Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2009
Effective Start Year: 
2009
Scope: 
National
Document Type: 
Overarching Policy, Plan/Strategy
Economic Sector: 
Energy, Power, Industry, Transport, Building, Multi-Sector, Other
Energy Types: 
All, Oil, Power, Renewable, Bioenergy, Hydropower, Solar, Wave and Tidal, Wind, Other
Issued by: 
Palau Energy Policy Development Working Group, Republic of Palau
Overall Summary: 
The Strategic Action Plan was issued in 2009 as an inclusive process including multiple stakeholders. Along with the National Energy Policy it provides a road map towards a greener and less vulnerable energy future for Palau. The vision is for a reliable and resilient energy sector delivering Palau sustainable, low emissions energy services. In particular, the purpose of the Strategic Action Plan (ESSAP) is to restate Palau's energy policies in the form of a more detailed action program including specific targets and guidelines. Note: - Federated States of Micronesia (FSM); - Palau Energy Office (PEO); - Palau Public Utilities Corporation (PPUC); - RMI (Republic of the Marshall Islands); - ROP (Republic of Palau).
Efficiency
EE priorities: 
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, taxes and policies will be revised to encourage the import and sale of: appliances, vehicles and boats having the highest energy efficiency; develop energy efficiency standards for new buildings and renovations including homes, businesses and government premises.
EE targets: 
Convert outer island power supply systems to hybrid configuration and operate systems in efficient mode: Fuel consumption reduced to 50 % of 2009 baseline - by December 2016. --- Implement a grid connected solar project on Koror with a high educational impact: Power consumption of POC (Palau Olympic Committee) reduced by 90% by December 2010.
EE action plans: 
Continue Implementation of the Palau Energy Efficiency Action Plan and the Palau Energy Conservation Strategy - by December 2010. --- Adopt an Energy Code for inclusion into National Building code - by December 2010.
EE labeling: 
Design and implement and enforce a mandatory energy labelling program for major equipment and appliances (fridges, freezers, aircons, lights, washing machines etc) - by December 2010.
EE building standards: 
Adopt an Energy Code for inclusion into National Building code - by December 2010.
EE transport standards : 
Review current transport systems with respect to efficiency, and affordability - by December 2010.
Energy Service Companies (ESCOs): 
Current and successive Governments will continue to adhere to good governance in the area of procurement and contract awards. Transparency, order, timeliness, even-handedness and, where practicable, competition to the process of awarding contracts to developers, energy service companies (ESCOs) and fuels suppliers will prevail.
EE financial incentives: 
Promote energy efficient housing through concessionary finance for efficient building features and appliances - Continuous task starting June 2009.
EE public awareness/promotional programmes: 
Constantly educate general public, government and private sectors on energy efficiency and energy conservation opportunities: *Design energy conservation curricula and training material for all educational institutions in Palau starting with primary school - by December 2013; *Continue training of Government ECOs and expand training to include private sector and NGO representatives - by December 2012; *Develop a comprehensive set of educational material related to energy conservation and energy efficiency in co-operation with regional and subregional partners - ongoing; *Establish an energy conservation web site allowing the public to retrieve relevant data and information on energy efficient equipment, incentive programs (concessionary loans) and conservation tips - by December 2011.
Renewable Energy
RE priorities: 
Compile and assess all data and information necessary to embark upon a widespread program of renewable energy promotion and investment.
RE targets: 
Renewable energies will therefore be promoted so that such energy will provide a minimum of 20% of electrical energy generated in Palau the end of 2020. --- Move to Renewable Energy Platforms: 30% by 2020.
RE action plans: 
Keep current on renewable energy technology development and update list of recommended technologies accordingly - Continuos task starting January 2010. --- Prepare and implement a project pipeline of priority renewable energy projects and seek funding for priorities. --- Promote solar hot water systems for all new high cost residential and commercial buildings - Continuous task starting January 2010. --- Design and implement pilot projects for small and medium scale wind energy generation (2 - 100 kW) once study proves feasible for wind - by December 2014. --- Explore opportunities for waste to energy project on Koror Babeldaob - by December 2012.
Net metering: 
Establish legal and regulatory framework for small scale household sector investment in renewable energy (net metering, grid access) - by December 2009.
RE capital subsidy, grant, or rebate: 
Establish innovative financing mechanisms and subsidy schemes to facilitate high up-front investments necessary for renewable energy projects - by December 2015. --- Explore all carbon finance opportunities for renewable energies - by 2011.
Public competitive bidding/tendering: 
Competitive award of contracts should be the rule for all energy sector procurement processes. [...] Competitive procurement of projects using the Independent Power Producer (IPP) modality should be awarded on the basis of competition using a Standard Power Purchase Agreement as a basis for international tenders.
RE public awareness/promotional programmes: 
Educate general public on renewable energy opportunities - by December 2011. --- Promote solar hot water systems for all new high cost residential and commercial buildings - Continuous task starting January 2010.
Environment
Decarbonization strategy: 
Explore all carbon finance opportunities for renewable energies - by 2011.
Green finance: 
Explore all carbon finance opportunities for renewable energies - by 2011.
Pricing
Renewable energy subsidies: 
Establish innovative financing mechanisms and subsidy schemes to facilitate high up-front investments necessary for renewable energy projects - by December 2015.--- Explore all carbon finance opportunities for renewable energies - by 2011.
Energy pricing: 
Conduct an independent tariff review for PPUC including its outer island operations as well as Independent Power Producers (IPPs) - by December 2009 / ongoing. --- Regularly and automatically implement tariff adjustments as recommended in tariff study and also explore fuel price hedging - beginning January 2010. --- Install pre-paid meters for all PPUC customers and conduct awareness campaign on benefits of pre-paid metering - by December 2010.---Opportunities and mechanisms for obtaining competitive fuel prices will be pursued.
Energy Supply and Infrastructure
Infrastructure development priorities: 
Implement a grid connected solar project on Koror with a high educational impact: Power consumption of POC reduced by 90% by December 2010. Encourage competition in the supply and distribution of fuel and ensure that products quality and storage facilities meet the required minimum national and international standards. --- Procure and install more efficient generation equipment for power systems on Peleliu, Angaur and Kayangel - by December 2009. --- Procure and install two 2 MW emergency capacity to increase reserve margin of main system - by February 2010. --- Rehabilitate generation equipment and perform deferred maintenance on all generator sets - by December 2012. --- Systematically upgrade PPUC’s generation assets in line with PPUC expansion strategy - in Two Phases at 10MW: Dec 2012 and Dec 2015. --- Upgrade PPUCs distribution system - by 2015. --- Analyse in detail reasons for technical losses and implement loss reduction program - by January 2010.
Regional integration priorities: 
Monitor and pursue sub-regional bulk procurement initiative between FSM, RMI & ROP - by June 2010.
Trade
Standard power production and purchasing agreements: 
Competitive award of contracts should be the rule for all energy sector procurement processes. [...] Competitive procurement of projects using the Independent Power Producer (IPP) modality should be awarded on the basis of competition using a Standard Power Purchase Agreement as a basis for international tenders. --- Develop a Standard Power Purchase Agreement for small, independent power producers and project developers - Continuos task starting January 2010. --- Develop Standard Power Purchase Agreement for medium scale renewable energy investments - by December 2011.
Investment
Financial incentives for energy infrastructure: 
Establish innovative financing mechanisms and subsidy schemes to facilitate high up-front investments necessary for renewable energy projects - by December 2015.--- Explore all carbon finance opportunities for renewable energies - by 2011.--- Create strong incentives and compensation to attract local employment - ongoing.
Independent power producers: 
Competitive award of contracts should be the rule for all energy sector procurement processes. [...] Competitive procurement of projects using the Independent Power Producer (IPP) modality should be awarded on the basis of competition using a Standard Power Purchase Agreement as a basis for international tenders. --- Encourage private sector participation and competition in the supply of fuels, electricity and energy sector services. --- Develop a Standard Power Purchase Agreement for small, independent power producers and project developers - Continuos task starting January 2010. --- Identify and develop medium scale projects conducive for IPP investment (hydro, wind) and tender projects competitively - Continuos task starting January 2010. --- Conduct an independent tariff review for PPUC including its outer island operations as well as Independent Power Producers (IPPs) - by December 2009 / ongoing.
Local content requirement: 
Create strong incentives and compensation to attract local employment - ongoing.
Investment climate development: 
Coordinate donor initiatives in the energy sector and ensure compatibility of donor funded projects with the National Energy Policy and its related Strategic Action Plan - starting January 2010.
Public Private Partnerships: 
Establish mandate to limit energy administration responsibilities to policy, planning and regulatory functions and establish appropriate mechanisms to delegate project implementation and participation in training activities to technical organizations, the private sector and NGOs - by December 2010. --- Encourage private sector participation and competition in the supply of fuels, electricity and energy sector services. --- Study opportunities and options for private sector participation and public private partnerships in electricity supply - by December 2010. --- Private sector participation in electricity supply will be encouraged through a transparent enabling framework.
Bidding and Tendering: 
Competitive award of contracts should be the rule for all energy sector procurement processes. [...] Competitive procurement of projects using the Independent Power Producer (IPP) modality should be awarded on the basis of competition using a Standard Power Purchase Agreement as a basis for international tenders.---Current and successive Governments will continue to adhere to good governance in the area of procurement and contract awards. Transparency, order, timeliness, even-handedness and, where practicable, competition to the process of awarding contracts to developers, energy service companies (ESCOs) and fuels suppliers will prevail.
Governance
Energy management principles: 
Ensure that all projects, investments and activities in the energy sector produce the maximum economic, social and environmental benefits for Palau. --- Coordinate donor initiatives in the energy sector and ensure compatibility of donor funded projects with the National Energy Policy and its related Strategic Action Plan - starting January 2010. --- Encourage competition in the supply and distribution of fuel and ensure that products quality and storage facilities meet the required minimum national and international standards.
National policy structure: 
Submit final energy policy providing a clear mandate to the Palau Energy Office - by December 2009. --- Align energy policies with other resource policies and strategic plans and translate into performance-based budget - starting January 2010. --- Develop standards for approved and recommended renewable energy technologies and compile list of certified technologies eligible for concessionary finance - by December 2011. --- Establish legal and regulatory framework for small scale household sector investment in renewable energy (net metering, grid access) - by December 2009. --- A high priority will be given on developing the legal framework and capacity to ensure that Palau’s benefits from hydrocarbon exploration and production are maximized. A hydrocarbon code, model agreements, and related environmental, operational, and tax regulation, taking into account any existing or proposed legislation will be prepared. --- Laws and regulations will be introduced to ensure security, reliability and efficiency of electricity supply. PPUC will be allowed to recover all cost associated with the supply of electricity.
Energy institutional structures: 
The PEO (Palau Energy Office) requires strengthening through the establishment of a clear mandate, appropriate resource allocation and adequate capacity building. --- Provide the Energy Office with the authority and support required for effective and transparent implementation of the National Energy Policy and the related Strategic Action Plan. A new energy policy for GoP will require a re-organization of institutional roles and responsibilities. --- Create a Bureau or Division of Energy - by January 2010. --- Establish mandate to limit energy administration responsibilities to policy, planning and regulatory functions and establish appropriate mechanisms to delegate project implementation and participation in training activities to technical organizations, the private sector and NGOs - by December 2010. --- Establish a free-standing energy committee or Commission, or Advisory Group through Executive Order - by January 2010. --- Energy office takes a lead role in regional and international cooperation - starting January 2010. --- Ensure operational performance and efficiency of PPUC within acceptable industry standards - by end of 2013
M&E of policy implementation: 
It is assumed that the implementation of this Strategic Plan is regularly monitored by the National Energy Committee (NEC).
Statistics collection and management: 
Develop, regularly update and manage national energy database to support effective analysis and project development - by December 2010. ---[...]Resource assessments and data collection will be necessary [...]
Public database availability: 
Establish a supply and demand information for all class, grades and categories of petroleum products for integration into National Energy Sector database: Information accessible on internet and in publications - by December 2011.
Technology
Clean energy technology priorities: 
Keep current on renewable energy technology development and update list of recommended technologies accordingly - Continuos task starting January 2010. --- Design and implement pilot projects for small and medium scale wind energy generation (2 - 100 kW) once study proves feasible for wind - by December 2014. --- Explore opportunities for waste to energy project on Koror Babeldaob - by December 2012.
R&D renewable energy: 
--- Explore opportunities for waste to energy project on Koror Babeldaob - by December 2012.