Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2013
Effective Start Year: 
2013
Effective End Year: 
2016
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Energy, Power
Energy Types: 
All, Power, Renewable, Other
Issued by: 
Government of the Republic of Vanuatu
Overall Summary: 
This is Vanuatu's first National Energy Roadmap to provide the country with an energized and brighter future. This National Energy Road Map (“Road Map”) presents the Government of Vanuatu’s comprehensive action plan for developing the energy sector in a systematic, rational, and strategic and sustainable manner over the medium term, for the benefit of all its citizens nationwide. Its objective is to energise Vanuatu’s growth and development through the provision of secure, affordable, widely accessible, high quality, clean energy services for an Educated, Healthy, and Wealthy nation.---NOTE: Vanuatu Electricity for Rural Development (VERD) Program.
Access
Bi-, multi-lateral mechanisms to expand access: 
[T]the Government appreciates that public funds will have to be raised as well, in a sustained and programmatic manner, to cofinance the public good elements of the access scale up program; including well designed and targeted subsidies to address affordability of energy access especially for the poorer segments.
Energy access priorities: 
Overall Vision: To energise Vanuatu’s growth and development through the provision of secure, affordable, widely accessible, high quality, clean energy services for an Educated, Healthy, and Wealthy nation.---Increase the rate of connections to electricity[...].---The Government is committed to deliver vital social services and basic infrastructure, including electricity, to enable the well-being of all citizens – households, communities and institutions - and in a timely manner, irrespective of where they live.
Energy access action plan: 
The Road Map[...] identifies targeted subsidy programs in concession (grid) areas and in off-grid areas for implementation in the near-to-medium term.---The initiatives unveiled in this Road Map, encompass a program [...] to implement a coordinated set of actions along three fronts: Investments required to deliver the priority outcomes within a public-private partnership framework (about VUV 20 billion or US$ 230 million). Such priority outcomes include: the Energy for Rural Development Programme for off-grid access, increasing access within existing concession areas through a targeted capital subsidy support program for the poor [...].---Development and implementation of an overall subsidy policy framework and supporting financing policy platform for enabling affordable modern energy access to all by 2030.---The Government is committed to supporting a program of grant funded Output-Based Aid (OBA) subsidies that will provide a contribution to the costs of each household connection.---The VERD programme, funded by AusAID, includes the RLSS, which will use renewable energy products (primarily solar home systems) to increase rural electrification.---The [...] Public Institution Electrification Scheme (PIES)[...] will provide electricity installations to the rural schools and health facilities that currently do not have electricity supply, using renewable energy technologies. ---The Government will focus on facilitating three grid extension initiatives over the next 3 years [...] on Efate and Espiritu Santo. [...]. ---Supporting the Pico Solar and LED Market:[...]retailers will continue to provide the pico lighting and charging solutions and LEDs at the lower end of the market to rural (and some urban) households. ---SWER Extensions—In addition to “conventional” grid extensions, the Government will explore the option to use cheaper ways to expand electricity networks [...]. ---Low Voltage (LV) and Medium Voltage (MV) extensions—[...]The OBA subsidy program and the Government’s consideration on a subsidy policy will assist these consumers to connect to grid electricity.---Rural Access Initiatives: Micro-grids for communities outside concession areas.[...]The Government will commission a feasibility study to identify for which communities a micro-grid would be least cost and which technologies would be appropriate to use.
Energy access targets: 
Access to secure, reliable and affordable electricity for all Citizens by 2030.---Within concession areas; 75% household connected by 2015, 90% by 2020 and 100% by 2030 - Close to concession areas; 33% household connected by 2015, 90% by 2020 and 100% by 2030 - Off-grid grid areas; 100% households having access to modern electricity via individual homes systems and basic power products by 2020 - Public Institutions; 90% having access by 2015 and 100% by 2020.--- The VERD programme, funded by AusAID, includes the RLSS, which will use renewable energy products (primarily solar home systems) to increase rural electrification. This scheme will achieve Vanuatu’s rural electrification target by electrifying approximately 10,000 rural households by 2020.---The RLSS will provide at least 20 percent of rural homes and other rural users in Vanuatu with functional lighting by 2015, extending to 50 percent over six years.---Development and implementation of an overall subsidy policy framework and supporting financing policy platform for enabling affordable modern energy access to all by 2030.
Consumer subsidies: 
The Government is committed to supporting a program of grant funded Output-Based Aid (OBA) subsidies that will provide a contribution to the costs of each household connection. ---SWER Extensions—In addition to “conventional” grid extensions, the Government will explore the option to use cheaper ways to expand electricity networks than the approaches previously used in Vanuatu. ---Low Voltage (LV) and Medium Voltage (MV) extensions—There are many households within the concession are that require small Low Voltage or Medium Voltage grid extensions to connect their house to the network.[...] The OBA subsidy program and the Government’s consideration on a subsidy policy will assist these consumers to connect to grid electricity.
Efficiency
EE priorities: 
Mitigating climate change through renewable energy and energy efficiency.---Examine options for increasing renewable energy and improving energy efficiency and conservation.
EE action plans: 
The DoE will develop an Energy Efficiency Implementation Plan for Government endorsement, outlining in appropriate detail, recommendations for initiatives – specific measures and modalities - for energy efficiency improvement [...].
Renewable Energy
RE priorities: 
Reduce reliance on imported diesel and petroleum products through efficiency improvements in the transport sector and through investment in renewable energy in the power generation sector.---Mitigating climate change through renewable energy and energy efficiency.
RE targets: 
65% renewable energy by 2020.---40% of renewable energy generation by 2015 and 65% by 2020.
RE action plans: 
Through this Road Map, the Government is actively supporting (subject to resource confirmation and the results of further project feasibility assessments) the next tranche of investment in new renewable generation—a proposed geothermal power development on Efate, and hydro developments in Malekula and Espiritu Santo.--- The VERD programme, funded by AusAID, includes the RLSS, which will use renewable energy products (primarily solar home systems) to increase rural electrification. This scheme will achieve Vanuatu’s rural electrification target by electrifying approximately 10,000 rural households by 2020.---The third component of the access program in this Road Map is the Public Institution Electrification Scheme (PIES), a subcomponent of the VERD program, funded by AusAID. The PIES will provide electricity installations to the rural schools and health facilities that currently do not have electricity supply, using renewable energy technologies. ---Supporting the Pico Solar and LED Market: [...]retailers will continue to provide the pico lighting and charging solutions and LEDs at the lower end of the market to rural (and some urban) households. ---In Malekula, the Brenwe Hydro Power Project (< 1.2MW) will increase capacity to meet demand until at least 2041.---Wind Power: UNELCO’s existing farm produced 5,200,000 kWh in 2012 and studies are completed to install 2 additional turbines on the same site by 2014, increasing the output to 6,150,000 kWh per year.
Public competitive bidding/tendering: 
Public Institution Electrification Scheme: Service providers will competitively bid for regionally packaged installation and maintenance contracts.
Environment
Energy environmental priorities: 
Vanuatu places great importance on ensuring sustainable development in the energy sector. ---Mitigating climate change through renewable energy and energy efficiency.
Energy Supply and Infrastructure
Infrastructure development priorities: 
Reduce reliance on imported diesel and petroleum products through efficiency improvements in the transport sector and through investment in renewable energy in the power generation sector.---Investments required to deliver the priority outcomes within a public-private partnership framework [...]. Such priority outcomes include: the Energy for Rural Development Programme for off-grid access [...].---The Government will focus on facilitating three grid extension initiatives over the next 3 years to extend the reach of existing networks to parts of the concession areas that are currently unserved.[...]The three grid extension projects are located on Efate and Espiritu Santo. [...]Grid Extension on the East Coast of Espiritu Santo—This investment – subject to confirmation based on the results of a feasibility study to be undertaken - involves extension of the existing grid from Matevulu along the East Coast Road to Shark Bay, Port Olry and Stone Hill.[...]Grid Extension on Efate—An extension of the grid to Ulei on North West Efate (approximately 20 kilometers), and to Erueti on South East Efate (approximately 10 kilometers), will connect rural households, public institutions and stimulate growth around the ring road of Efate. ---SWER Extensions—In addition to “conventional” grid extensions, the Government will explore the option to use cheaper ways to expand electricity networks than the approaches previously used in Vanuatu. ---Low Voltage (LV) and Medium Voltage (MV) extensions—There are many households within the concession are that require small Low Voltage or Medium Voltage grid extensions to connect their house to the network.[...] The OBA subsidy program and the Government’s consideration on a subsidy policy will assist these consumers to connect to grid electricity.---Rural Access Initiatives: Micro-grids for communities outside concession areas.[...]The Government will commission a feasibility study to identify for which communities a micro-grid would be least cost and which technologies would be appropriate to use. ---Wind Power: UNELCO’s existing farm produced 5,200,000 kWh in 2012 and studies are completed to install 2 additional turbines on the same site by 2014, increasing the output to 6,150,000 kWh per year.
Investment
Energy sector investment priorities: 
The Government is moving away from fragmented project-based approach (within concession areas and off-grid program activities and initiatives outside of these areas) to a programmatic approach for implementation, anchored by a sound, overall least cost sector-wide investment programme[...].---Through this Road Map, the Government is actively supporting (subject to resource confirmation and the results of further project feasibility assessments) the next tranche of investment in new renewable generation—a proposed geothermal power development on Efate, and hydro developments in Malekula and Espiritu Santo.---An Energy Secure Vanuatu at all times: Provide a framework for investment.---Investments required to deliver the priority outcomes within a public-private partnership framework [...]. Such priority outcomes include: the Energy for Rural Development Programme for off-grid access, increasing access within existing concession areas through a targeted capital subsidy support program for the poor, and the Efate geothermal power and island ring network development (subject to resource confirmation and further feasibility studies).
Independent power producers: 
The Government will commission on a priority basis the preparation of a PPP policy framework for approval by Council of Ministers; [...]. The PPP framework will also include provisions for independent power producer licensing and compliance, PPAs, and PPA pricing policy.
Public Private Partnerships: 
The Government will establish a comprehensive and consistent set of enabling policies, a strengthened legislative and regulatory framework, and targeted financing mechanisms [...] to ensure that going forward Vanuatu’s energy sector institutions and private sector work together in achieving the sector outcome targets and expectations within the time frames specified in this Road Map. ---The private sector is expected to play a key role in implementation and also financing major elements of the sector wide least cost investment program; especially in existing concession areas and to the extent capacity exists, outside these areas as well.---Investments required to deliver the priority outcomes within a public-private partnership framework [...]. Such priority outcomes include: the Energy for Rural Development Programme for off-grid access, increasing access within existing concession areas through a targeted capital subsidy support program for the poor, and the Efate geothermal power and island ring network development (subject to resource confirmation and further feasibility studies).---The Government will commission on a priority basis the preparation of a PPP policy framework for approval by Council of Ministers; with particular emphasis on advancing the Efate geothermal power and ring road network development project transaction as soon as possible. The PPP framework will also include provisions for independent power producer licensing and compliance, PPAs, and PPA pricing policy.
Bidding and Tendering: 
Public Institution Electrification Scheme: Service providers will competitively bid for regionally packaged installation and maintenance contracts.
Governance
Energy management principles: 
Reliable, Secure and Affordable Petroleum Supply throughout Vanuatu.---Targets: A more affordable and low cost of energy services in Vanuatu.---Outside of Efate Island and the other existing concession areas, the Government of Vanuatu is responsible for electrification.
National policy structure: 
Petroleum Supply: Strengthen legislative and regulatory framework.---Introduce price regulation for LPG.---Develop petroleum energy security policy[...].---The Government will establish a comprehensive and consistent set of enabling policies, a strengthened legislative and regulatory framework, [...] to be transparently applied for all sector stakeholders[...]------The Government will commission on a priority basis the preparation of a PPP policy framework for approval by Council of Ministers; with particular emphasis on advancing the Efate geothermal power and ring road network development project transaction as soon as possible. The PPP framework will also include provisions for independent power producer licensing and compliance, PPAs, and PPA pricing policy.
Energy institutional structures: 
The Government is committed to ensuring that the DoE, MLNR, the MIPU, and the URA are accorded the appropriate and requisite mandate by the Government as well as, accountability, and capability for policy setting, monitoring and enforcement oversight for sector initiatives that underpin Road Map implementation aimed at meeting the targets and expectations set. [...]An implementation unit within the DoE will be established with the specific responsibility of overviewing implementation of activities described in this Road Map.
Statistics collection and management: 
Climate Change: Comprehensive data collection established to set realistic targets[...].
Technology
Clean energy technology priorities: 
Wind Power: UNELCO’s existing farm produced 5,200,000 kWh in 2012 and studies are completed to install 2 additional turbines on the same site by 2014, increasing the output to 6,150,000 kWh per year.
Clean energy technology deployment: 
-Rural Access Initiatives: Micro-grids for communities outside concession areas.[...]The Government will commission a feasibility study to identify for which communities a micro-grid would be least cost and which technologies would be appropriate to use.