Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2015
Scope: 
National
Document Type: 
Overarching Policy
Economic Sector: 
Energy, Power, Industry, Transport, Building, Multi-Sector, Other
Energy Types: 
Power, Renewable, Bioenergy, Hydropower, Solar, Wave and Tidal, Wind, Other
Issued by: 
Government of Palau
Overall Summary: 
The Palau Climate Change Policy establishes, at the highest political level, a single integrated Government Policy to establish appropriate institutional frameworks and guide and inform actions. It is aimed at achieving the national vision of a “Happy, healthy, sustainable and resilient Palauan communities in a changing world”. In particular, the policy sets out the following objectives: 1) enhance adaptation and resilience, 2) manage disasters and minimize disaster risk, and 3) mitigate global climate change by working towards low emission development. It offers an integrated policy framework addressing ten sectors, including Agriculture and Fisheries, Health, Finance/Commerce/Economic Development, Biodiversity/ Conservation/Natural Resources, Critical Infrastructure, Utilities, Society and Culture; Good Governance, Education, and Tourism). It also provides the direction on both government and nongovernment action.
Access
Energy access priorities: 
A green and sustainable utility sector that provides reliable and affordable high-quality services that are resilient to climate change and disasters and that safeguard the environment [...].
Energy access action plan: 
Renewable energy [...] establish connectivity or storage requirements to ensure grid stability.---[...] 2. Improve efficiency of PPUC’s overall ability to provide stable electricity to all of its users.---[E]stablish connectivity or storage requirements to ensure grid stability, [...].--Upgrade PPUCs distribution system (including possible off-grid renewable energy).
Efficiency
EE priorities: 
Policy objectives: Mitigate global climate change by working towards low carbon emission development, maximizing energy efficiency [...].---Energy Overall Priority: Efficiency and Energy Conservation
EE targets: 
A 30% reduction in energy consumption by 2020, recognizing that improving the efficiency of energy use has greater short term impact on reducing fossil fuel consumption of fossil energy than any other action; ---Convert outer island power supply systems to hybrid configuration and operate systems in efficient mode: Fuel consumption reduced to 50% of 2009 baseline.
EE action plans: 
Energy Efficient Utilities - Plan and promote energy efficiency for public and private sector. Complete energy efficient utility upgrades in Koror and improve water and sewage infrastructure on Babeldaob and outlying states. Continue conversion of street lights to LED.
EE lighting and mechanical system standards: 
Continue conversion of street lights to LED.
EE building standards: 
[By 2020] Develop, adopt and implement a climate/disaster resilient energy efficient building code.---Energy efficient houses - Investigate funding support to expand the National Development Bank of Palau’s energy efficiency program for new home construction and retrofitting of existing homes.
EE transport standards : 
Energy efficient transport - Finalise and launch the “Complete Streets Policy” to improve traffic flows, reduce congestion, and support alternative transport. Procure and operate fuel efficient vehicles. Low carbon vehicles - Investigate viable options and for the use of biofuels, including options for converting existing fleet of government vehicles. Energy efficient vehicles/equipment - Develop and enact legislation to introduce economic instruments that encourage the import and sale of energy efficient appliances and vehicles and develop and implement national efficiency standards for electrical appliances and labelling based on existing international standards.
EE public awareness/promotional programmes: 
Energy Efficient Building Code - Develop and implement an energy efficient building code, upgrade government buildings to comply with the new code, and develop and launch education programs on energy efficiency and energy conservation in schools and colleges.
Renewable Energy
RE targets: 
20% contribution of renewable energy to the energy mix by 2020 [...].
RE action plans: 
[...] Assess the viability of introducing waste-to-energy technologies and waste reduction/recycling measures. [...].---Disaster preparedness: Upgrade existing shelters to use renewable energy where technically feasible and encourage construction of new ones away from hazardous locations.---Determine technically and economically viable renewable technology energy options and develop a renewable energy strategy.---[...] establish connectivity or storage requirements to ensure grid stability, licensing, concessions on importation of technology, power purchase agreements, and to promote and license independent power producers (IPPs).---Determine technically and economically viable waste-to-energy and other options for Palau, and define enabling environment to promote private sector investment in such technologies.---Design and implement pilot projects for small and medium scale wind energy generation (2 - 100 kW) once study proves feasible for wind.---Promote solar hot water systems for all new high cost residential and commercial buildings
RE prioritization, portfolio standards: 
[...] establish renewable energy standards and operating procedures, [...].
RE feed-in tariffs: 
Develop legislation to establish a feed-in tariff, [...].
RE public awareness/promotional programmes: 
Educate general public on renewable energy opportunities.
Cooperation in RE: 
Investigate and pursue sub-regional biofuel bulk procurement initiative between FSM, RMI & ROP
Environment
Energy environmental priorities: 
Policy objectives: Mitigate global climate change by working towards low carbon emission development, maximizing energy efficiency, protecting carbon sinks, and minimizing greenhouse gas emissions.
Decarbonization strategy: 
A green and sustainable utility sector that provides reliable and affordable high-quality services that are resilient to climate change and disasters and that safeguard the environment: [...] By 2020 - Undertake energy audits for all utility facilities, services, and infrastructure; Develop/expand carbon reduction programs for utilities. Assess the viability of introducing waste-to-energy technologies and waste reduction/recycling measures. [...].---To achieve the goals of sustainably managing carbon sinks and reducing GHG emissions by at least 20%, overall priorities include improving institutional arrangements for energy sector management, promoting and/or mandating energy efficiency and energy conservation, expanding renewable energy production and use, and diversification and improved security of the existing electricity supply. Existing priorities for adaptation and disaster risk management will enable sustainable management of carbon sinks. ---Energy efficient transport - Finalise and launch the “Complete Streets Policy” to improve traffic flows, reduce congestion, and support alternative transport. Procure and operate fuel efficient vehicles. Low carbon vehicles - Investigate viable options for the use of biofuels, including options for converting existing fleet of government vehicles. Develop and enact legislation to introduce economic instruments that encourage the import and sale of energy efficient appliances and vehicles [...].---20% contribution of renewable energy to the energy mix by 2020, eventual long-term substitution of all fossil fuels with renewable energy, and minimizing Palau’s carbon footprint, recognizing that renewable energies have the potential to reduce dependency on imported fuels and reduce the country’s vulnerability towards price shocks.---Develop and apply a standard scrutinizing procedure for all unsolicited renewable energy proposals offered to the government: Study on carbon finance opportunities published.
Pricing
Energy pricing: 
Conduct an independent tariff review for PPUC including its outer island operations + for Independent Power Producers. Regularly and automatically implement tariff adjustments as recommended in tariff study and also explore fuel price hedging
Energy Supply and Infrastructure
Energy supply priorities: 
Electric Power: Objective: A secure and diverse electricity supply.
Energy mix: 
20% contribution of renewable energy to the energy mix by 2020 [...].
Infrastructure development priorities: 
Upgrade PPUCs distribution system (including possible off-grid renewable energy)
Cooperation in connectivity: 
Investigate and pursue sub-regional biofuel bulk procurement initiative between FSM, RMI & ROP
Trade
Energy trade priorities: 
Develop and enact legislation to introduce economic instruments that encourage the import and sale of energy efficient appliances and vehicles [...].
Bi- and multi-lateral energy agreements: 
Investigate and pursue sub-regional biofuel bulk procurement initiative between FSM, RMI & ROP
Investment
Financial incentives for energy infrastructure: 
Establish a revolving fund to support IPPs and mobilize concessionary loans to support the financing of 5.6 Mw in renewable energy. Identify and develop medium scale projects conducive for IPP investment (hydro, wind) and tender projects competitively
Independent power producers: 
Renewable energy: establish connectivity or storage requirements [...] to promote and license independent power producers (IPPs). Establish a revolving fund to support IPPs and mobilize concessionary loans to support the financing of 5.6 Mw in renewable energy. Identify and develop medium scale projects conducive for IPP investment (hydro, wind) and tender projects competitively.
Local content requirement: 
Create strong incentives and compensation to attract local employment
Investment climate development: 
Determine technically and economically viable waste-to-energy and other options for Palau, and define enabling environment to promote private sector investment in such technologies.
Public Private Partnerships: 
Study opportunities and options for private sector participation and public private partnerships in electricity supply
Governance
Energy management principles: 
[...] 2. Improve efficiency of PPUC’s overall ability to provide stable electricity to all of its users.
Energy institutional structures: 
Improved institutional arrangements for energy sector management: An Energy Administration with the authority and support required for effective and transparent implementation of the National Energy Policy and the related Strategic Action Plan. Once the Energy Act is enacted 1. Establish and operationalize institutional structures to administer the new legislation. 2. Establish information and data systems for improved management of the energy sector.
M&E of policy implementation: 
Monitoring and Evaluation: This Policy shall be reviewed annually by the Climate Change Office and the National Climate Change Committee against the Measurable Indicators in the Action Plan. Within 4 years of the adoption of this Policy, the National Climate Change Committee in collaboration with the Climate Change Office shall initiate a broad-based evaluation to determine the effectiveness of this Policy and implementation of the associated Action Plan and to develop the next 5-year Action Plan. Evaluation shall also consider the incorporation of social and gender safeguards as this Policy and its interventions are implemented. [...].
Statistics collection and management: 
Improved institutional arrangements for energy sector management: [...] Once the Energy Act is enacted [...] 2. Establish information and data systems for improved management of the energy sector.
Technology
Clean energy technology priorities: 
[...] Assess the viability of introducing waste-to-energy technologies and waste reduction/recycling measures. [...].---Keep current on renewable energy technology development and update list of recommended technologies accordingly.---Explore opportunities for waste to energy project on Koror Babeldaob. Feasibility assessment to determine technically and economically viable waste-to-energy options for Palau, and define enabling environment to promote private sector investment.