MICRONESIA (FEDERATED STATES OF): FSM Sustainable Energy Development and Access Project (SEDAP)

Meta Data
Draft: 
No
Revision of previous policy?: 
Yes
Effective Start Year: 
2018
Scope: 
National
Document Type: 
Programme
Economic Sector: 
Energy, Power
Energy Types: 
Power, Renewable
Issued by: 
The National Government of the Federated States of Micronesia (GoFSM) and the World Bank
Source: 
Department of Finance and Administration (DOFA)
SEDAP Environmental and Social Management Plan (ESMP)
File: 
FSM Sustainable Energy Development and Access Project (SEDAP)
Overall Summary: 
The FSM Sustainable Energy Development and Access Project (SEDAP) will be implemented by the Energy Division and the four State Utilities of FSM. The proposed Project Development Objectives are to improve the Pohnpei Utility Corporation’s operational performance, expand access to electricity in the state of Chuuk and enable renewable energy solutions in the states of Yap and Kosrae. The SEDAP aims to contribute to the long term sustainability of FSM’s energy supply and to support a shift away from diesel power generation to renewable energy (RE).
Access
Energy access priorities: 
The proposed project comprises of the following five components (to be confirmed during project preparation): Component 1: Improving Reliability of Electricity Supply in Pohnpei (IDA US$12 million). This component will address PUC’s challenges with insufficient available generation capacity, which is way below the installed capacity, to stably cover peak demand, and unscheduled shutdowns of power supply and unsecure waste oil storage. Component 2: Expanding Access to Electricity in Chuuk (IDA US$3 million). This component will support CPUC to expand access to electricity in Chuuk, where the access rate is only 27% due to the remoteness of several islands. [...]
Renewable Energy
RE priorities: 
The proposed project comprises of the following five components (to be confirmed during project preparation): [...] Component 3: Scaling-up Renewable Energy Generation in Chuuk, Yap and Kosrae (IDA US$10 million). This component will support CPUC to install the state’s first utility-scale solar power plant to reduce fuel cost of diesel-based power generation and support CPUC in access expansion on the outer islands. The component will also support YSPSC and KUA to significantly mitigate the curtailment of the existing RE output and enable the integration of more variable RE through storage capacity and high speed gensets.
RE action plans: 
The proposed development objective is to improve the energy sector performance and access rate, and increase the share of renewable energy. Proposed components include Improving Electricity Supply and Reliability in Pohnpei; Improving Energy Access in Chuuk; Technical Studies and Project Management. Given the current stage of the proposed project, the development objective may changed based on current discussions.
Governance
National policy structure: 
The proposed SEDAP will focus on will focus on: (i) improving PUC performance, including solutions for the thermal power plant and implementation of grid enhancement in the state of Pohnpei and unsecured waste oil storage in PUC (ii) increasing access and RE, particularly in the state of Chuuk; (iii) enabling RE solutions in Yap and Kosrae; (iv) providing technical assistance and support to improve sector governance, regulatory framework, accountability, financial performance, hiring, training and retention strategy for workforce development, facilitation of private sector participation, development of potential pipeline access and renewable energy projects; and (v) targeting sustainability through studies, assessments and a program to disseminate improved cookstoves to mitigate health issues related to air pollution.
Energy institutional structures: 
The proposed project comprises of the following five components (to be confirmed during project preparation): [...] Component 4: Institutional Strengthening and Capacity Building in the Energy Sector(IDA US$2 million). This component is designed to improve sector governance and financial performance, achieve self-sustainability, and PUC’s proper asset maintenance strategy.