Nauru Country Energy Security Indicator Profile 2009

Prepared by the Energy Programme, Economic Development Division

Secretariat of the Pacific Community

Suva, Fiji

2012

© Copyright Secretariat of the Pacific Community (SPC), 2012

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Original text: English

 

Secretariat of the Pacific Community Cataloguing-in-publication data

 

Nauru Country Energy Security Indicator Profile 2009 / prepared by the Energy Programme, Economic Development Division, Secretariat of the Pacific Community

 

1. Energy policy – Nauru.

2. Power resources – Nauru.

3. Energy security – Nauru.

 

I. Title. II. Secretariat of the Pacific Community.

 

333.79099685 AACR2

 

ISBN: 978-982-00-0552-5

Table of contents

Acknowledgement.................................................................................................................................................................................................................v

Foreword..............................................................................................................................................................................................................................vi

Abbreviations.......................................................................................................................................................................................................................vii

Country profile.......................................................................................................................................................................................................................1

Energy context.......................................................................................................................................................................................................................3

FAESP key energy security outcome 1 – access to energy..................................................................................................................................................4

FAESP key energy security outcome 2 – affordability...........................................................................................................................................................6

FAESP key energy security outcome 3 – efficiency and productivity....................................................................................................................................8

FAESP key energy security outcome 4 – environmental quality...........................................................................................................................................9

FAESP action theme 1 – Leadership, governance, coordination and partnership...............................................................................................................10

FAESP action theme 2 – Capacity development, planning, policy and regulatory frameworks............................................................................................11

FAESP action theme 3 – Energy production and supply......................................................................................................................................................12

3.1 Petroleum and alternative fuels...........................................................................................................................................................................12

3.2 Renewable energy..............................................................................................................................................................................................13

FAESP action theme 4 – Energy conversion........................................................................................................................................................................14

4.1 Electric power......................................................................................................................................................................................................14

FAESP action theme 5 – End-use energy consumption.......................................................................................................................................................15

5.1 Transport energy use..........................................................................................................................................................................................15

5.2 Energy efficiency and conservation.....................................................................................................................................................................15

FAESP action theme 6 – Energy data and information........................................................................................................................................................16

FAESP action theme 7 – Financing, monitoring and evaluation...........................................................................................................................................17

iv

Nauru Country Energy Security Indicator Profile 2009

Acknowledgement

 

The Framework for Action on Energy Security in the Pacific (FAESP) country energy security indicator report 2009 was prepared by the Energy Programme of the Economic Development Division (EDD) of the Secretariat of the Pacific Community (SPC).

 

Many special thanks to the Nauru Utilities Corporation; the Aid Management Unit and the Statistics Office in the Ministry of Finance and Economic Planning; the Ministry of Home Affairs; the Ministry of Commerce, Industry and Environment; and the participants of the Nauru National Energy Policy and Planning Workshop for their assistance in-country with data collection and follow-up.

 

SPC would also like to thank the European Union Energy Initiative – Partnership Dialogue Facility for providing funds to carry out in-country technical activities and collect data for the energy security indicators. The project — Gender Equity in Climate Change Adaptation and Low Carbon Development — is also acknowledged and thanked for its contribution to supporting the in-country technical activities. 

 

The cooperation of the many contributors to this booklet is gratefully acknowledged. The source note below each table credits the various government and private sector agencies that have collaborated in furnishing the information for the booklet.

 

Nauru Country Energy Security Indicator Profile 2009

Foreword

 

In August 2010 at the 41st Pacific Islands Forum at Port Vila, Vanuatu, the Forum Leaders endorsed the Framework for Action on Energy Security in the Pacific (FAESP): 2010–2020 as the regional blueprint for the provision of technical assistance to the energy sectors of Pacific Island countries and territories (PICTs). FAESP encompasses the Leaders’ vision for an energy secure Pacific where Pacific people at all times have access to sufficient sustainable sources of clean and affordable energy and services to enhance their social and economic well-being.

 

The Implementation Plan for Energy Security in the Pacific (IPESP) (2011–2015) is a five-year plan for pursuing the vision, goal and outcomes of FAESP. It reflects the priority regional activities that are to be collectively delivered by the participating members of the Council of Regional Organisations in the Pacific (CROP) to support, complement and add value to national efforts on energy security.

 

In order to better appreciate the impacts of  FAESP and its implementation plan on the energy security status of PICTs, baseline energy security indicators must be established, against which performance in future years can be benchmarked.

 

The energy security indicators in this report derive from a consultative process involving representatives of PICTs, regional organisations, the private sector and development partners. The process culminated in the adoption of IPESP and its monitoring and evaluation framework, the energy security indicators, at the Inaugural Regional Meeting of Ministers of Energy, ICT and Transport in April 2011.

 

As a first attempt to improve transparency and accountability in the energy sector, there is obvious room for improvement. Access to reliable and sufficient data is a common problem and this monitoring and evaluation tool can only get better with the kind assistance of the custodians of the energy sector data.

 

Solomone Fifita

Deputy Director (Energy), Economic Development Division, SPC

 

Nauru National Energy Policy Framework Vision 2008

‘Reliable, affordable and sustainable energy, enabling the socio-economic development of Nauru.’

 

 

Energy context

In 2009, an estimated 99.95% of total energy consumed in Nauru was supplied from imported petroleum products, with the remaining 0.05% met by solar power. Diesel and petrol are the two main petroleum products consumed in Nauru for electricity generation (diesel only), transportation and meeting the energy needs of the phosphate mining company — Ronphos. Energy for domestic needs such as cooking and lighting is mainly supplied by electricity. Liquid petroleum gas (LPG) for household cooking has slowly increased over the years. In 2009, around 9.45 tonnes of LPG were imported. There is also a small use of biomass for cooking. 

 

In 2009, around 11.7 million litres of diesel and 2.2 million litres of petrol were imported. The fuel import bill for 2009 was estimated at AUD 4.7 million with the current GDP of AUD 29.2 dollars. For the power sector, Nauru is unique in that domestic customers had access to free electricity from the early 1980s, when phosphate mining was at its highest, until 2003. The island was fully electrified with 100% access to the grid. Electricity consumption per capita was the highest in the region. However, as a result of culminating economic challenges following the drop in revenue from phosphate mining and the lack of reforms in the power infrastructure (low capacity, poor management, inadequate maintenance, low tariffs and low revenue collection), Nauru in 2003 began facing power supply problems, which resulted in frequent power cuts and led to a regime of four-hourly power shedding from 2003 to 2009. During this period, NUC was heavily reliant on AusAID for payment of generation fuel costs and assistance in the supply of containerised diesel generators.

 

During the period 2008–2009, through the REP-5 programme, power sector improvement activities were undertaken in Nauru. They included energy efficiency activities covering energy auditing and awareness campaigns to accompany the introduction of pre-payment meters in 2009 to help improve revenue collection at NUC, reduce energy demand and help customers manage their energy use more efficiently. Following the introduction of the prepayment meters, demand in electricity consumption dropped significantly and this greatly assisted the restoration of the twenty-four-hour power supply later in the year. In 2009, Nauru generated 17 GWh of electricity, of which 0.3% was supplied by the 40kW grid-connected solar photo voltaic (PV) system at Nauru College.

 

The 2009 baseline energy security indicators presented in this report are compiled and structured according to the four key energy security outcomes and the seven action themes of FAESP. Graphical comparison included in the analysis provides a snapshot of Nauru’s situation compared to other Forum small island states and Forum Island countries.

FAESP key energy security outcome 1 – access to energy

 

FAESP key energy security outcome 2 – affordability

 

FAESP key energy security outcome 3 – efficiency and productivity

 

Provided are energy intensity graphs that are presented in terms of electricity (kWh) and fuel (GJ) consumption against GDP when seen on a per capita comparison. Countries identified above the trend line are perceived to have higher than average energy consumption levels per person compared to its corresponding economic wealth [GDP per capita]. Simply speaking, countries above the trend line are considered to be more energy inefficient than countries below the trend line.

 

FAESP key energy security outcome 4 – environmental quality

 

FAESP action theme 1 – Leadership, governance, coordination and partnership

 

FAESP action theme 2 – Capacity development, planning, policy and regulatory frameworks

 

FAESP action theme 3 – Energy production and supply

 

3.1 Petroleum and alternative fuels

 

3.2 Renewable energy

 

FAESP action theme 4 – Energy conversion

 

4.1 Electric power

 

FAESP action theme 5 – End-use energy consumption

 

5.1 Transport energy use   |   5.2 Energy efficiency and conservation

 

FAESP action theme 6 – Energy data and information

  

FAESP action theme 7 – Financing, monitoring and evaluation

 

Nauru Country Energy Security Indicator Profile 2009

Nauru energy contacts