Tariff Structure Development Workshops in the Pacific Islands

 

When: 2014

Where: Pacific Islands

What: Developing Technical Skills

Key objectives

  • To train managers and engineers in the development of tariff structures that can help promote sustainable development and the use of renewable energies in the Pacific Islands

When: 2014

Where: Pacific Islands

What: Developing Technical Skills

We teamed up with the Pacific Power Association (PPA) to give two workshops on tariff structure development in the Pacific Islands region. These workshops were designed to support the Pacific Island countries in the development of tariff structures that can help promote their sustainable development and the use of renewable energies on the Islands. Appropriate tariff design is critical to balancing the equation of securing an affordable electricity supply for customers as the share of the renewables increases, while at the same time ensuring commercial viability for investors in order to create enabling conditions for further investment in the electricity sector.

The workshops were led by GSEP member Kansai Electric Power. The first workshop was held from May 12-16, 2014 in Fiji for the Southern Pacific Island utilities and the second workshop was held in Guam on August 18-22, 2014 for the Northern Pacific Island utilities. A total of 37 managers and engineers attended the workshops.

These two workshops were part of a series of human capacity-building programs GSEP has led in the region in partnership with PPA since 2005. With this program, we are helping develop local capacity and knowledge in the different aspects of energy project development and implementation in Small Island Developing States that are the most vulnerable to climate change. The attendees are able to take the knowledge and information from the workshops and use it in their day-to-day work.

“The financial sustainability of utilities in the Pacific Islands depends a great deal on having an appropriate tariff structure in place that reflects the needs of the different stakeholders. For the owners, which is more often than not the national governments, it should encourage economic and social development while ensuring affordability for customers. When setting the tariffs, utilities have to be able to balance these needs with their own to improve reliability and meet increasing electricity demands. This joint PPA-GSEP workshop greatly helps the region’s utilities find the tariff structure best suited to their local needs.”

Andrew Daka, Executive Director of PPA

Participating members and partners

  • Kansai Electric Power
  • Pacific Power Association
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