MICRONESIA (FEDERATED STATES OF): Strategic Development Plan 2004-2023: The Next 20 Years: Achieving Economic Growth and Self-reliance

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2003
Effective Start Year: 
2004
Effective End Year: 
2023
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Energy, Power, Transport, Building, Multi-Sector
Energy Types: 
Power, Renewable, Other
Issued by: 
Government of Federated States of Micronesia
Source: 
Asian Development Bank (ADB)
File: 
Strategic Development Plan 2004-2023
Overall Summary: 
In 2003, following the amended Compact with the United States, the Federated States of Micronesia (FSM) needed to both create a Strategic Development Plan (SDP) to transmit the US the new fiscal procedures and to define the development strategy for the new era. The SDP comes in three volumes. Volume I is the major component of the Plan and presents on overview of the FSM economy, discussion on the macroeconomic framework in light of the Sustained Growth Strategy, and the need for fiscal adjustment in the medium and long term. Volume I also presents discussion on the policies and development strategies for each sector of the economy. Volume II contains the sector planning matrices adopted at the Summit together with a statistical appendix. Volume III is the Infrastructure Development Plan (IDP) and is an integral component of the overall planning framework for the FSM. SDP outcomes includes a number of references to energy: • Decrease the import and use of imported petroleum fuels by 50% by 2020. • 10% of electricity in urban centres and 50% in rural areas will be generated using renewable energy sources by 2020. • 100% of new public and 50% of private buildings in the FSM will meet US standards for energy efficiency by 2006. •Private motor vehicle ownership/number of vehicles will decrease by 10% by 2010 (to be reviewed). • Upgrade local capacity to carry out operation and maintenance of all renewable energy hardware.
Access
Energy access targets: 
10% of electricity in urban centers and 50% in rural areas will be generated using renewable energy sources by 2020.
Clean cooking solutions: 
The States should also [...] undertake educational and other initiatives that will lead to the substitution of common secondary forest tree species for firewood for household cooking needs to protect remaining mangroves and native forests.
Efficiency
EE priorities: 
Goal: reduce energy use and convert to renewable energy sources/minimize emission of greenhouse gases.
EE targets: 
100% of new public and 50% of private buildings in the FSM will meet US standards for energy-efficiency by 2006. ---[A]ll states fully enforce new pollution standards through existing vehicle inspection and maintenance programs from 2006 onwards; 100% public and private motor vehicles in the FSM will meet minimum efficiency and pollution standards by 2006; and, 100% of energy generation in the FSM will meet USEPA (U.S. Environmental Protection Agency) and other relevant standards by 2008. ---100% of new public buildings will be energy efficient from 2005 onwards; ---25 % of existing public buildings will be refurbished with energy efficiency mechanisms by 2010.
EE action plans: 
Decrease the use of imported petroleum fuels through improved energy efficiency, energy conservation, elimination of energy subsidies, and public education.
EE transport standards : 
The Nation, in partnership with the State government must institute minimum efficiency standards for all petroleum product consuming vehicles and equipment in the FSM.---[A]ll states fully enforce new pollution standards through existing vehicle inspection and maintenance programs from 2006 onwards; 100% public and private motor vehicles in the FSM will meet minimum efficiency and pollution standards by 2006; and, 100% of energy generation in the FSM will meet USEPA and other relevant standards by 2008.
EE financial incentives: 
---Provide incentives for the use of alternative and renewable energy sources and energy efficiency mechanisms in government and private sector buildings and development projects.
EE public awareness/promotional programmes: 
States, in partnership with urban Municipal governments also need to work with the private sector to improve public transportation in State population centers and discourage private vehicle use, including through educational programs.
Renewable Energy
RE priorities: 
Goal: reduce energy use and convert to renewable energy sources/minimize emission of greenhouse gases.
RE targets: 
10% of electricity in urban centers and 50% in rural areas will be generated using renewable energy sources by 2020. ---Output is: solar and/or wind power systems will be established and operating on at least two outer islands in each state by 2008 (EU-funded energy project). ---new public buildings will integrate at least one alternative energy source (solar, wind, hydro-electric) to generate at least 50 % of energy needs. ---Output is: local utilities and private sector staff in all States able to operate and maintain renewable energy hardware by 2008.
RE action plans: 
Increase the use of solar power, wind, and/or solar/wind hybrids for alternative power generation schemes, especially in rural and remote communities, through incentives and public education.
RE capital subsidy, grant, or rebate: 
Increase the use of solar power, wind, and/or solar/wind hybrids for alternative power generation schemes, especially in rural and remote communities, through incentives and public education. ---Provide incentives for the use of alternative and renewable energy sources and energy efficiency mechanisms in government and private sector buildings and development projects.
RE public awareness/promotional programmes: 
Increase the use of solar power, wind, and/or solar/wind hybrids for alternative power generation schemes, especially in rural and remote communities, through incentives and public education.
Environment
Energy environmental priorities: 
Goal: reduce energy use and convert to renewable energy sources/minimize emission of greenhouse gases. ---Undertake planning, regulatory, educational and other initiatives that will ensure the preservation of remaining native forests and agroforests and ensure reforestation for watershed protection and as a carbon sink.
Pollution level targets, PM10, PM2.5, SOx, NOx: 
100% public and private motor vehicles in the FSM will meet minimum efficiency and pollution standards by 2006.
GHG emissions reduction targets: 
Decrease the import and use of imported petroleum fuels by 50% by 2020 (most of the emissions of GHG from the FSM are attributable to the import and use of imported petroleum fuels).
Pollution control action plans: 
Private motor vehicle ownership/number of vehicles will decrease by 10% by 2010. ---The FSM will have a net gain of area covered by forests between now and 2020.------[A]ll states fully enforce new pollution standards through existing vehicle inspection and maintenance programs from 2006 onwards.---Even though the FSM is not a significant contributor to the global emissions of greenhouse gas (GHG), the nation recognizes its obligations to join with other responsible nations in a concerted effort to undertake reasonable source-oriented mitigation measures in order to control the emissions of GHG into the atmosphere.---[B]an or gradual ban of use of mangroves for fuel wood in all States adopted and enforced by 2006.
Decarbonization strategy: 
The States should also actively promote and encourage reforestation activities in degraded and deforested lands and undertake educational and other initiatives that will lead to the substitution of common secondary forest tree species for firewood for household cooking needs.
Energy-water nexus: 
Undertake planning, regulatory, educational and other initiatives that will ensure the preservation of remaining native forests and agroforests and ensure reforestation for watershed protection and as a carbon sink.
Cooperation in env.: 
Even though the FSM is not a significant contributor to the global emissions of greenhouse gas (GHG), the nation recognizes its obligations to join with other responsible nations in a concerted effort to undertake reasonable source-oriented mitigation measures in order to control the emissions of GHG into the atmosphere.
Pricing
Fossil fuel subsidies: 
[A]ll electricity subsidies in the FSM eliminated by 2010.
Renewable energy subsidies: 
Increase the use of solar power, wind, and/or solar/wind hybrids for alternative power generation schemes, especially in rural and remote communities, through incentives and public education. ---Provide incentives for the use of alternative and renewable energy sources and energy efficiency mechanisms in government and private sector buildings and development projects.
Energy Supply and Infrastructure
Infrastructure development priorities: 
---Increasing investment in infrastructure, especially in [...] electricity.
Trade
Energy trade priorities: 
Decrease the import and use of imported petroleum fuels by 50% by 2020 (most of the emissions of GHG from the FSM are attributable to the import and use of imported petroleum fuels).
Investment
Energy sector investment priorities: 
The nation needs to increase their investment in alternative energy generation. ---Increasing investment in infrastructure, especially in [...] electricity.
Financial incentives for energy infrastructure: 
[A]ll electricity subsidies in the FSM eliminated by 2010.---Provide incentives for the use of alternative and renewable energy sources and energy efficiency mechanisms in government and private sector buildings and development projects.