maldives: first considerations on the roadmap for climate neutrality (2013)

8/10/2019 Maldives: First considerations on the Roadmap for Climate Neutrality (2013)

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Energy consumption in

the Maldives

Landand sea transport is very important regarding energy useand GHGemissions.

And electricity use inHouseholds and Resortsis relevant.

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Energy consumption in

the Maldives

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2013

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Public

electricity production for Male

20002010 STELCO

Notincluded:

Fresh water supply and

sewerage (MWSCoperates

own generation)and other

selfgenerators

Annualincrease inthe past 512%a.Furthergrowth insimilar range expected for years ahead (810%/a).

Demandforecast for 2020is 54MW(peak load of STELCO)according to USAID2010.D.



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Electricity consumption per

capita 2009

Electricity consumption percapita relatively highcompared to other countriesinthe region

(butapparently here alsoincluding the tourism sector)

Source:IRENA,2012

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Electric Demand

Forecast

Electricity demand expected to increase by 8%/auntil 2020

CO2eqemissions expected to increase from 1.3Mt (2009)to 2.5Mt (2020)inbusinessasusual scenario

Tourism expected to increase by more than 8%/ainthe coming years (931,000arrivals in2011;1.5m

expected for 2020)

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Greater Malearea


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Energy consumption for electricity

and related CO

2

emissions


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Regional

electricity consumption


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Priority sectors

Transport

sector (marine,

land 51%

of total

energy consumption in

2009)

Domestic sector (46%of totalelectricity consumption,excluding resorts)

Tourism sector Resortsand transport for tourism (36%of allGHG

emissions in

2009,

increase of 67%

expected until 2020;

resorts produceand consume 60%of nationalelectricity)

Geographically:MaleGreater Area(responsible for 33%of allGHG

emissions)

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Maldives emit about 4.1tCO2eqpercapita,while the international

goal has to be 2tCO2eqpercapita by 2050!


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Challenges Renewable Energy I

Limitedspace for REinstallations

Possible building owner PVoperator conflict:

Suitable roofs in

Male

and other islands are on

private

and

public buildings whos owners or users are notwilling or capable of making REinvestments

Energy produced by solaror windnotreflected inequivalent reduction of diesel consumption (mismatchbetween electric load and generation capacity)

Concerns about disposal of batteries

Private

operators will

have to provide financing

local credits not

available or extremely costly Foreign banks willask for longtermguarantee of repayment or add extrarisk costs (debt situation of STELCO

is notfavourable)

Duty exemption for REequipment notclearly defined customs indoubt what belongs to REand what not.

Othertax incentives are based ondiscrete decisions of the GoM,butthere is no legalentitlement

Paralleloperation of REsystems and diesel generators by separateparties may create conflicts onsmallerislands.

Exploitable REpotentialis limited(either dueto low resources,suchas windand biomass,or duetounavailable commercial technology,suchas inthe case of ocean energy);PVon1%of land area cangenerate about 660GWh/a current electricity already higher

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Challenges Energy Efficiency

II

Current building requirements donotfully target EEaspects (only minimumwindow area for natural ventilation is determined)

No standards for minimum energy efficiency of appliances inplace

Consumers notaware of energyrelated aspects

Tariffs notcostcovering and subsidies across allconsumption levels reducing

incentive for lowering energy demand +high

burden for MoG budget

Continuous statistics onenergy supply and demand and assessment of energyconsumption invarious sectors notyet available (MEAworking ondata collection)

Electricity generation inMalealready operating atthe upper limit highrisk offuture blackouts or unserviced demand

Highenergy consumption growth counterproductive for any efforts of increasing

REshare

Trainingof professionalsonREand EEis essential

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Subsidies for electricity

Subsidies only for Malewere Rf 13.5min2011.

Morethan 50%of this amount went to customers with amonthly bill of more than RF1000.

Onaverage 57%of domestic electricity costs is covered by subsidies.

Subsidies should be targeted atlowincome households and atregions where electricity

generation costs are excessively high.

Subsidies should notbe paid to utilities,but to people inneed.

Generalsubsidies are providing the wrong signal for energy efficiency.

Subsidies are needed where nonsupportwould lead to major economic downturns and

social conflicts.

Subsidies should notassist ingenerally maintaining lower prices for energy supply (this will

lead to increasing burdens for the nationalbudget if fuel market prices go up).

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Renewable Energy:

Outer Islands

Bringing REto outer islands is important as asocial measure (if generation costs can be lowered) and for

securing energy supply,but

relatively low impact on

national

GHG

mitigation.

REsupply should be tendered always with the objective to take over the complete island supply as IPP(includes operationof diesel generator).Grid operation and distribution (including consumption metering)should be left with FENAKA.

Within tenders,the GoM should request minimum shares of REelectricity generation;this share should be

incrementally raised over the contractual period.Sanctions need to be determined in

case of non

compliance.

ThePowerPurchase Agreement(PPA)should be based onthe price offered by the bidder.If subsidies areneeded to cover costs they should notbe higher than inthe lastyear of 100%fossilfuel based generation.

Consumertariffs should be raised stepbystep to the point of full cost recovery for generation and

distribution (including profit margin).

Local administrations should be involved inany decisionmaking processes (and possibly even participateactively inthe generation process this would raise the acceptance among the local population).

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Renewable Energy:

Greater Malearea

Some roof space exists inMale

for PV,

but

it needs to be assessed if it can house 11

MW

(SREP).

All

new highrise buildings should be obliged to reserve roof space for PVinstallations.

Newdevelopments onHulhumale offer sufficient room for PVinstallations:HDCcould sign contract

with third parties for installation and operation of PVsystems onsocial housing complexes.Private

developers could be inspired to use PV.

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Renewable Energy

Netmetering /FIT/Auctions

Netmeteringfor those REoperators that primarily produce forselfconsumption; bankingpossible into

future billing periods,but

no reimbursement for excess electricity.

Due

to space limitations options to allowforwheelingof electricity should be considered (RE

generation remote

from location of electricity

consumption)

FeedinTariffs (FIT)should be paid only to those inthe private,commercial or public sector intheGreaterMaleareathat are exclusively operating REplants andfeed allor part of the generated electricity into thegrid.

FITshould be well below consumer tariff level and reflect costs for maintaining diesel backup andtransmission. (Thecurrent production cost of STELCOis inthe range of US$0.30perkWh. Thedifferencebetween full costs and FITneeds to cover transmission,administration and backup power.)

PowerPurchase AgreementforOperatorsof hybridgeneration systems(wind/solarwith diesel)onouterislandsbased onoffer inbidding process (auctions).PPAprice needs to be lower than former generationcosts inclusive of subsidies.

Acceptable price levels for FITand PPA(maximum)need to be established !

Administrativerequirements and costs for permissions should be kept atthe very minimum !

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Interconnection

in

Greater Male

region

Cablebetween Maleand Hulhumale should be realized as soon as possible.

PreFeasibility study already existing.D



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Energy Efficiency

Energy audits for largerbuildings could be undertaken

and encouraged by GoM and STELCO(starting withpublic buildings),benchmarking of major buildings

Utilitiesshould provide EEinformation to theircustomers (e.g.saving tips onbackof bills)

Retailers and staff should be encouraged and trainedto display and explain energy efficiency labels if theycome with imported electrical appliances and arerelevantfor the Maldives

Website/brochure with information onEEof major

domestic appliances Comparative consumption measurements of

appliances inpublic places (stores etc.)

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Energy Efficiency

Replacement programmes for outdatedrefrigerators and a/c

units (old units use up to 4

times more energy than new ones)

Indication of quality standards for CFLs

EEbuilding standards for new housingsettlements,

in

particular in

Hulhumale (HDC

in

the lead)

Guidelinesfor energyefficient buildings (GEFProject)

Informationand Awareness campaigns for

consumers (see example of St.Vincent)

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Transport

Sector

Use of imported biofuels (bioethanol and biodiesel)

for either replacing 100%conventional fuel (diesel)

or for blending with regular fuel (gasoline) integralassessment needed

Landand sea based transport:Taxing of CO2

emission instead of engine capacity Motorbikeand car sharing as aviable solution ?

Pilotproject with hybridsolarferry for shortdistance transport (example of HongKong)

Introduction of bikerental system in

Male

and

nearby islands (example of MexicoCity)

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Resort

Islands

Within the licensing process,GoM could set criteria for

energy efficiency,minimum use of RE

sources and otherCCmitigation initiatives

E.g.,GoM could request that allresorts supply hot watereither from solarwater heaters or from generator wasteheat

Bilateralagreements could be signed between touroperators,GoM and resort owners

GoM/MATIcan promoteuse of internationalGreen

Labels

or provide own Award

or Label

for CC

commitment of resort operators/owners.Background

needs to be transmitted downto the individualtourist(need for ecological rating)

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Financing

Carbon tax could be considered onimport of fossilfuels which would feedinto the Green

Fund

and finance extra

costs (see example of Mauritius)

Local banks should be brought onbord;normalinterest rates could becompensated by limitedgrants from the GreenFund

Guarantee issue needs to be solved for longtermREinvestments

Fiscal incentives need to be clear and nonnegotiable (reduction or waivingof duties and sales taxes)

Airportdeparture tax (currently US$12included inflight ticket)could beraised and increment used for feeding the GreenFundor direct CCmeasures in

the tourism sector

Priority spending sectors from GreenFundneed to be defined

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Education

/

Capacity building

Advanced training needed for professionalsonEEand RE(electricians,architects,sales personnel etc.)

Technicaleducation institutions need to be made fitfor suchtraining

Trainingfor technical personnel should have astrongpractical

component (possibly small PVinstallation needed for demonstration)

Some training can be done through internationaloffers of distanceelearning onthe internet

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NeutralityintheMaldives

,April16,

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Institutional capacity

Energy Agency

D.

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NeutralityintheMaldives

,April16,

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maldives: first considerations on the roadmap for climate neutrality (2013)

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