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Republic of Marshall Islands
Country Energy Security Indicator Profile 2009
RMI 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
All rights for commercial / for profit reproduction or translation, in any form, reserved. SPC authorises the partial reproduction or translation of this material for scientific, educational or research purposes, provided that SPC and the source document are properly acknowledged. Permission to reproduce the document and/or translate in whole, in any form, whether for commercial / for profit or non-profit purposes, must be requested in writing. Original SPC artwork may not be altered or separately published without permission.
Original text: English
Secretariat of the Pacific Community Cataloguing-in-publication data
Republic of Marshall Islands [RMI] Country Energy Security Indicator Profile 2009 / prepared by the Energy Programme, Economic Development Division, Secretariat of the Pacific Community
1. Energy policy – Marshall Islands.
2. Power resources – Marshall Islands.
3. Energy security – Marshall Islands.
I. Title. II. Secretariat of the Pacific Community.
333.79099683 AACR2
ISBN: 978-982-00-0583-9
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 of the Secretariat of the Pacific Community (SPC).
Many special thanks go to the participants of the National Energy Policy and Planning Workshop that was convened in the Republic of the Marshall Islands (RMI) in February 2012 for their presentations and assistance in data collection and follow-ups; the Energy Planning Division; the Marshalls Energy Company; and, in particular, the Secretary of the Ministry of Resources and Development.
SPC would also like to thank the European Union Energy Initiative–Partnership Dialogue Facility (EUEI PDF) for providing the funds to carry out in-country technical activities and collect the data required for the energy security indicators.
The cooperation of the many contributors to this edition 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.
The national vision of the RMI, as expressed in “Vision 2018”, the Marshall Islands Strategic Economic Development Plan for 2003–2018 is:
‘To become a country within an inter-dependent world, with an enhanced socio-economic self-reliance, and an educated, healthy, productive, law-abiding and God-loving people in which individual freedom and fundamental human rights are protected, and culture and traditions are respected, and development and environmental sustainability are in harmony.’
In 2009, RMI consumed an estimated 2,222 TJ of energy, of which 99.96% came from imported fossil fuels, namely diesel, petrol, kerosene and liquefied petroleum gas (LPG). Petroleum liquid fuel is mainly supplied to RMI by the Marshalls Energy Company (MEC), Mobil, and Pacific International, Inc. (PII), which entered the market in 2010. MEC usually imports fuel from Korea and Singapore, whilst Mobil mainly imports from Guam. Around 37.4 million litres of diesel, 7.2 million litres of petrol, 15.9 million litres of kerosene, and 143 tonnes of LPG were imported in 2009. This totalled USD 40.7 million in fuel import bills with a current gross domestic product (GDP) of USD 152.8 million.
Diesel fuel for electricity production accounted for 67% of total diesel fuel imported in 2009. Of the total petroleum fuel products imported into the country, the land transport sector accounted for roughly 69%, electricity 27% and the remaining 4 % went to the commercial and industrial sector.
In the power sector, around 72% of households in RMI are connected to the electricity grid provided by MEC and Kwajalein Atoll Joint Utilities Resources Inc. — KAJUR (for Ebeye). In 2009, MEC generated 67.7 GWh of electricity, of which 48.17 GWh was sold, recording an estimated 29% in distribution loss. Access to electrification is centred mostly at Majuro and Ebeye, with access recording over 99%. Access to grid electrification in the rural areas is around 32% for RMI.
Contributions from renewable energy sources in 2009 were mainly from the solar photovoltaic (PV) units installed by the REP-5 programme (Support to the Energy Sector in Five ACP Pacific Island Countries Programme funded by the European Union), which generated around 0.15G Wh (539 GJ) of electricity, and from the coconut biofuel trials undertaken by Tobolar, which contributed 289 GJ of energy or consumed an estimated 8,300 litres of coconut oil blend with diesel.
The 2009 baseline energy security indicators in this report for RMI 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 RMI’s situation compared to other Forum smaller island states and Forum Island countries (FICs).
FAESP key energy security outcome 1 — access to energy
FAESP key energy security outcome 2 — affordability
5 Macro-economic 26.6 The indicator tracks fuel imports as a percentage of GDP. The higher the figure, the more vulnerable an
affordability (%) economy is to world market price volatility. The macro-economic affordability was calculated from reference World Bank data for total GDP in 2009 against estimated fuel imports (USD 40,653,356 / USD 152,800,000).
6 Electricity tariff 0.37 The indicator tracks average tariffs for the year (all (USD/kWh) tariff categories, i.e. residential, commercial and industrial). Requires averaging throughout the year as tariffs in most PICTs are adjusted several times a year.Refer to the table on the right for reference calculation of the average tariff.
7 Electricity 84.6 Relation between average tariff and lifeline tariff if a
lifeline (%) lifeline tariff exists. Refer to the table on the right for the reference calculation of the lifeline percentage.
Referenced electricity tariff calculation based on MEC data
8 Household 17.6 The indicator tracks average household expenditure for energy per year as a percentage of average energy household income. expenditure Analysis was based on the 2002 HIES. Reporting gives a breakdown of the annual household load (%) operation expenditure and annual transport expenditure. Associated energy expenditure load cost is
calculated from these two reference categories.
FAESP key energy security outcome 3 — efficiency and productivity
9 Energy intensity 14.5 The indicator tracks the amount of energy utilised to produce 1 USD of GDP. (MJ/USD) Calculation based on total petroleum fuel consumed over total GDP generated in 2009 (USD 40, 653,356 /USD 152, 800,000).
10 Productive power 30 The indicator tracks the share of commercial and industrial use of electricity in total supply. use (%) Figure provided is estimated for RMI in 2009.
Provided below are energy intensity graphs that are presented in terms of electricity and fuel consumption against GDP when seen on a per capita comparison. Countries identified above the trend line are perceived to be having higher than average energy consumption levels per person when compared to its corresponding economic wealth (GDP per capita). That is, countries above the trend line are considered to be relatively energy inefficient compared to countries below the trend line.
FAESP key energy security outcome 4 — environmental quality
11 Carbon footprint 155,561 The indicator tracks total GHG emissions using embedded carbon as a measure (not UNFCCC method). (tonnes of CO2) Referenced calculation used is based on quantity of petroleum products imported into the country in 2009.
FAESP action theme 1 — Leadership, governance, coordination and partnership
14 Energy legislation (score) 2 The indicator assesses the status of the energy sector legislation in the country. (Score system: Updated energy act = 3; Adopted energy policy = 2; Subsector act or policy = 1) There is no specific energy act or legislation for RMI. However, RMI developed a National Energy Policy and Strategic Action Plan in 2008, which were endorsed by cabinet in 2009. The following are a number of existing acts that relate to RMI’s energy sector: The Emergencies Act 1979 (Section 1102) during a national energy crisis; the Retail Price Monitoring Act of 1992, which provides powers to the Marshall Islands Price Monitoring Board to monitor and regulate retail prices, although currently there is no price control over petroleum fuels; the Import Duties Act, which specifies tax rates on all commodity imports; and the Environment Protection Act, which covers land use, pollution control and emissions.
FAESP action theme 2 — Capacity development, planning, policy and regulatory frameworks
19 Private sector 0 The indicator tracks the share of electricity produced by independent power producers under a power purchase contribution (%) agreement.
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
27 Distribution losses (%) 29 The indicator compares the amount of kWh sold with the amount of kWh sent out from the power station.
Source: MEC
28 Lost supply n.a The indicator tracks electricity outage time (hours of lost supply per customer per year) (SAIDI) – (hours) Data not available.
29 Clean electricity 0.22 The indicator measures the share of renewable energies as a percentage of total electricity supply. contribution (%) Calculated from installed solar capacity at 12% capacity factor.
FAESP action theme 5 — End-use energy consumption
5.1 Transport energy use | 5.2 Energy efficiency and conservation
30 Retail fuel prices The indicator tracks retail and wholesale fuel prices for petroleum products (diesel, petrol, MPK, LPG).
Retail price Wholesale price
31 Legislative framework (score) 1 The indicator assesses progress towards a comprehensive legislative framework for import of end-use devices. (Score system: Comprehensive framework covering transport, appliances, buildings = 3; Legislative for one subsector operational = 2; Preparation of frameworks under way = 1) No legislative framework in place that promotes the importation of energy-efficient end-use devices in 2009. However, priority activities listed in the National Energy Policy look at importation of energy efficient appliances: ‘Revision of Import duties and taxes to encourage the purchase of energy efficient appliances and equipment
(e.g. refrigeration, air conditioning, major appliances, lighting)’. Target activities in the RMI energy action plan look at amending taxes on the importation of energy¬efficient appliances and this was implemented in 2010.
32 Appliance labelling (score) 0 The indicator assesses the state of appliance labelling. (Score system: Compulsory appliance labelling operational = 2; Appliance labelling under preparation = 1)
No compulsory appliance labelling programme is in place for RMI. Appliance products available mostly carry US labelled products.
FAESP action theme 6 — Energy data and information
FAESP action theme 7 — Financing, monitoring & evaluation
RMI energy contacts
Angeline Heine Director
Tel: (692) 625 3206 National Energy Planner Fax: (692) 625 7471 Ministry of Resources & Email:
[email protected] Development
David Paul General Manager