Meta Data
Draft: 
No
Revision of previous policy?: 
Yes
Draft Year: 
2016
Effective Start Year: 
2016
Effective End Year: 
2030
Scope: 
National
Document Type: 
Overarching Policy, Plan/Strategy
Economic Sector: 
Energy, Power
Energy Types: 
All, Power, Renewable, Other
Issued by: 
Council of Ministers - Department of Energy
Overall Summary: 
The updated NERM acts as the national energy policy. Since it was launched, Vanuatu’s economy and energy sector have continued to develop. External events, such as Cyclone Pam in early-2015, have also shaped how energy sector policies and priorities are conceived. The purpose of this document is to update the NERM to reflect recent developments. This updated NERM has the same vision as the 2013 version of the NERM, and its objectives, targets, and actions are intended to be consistent. In updating the NERM, the Government is, however, taking the opportunity to provide more detail on particular areas (especially energy efficiency and green growth), and improve consistency of the priorities and objectives. To achieve the NERM’s vision, this updated NERM focuses on five priorities: accessible energy, affordable energy, secure and reliable energy, sustainable energy, and green growth.
Access
Bi-, multi-lateral mechanisms to expand access: 
The Government recognises that additional funding will be critical to implementing the actions needed to achieve the NERM objectives [...]. This assessment recommended the establishment of an umbrella fund—the ‘National Green Energy Fund’ (NGEF)—to be managed by the Government. The Fund will consolidate existing financial resources, source new domestic and international funding, and channel funding to support renewable-energy based electricity access, energy efficiency, and other green energy investments in Vanuatu under the framework of the NERM. [...] The Fund’s objective is to extend electricity access—especially using renewable energy sources—and facilitate more efficient end-use of energy[...].
Energy access priorities: 
Accessible energy: Connect all households within grid concession areas;  Extend electricity grids to connect more consumers living near concession areas; Provide individual or community level solutions to extend electricity access to rural, off-grid areas where grid extension is not cost-effective;  Connect all public institutions (health and education) through either gridbased or off-grid solutions.---Affordable Energy: Objective 1: Develop mechanisms to facilitate competitive, affordable prices for electricity, liquid fuels, and cooking fuels; Objective 2: Promote investment in least-cost electricity projects; Objective 3: Improve the supply-side energy efficiency of electricity generation;---Objective 2: Reduce the likelihood, and impact on consumers, of volatility in the prices of imported petroleum products.
Energy access action plan: 
Affordability: Objective 1: Develop mechanisms to facilitate competitive, affordable prices for electricity, liquid fuels, and cooking fuels Objective 2: Promote investment in least-cost electricity projects Objective 3: Improve the supply-side energy efficiency of electricity generation.---Objective 1: Increase the use of renewable energy as a way to reduce GHG emissions; provide affordable, reliable energy access; and facilitate green growth.---A key way to manage Vanuatu’s exposure to fuel price volatility and supply disruptions is to diversify the energy supply. In Vanuatu there are resources to support hydro-, wind-, solar-, and geothermal-based electricity generation, which could reduce the reliance on imported diesel. In addition to improving energy security, this would contribute to a more sustainable energy supply. [...]. Objective 1: Achieve a greater diversity of energy sources Objective 2: Reduce the likelihood, and impact on consumers, of volatility in the prices of imported petroleum products.
Energy access targets: 
Extend electricity access to all households and public institutions.---Increase electricity access by households in and near concession areas: 90% by 2020 and 100% by 2030 from 62%. Increase electricity access by households in offgrid areas 100% by 2020 and 100% by 2030 from 9%. Increase electricity access by public institutions (on- and off-grid): 100% by 2020 and 100% by 2030 from 54%.
Clean cooking solutions: 
Through the updated NERM, the Government wants to reinforce that cooking fuels are an important form of energy use in Vanuatu, and an area where improvements can be made. Therefore, the updated NERM includes cooking fuels as one of the energy subsectors that support the achievement of the NERM priorities (in particular, accessible energy, and sustainable energy).---Objective 2: Extend access to modern cooking fuels and cooking technologies  Promote the use of efficient cook stoves, and modern cooking fuels (such as LPG or biogas).---Affordable Energy: Objective 1: Develop mechanisms to facilitate competitive, affordable prices for electricity, liquid fuels, and cooking fuels;[...].
Efficiency
EE priorities: 
Objective 3: Improve the supply-side energy efficiency of electricity generation.---Objective 2: Promote energy efficiency across the public and private sectors, especially in biomass for cooking, transport, and electricity use in buildings
EE targets: 
the NERM targets a reduction of at least 10 percent in total energy demand (in tonnes of oil equivalent) between 2015 and 2030, compared to the BAU scenario. ---Improve the efficiency of diesel generation: Grams of diesel fuel per kWh of electricity 2% improvement from 2010 (248.33 g/kWh) (in 2015) to 20% improvement from 2010 (202.41g/kWh) in 2020 and 2030.---Improve electricity sector end-use efficiency: % saving on BAU projection 5% in 2020 and 13.5% in 2030.---Improve transport (land and marine) energy efficiency % saving on BAU projection: 2% in 2020 and 10% in 2030.---Improve biomass end-use (cooking and drying) efficiency: % saving on BAU projection of 5% in 2020 and 14% in 2030.
EE action plans: 
Establish an appropriate legal, regulatory, and institutional framework to support energy efficiency in Vanuatu (including Minimum Energy Performance Standards) [...]  Build capacity to develop energy efficiency programmes, undertake energy audits, and maintain energy efficient equipment [...]
EE transport standards : 
The Government is preparing, or proposing to introduce, new or amended legislation in the following specific areas: [...]  New fuel (petroleum) quality standards.
EE financial incentives: 
[...]  Provide financial support and fiscal incentives to incentivise investments in energy efficient equipment.---The Government recognises that additional funding will be critical to implementing the actions needed to achieve the NERM objectives [...]. This assessment recommended the establishment of an umbrella fund—the ‘National Green Energy Fund’ (NGEF)—to be managed by the Government. The Fund will consolidate existing financial resources, source new domestic and international funding, and channel funding to support renewable-energy based electricity access, energy efficiency, and other green energy investments in Vanuatu under the framework of the NERM. [...] The Fund’s objective is to extend electricity access—especially using renewable energy sources—and facilitate more efficient end-use of energy[...].
EE public awareness/promotional programmes: 
Raise awareness of the benefits of energy efficiency, the Government’s commitment to increased energy efficiency through the NERM, and the actions that individuals and organisations can take; Build capacity to develop energy efficiency programmes, undertake energy audits, and maintain energy efficient equipment
Renewable Energy
RE priorities: 
Objective 1: Increase the use of renewable energy as a way to reduce GHG emissions; provide affordable, reliable energy access; and facilitate green growth.---Objective 1: Promote green energy as a catalyst for sustainable development
RE targets: 
Increase the proportion of electricity generated from renewable sources: % of grid-based electricity from renewable sources from 29% in 2015 to 65% in 2020 and 100%in 2030.---Increase renewable electricity use by rural tourism bungalows: 25% in 2020 and 65% in 2030.
Public investment loans or grants: 
The Government recognises that additional funding will be critical to implementing the actions needed to achieve the NERM objectives [...]. This assessment recommended the establishment of an umbrella fund—the ‘National Green Energy Fund’ (NGEF)—to be managed by the Government. The Fund will consolidate existing financial resources, source new domestic and international funding, and channel funding to support renewable-energy based electricity access, energy efficiency, and other green energy investments in Vanuatu under the framework of the NERM. [...] The Fund’s objective is to extend electricity access—especially using renewable energy sources—and facilitate more efficient end-use of energy[...].
Environment
Energy environmental priorities: 
Addressing climate change also remains a key objective of the NERM. The updated NERM treats this as part of a broader outcome of ‘sustainable energy’—which also captures wider environmental and social aspects of energy, such as local air pollution, deforestation, and health and safety. Renewable energy and energy efficiency can improve the sustainability of energy supply and use by helping to reduce adverse environmental impacts of energy use, and mitigate climate change.---Objective 3: Minimise the adverse environmental, social, and health and safety impacts of energy infrastructure and use---[I]nclude in the NERM green growth policies that promote more productive, socially-inclusive, and environmentally-sustainable use of energy. This will put Vanuatu in a position to become a leader in the Pacific region on green energy and green growth implementation. [...].---Ensure all energy infrastructure projects comply with Government and donor environmental and social safeguard requirements: 100% in 2020 and 2030.
Pricing
Energy pricing: 
Objective 2: Reduce the likelihood, and impact on consumers, of volatility in the prices of imported petroleum products.---Reduce the cost of distributing petroleum products in Vanuatu: 10% reduction from 2012 in 2020 and 10% reduction from 2012 in 2030.---The Government is preparing, or proposing to introduce, new or amended legislation in the following specific areas: [...] Legislation to enable the URA to monitor and report on petroleum prices, and conduct ‘light-handed’ regulation of Liquefied Petroleum Gas (LPG) prices [...].
Energy Supply and Infrastructure
Energy supply priorities: 
Petroleum products will continue to play a key role in meeting Vanuatu’s energy needs in the near- to medium-term. With this in mind, improving the efficiency, reliability, and cost of petroleum supply remains a priority for the Government and the NERM. This updated NERM recognises that petroleum is one of the energy subsectors in which the NERM priorities could be achieved, rather than being a priority or high-level outcome itself. [...].---Objective 1: Achieve a greater diversity of energy sources
Energy mix: 
Increase the proportion of electricity generated from biofuels from 5% in 2015 to 10% in 2020 and 14% in 2030.
Infrastructure development priorities: 
Objective 3: Facilitate the development of energy infrastructure and energy supply chains that are resilient to natural disasters.---Ensure all energy infrastructure projects comply with Government and donor environmental and social safeguard requirements: 100% in 2020 and 2030.
Investment
Energy sector investment priorities: 
Affordable Energy: Objective 2: Promote investment in least-cost electricity projects;[...].
Financial incentives for energy infrastructure: 
The Government recognises that additional funding will be critical to implementing the actions needed to achieve the NERM objectives [...]. This assessment recommended the establishment of an umbrella fund—the ‘National Green Energy Fund’ (NGEF)—to be managed by the Government. The Fund will consolidate existing financial resources, source new domestic and international funding, and channel funding to support renewable-energy based electricity access, energy efficiency, and other green energy investments in Vanuatu under the framework of the NERM. [...] The Fund’s objective is to extend electricity access—especially using renewable energy sources—and facilitate more efficient end-use of energy[...].
Governance
National policy structure: 
[I]nclude in the NERM green growth policies that promote more productive, socially-inclusive, and environmentally-sustainable use of energy. This will put Vanuatu in a position to become a leader in the Pacific region on green energy and green growth implementation. ---The Government is preparing, or proposing to introduce, new or amended legislation in the following specific areas:  New mandatory Minimum Energy Performance Standards (MEPS) for electrical appliances and lights (draft Bill is with Parliament)  Changes to the Geothermal Energy Act, Petroleum Act, Electricity Supply Act, URA Act, and Government Tenders and Contracts Act  Legislation to enable the URA to monitor and report on petroleum prices, and conduct ‘light-handed’ regulation of Liquefied Petroleum Gas (LPG) prices  New environmental, health, and safety requirements for petroleum storage and supply  New fuel (petroleum) quality standards.
M&E of policy implementation: 
The NERM’s objectives, quantitative targets, and Implementation Plan set the framework for DoE to monitor and evaluate NERM implementation. [...] DoE will lead the process to collect and analyse progress information, in collaboration with other government agencies, donors, and energy sector stakeholders [...] Verifying that actions implemented through the NERM continue to have an impact will be particularly important