Micronesian Energy Association

Green Energy Micronesia

February 23, 2016

Micronesian Energy Association[1]report to the 21stMicronesian Chief Executives Summit

The Micronesian Energy Association would like to report on CNMI’s renewable energy efforts, Guam Energy Task Force, RMI activities and update on Green Energy Micronesia initiative[2]. This report is intended to update the process on CNMI with integrate renewable energy and existing power system. The information presented can be used as a template for regional islands to adopt renewable energy as part of the INDCs (Intended National Determined Contributions)effort to reduce the utilization of fossil fuel.

Energy Planning: Integrated Resource Plan

In 2013, U.S. Department of the Interior, Office of Insular Affairs, and the National Renewable Energy Labs (NREL), proposed a Renewable Energy Integration Study of the CNM which highlighted the complex nature of energy planning, with the purpose of reducing the levelized the cost of energy. The Renewable Energy Integrated Resource Plan examined a wide range of energy options with the goal of selecting the most cost effective combination of renewable and conventional energy sources like diesel fuel. Financial models aimed at revealing the actual, long-term cost of different energy portfolios and proposals for a period of 20 years.

The CNMI’s IRP is currently in the draft phase and is in the process of adoption based on recommendations made by the consultant firm, Leidos Engineering LLC. After the adoption of the IRP, the consultant firm will return to the CNMI for one of the key steps of the IRP process, stakeholder involvement. Stakeholder involvement was the first step of the IRP process and will be the last step to ensure that the decisions made from of the IRP was a consensus from all stakeholders of the CNMI.

Net Metering

In 2006, the 15th Northern Marianas Commonwealth Legislature enacted Public Law 15-23, “to establish requirements for the use of Renewable Energy (RE), energy efficiency and for the energy and cost-saving measures. The Legislature finds that the Commonwealth must find ways to conserve energy and explore alternative energy sources. The Legislature further finds that the CNMI must reduce its dependence on fossil fuels and move toward the use of RE while setting realistic deadlines for meeting that goal.” (P.L. 15-23, Senate Bill No. 15-38 SS1, HD1).

The process known as net metering is a system in which renewable energy power and public utility grid power are connected together in order to enable any surplus of power generated from the renewable energy power source to be transferred onto the grid; the process offsets the cost of power that a customer owes to the public utility.

In 2011, the Commonwealth Utilities Corporation (CUC) started accepting Net Metering applications for residential, commercial and government customers from the islands of Saipan, Tinian and Rota.The CUC’s net metering program for commercial customers allows for net energy metering for not more than 100 kW of available capacity of renewable energy system. In 2014, the Commonwealth Utilities Corporation initiated the Net Meteringprogram for residential customers. Solar system constraints for residential customers are that the maximum system penetration of 10 kW or not to exceed 70% of the average monthly usage for the account.

Solar PV in Rota

The island Rota is one of many islands comprising the Commonwealth of the Northern Mariana Islands. Rota has a 5 MW generating capacity with a 1.8 load demand. Given the miniature scale of Rota’s load, the CUC is looking to implement a photovoltaic generation system on the island. A proposal of the project has been drafted and will be reviewed by a grant committee for approval. As with any renewable integration to a grid, the purpose of solar implementation will be used to minimize the dependency on fossil fuel thereby reducing CO2 emissions. Also, consumer fees for power usage will be reduced to a more affordable level given that the entire solar project is grant funded thereby eliminating CUC action to raise rates in order to compensate the financing of the solar system.

Guam Energy Taskforce

“Secure Guam’s energy future and increase autonomy by diversifying fuel sources and reducing fossil energy consumption 20% by 2020”, through these four areas: Energy Efficiency & Conservation Marketing Campaign, Establish Demand Side Loan Revolving Program, Waste to Energy Study and Transportation Initiatives .

RMI Activities

Revised National Energy Policy and Energy Action Plan

Over the last 5 years, many broad goals of the 2009 National Energy Policy and the activities under the Energy Action Plan have been realized and Government has taken drastic steps in working towards achieving other targets such as the electrification of 95% of rural outer atolls households by 2015. In terms of renewable energy, new and emerging technologies have come into scene such as wind, ocean thermal, etc. that need to be captured in detail in addition to the proven technologies like solar that is being used extensively in RMI.

Various Government sectors have also drafted and/or introduced policies that will complement or add value to the energy sector such as transport, public works, climate change and environment. There is an extensive need to strengthen the institutional structure and framework of the energy sector to ensure that the energy policy is planned, and implemented in a consistent, coordinated and structured manner.

There is also a need to have a reliable energy information and database system that will be used extensively in the planning and policy coordination and ensuring the sustainability of the energy sector. There is also a need to put in place a monitoring and evaluation mechanism for the energy sector to gauge its development and also to highlight the challenges in the energy sector.

At the regional level, the Leaders me in New Zealand in 2011 for the 42nd Pacific Islands Forum (PIF) and recognized the need to have secure access to energy for the sustainable economic development of the region and reaffirming their commitment to renewable energy and the promotion of energy efficiency. The Leaders also recognize the value of energy audits, development of credible whole of sector plans and structures to improve energy security, reduce dependency on fossil fuels for electricity generation and improve access to electricity.

The Leaders also support the development of effective management of fuel supply, risks, meeting energy efficiency targets, expanding existing electrical appliances energy efficiency standards and labeling programs, facilitating greater private sector participation in the regional energy sector by systematically reducing barriers to the uptake of distributed generation. The Leaders have also called on the development partners to assist in the implementation of the activities in the national and regional energy sector and strengthen coordination of their financing activities.

It is well noted that energy remains the backbone of any local economy and is recognized as one of the most important infrastructures for sustainable development at the regional and international levels. Stakeholders’ consultations were held twice and positive feedbacks/comments were provided. Donors, development partners have expressed strong support towards the policy and action plan. It is anticipated the proposed National Energy Policy and Action will be presented and endorsed by Cabinet within the first three months of 2016 and it will continue to serve as the implementing guideline for the country’s energy sector.

Public lighting using Solar PVs and LEDs

With the islands being located between latitudes 4o North to 15o North, there is a wide variation in the insolation (solar radiation) between the atolls and islands, therefore, economically speaking, it make sense to mobilize solar powered LED lights as the way forward for public lighting. The core objectives of using solar powered LED lighting units are to:

  • Reduce energy consumption (also mercury contents and GHG emissions) by replacing the inefficient mercury vapour lamps);
  • Reduce MEC’s operational and maintenance expenditures; and
  • Improving livelihoods in both the urban and rural areas by providing a lighted environment to pedestrians at night.

With the support of Government of the Republic of China (Taiwan) and Japan’s Pacific Environment Community (PEC) Fund, over 480 solar streetlights have been installed throughout Majuro, Kwajalein and some of the remote outer islands. The Ministry will continue to do its part to seek support and assistance elsewhere and to ensure that lighting systems are provided to the areas in need. This year alone, the Ministry, in conjunction with MEC, have distributed and installed 187 streetlights throughout Majuro and Ebeye.

“Many Partners, One Team”

The vision of the Pacific Regional Energy Policy states that “an energy secure Pacific based on robust energy that supports and promotes sustainable development in Pacific Island countries and territories aiming at efficient production and use of energy for sustainable development, anticipating increased energy security and access to clean.”

It is well noted that energy remains the backbone of any economy and is recognized as one of the most important infrastructures for sustainable development at the regional and international levels. In order to achieve the targets and objectives of the GEM Initiative, assistance and cooperation of many individuals and groups are needed; the initiative will need more than just the RMI, FSM and Palau. The initiative requires the cooperation and the sacrifice of other states and territories such as Kosrae, Pohnpei, Chuuck, Yap, Guam and the Commonwealth of the Northern Mariana Islands (CNMI). Most importantly, the initiative will need the support and assistance of our development partners and donors.

Green Energy Micronesia (GEM)

A step closer to Palau’s goal is the recent passage of the Palau Energy Act that established the Palau Energy Administration within the Executive Branch to coordinate all energy related matters and to develop regulations and plans to meet the INDC (Intended National Determined Contributions). The GEM initiative is to develop Renewable Energy as a power generating source at 20% to 30% by 2020 within the Micronesian Region. The examples of Solar technology and Net metering in CNMI are the beginning steps toward this goal. Currently, research is ongoing now on the use of Wind, Tidal, Geo-Thermal and Bio-Diesel as Renewable sources for power production.

To address the GEM initiative we will need to plan to develop training for a workforce to install, operate and maintain all of the Renewal system that will be develop. Currently, Palau Community College is offering a solar installation and maintenance course through their Electrical Technology program.

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[1]Micronesian Energy Association was created during the 12th MCES in 2009

[2]Green Energy Micronesia Initiative we developed in 2010 as a first step to sustainable energy