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ENERGY MISSION REPORT WESTERN SAMOA
32
ENERGY PROGRAM it
33 East-West Center Honolulu, Hawaii PACIFIC ENERGY PROGRAMME MISSION REPORT
WESTERN SAMOA
1982
SOUTH PACIFIC BUREAU OF ECONOMIC CO-OPERATION
AUSTRALIAN NATIONAL UNIVERSITY
EAST-WEST CENTER
ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC
EUROPEAN ECONOMIC COMMUNITY
UNITED NATIONS DEVELOPMENT PROGRAMME
iii
Pacific Energy Programme Mission Report
WESTERN SAMOA
Page
PREFACE v
EDITORIAL NOTE vii
MAP ix
1. SUMMARY AND RECOMMENDATIONS 1
2. COUNTRY BACKGROUND 8
3. PATTERNS OF ENERGY SUPPLY AND USE 11 3.1 Petroleum Fuels 11 3.2 Electricity 13 3.3 Biomass Fuels . 16 3.4 Summary of Energy Use 17
4. INDIGENOUS ENERGY RESOURCES: PROSPECTS FOR DEVELOPMENT . . 19 4.1 Indigenous Resources 19 4.2 Medium and Large Power Systems 25 4.3 Small Power Systems 29 4.4 Industry and Commerce 32 4.5 Transportation 35 4.6 Households 39
5. PETROLEUM AND FOSSIL FUELS 45 5.1 Supply-and Storage 45 5.2 Pricing and Price Control 46
6. ELECTRICITY 49 6.1 Institutional Arrangement 49 6.2 The Power System 49 6.3 Planning Issues 51 6.4 Management Issues 54 6.5 Electricity Pricing 56 6.6 Rural Electrification 56
7. ENERGY CONSERVATION AND MANAGEMENT 58 7.1 Opportunities for Energy Savings 58 7.2 Government Measures 61
8. ENERGY ADMINISTRATION AND PLANNING 63 8.1 Present Arrangements 63 8.2 Issues and Options 63
APPENDICES 67
V
PREFACE
This report is one of the products of a cooperative programme in which a number of organisations have worked together in helping Pacific countries to assess their situation and needs in the development and management of energy resources, leading to the formulation of regional programmes for assistance to the countries in this field. With the South Pacific Bureau for Economic Co-operation (SPEC) acting as general coordinator, the other bodies involved throughout the programme were Australian National University (ANU), Centre for Resource and Environment Studies (CRES); the East West Center (EWC); the Economic and Social Commission for Asia and the Pacific (ESCAP); the European Economic Community (EEC); the United Nations Development Programme (UNDP), and the United Nations Development Advisory Team (UNDAT). The mission of the Pacific Energy Programme which visited Western Samoa was led by Dr. Ken Newcombe and Included Tommy Scanlan, Dr. Tony Weir, and Stephen Meyers. The report was prepared by Ken Newcombe with assistance from Stephen Meyers and contributions from Tony Weir and Tommy Scanlon. The mission is grateful for the considerable effort made by the secretarial staff of CRES and the EWC in processing the reports and for the research assistance afforded by CRES (ANU) and EWC. Due to constraints on time and staffing, it has not been possible here either to deal adequately with macro-economic considerations of the energy sector or to make any useful forecast of demand for petroleum products and total Indigenous energy sources for 1990 and beyond.
vii
EDITORIAL NOTE
The attached report on the energy situation in this country is the result of a regional survey mission which vlsted II Pacific nations during 1982. The findings of this mission were presented in draft form to representatives of participating governments at a meeting held in Suva, Fiji in September 1982. During the process of editing the reports, it became obvious that a great deal of the information and analysis might be of general interest, but was not necessarily contained in every report. As a result, it was decided that a single outline of topical subjects should be developed and that the Individual country reports should be standardised and organised around this general structure.
The result of this reorganisation has been to resequence a few sections in each report. In addition, where a country report omitted informatlodn about a particular subject, or where a subject had already been merged with a related topic, the designation "N.A." may appear after a paragraph or section number (e.g., 4.2.10 N.A.). The purpose of the "N.A." designation is to alert the reader to the fact that there may be information of general interest on this subject available in other country reports. A set of survey reports is available in your country from the planning authorities. By the common agreement of the sponsors, the content of the country reports is unchanged from the text agreed subsequent to the Suva meeting. No substantive changes have beden made in the editing of these reports. Other than the numerical structuring of sections, the only changes have been revisions to wording and syntax designed to improve the readability of the reports.
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B.ISP map (tout Pacific Islands Year Book, 1981.
1. SUMMARY AND RECOMMENDATIONS
1.1 Summary
The prospect exists for economical substitution of between 35 percent and 40 percent of present levels of petroleum imports by 1990 with locally available energy sources. This proportion may be sustained against 1990 petroleum imports if energy conservation is practised. There are also significant gains to be made through improvement in petroleum supply contracts and local price control, essentially by guaranteeing open competition at all levels in this activity of the energy sector. The most substantial gains to be made in displacing imported fuels are through further enhancement of hydropower generation, for which construction has already begun, and through the use of woody fuels for dry season generation. Only 5 to 10 percent of power generation needs to be from diesel by 1990. Circumstances are also propitious for almost total displacement of diesel in heat- and steam-raising in industry with wood fuels, a transition which could be complete within seven years if well-managed. Smaller, though significant, gains will be made against kerosene and liquified petroleum gas (LPG) by wood, charcoal, and solar energy for cooking and water heating. The advent of a large coconut oil production facility creates the prospect in the longer term, probably beyond the year 1990, for a major substitution of diesel (and, indirectly, ethanol) by coconut oil based fuels. Economical production of ethanol is unlikely during this decade. Production of small quantities in the longer term, based on careful evaluation now, may prove of strategic and economic importance.
The gains to be made immediately through improved energy manage• ment can be achieved with little more than political will power and bureaucratic resolve. Yet these measures, and the development of economical alternatives to petroleum for purposes other than power generation, will not proceed well or at all without a small, efficient energy policy planning administration at a high level in the administration. The energy economy in Western Samoa is one of the few components of the overall economy that can offer major beneficial change in the balance of payments in a short time. Hence it Is recommended that the arrangements required to bring about the reforms proposed here be accorded the highest possible priority by the government. 2
1.2 Main Recommendations and Conclusions
1.2.1 Indigenous energy resources: Prospects for development
Energy resources
o Ample fuelwood resources exist in the form of forest residues, senile coconut stems, coconut husks and shells, and, in the future, forest residues and sawmill wastes from plantation forests, to provide all of the forseeable demands for woody fuels in the energy economy.
o The use of senile coconut stems and coconut husk, and shell as an industrial fuel will ensure greatly increased cash flow to the coconut Industry—to smallholders, processors, and plantations—with benefits flowing on to crop rehabilita• tion and increased productivity.
o The use of modern hot-air generators fired with coconut husk and shell for drying copra will make good use of the surplus of husk and shell and greatly enhance the quality of copra produced. These hot-air generators, now made in Western Samoa, should be promoted over conventional drying mechanisms as a matter of priority.
o Hydropower is a major power resource for Western Samoa. However, with the commissioning of the Sauniatu hydroelectric scheme, the most important consideration is hydropower storage to cater for dry season demands. Every means of support should be provided to the Electric Power Corporation (EPC) in its efforts to establish a cost-effective storage component for the hydropower system.
o It is worthwhile to establish a detailed wind record for adequately exposed locations near to the EPC grid on Upolu in order to determine the coincidence of wind energy availability with dry season conditions in the hydrogeneration system.
Large-scale power sources
o The mission concludes that a wood-fired 6.0 MW (2 x 3 MW) steam plant is required in Upolu in 1985/86.
o Security of wood and residue fuel supply is vital to the economic success of the proposed steam power plant on Upolu. To alleviate the risk of occasional fuel supply difficulties, the mission recommends that whole-nut harvesting be pursued by the Samoan Coconut Products Limited (SCPL) oil mill as a means of processing an increasing proportion of its copra requirements and that surplus husk and shell be sold to the EPC for use as a fuel for power generation.
o An adequate need has been demonstrated for the installation on Upolu of two large (700-900 kW) wood gasifiers feeding 3
two high quality dual fuel diesel engines. These gasifiers will alleviate a short-term deficiency in firm capacity in the Upolu generation system's "dry season" and will work well with larger steam plants in serving the future load in the future. About one million litres of diesel fuel per year can be displaced by the gasifiers if they perform moderately well.
Small-power systems o The mission recommends the use of coconut oil blends with diesel rather than pure coconut oil in the current 42 kW diesel engine trials. The EPC is commended for its efforts in evaluating coconut oil fuel in power production. o The use of solar electricity photovoltaic cells (PVCs) for household lighting is economical in comparison with continuous use of kerosene and benzine. The mission proposes the establishment of a small loans scheme for the purchase of solar lighting and small appliance kits for use away from grid power supply.
Industry and commerce o Hot-air generators fired with wood and combustible waste materials are far cheaper than diesel for heat- and steam- raising. The mission advises the government to demonstrate the use of the Western Samoan-made hot-air generators In a government-owned boiler installation in the near future. A bakery oven retrofit with the same technology is also recommended and has great promise both nationally and regionally. (Aid assistance may be available.) o All crop drying with diesel should cease. There has been adequate local demonstration of the use of wood-fired hot- air generators for this purpose. o The example set by Aggie Greys and the Tusitala Hotels in the use of modern slow-combustion stoves for cooking is commendable. The government is advised to install similar stoves in all of its institutions with large kitchens. o Industrial-scale solar water heating is significantly cheaper than electric or gas heating and should be used in all hotels and institutions wherever wood-fired boilers and calorifiers are impractical.
Transportation o Only taro palagi and breadfruit are considered to be potentially economical feedstocks for ethanol fuel production. Breadfruit appears to be the most suitable in social and biological terms and may prove economical if a number of strategic and technical questions are resolved. The following steps are recommended: 4
1. Examine in detail the availability and cost of bread• fruit, and if available—
2. Undertake a detailed feasibility study of the breadfruit ethanol option including a study of the economic costs and benefits surrounding a conceptual design and costing of the factory process. If favourable—
3. Undertake a detailed design and costing of the plant, the transport system for crop delivery, and the distri• bution and end-use of the product, including the design of a miniature processing facility to scale.
4. Construct a miniature of the designed process in the field to verify all process parameters.
Households o The National Women's Committee is encouraged to demonstrate the local production and use of Fiji ME II and ME III modular wood stoves and Fiji and Papua New Guinea (PNG) charcoal stoves and ovens• o Considerable potential exists to use charcoal to reduce the pressure of urban wood demand on perl-urban forests and to displace kerosene in cooking. It Is recommended that—
1. Charcoal stoves again be manufactured locally and be heavily promoted by the various government agencies and the producers as a commercial enterprise. Development capital should be made available to a suitable entre• preneur to establish the business.
2. The Copra Board be made responsible for the wholesaling of coconut shell and wood charcoal for Apia and surrounding areas. That efficient charcoal production techniques once again be demonstrated to smallholders and that a firm price be offered to smallholders for the product by the board. o In the short term, it is necessary for the government to intervene in the fuelwood market to reduce prices and the environmental degradation of indiscriminate fuelwood harvest• ing. The National Women's Committee and the DAF should supervise the harvesting, stockpiling, and grading of fuelwood for use domestically and Industrially. o Slow-combustion stoves are a desirable alternative to gas and electricity for cooking in upper-level housing. The government is advised to install modern slow-combustion stoves incorporating water boilers in all its upper-level housing. (Aid assistance may be available for this work.) 5
o Solar water heating is a practical and economical alternative to electric and gas water heating in the comparatively few high-income households that use significant quantities of hot water. The government is advised to retrofit all high- income government homes, where wood cooking and water heating is Impractical, with solar water heating systems.
1.2.2 Petroleum
o There Is a strong case for the government assuming ownership of petroleum storage facilities as part of a strategy to expose the business of oil supply to more effective competition.
o Revision in the methodology of oil products price control locally is warranted as a matter of high priority. Legisla• tion may be required to ensure knowledgeable price control.
o The prospect exists for considerable savings in the cost of petroleum products through renegotiation of petroleum supply contracts.
o Local staff in the contracts and price control areas of the administration should be given the benefit of intensive training in the methodology of price control and contract negotiation.
1.2.3 Electricity
Management
o The government is urged to permit the EPC to Increase the staff to the required levels in engineering, economic planning and analysis, and maintenance.
Planning
o Firm capacity is markedly deficient in the Upolu power system and must be augmented soon. The dual fuel gasifiers proposed to be purchased with EEC Regional Energy Programme funds will alleviate the problem until 1986, when the wood-fired steam plant is to be commissioned.
o There is a need to evaluate economical means of reducing peak demand in the dry season, either by the displacement of electricity by cheaper local energy forms or by demand modification and conservation techniques.
o Any involvement by the EPC in rural electrification should be on a commercial basis. Whenever costs of production experienced by the EPC exceed revenues from that supply area, the government should refund the excess cost to the EPC directly from the budget. 6
1.2.4 Energy conservation and management
o Design standards for household wiring and for village electrification should be changed to ensure the use of much cheaper fluorescent lighting.
o Energy planners in Western Samoa should prepare and circulate a precise list of household energy conservation guidelines to assist householders in reducing their electricity costs.
o The efficiency of industrial and commercial lighting and street lighting can be profitably upgraded with the use of sodium vapour and fluorescent lighting.
o Energy audits of several major commercial and industrial buildings will indicate many opportunities for profitable changes in energy management. (Aid assistance may be available.)
o Air conditioning in government buildings is excessive and wastefully applied. Major savings in electricity and diesel can result from several straightforward reforms:
1. Air conditioning can be strictly limited to buildings and rooms which cannot be cooled adequately without its use. Rules should also be adopted so as to minimise the use of air conditioning in an absolute sense, limiting it to top management and ministers, and then only upon request.
2. All non-air conditioned spaces can be equipped with fans, adequate ventilation, window shading, wall shading, and roof insulation. High ceilings can have heat exhausts outlets.
3. All air conditioned spaces can have tightly sealing, full glass windows (not louvres), full insulation, window and wall shading, and thermostatic control.
4. A programme of building remodelling (as above) and monitoring of its Implementation and impact can be implemented by the Department of Works.
o There Is a good case for allowing duty-free entry of all goods designed specifically for the use of local energy sources or for conservation of imported fuels.
1.2.5 Energy administration and planning
o The mission recommends the formation of a small but powerful energy policy planning unit in the Department of the Prime Minister. This unit should preferably have two full-time energy professionals with broad technical and analytical skills, plus trainee staff and administrative support. 7 o The National Energy Committee (NEC) should assume a role more like that of a working group in determining and monitoring the energy projects and programmes adopted by the government. Precise, well-documented Issues and options must be shown to the NEC for it to function effectively. 8
2. COUNTRY BACKGROUND
2.1 Land. Western Samoa, the larger and westerly portion of the Samoan archipelago, lies northeast of Fiji between latitudes 13° and 15°' south and longitudes 171° and 173° west. The country covers a land area of 2,934 square kilometers (sq. km) consisting of Savaii (1,820 sq km), Upolu (1,100 sq km), and several smaller islands. The main islands are mountainous and mostly covered with dense natural vegetation. Approximately one-half of the 1,300 sq km of arable land is under cultivation.
2.2 People. Western Samoa has a population of about 158,000 (mid- 1981), of which 115,000 live in Upolu and 43,000 live in Savaii. Apia, the capital and only city, is located on Upolu and has a population of 33,000. The rural population is concentrated along the coast in some 360 villages with a typical population of 200 to 500 persons each. Net population growth is low, averaging only 0.8 percent per annum (p.a.) from 1976 to 1981. The natural growth rate of about three percent p.a. is balanced by heavy emigration primarily to New Zealand.
2.3 Government. Western Samoa gained independence from New Zealand in 1962 and has since followed a parliamentary form of government with a single-chamber assembly elected by "natal" (heads of extended families). Total government expenditure in 1981 was WS$58 million (WS$370 per capita). Official development aid in 1980 was WS$25 million.
2.4 Economy. Western Samoa's economic structure is dominated by the subsistence-oriented village agriculture sector. Involving two-thirds of the labour force, this sector produces the bulk of agricultural output sold (root crops, fruits, vegetables, copra, cocoa, and taro for export). Total primary production, including forestry and fisheries, from village growers and commercial plantations probably accounts for about one-half of the Gross Domestic Product (GDP). There are no reliable recent estimates of the GDP. The largest manufacturing enterprises are the brewery and the coconut oil mill.
2.5 Relevant Economic Conditions. The gap between visible exports and imports, which has grown from $8 million in 1974 to $60 million in 1981, is 9
a serious problem. Earnings from copra and cocoa, which make up about 70 percent of exports, have not kept pace with rising Import prices (see Table 2.1). Tourist earnings and capital inflows of aid have brought additional foreign exchange, but there has been a serious depletion of foreign reserves. The major Import categories contributing to the trade deficit are machinery, food, mineral fuels and lubricants, and manufactured goods.
Table 2.1 Selected Indicators (million WS$, unless indicated)
1976 1977 1978 1979 1980 1981
Exports FOB 5.4 11.6 8.2 15.0 15.5 9.0 Imports CIF 23.6 32.3 38.6 60.9 56.4 69.5 Balance of trade -18.2 -20.7 -30.4 -46.0 -40.9 -60.5 Key exports: Copra 1.9 4.6 3.5 8.0 8.4 3.9 ('000 te) 11.9 17.8 13.3 16.9 25.3 14.3 Cocoa 2.2 5.9 2.6 3.5 3.0 1.4 ('000 te) 1.6 2.1 1.2 1.5 1.5 0.9 Inflation rate (%) 5.0 14.4 2.2 11.1 33 19 Exchange rate (WS/US) 0.800 0.749 0.715 0.911 0.929 0.971
Population ('000) 151 153 154 155 156 157
Notes: Population data are estimates based on 1976 and 1981 censuses, ADB. 1981 trade data are provisional, SPC, Western Samoa. The inflation rate Is derived from annual change in consumer price index category for "All Items," ADB.
Sources: Western Samoa Annual Statistical Abstract. SPC Statistical Bulletin No. 18, Overseas Trade 1979. South Pacific Economies 1980: Statistical Summary. Noumea: South Pacific Commission. Key Indicators for Developing Member Countries of ADB
2.6 Role of Energy Imports. The share of total imports accounted for by petroleum fuels imported for domestic consumption has about doubled from 1978 to 1981. (This excludes jet fuel sold to overseas carriers, which 10
should properly be considered an "import for re-export-") Import volume In 1981 is uncertain, since official statistics show that fuel import volume in 1981 was much greater than reported oil company sales volume. The figure below is based on the latter, and may understate actual imports-1
1978 1979 1980 1981 Fuel imports (mn WS$) 2.5 4.8 8.3 8.5 Percent of total imports 6 8 14 13 Percent of total exports 30 32 53 94
Stated in different terms, in 1978, one tonne of copra (at WS$260 FOB) would buy two tonnes of motor spirit; in 1981, the same tonne of copra (at WS$275) would buy only one-third that amount.
2.7 Development Plans. Western Samoa's options for economic development are constrained by the limited natural resource base, distance from the rest of the world, and the small size of the domestic market. Recognising these constraints, the government envisions three basic development possibilities: a massive effort to increase primary production, with priority to projects that can produce a significant volume of exports and import substitution; government-sponsored industrial development that seeks to maximise value added; and some tourist development. In addition, the establishment of hydroelectric power stations to reduce oil imports is a priority. The development plan for 1980 to 1984 calls for an expenditure of WS$128 million (in 1979 prices), of which 32 percent is to be spent on agriculture and 29 percent on hydroelectric projects.
1 Official statistics show fuel imports in 1981 of WS$12 million CIF This includes jet fuel, about 60 percent of which was re-exported to foreign carriers. 11
3. PATTERNS OF ENERGY SUPPLY AND USE
3.1 Petroleum Fuels
3.1.1 Overview. Petroleum fuels are supplied to Western Samoa by Mobil, Shell, and British Petroleum (BP). These fuels are brought to Western Samoa both by ocean tanker (MR class) from Singapore and by smaller coastal tankers loading out of Fiji. (See section 3.1 for details on petroleum fuel supply and marketing.) Internal use of Imported petroleum fuels in 1981 amounted to about 30 million litres (Ml), down significantly from 33 Ml in 1980. Distillate fuel2 with a 50 percent market share and motor spirit with a 33 percent share account for the bulk of the demand. The largest consumer, with fuel use In 1981 of over seven Ml, is the Electric Power Corporation (EPC).
3.1.2 Prices. Prices in Apia as of June 1982 (dating from a price order of November 1981) are shown below:
Bulk Retail (sene per litre) Motor gasoline 69.08 72.72 Kerosene 56.86 60.38 Distillate 63.68 67.26 White spirit 44.34 49.0
Allowed prices in Savaii are about one sene higher. An indication of how steeply prices have risen is shown below:
Motor Gasoline Kerosene Distillate (sene per litre) June 1982 69.08 56.86 63.68 June 1981 50.66 40.14 45.54 February 1980 34.1 25.7 29.0 June 1979 23.1 16.8 18.2
These increases are caused by the falling value of the Western Samoan tala relative to the US dollar, by increased compensation allowed the oil companies for their problems in exchanging tala for US dollars, and by the rise in landed prices.
2 Also known as diesoline or automotive diesel fuel. 12
3-1.3 Trends in demand. Annual sales of petroleum fuels in Western Samoa since 1973 are shown in Table 3.1. The drop in demand for all fuels in 1981 is striking; motor spirit sales were down nearly eight percent from 1980 (13 percent from 1979), distillate nearly seven percent, and kerosene 14 percent. Sales of jet fuel also fell sharply. Prior to 1980, growth in demand had been solid for motor spirit (averaging 6.6 percent p.a. since 1973), strong for distillate (averaging over 10 percent p«a.), and fluctuating for kerosene.
Table 3.1 Demand for Petroleum Fuels
1973 1974 1975 1976 1977 1978 1979 1980 1981 (kilolitres) Distillate 9083 8974 11125 11003 12391 13884 16400 17037 15930 Motor spirit 8178 7551 9601 9356 9827 10779 12043 11294 10425 Kerosene 2023 2028 1937 1802 1746 1839 2282 2515 2159 White spirit 700*: 700* 700*' 762 732 788 544 173 83 LPG — — — — — 120
Total ground • products 19984 19253 23363 22923 24696 27290 31269 31019 28717 Av gas 223 286 223 221 211 204 247 212 192 Jet fuel 1818 1364 1655 2295 2238 2898 3741 4130 2840 Total all fuels 22025 22903 25241 25439 27145 30392 35257 35361 31749
Notes: (1) Data refer to annual sales as reported by oil companies. The 1982 estimates are from Mobil* (2) An asterisk (*) indicates an estimate made in the absence of data. (3) See also Appendix 3*1.3.
3.1.4 Patterns of use. Domestic use of petroleum fuels in Western Samoa in 1981 is described in Table 3.2 according to the purposes for which the fuels are used. Fuel used in interisland shipping and air transport is included; fuel used in international transport by foreign carriers is not. 13
Table 3.2 Use of Petroleum Fuel in Western Samoa, 1981
Household Trans- Heat/Steam Electricity Other Total uses portation raising generation (terajoules) Distillate — 205 45 282 70 602 Motor spirit — 356 — — 2 358 Kerosene 79 — — — 79 White spirit 3 — — — 3 LPG 2 — — — 1 3 Jet fuel — 44 . — — 44 Avgas — 6 — — 6 Total 84 611 45 282 73 1095
Note: (1) See Appendix 3. 1.3 for derivation of the above breakdown.
3.1.5 Transportation sector. Transportation of people and goods accounts for an estimated 56 percent of Western Samoa's petroleum fuel consumption. Most of this is land transport, primarily in Upolu. Electricity generation uses about one-fourth of total petroleum fuel; over 90 percent of the consumption is in Upolu. Household uses (lighting and cooking) account for less than 10 percent of direct petroleum fuel use, while heat- or steam-raising uses less than five percent.
3.1.6 Electricity sector. N.A.
3.1.7 Household sector. N.A.
3.1.8 Heat and steam raising. N.A.
3.2 ELECTRICITY
3.2.1 Supply. Electric power is supplied full-time along the north coast of Upolu, the east coast of Savaii, and the top northwest of Savaii, by the EPC. With the recent commissioning of the Samasoni and Fale-ole-fee hydroelectric projects, the EPC generating system on Upolu consists of 9*8 MW (installed) of diesel capacity and 4.5 MW (wet season) of hydro capacity. The hydroelectric installations are all run^of-river schemes with minimal storage; thus, production capacity in the dry season falls to around 1 MW. In 1981, 25 percent of total generation came from 14 hydroelectric stations. The generating plant on Savaii consists of 300 kW of diesel capacity, with an additional 240 kW to be installed in late 1982. Some statistics on the 1981 EPC operations are shown in Table 3.3.
Table 3.3 Public Electricity Supply in Western Samoa, 1981
Diesel Upolu Hydro Total Salelologa (Savaii)
Installed capacity (kW) 9805 1230 11035 300 Generation (MWh) 22477 7313 29790 801 Fuel consumption (kl) 6893 — 6893 358 Generating efficiency (%) 31 — — 21 Capacity factor 0.26 0.68 0.31 0.30 Peak load (kW) — — 5600 263 Load factor — — 0.61 0.35 Loss (%) — — 16.8 6-7
Notes: (1) Installed capacity Is at year-end and is based on the nameplate capacity of the machines at 0.8 power factor. Some machines cannot reach -rated output. (2) Capacity factor is the ratio of average load (assuming con• tinuous operation) to installed capacity. (3) Load factor is the ratio of average load (assuming con• tinuous operation) to peak load. (4) Loss is energy not sold or used by the power station as a percentage of generation. Data for Salelologa do not appear, due to a mismatch of reading periods; recorded sales probably overstate actual consumption.
In addition to the EPC system, private diesel generating plants installed by villages and individuals were estimated in 1980 to total 450 kVa. Samoa Forest Products also operates a 3,000 kVa wood-fueled steam plant at its mill in Asau in Savaii. The saturation of public electricity supply at the end of 1981 was about 34 percent of all households on Upolu and 10 percent of households on Savaii, and 28 percent of all households.
3.2.2 Households connected to the grid. N.A.
3.2.3 Tariffs. The EPC tariff as of June 1982 was a flat rate for all units of 23 sene per kWh, with a minimum charge (for two months) of 15
WS$5.00. Customers receive a five percent discount for payment within 28 days of billing- The tariff level has risen sharply in recent years: average revenue per unit sold rose from 8.8 sene in 1979 to 15.1 sene In 1980, to 19.5 sene in 1981, and to 23 sene in November 1981.
3.2.3 Trends in electricity demand. After growing at an average rate of nearly 12 percent p.a. from 1974 to 1979, EPC electricity generation on Upolu (which accounts for 97 percent of EPC generation) fell by 1.5 percent in 1980 and by 3.8 percent in 1981 (see Table 3.4). Peak loads averaged 5,780 kW in 1979 and 5,340 kW in December 1981. These data do not clearly define the decline in peak demand. It is difficult to determine which sectors, if any, are responsible since over 1.3 million units consumed (but not billed) in 1980 and 1981 (mostly 1980) have been recovered but not yet classified by sector. Consumption has certainly fallen in the domestic sector, however, with average use per month decreasing from 133 kWh in 1980 to 122 kWh in 1981. Overall demand did not grow during 1981. The precise trend is difficult to determine because of the fortuitous reduction in losses from 22.6 percent to 16.8 percent during 1981.
On the Salelologa system, for which 1979 was the first full year of operation, generation increased by 55 percent in 1980 but only by 10 percent in 1981. The peak load fell slightly from 270 kW in 1980 to 263 kW in 1981. Average consumption per domestic consumer rose only slightly from 33 kWh per month in 1980 to 34 kwh per month in 1981.
Table 3.4 Trends in Electricity Demand
1977 1978 1979 1980 1981
Generation (MWh) Upolu 24865 28468 31429 30964 29790 Savaii — — 469 729 801 Peak load (kW) Upolu 4860 5482 5780 5760 5600 Savaii — — 193 270 263 Consumers (at year end) Upolu 5690 5995 6453 7025 7332 Savaii — — 453 584 745 16
3.2.5 Patterns of use. Sales by consumer category in 1981 are shown below (percentages):
Upolu Salelologa Domestic 38 38 Industrial 7 nil Commercial 19 29 Hotels 7 1 Government depts. 26 31 - Street lights 1 2
The largest consumers are the National Hospital (1.4 million kWh in 1981), the Tusitala and Aggie's Hotels (0.8 and 0.7 million kWh, respectively), the Church College of Western Samoa (0.6 million kWh), the Bank of Western Samoa (0.4 million kWh), and WESTEC (0.4 million kWh). The coconut oil mill and the new cold storage are large consumers which have recently begun operation. Many of the 7,000 domestic consumers use electricity for lighting only—particularly outside of Apia. About 2,500 customers pay the minimum charge, which at the present tariff level implies monthly consumption of less than 11 kWh. Electric cooking and water heating are rare among Samoan households. The saturation of electric refrigerators is unknown, but probably 1,500 to 2,500 households own a unit.
3.2.6 Rural and urban use. N.A.
3.2.7 Largest consumers. See above, section 3.2.5.
3.2.8 Peak demand. N.A.
3.3 Biomass Fuels
3.3.1 Cooking. Wood and (to a lesser extent) coconut husk and shell are used for daily cooking by most rural households and by a large number of urban households as well. Nearly all Samoan households also use wood in their weekend umu (heated stone ovens). A survey of Apia households, conducted in mid-1981 by the Forestry Division, found that one-third of the sample households used wood only for cooking. Among all households, one-half of the wood used is obtained free of charge from household plots, customary land, or general gathering. Of the purchased wood, about 17 one-half comes from the main market (where prices for wood fuel have risen tenfold from WS$7 per cubic metre, in 1975 to WS$70 per cubic metre in 1981) and one-half comes from the local sawmill and other sources. As for cooking facilities, 70 percent of the sample households had both an umu and an open fireplace; 20 percent used the latter only. Tava (Pometia pinnata) and tamalini (Albizia sep.) were rated the most popular species for burning. Most families reported an increase in fuelwood consumption in the past, probably due to decreased use of kerosene. Based on the above survey and our estimate of rural biomass consumption, we estimate that total consumption of biomass in cooking is 58,000 oven-dry tonnes (ODte), or 1,100 terajoules (TJ) (see Appendix 3.3.1 for details).
3.3.2 Copra drying. Wood and coconut husk and shell are used in copra drying. We estimate total annual consumption of biomass at 32,500 tonnes or 406 TJ (see Appendix 3.3.1).
3.3.3 Other. The coconut oil mill uses husk for steam-raising. We estimate consumption at 1.5 te/day, or five TJ. The Samoa Forest Products sawmill at Asau uses its residues to raise steam for electricity generation. We estimate annual consumption of 24,000 te or 206 TJ.
3.4 Summary of Energy Use
3.4.1 Breakdown of total energy consumption. A breakdown of total energy consumption in Western Samoa in 1981 is shown in Table 3.5. Imported petroleum fuels account for 39 percent of the estimated total energy use of 2,848 TJ. Due to the use of wood for cooking by most households, the domestic sector Is the dominant consumer; this sector accounts for 46 percent of total energy consumption. 18
Table 3.5 Energy Use in Western Samoa, 1981
Imported Petroleum Fuels Indigenous Direct Indirect Biomass Hydro Total (terajoules) Domestic 84 110 1100 10 1304 Transportation 611 nil nil nil 611 Primary industry 39 <1 406 <1 445 Manufacturing 40 18 211 2 271 Services 11 164 nil 14 189 Other 28 nil nil nil 28 Total 813 292 1717 26 2848
(39%) (61%)
Notes: (1) Indirect use: energy used in electricity generation is distributed among the sectors according to their electricity consumption. (2) Electricity generated from hydro stations is counted at 1 kWh = 3.6 MJ. (3) Services include private commerce as well as government services. 19
4. INDIGENOUS ENERGY RESOURCES: PROSPECTS FOR DEVELOPMENT
4.1 Indigenous Resources
4.1.1 Overview. Western Samoa has an extensive forest resource. It has a mountainous terrain with high seasonal rainfall and a high level of direct sunshine. Good arable land capable of intensive mechanised agriculture Is very limited. Wind is markedly seasonal and variable In speed. There are long-term energy resources such as ocean thermal gradients and wave power. Agricultural residues are already significant in the total energy situation and promise to be more so in future. Here we will quantify these resources in gross terms for consideration in the sections where utilisation will be examined. It must be stressed that the quality of the data available on local energy resources varies greatly and it has occasionally been necessary to resort to broad assumptions in resource estimation.
4.1.2 Biomass resources. It is fortunate that in fulfilling another contract in 1978, consultants reviewed Western Samoa's resource base consisting of forest energy and other fuelwood. Although some of the projected economic activities have not begun and this mission has adjustments to make with respect to some assumptions, these data are more than adequate as a basis for this resource overview. Several categories of fuelwood from forests are Identified for evaluation: residues in the forest arising from present and planned selective logging; residues from timber plantations now planted or planned; and sawmill and veneer mill waste. A total forest resource inventory was conducted in 1978 for both of Western Samoa's main islands. This report recommended using the total resource as sawlogs or fuelwood, regardless of social, political, or environmental constraints- The total area under forest cover was 73,000 ha in 1978, and the sawlog and fuelwood volumes assessed for this national forest were 4.2 and 2.7 million cubic metres (mem), respectively. Arising from this forest inventory was a series of recommendations as to the protection of particular forest ecosystems for environmental and aesthetic reasons. Implementation of the recommendations markedly reduces the accessible forest resource. In reviewing this fuelwood resource in 1978, consultants to the UNDP accepted these constraints and added their own, reducing the accessible resource for economic production even further. The caveats placed by the UN consultants in redefining the forest resource 20 deserve mention here, since they are used as the basis of this report's modification of the resource assessments. They assumed that, for Savaii: o No high altitude, low volume forest will be logged, o No disturbed forest types (that is, forest types in which the original distribution of trees has been affected by shifting agriculture will be logged, o Clearing for agriculture In the remaining high volume virgin forest will proceed at a rate of one percent per annum.
o No major changes will take place in the existing logging methods or standards, o Low density species of low fuel value will not be harvested• o There will be no harvesting of trees less than 10" diameter at breast height (DBH) and of the headwood of large trees. On Upolu, the UN consultants accepted the ADB's view of wood availability with respect to the truly accessible area, being realistic in terms of the actual extent of salvage logging and the rate of clearing for agriculture. However, it is not clear what rules were made about recovery of heads and low-density species; It is assumed here that these have been disregarded. As redefined above, the resource consists of 33,200 ha, with total sawlog and fuelwood volumes of 2.0 mem and 0.84 mem, respectively* In Appendix 4.1.2(a), we re-estimate the total volume of fuelwood, Including canopy wood down to 10 cm diameter over bark, lower density species, and species to 12.5 cm DBH. The harvesting of these forest "residues," especially when replanting with short rotation species is anticipated, is a question of economics. Lower-density species are combustible fuels when mixed, as they would be, with the higher density species. The marginal cost of handling broken and irregular canopies is not expected to be significantly greater than the average cost for the other residues. On the other hand, leaving these residues in the field will make replanting very difficult; it will incur its own cost, unless burning off is practiced. The fuelwood volumes then available are a factor of three above the previous estimate, or 2.6
mem total and 129,000 m3 p.a. These data allow loss of forest and timber to unplanned agricultural clearing. The final volume of 143 m^/ha per unit area proposed to be recovered is much more in accord with the total 21 standing volumes of biomass In tropical forests of the South and Central Pacific of 200 to 300 m3/ha. Plantations of fast-growing medium hardwood species are being planted with the intention of sustaining the present level of native forest harvest in the long term. For the island of Upolu, these plantations are Eucalyptus deglupta and a variety of other species as well, including Cadambra entercephalus, Alblzia falcataria, Anthocephalis chinensls, and E. Tereticornis. Planting has fallen behind schedule on Upolu, and the overall target lowered since 1979. However, 2,400 ha of E. deglupta are planned and planting has begun; the goal for first harvest was to be 1982. On Savaii, we have accepted the detailed 1978 review of the planting programme and anticipated fuelwood yields of ONLW/UNDP. Plantation development on Savaii is funded by the ADB. Though planting may be behind schedule, the overall impact on woodfuel availability is expected to be slight. The data we have reworked, together with our assumptions, is contained in Appendix 4.1.2(b). Between 1991 and 1995, fuelwood volumes are projected to rise from 26,000. m3 to 83,000 m3 and are sustained at 85,000 m3 beyond 2003. An average basic density of 400 kg/m3 will be assumed for plantation timber, giving the long-term sustained annual yield as 34,000 ODte.
4.1.3 Coconut energy resources. The total area under coconut in Western Samoa is 44,425 ha. The government Department of Agriculture and Forests1 data on distribution of this stand between Savaii and Upolu are at variance with the detailed review of ONLW/UNDP. Also at variance is the stocking rate per ha and the proportion of senile trees. For the purposes of this resource overview, the 1978 data provided by ONLW/UNDP are accepted since, for these, the sources of information and the assumptions applied are fully stated. This latter source Indicates that Upolu has 52 percent of the area under coconut, compared with 60 percent from the government source. About 75 percent of the trees are over 50 years of age and 61 percent are in excess of 80 years. These differences are of great significance when the availability of coconut wood as a fuel is reviewed, and should be noted and clarified by a future energy administration. The OLNW/UNDP report estimated a total area of senile trees to be felled in Western Upolu of 8,090 ha, assuming only trees over 50 years are available and a recoverable volume per ha of 70 m3, at a basic density of 486 kg/m3 this is about 275,000 ODte. Almost identical areas are under 22 coconut in Eastern Upolu and in Western Upolu. The distinction between these two areas is important only in terms of the cost of transportation, depending on the location of an end-use or conversion facility. For the Savaii stand, we have assumed that the 1978 area has been reduced to 20,000 ha (a seven percent reduction) through clearing and replanting. Thus the 15,000 ha of senile trees on Savaii hold a fuelwood resource of about 510,000 ODte. The economic cost and practical difficulties of accessing all of this resource will undoubtedly mean a reduction in volumes regarded as being truly available. It is useful to state the rate of clear-felling and replanting of the national crop that may be optimal for resource management, in an attempt to even out annual productivity of this energy form. The realisation of the ideal, however, is quite another matter. It is obvious that confusion exists even about the level of replanting that has already taken place. In addition, social, political, and purely organisational difficulties are constraining the rehabilitation of the plantation sector. The prevailing situation is not one in which firm reliance can be placed on the annual harvest and delivery of a specified quantity of stemwood. This is a typical dilemma of planning, although the observation must be made that extreme caution is required in committing the development of a major power facility on the basis of a large and critical supply of old coconut palms. One approach to utilisation of the national coconut wood energy resource would be to determine the annual maximum harvest of the present senile trees aged over 30 years, then to harvest over a 20-year period the trees now aged less than 30 years, and finally to adopt a long-term rotation of 60 years. The outcome of this strategy for maximum annual availability is 35,000 ODte/yr from 1982 to 2012; 25,500 ODte/yr from 2012 to 2032; and 51,000 ODte/yr thereafter. This strategy assumes increasing planting densities, but no expansion in crop area. For the short term, we will assume this rate of harvest. The year of highest copra production was 1980, and the expectation locally is that this level of 25,250 te copra will soon again be reached. This is one component of the national harvest. The other is harvest of nuts for home or local consumption. Negligible amounts are exported as whole nuts to Australia and New Zealand. A conservative estimate of home consumption, and one in accord with experience in Tonga, the Solomons, and Vanuatu, is one nut per person per day. Based on the current population, 23
this amounts to 10,400 te of copra-equivalent per year. In Appendix 4.1.3(a), we estimate the gross and net annual husk and shell resource available from this level of copra production. The assessment is made with the assistance of the assessment in Appendix 4.1.3(b) of the husk and shell available. It reflects the surplus from modern methods of copra drying for the Western Samoan nuts of typical composition. The maximum national production of husk and shell (surplus to efficient drying) is 52,000 ODte, though informal consumption of 25,000 ODte is assumed to take place. It may well be that, given a higher price, some of the latter may materialise as surplus from particular locations. On Upolu, the center of population and energy demand, the theoretical surplus is nearly 30,000 ODte p.a. This estimate is based on the assumption that processing is done to release dry coconut shell from the husk. Near-term utilisation of the quantities of residue on WESTEC plantations using dehusking and efficient driers is 7,230 ODte of which 2,360 ODte is shell. This shell is a premium fuel which can be used as it is or carbonised to produce about 700 te p.a. of charcoal for the urban-Industrial market.
4.1.4 Other combustible residues. N.A.
4.1.5 Charcoal production. N.A.
4.1.6 Hydropower. The hydropower resources of Western Samoa are extensive and largely untapped. However, the markedly seasonal nature of rainfall and resulting river flow, makes much of the resource uneconomical to exploit. Natural storage only appears possible in the Afulilo and Valpu Basin. Although there are now firm plans for development and clear indications of technical viability (see 4.2.2), further drilling must be conducted before final design and commitment. The cost of US$41 million for completion poses a considerable barrier. Hydropower was first produced in 1928 with an 80 kW set at Magiagi. It was followed by a 230 kW (now upgraded to 325 kW) station in Fuluasau in 1949 and the Alaoa station of 1,000 kW. In 1981, the combined output of these hydrostations was 7.3 GWh. In mid-1982, the Fale-ole-Fe'e scheme with a 1,600 kW peak (71 GWh annually) was commissioned. It was preceeded by the Samosoni scheme of 1,560 kW (8.5 GWh annually). The Sauniatu scheme of 3,400 kW (12 GWh annually) Is expected to be commissioned in 1985. Without the planned Fagoloa-Afulilo Hydropower Project incorporating storage, hydropower production will grow only very slowly from 25.5 GWh In 1985 to 32.5 GWh 24
in 2002. The Fagoloa-Afulilo hydropower and storage scheme is a highly desirable addition to the power system, since it almost doubles the usable energy contribution of hydropower. This scheme is described further in 4.2.2. Apart from the Fagoloa-Afulilo scheme, at least 17 MW of hydropower capacity in 10 run-of-river schemes, have been considered in generation expansion plans for the remainder of this century. While there is further potential to be identified on both islands and hydro development strategies will have to be continually updated and optimised, there is very little need currently to expand detailed knowledge of the resource since it can only offer significant power during the wet season. This fact rightfully preoccupies planners and managers with determining the least-cost options to meet the dry season deficit of the existing hydropower generation system.
4.1.7 Geothermal. A small geothermal resource has been identified in the remote central northeastern part of Savaii. However, compared with the ample capacity for further wood power and steam-raising by extending facilities at Asau, this resource is unlikely to be in demand until next century. Western Samoan energy planners should determine and record the outcome of the New Zealand Government reconnaissance of the resource for future reference. Otherwise, the resource should not preoccupy Western Samoan energy planners at this time.
4.1.8 Wind energy. The wind resource is measured only in a crude fashion for Western Samoa. From the available assessment, little prospect of economical production of wind energy for power or for mechanical work appears to exist. For 38 percent of the year, the wind is less than 1.5 m/s, and between 1.5 and 6.5 m/s for 49 percent of the year. Only for 13 percent of the year are wind speeds of 6.5 to 13.5 m/s experienced, a level at which wind electric power would compete well against hydro or wood. The mission could not establish, from the compilation of data available to it, the coincidence of higher wind speeds and the dry season when hydropower production is very low. The only context in which wind may seriously be considered an option for power generation during this century is that in which consistently high and sustained wind speeds coincide with the three- to four-month period of low river flows. We have established in examining the wind energy potential in other countries during this mission that it is now possible to produce electricity from wind for 10 to 20 cents/kWh with 25
average wind speeds over six m/s. For this reason it is worthwhile to establish the monthly and dally wind speed and direction on Upolu. If the wind record has been inadequately established, it is worthwhile to use suboptlmal sites to establish an appropriate anemometer at good elevation (above 20 m) at an exposed position.
4.1.9 Solar energy. N.A.
4.1.10 OTEC and wave energy. Sea-wave power technology is still highly experimental except at unique sites. Although there are entrepreneur/scientists attempting to have wave energy projects marketed in the Pacific at the countries' expense, in the mission's view, this technology has little to offer Western Samoa during this century and should not be seriously considered. Ocean thermal energy conversion technology (OTEC) derives power from the temperature difference between the deep ocean (1,000 m plus) and the surface and is slightly less a marginal resource than waves. Nauru and Guam are planning to proceed with quasi-commercial 2.5 and 10 MW OTEC plants In the mid-1980s, based on the alleged technical success of the existing Nauruan and other OTEC plants. The economy of the current OTEC technology is not at all established; it will not be clear until well into the operational period of the above plants, if even then. The mission believes that Western Samoan energy planners should monitor OTEC performance (through SPEC and UNDP energy offices), but not seriously consider It as a potential power source during this century.
4.2 Medium and Large Power Systems
4.2.1 Overview. Here will be discussed potentially economical power development complementing the current plans and projected needs for the expansion of the Upolu power system. Only two candidates appear to rate consideration: hydropower- and biomass-fueled plants. The options are more within rather than between power sources. It has proven difficult to define and develop firm plans for optimum development of hydropower, with and without storage. On the other hand, the choice of wood power technology and the particular woody fuel remains a complex issue.
4.2.2 Hydropower. The resource and its constraints have been discussed in general terms in 4.1.6. Here we will review only the next major development: the Fagoloa-Afulilo basin project. A 1982 study by consultants to the ADB on this project concluded that the optimum storage 26 development is 10 mem of capacity in the Afulilo basin with a supplementary storage of 1 mem of live capacity in the Vaipu basin. The optimum development plan is for 4 x 2 MW of the Ta'elefaga power station in Fagoloa bay and for a powerhouse near the foot of the Afulilo falls with a 2 x 1 MW generating set installed. The annual energy generation of these plants combined rises from 12.6 GWh to 28.4 GWh between commissioning and 20 years later. There is no doubt as to the desirability of this project. The doubt lies in having it commissioned as proposed by the first quarter of 1987, especially since further exploratory drilling is required at four locations prior to commitment being made. There can be no certainty that all drilling will be positive and that the present capital cost of tala 25 million will be held. The mission has strong reservations about expecting power from the Fagoloa-Afulilo scheme in 1987. Following discussions with the general manager of the EPC, we have assumed in our review of power system expansion (6.3) that the scheme will not be on-line until early 1990, should it ultimately be undertaken. This implies an earlier and substantial role for woodfuels in power generation.
4.2.3 Combustible resources. Whole-nut harvesting for coconut oil production at the recently commissioned Samoan Coconut Products Limited mill in the Vaitele industrial area of Apia offers a serious prospect of cheap fuel for wood-power generation and significant additional cash flow for the SCPL. Currently, the SCPL produces oil from copra bought from the Copra Board and powers its steam boiler with husk purchased from WESTEC The planned processing rate for copra at the new mill is 100 te copra per day or 30,000 te/yr. It is obvious that this rate exceeds the highest annual export of copra and would effectively replace copra export in the short term. There is evidence, however, that a substantial percentage of the crop is not being harvested due to low copra prices and that buying nuts rather than meat or copra may bring this production to the market. In any case, the SCPL is intent on moving to whole-nut harvesting to improve the quality of the copra for processing and to make multiple use of the other nut components. The surplus of husk and shell for the full-scale SCPL operation consists of either 95,140 te of husk and shell combined or 20,400 te of shell and 61,790 te of husk available separately, depending on the drying method. It is highly advantageous for there to be dehusking and drying of shell and meat combined, since the dry shell is a premium fuel. This fuel can be used directly for industry or power gasifiers, or for the 27 production of charcoal for industrial cooking and households, and in the production of activated carbon for export. Copra drying may in fact proceed more economically at the power station using exhaust steam or, in the case of large-scale gasification, exhaust heat. In this way, the surplus of raw material would be greater. There is no doubt that whole-nut harvesting on this scale for the whole of Western Samoa poses organisational, socio-political, and transport problems; none of these Is impossible but all are difficult. The benefits for the coconut industry and the power sector are, however, very considerable, and every effort should be made to realise this arrangement. One fortunate aspect of the proposed use of residues in power generation is that there is only a need for a gradual increase in whole-nut harvesting since husk and shell output at full production is not likely to be required before the year 2000 unless the Fagoloa-Afulilo storage scheme fails to be developed.
4.2.4 Gasifiers. Gasification for power production has been examined in depth by the EPC and previous Western Samoan energy planners. All have come to favour this process of wood-power production for a variety of reasons. There is the appeal of greater fuel efficiency, leading to less pressure on extensive and elaborate fuel procurement networks; this is a significant benefit. There is also the view that the technology is relatively cheap and manageable and that the development period is favourably short. The mission agrees with the latter but does not regard the technology as necessarily cheaper in capital outlay or in running costs than the wood steam option. The down-time for the gasifier and related equipment could be greater than planned. Increased down-time might yield diesel savings closer to 50 percent than the 80 to 90 percent often projected. For this reason, we have not supported wood gasification as the prime option. We chose conventional steam turbine-alternators Instead. However, upon close analysis of the problems of meeting currently projected demands for power in Apia, the mission believes that there is a role for wood-gasification (coconut shell, husk, or wood) technology for quite different and somewhat unique reasons discussed in 6.3. Two 750 to 1,000 kW gasifier engine generator sets have thus been provisionally allocated to Western Samoa from the EEC funds of 2.04 million ECU (European Currency Units) available. In Appendix 4.2.4, the annual costs of production for the gasifier dual fuel operation on the basis of most recent known prices are estimated. The installation has deliberately included high maintenance 28 costs, high labour overheads, and dual fuel operation for only 70 percent of the time. The low capacity load factor is due to the seasonality of demand. The simple annual unit cost of production is 14 US cents/kWh or less than the present fuel cost of straight diesel operation. The most significant local factor in making a decision to deploy this rather risky and unproven technology now is the fact that, even compensating for poor plant performance, the annual fuel savings exceed one million litres, or close to US$350,000 (CIF cost basis) annually in foreign exchange, with a shadow value in tala as high as WS$600,000.
4.2.5 Steam power systems. From our review of power system expansion, we conclude that a wood-fired 6 MW (2 x 3 MW) steam plant is required to be commissioned in 1985/86 and that this will be expanded in modules of 3 MW at later times (possibly 1988 and 1994, depending on the actual date of commissioning of the Fagoloa-Afulilo scheme). Of the wood-fired power generation options that can reasonably be considered, only steam-turbine power systems are fully commercial and reliable at this scale. It is useful, too, that since 1970, a 2.5 MW turbine-alternator set has been operated successfully at Asau on Savaii. The successful operation shows that this technology is practical and economical. Appendix 4.2.5 provides a simple estimate of the production cost of wood power using coconut husk as a fuel, topped up with coconut shell or wood. Doubling the cost of delivered fuel to US$20/te still leaves production cost at less than 9 US cents/kWh. This stylised costing based on 38 GWh annual production does not reflect the anticipated cost of meeting the forecasted demand of 15 GWh average p.a. in a mix with hydropower from the Fagoloa-Afulilo scheme, where the power station will operate mainly during the dry season. These costs will be examined later (6.3). However, it is clear that wood steam power is an economical option far cheaper than diesel, which has a current fuel price of greater than 16 US cents/kWh. In the past, it has been the inaccessibility of the fuel which has caused hesitation in pursuing the fuelwood option. A substantial reliance on WESTEC and larger smallholders to harvest old coconut trees for fuel would be problematical. The last wood-fired power station proposal was based on as many as 34,600 tonnes of fuelwood being shipped from Asau on Savaii to Upolu at Mulifanua, entailing new barges and a special port facility at Mulifanua with a power station a long way from Apia. Security of fuel supply is crucial to an economically viable wood-power station. It is the prospect of a new element in the 29 supply of fuel to a power station that could offer the security the EPC management, requires*
4.2.6 Coconut oil in diesel engines. N.A.
4.2.7 Wind energy. N.A.
4.2.8 Geothermal. N.A.
4.2.9 Biogas. N.A.
4.2.10 Alternative petroleum fuels. N.A.
4.3 Small Power Systems
4.3.1 Overview. The opportunity for small-scale power generation exists only where reticulation from the grid has not been extended. This is true for most of Samoa. A rural electrification programme of US$2.4 million funded by UNDP will link Asau and Salelogo, removing up to 1 MW of installed capacity in small diesel generators for villages, water supply, plantations, and government administrative centres and services. On Upolu, reticulation does not extend around the island; there are some villages still using diesel-electric generators. In the long term, extension of the grid is the cheapest and most desirable means of supply. In the short term, the only commercially available options for power systems of less than, say, 100 kW are steam-turbine/generators, wood and charcoal gasification, and coconut oil. Since these generator systems are not In the control of the EPC, it is considered that only the systems using diesel engine prime movers should be regarded as practical, due both to the high first costs and to the need for special skills in maintenance for the alternatives- Even so, both the coconut oil and gasification options are prone to excessive and difficult maintenance, aggravating an already common problem for small remote diesel generation. In this section, we will discuss further the coconut oil and gasification options for centralised generation below 100 kW and the use of small wind and PVC electric systems for household lighting and small appliances.
4.3.2 Photovoltaic cells. PVC lighting will be economical wherever kerosene or white benzine is more than 50 US cents/litre and is used every night to provide lighting at two or more points in a household. The additional caveat is that no more economical and manageable sources of 30
lighting are available (for example, by extension of the grid). In Western Samoa, the cost of kerosene retail in main-ports is 50 US cents/litre, and very likely is sold for much more than this in the rural villages on Savaii and the areas remote from Apia or Upolu. The advantage of PVC lighting kits is that individual families can manage their own power supply, removing some of the political demand for rural electrification. The mission urges a review of costs and the extent of kerosene lighting in villages. Should the practice be as widespread as it appeared to be, a loan scheme should be established by the government to facilitate the purchase of PVC lighting kits. Approximately US$600 is required for a PVC lighting kit with two 13 watt lamps. The loans could be on commercial terms over five years. The major savings to government will accrue through the reduction in kerosene imports, now around 2 million litres per annum.
4.3.3 Wind energy. N.A.
4.3.4 Hydropower. N.A.
4.3.5 Gasifiers. The technical difficulties experienced in maintaining sustained operation of these technologies to date demand a cautious approach by the EPC and others to application of the technologies in Western Samoa. It is evident that great difficulty is experienced in maintaining remote diesel generation at the village level. The maintenance of gasification and gas cleaning equipment only exacerbates this problem. There is economic justification for the use of this technology in place of diesel if good maintenance and fuel management are assured, and technically sound equipment is procured. Two feedstocks stand out in Western Samoa as ideal for gasification for power production: coconut shells and coconut shell charcoal. The latter fuel presents the least difficulty, providing fines are screened out and particles are of a uniform size. The mission has reviewed the costs of production from small gasifiers (25 to 70 kW) in other countries and finds that savings in the production cost of 25 percent on charcoal and 40 percent on shell are possible for conditions and prices applying in Western Samoa. Any demonstration of this technology should be under the direct supervision of the EPC, and should occur in Upolu in the first instance. Currently, the EPC does not have the staff to provide the close supervision required for small pilot plants such as this on the coconut oil project. The mission recommends that unless these 31 circumstances change, Western Samoa should simply follow the development of charcoal and wood gasification in small systems now funded In the Solomons, Vanuatu, Tonga, Fiji, and Papua New Guinea under the EEC regional energy project.
4.3.6 Coconut oil in engines. Western Samoa has already conducted its own test programme using coconut oil In diesel engines, both stationary and mobile. The tests conducted on power generating equipment were on a MIRRLEES J6 420 bhp diesel engine. These'tests were only for four hours at a time in direct parallel with previous four-hour monitored runs on diesel at various loads. The temperature of operation was identical for both fuels, although the specific fuel consumption was about five percent less. Filters clogged with particulate matter from the coconut oil after three to four hours of operation. The coconut oil, direct from the factory, was crude and untreated. This trial was regarded successful and has led to a further demonstration project using coconut oil for power generation, this time on smaller diesel engine generator sets in a remote area.
The Fagamalo-Satoalepai coconut oil plant. The EPS investigated the feasibility of the use of coconut oil in two 42 kW Lister HRS6 generators at these villages on Savaii and concluded that the operation was viable. The cost of production reviewed by the mission was 15 sene/kWh for coconut oil-fueled generator, and 17 sene/kWh for diesel. These are, however, direct costs excluding maintenance* Capital charges are on the order of 6 sene/litre for coconut oil production and 2 sene/kWh produced. On the other hand, no by-product credit was applied for sale of the meat to local communities for stock feed. The project is to be closely monitored by the EPC and should be underway before the end of 1982. It is unlikely that sustained operation will be possible. Severe problems with Injector coking, fuel filtering, and a high specific fuel consumption will almost certainly result. The project should not proceed without close technical supervision and monitoring of costs. Blends of 50/50 or less of coconut oil and diesel are preferable to solely coconut oil, though even these will induce additional maintenance. The object of the project should be to establish whether cost-effective and reliable supply is possible despite higher maintenance and additional management overheads in this remote environment. Restructuring of the project is urgently recommended. 32
4.4 Industry and Commerce
4.4.1 Overview. Here we deal with heat- and steam-raising in industry. Western Samoa has a range of manufacturing and processing industries and government institutions using diesel for heat and steam production. The brewery, soap, and fruit juice industries use diesel-fired boilers consuming among them three-quarters of a million litres per year, and the hospital boilers will use 250,000 litres per year following modification now underway. Bakeries use indirect fired diesel ovens, consuming roughly 100,000 litres per year for the industry in Apia. WESTEC and the Cocoa Board still dry or finish cocoa with diesel. In every one of these applications, there is potential for totally replacing diesel with clean burned gases from gasifier-hot-air generators. In addition, industrial, commercial, and institutional cooking in government can be done by wood and charcoal following a lead already set by the major hotels. Water not heated as a by-product of cooking can be economically heated with solar systems. There is indeed very great potential for the almost complete displacement of imported petroleum for these end-uses in this sector. More detail follows.
4.4.2 Gasifiers/hot-air generators. Heat- and steam-raising with diesel fuel in the Pacific is the most expensive means now commonly in use, such that replacement of the whole boiler or drying system with a wood- fueled facility is almost always economical. However, there need be no major disruption or capital investment to take advantage of fuelwoods, since hot-air generators can be fitted directly to existing boilers and dryers. There are many variations of gasifier-hot-air generators. Some gasify woody material in the primary combustion chamber of the combustion system and burn this gas in the secondary chamber, sending hot air of up to 1,300°C into the combustion chamber of the previously oil-fired equipment. Other gasifier-hot-air generators produce unburned gases for transport to the oil-fired equipment for ignition and combustion. The mission proposes the use of quite simple robust hot-air generators of the type now being produced by Brugger Industries in Western Samoa. In the following sections, we describe the use of this technology in a range of applications. In Appendix 4.4.2(a), we provide financial analyses of boiler retrofits for the Samoan Tropical Products company and the Apia hospital 33 boilers. The former shows a simple payback of 2.9 months, and the latter of 1.3 month's. The obvious point is that even with a 100 percent increase in capital costs, the investment is still highly attractive. The present use of coconut shells at the Samoan Tropical Products should be examined, since as charcoal sold at WS$200/te, they represent a gross value of WS$72/day or WS$18,000 per annum. Both the Tusitala and Aggie Greys Hotel have a demand for the charcoal as a premium cooking fuel. The mission strongly recommends the demonstration of a major wood-fueled hot-air generator boiler retrofit in the near future. The WESTEC soap factory and the hospital are ideal candidates for this technology. All copra drying is done by husk and shell with some fuelwood used in the villages. Cocoa is still dried by diesel both for the WESTEC plantation production of 320 te/yr (305 te in 1981) and for final finishing at the Copra and Cocoa Board warehouses. There is need for an immediate transition to woody fuels for cocoa drying. Fortunately, the Cocoa Board realises the significance of this wood-fired hot-air generator and has already installed a pilot plant. The successful operation has led to an order for complete conversion of the diesel-fired units (four remaining) to woodfuel. It is Western Samoan technology that Is being applied here, and indications are that it is just as effective as the highly successful hot-air generation technology of New Zealand origin that has replaced all diesel drying of cocoa in Papua New Guinea during the past two years. Details of the Western Samoan hot-air generator and the costs and benefits of the Cocoa Board demonstration Installation are provided in Appendix 4.4.2. It is estimated that a payback of four months applies on the investment made by the Cocoa Board of Western Samoa in hot-air generators of the Brugger design. Data on the use of diesel for drying cocoa at WESTEC plantations were not available, although from standards In the industry, an estimate of 140 1/te cocoa Is made, or 45,000 1/yr. This represents a cost to WESTEC of almost US$24,000 per year. Fuel is effectively free to WESTEC due to surpluses of husk and shell from copra drying now practised. The government is urged to replace diesel drying of cocoa at WESTEC with wood-fired driers of the Brugger type as a matter of priority.
4.4.3 Food industries. Bakeries, softdrink manufacture, and small food industries using diesel-fired furnaces, ovens, or calorlfiers have the opportunity to convert their quite simple combustion systems to hot-air 34 generators. The management, cleanliness, and compactness of the Brugger Industries' hot-air generators impressed the mission greatly. It is smaller and more manageable than any combustion system of similar design on the market. For this reason, it is likely to prove acceptable in the relatively confined spaces of bakeries and soft drink factories: enterprises found everywhere in the Pacific. The mission has promoted the use of UNDP Regional Energy Programme funds for the adaptation and demonstration of the Brugger technology to diesel-fired ovens. Two pilot installations are proposed for the Pacific, one of which is intended for Western Samoa.
4.4.4 Solar water heating. In hotels and hospitals, most water heating is with electricity. By comparison with the cost of diesel-fueled electricity, large solar systems for centralised or dispersed loads are highly economical. The most obvious and immediate application is in the international hotels which currently use single water heaters for one or two seasons at a time. Even for three-story wings, there is ample roof area for collectors. For well-designed centralised solar water heating in competition with electric heating at 23 US cents/kWh, payback periods of 18 to 36 months will be experienced. Since the demand for hot water in hotels has a high coincidence with the peak demand on the EPC system, investment in solar water heating will reduce both fuel and capacity costs and will reap a double saving in foreign exchange. It is reasonable to expect good quality solar panels to be constructed in Apia for use in industrial-scale solar heating. The critical feature is accurate design for demand coverage, storage, distribution, and boosting with other fuels or electricity as required. The mission has arranged for UNDAT/ESCAP to provide a specialist solar engineer to design and cost a solar hot water system for the accommodation wings at the Tusitala Hotel. This consultancy was planned to take place in late 1982.
4.4.5 Wood and charcoal stoves. Wood- or charcoal-burning stoves of modern, attractive, and efficient design are the cheapest alternatives for commercial kitchens. Western Samoan enterprises have already recognised this fact. The Tusitala and Aggie Greys Hotels have large solid-fueled slow-combustion stoves now operating. The Tusitala management was unaware that the three stoves it purchased (Rayburn/Defy 900) were designed to use coal (rated capacity 33 kg/day) and not wood. Unfortunately, too, the wood 35
in use was low density wet raintree (Samanea saman) which lowered the performance of the stove to the point that the management had to disconnect the water boiler incorporated in the stove and rewire in electric water heaters in order to obtain hot water. The use of charcoal purchased for US$200/te equates to cooking costs 30 to 35 percent of those of electricity, and the heat rate will satisfy the kitchen hot water requirements at no additional fuel costs. The cost of the Rayburn/Defy 900 stove in use at the Tusitala Is A$2,900 FOB Melbourne. Cooking capacity is 50 people individually per meal and water heating capacity Is built in. There is a large range of stoves of commercial size, Including those designed for using wood. If the fuel costs are based on charcoal only, the payback time is six to 12 months for these large stoves compared with electric cooking and water heating. The mission has completed a list of those available in Australia for the SPEC energy office to circulate to countries making enquiries. The mission recommends that the government install only solid-fueled wood stoves or wood-fired systems in its boarding schools, hospitals, prisons, and other institutions.
4.4.6 Crop drying. N.A.
4.4.7 Other. N.A.
4.5 Transportation
4.5.1 Overview. In this section, we will deal with prospects for the economical production of indigenous liquid fuels for transportation. Only three fuels can be considered: ethanol, coconut oil, and the esters of both in combination. The Finance Department stressed the importance of finding and planning for the development of an economical local substitute for motor spirit. For this reason, the mission has. considered feedstocks not normally associated with fuel ethanol production. If a sufficiently high shadow price is made for imported fuels, It is conceivable that esters of coconut oil and ethanol may be regarded as economical. This, and the use of coconut oil-diesel blends, depends critically on the future market for coconut oil and the global price of petroleum. The mission finds none of these alternative liquid fuels financially viable, although further feedstock, process, and economic studies may be justified since very little is known of industrial production systems for the prospective crops. Coconut oil Is the fuel closest to financial viability, but it is also the basis of an important export industry. 36
4.5.2 Ethanol fuels. Cassava and sugar cane, the more conventional feedstocks for ethanol production in the tropics, are favoured for their economical production by intensive and fully mechanised agriculture. Arable land suited for mechanisation is now largely allocated in Western Samoa, leaving only rocky terrain entirely unsuited for either of these crops. Three new feedstocks identified locally offer some prospect of economical production of fermentables, although their production on industrial scale poses as many questions as are answered. These crops are taro, especially taro palagi, breadfruit, and paw-paw. The first two are starch producers and the last is a sugar and starch producer. In 1980, a preliminary review of the prospect for ethanol production from taro and breadfruit was made by Davy McKee Pacific (DMKP) of Melbourne. The findings of this review deserve attention here. Taro (Colcasia esculenta) is a dry land crop in Western Samoa yielding 15 te/ha. It is one of the country's major exports. The tubers have a moisture content of about 73 percent and a starch content of about 23 percent. It is estimated that as much as 30 percent of the weight of the crop would be lost as peelings and remaining tops in the process of preparation for fermentation. From the work of Davy McKee Pacific and R. Burgess of the Department of Agriculture and Forest (DAF), a production cost of US$134.50/tonne is believed to apply (1980 US dollars), with a marginal "price" of US$50 being acceptable if the main export market was oversupplied. It is obvious then that taro is excluded from ethanol production with feedstock costs of US$1.40/litre of ethanol. The only taro which has a prospect of economical use is taro palagi (Xanthosoma saggitifolium). It has good storage properties, an initial crop cycle of nine to 12 months, and a rotation crop cycle of five to six months. It is not averse to wet and swampy conditions and could be grown on the Richardson Track area of some 300 ha, now planned for agricultural development. Yields would be about 30 metric tonnes per hectare per year. However, harvesting would have to be entirely by hand. Since there is no strong demand for taro palagi as a food, the selling price may be acceptably low in comparison with normal taro. Labour costs will be about US$30/te based on an estimate by R. Burgess of 272 person-days per crop hectare and US$3.50 per person-day. If total costs of production could be kept to US$45/te and if total fermentables of 25 percent (fresh weight basis) were obtained, the feedstock cost for ethanol would be 30 37
sene/litre, and production costs of 60 to 80 sene/litre could be envisioned. The land believed to be available for production of this crop is capable of producing 1.3 Ml p.a. of ethanol in feedstock equivalent with no crop rotation. This quantity of ethanol can be absorbed as a 10 to 15 percent blend in motor spirit sold through Apia. The option to produce ethanol from taro does not appear viable compared with a CIF price for motor spirit of 40 sene/litre. Only a high shadow value for labour and foreign exchange could justify a detailed review of this industry. The breadfruit (Artocarpus altitus) tree crop deserves serious attention as an ethanol fuel feedstock if a high economic value is placed on rural employment, greater use of an existing, traditional, and socially well dispersed crop, in addition to the foreign exchange benefits of a local ethanol fuel. It is estimated that 50,000 to 100,000 te of breadfruit are already produced in Western Samoa, 50 percent of which rot on the ground for want of use (Van Wissen, DAF). About 70 percent of this crop is on Upolu. The great advantages of this crop as a source of fermentable raw material are that it is grown as a second-story crop below coconut trees and that, once established, it needs little fertilizer and labour input. Its big disadvantages are that it is seasonal—two seasons of three months each per year—and that no previous experience exists with industrial processing for starch or sugar extraction. Consultants made a preliminary estimate of the financial viability of a three Ml/yr breadfruit ethanol industry requiring 22,000 te breadfruit to be literally collected from the ground for WS$7/te and transported to a factory for WS$2.86/te. This they found to yield only 1.43 percent. In Appendix 4.5.2, the costs are greatly revised, including raising the cost of the breadfruit to WS$15/te at the collection site and doubling the cost of the factory. The new analysis is presented in terms of the present worth of a litre of production at 0 percent and 3 percent real escalation in the CIF motor spirit price. At zero escalation, the present value of a litre of ethanol is 64 sene/litre. With 3 percent escalation, it is 49 sene/litre. Both include a small by-product credit for the sale of C02« These are obviously crude data, although they are sufficiently robust to justify a full feasibility study into the breadfruit ethanol option. The steps that the government is encouraged to take are: o Examine in detail the availability and cost of breadfruit, and if available— 38
o Undertake a detailed feasibility study of the breadfruit ethanol option Including a study of the economic costs and benefits surrounding a conceptual design and costing of the factory process. If favourable— o Undertake a detailed design and costing of the plant, the transport system for crop delivery, and the distri• bution and end-use of product, including the design of a miniature processing facility to scale. o Construct a miniature facility of the designed process in the field to verify all process parameters.
4.5.3 Coconut oil In diesel engines. In 1980, the EPC staff conducted trials on the use of pure coconut oil in a small diesel truck and a Toyota Land Cruiser. Their intention was to establish the viability of coconut oil as a reserve fuel for strategic purposes. The trials met with mixed success. Real power output did not appear to decline for the larger vehicle, although the land cruiser suffered a slight reduction in the speed of acceleration. It was thought that both vehicles ran more smoothly on coconut oil. Volumetric performance was about 30 percent poorer with coconut oil. No blends were tested. The mission believes that there is a reasonable prospect of acceptable and sustained performance of blends to 50/50 of coconut oil and diesel in larger, slower revving diesels and has encouraged some countries to undertake limited trials of these fuels in heavy truck engines under supervision from SPEC and USP. However, in Western Samoa there is neither the economic circumstance nor the manpower to justify extended vehicle trials. The oil produced by SCPL is selling for 40 to 45 US cents/litre, whereas diesel is purchased for about 32 US cents/litre (CIF). This minimum differential of 25 percent between the two fuels may be eroded through time, or adequate markets may simply become unavailable for copra and coconut oil, and a lower marginal cost may be justified for local displacement of diesel imports. Future energy planners and the EPC should follow the technical progress of the coconut oil fuel projects begun in the region, and monitor the local coconut oil economy, although no further action is warranted for the time being.
4.5.4 Biogas. N.A.
4.5.5 Producer gas. N.A.
4.5.6 Wind energy. N.A. 39
4.6 Households
4.6.1 Overview. Here we discuss prospects for the economical use of local fuel in cooking, ironing, and water heating. These energy forms are wood, charcoal, and direct solar radiation. It has been useful in this review to have the benefit of a preliminary survey of household use of fuels in Apia conducted by the Forest Division of DAF. Western Samoa is almost unique in the Pacific in that well before the second oil price rise in the 1970s, small, cheap wood and charcoal stoves were being demonstrated and sold by extension workers. Similarly, the use of coconut shell charcoal in Irons has had a revival. The volume of charcoal traded in the marketplace, while still small, is nonetheless significant and growing; whereas in 1979/80 hardly any charcoal was traded. From both survey and personal observation, it is evident that the use of fuelwood in the domestic sector has increased markedly during the last two years. There has been a noticeable increase In the volumes traded in local markets and indications of serious deforestation beginning in the water supply catchment zones around Apia. Firewood was not traded at all in local markets until 1974. Clearly, a more systematic and integrated approach Is required to fuelwood production and conversion to sustain the relative economy of wood energy as the population begins to recognise the full extent of the financial benefits of its use, both domestically and industrially.
4.6.2 Patterns of energy use. N.A.
4.6.3 Wood and charcoal stoves. The forestry division survey revealed that 97 percent of the national households in the Apia urban area and perl-urban villages use firewood at least some of the time, either in the umu ground oven or in open fireplaces. In both applications, wood is used most inefficiently (five percent thermal efficiency). This explains the high per capita consumption, indicated by the survey, of 1.6 to 2.2 kg of wood (air dry) per day. Only 25 percent of the respondents to the survey expressed interest in an efficient wood stove, and 70 percent stated they definitely were not interested in using one. It is difficult to rectify these data against the response that the Pulenu'u and Women's Committee has had to the use of modular concrete stoves of the SPC variety (produced by the Home Economics Section of DAF). In the last year, there have been more than 350 requests for these stoves, and 250 have been supplied. The model 40 is an advanced L-shape Indian chula which is not greatly more efficient than an open fire, although arguably more convenient. Reports were received by the mission from both users and the womens group that the most recent stoves to be manufactured had cracked badly, discouraging owners and potential users. In addition to this chula-type stove, drum ovens of the two-drum (200-litre drum) type were being sold and these were, in the main, favourably received. The mission Inspected these stoves and ovens in villages and discussed their use with women. It is clear that some Improvement in quality and performance Is necessary and that following a clear demonstration of these benefits, a new campaign to promote wood stoves is warranted. The women's groups are ideally placed to make the necessary changes and to fund the supervision of new technology. The present stoves are made at a cost of WS$44, and Installed anywhere In Western Samoa for about WS$12. Drum ovens are also Installed for the same price. The difference between the costs of production and installation and the selling price is met by the government's rural development programme, which receives West German aid specifically for this purpose. It is recommmended that the next installment of West German aid for the stove programme be directed to the demonstration and extension of the Fiji HE II and ME III stoves and ovens. The mission has arranged for the demonstration of local production and use of these stoves in Western Samoa in 1983 as part of the UNDP Regional Energy Programme. The specialist involved In this project has sufficient funds at his disposal to produce ample quantities of these attractive and efficient stoves in order to determine a local reaction to the product before transferring all effort to this more refined technology. The Fiji stoves have fuel efficiencies of between 10 percent and 15 percent, depending on fuel and management. They also have a hot water boiler, and for ME III, an oven. Charcoal made from coconut wood was introduced to Western Samoa in late 1973 by a coconut utilisation specialist. Charcoal was made by drum kiln method. Initially, and typically, the demand for charcoal was small because there were no charcoal cooking devices demonstrated or marketed. In 1974, small charcoal braziers of a South African design were introduced. Up to 1976, more than 250 had been produced. There are independent reports that the demand for these stoves was strong and exceeding supply, although today there is little evidence of their use in the household sector. Only 41 one household was recorded as using charcoal for cooking in the DAF survey. However, one common response of householders questioned on solutions to the fuelwood crisis was that charcoal and charcoal stoves should be promoted. Charcoal has certainly been used for ironing through the 1970s and even before, and the recent upsurge in the volume of coconut shell charcoal traded in the Apia market suggests much greater use of charcoal irons and charcoal cooking. Charcoal sells for about US$300 per tonne in 3 to 3.5 kg baskets at the Savalolo market, which per unit of gross energy is about 30 percent more expensive than wood sold at $70/m3. However, charcoal used in the PNG- or Fiji-type charcoal stoves is 60 percent of the cost of wood used in efficient wood stoves and 20 percent of the cost of cooking with wood on open fires. Even so, charcoal is considerably overpriced. On the assumption that most smallholders use the finger-cutting method of copra production, coconut shell is available dry and separate as a result of copra processing. In Appendix 4.6.3, we calculate a production cost for coconut shell charcoal of WS$72 per te and a retail price of US$114 compared with the present price of WS$300/te. The mission believes that the present high price of charcoal is reducing the potential that this fuel has to relieve the pressure of urban wood demand and to decrease the environmental degradation of deforestation in the peri-urban area. Accordingly, two steps are recommended to the government:
o That charcoal stoves be again manufactured locally and be heavily promoted by the various government agencies and the producers as a commercial enterprise. Development capital should be made available to a suitable entrepreneur to establish the business, o That the Copra Board be made responsible for the wholesaling of coconut shell and wood charcoal for Apia and the surrounding areas. That efficient charcoal production techniques be once again demonstrated to smallholders and that a firm price be offered to smallholders for the product by the Board. In line with these developments, which must be In parallel, the government should establish an upper retail price for charcoal In the marketplace based on a fair retail margin for resellers. The mission has provided funds under the UNDP Regional Energy Programme for the demonstration of local production and use of both Fiji and PNG charcoal stoves and ovens 42 and for the efficient production of charcoal. This project will proceed in 1983, given the approval of the government.
4.6.4 Other cooking aspects. It is obvious that woody fuels are available in small parcels from zero to tala 120/ODte, depending on whether a consumer gathers wood from his own plots or buys it in the Savalolo market. However, the range of prices for fuelwoods actually traded Is remarkable. The mission notes prices for wood of 30 to 40 percent moisture content ranging from WS$7.60/te (Cocoa Board purchase) to WS$100/te (Tusitala Hotel purchase) or $13 to $166 ODte. Coconut husks were sold by WESTEC to SCPL for $5 to $8/te delivered (about tala 8 to 13/0Dte). It is obvious that public awareness must be Increased as to the relative value of fuelwoods and to the opportunities they have to use them efficiently. However, the mission recommends that, in the short term, the government also intervene in the fuelwood market. The DAF forestry division and the national women's groups are the most appropriate agencies to supervise the harvesting, stockpiling, and grading of firewood for use as fuelwood either in the domestic sector or as an Industrial fuel (e.g., commercial kitchens, boilers). They should use their authority to regulate the cutting of timber in the water catchment zones and other government lands to ensure management along the lines DAF has already suggested: felling species that thicken readily and indicating which trees in which areas may be harvested. If the government enters the fuelwood market and sells directly to householders, the exorbitant price now being experienced will be reduced to levels competitive with the government's own outlet. It appears that considerable quantities of good fuelwood are wasted In clear-felling of forested areas on private land. If that wood is available at little more than cost to resellers, the environmental impact of fuelwood harvesting in the Apia area may help to be alleviated. From section 4.1, it is clear that there is no absolute shortage of wood for fuel. The problem Is one of management. Because the production of fuelwood, or the harvesting of forest residues for fuel, can be a desirable and economical component of the forestry Industry, the government is urged to give this area of the Forest Division activities high priority. A much smaller, but economically significant, component of the domestic sector consists of the high-income nationals and expatriates. This group cooks with electricity or gas, with occasional resort to firewood for umus and barbeques, although large wood-fueled stoves are not 43 unknown to high-income Samoan households. The economic benefits of modern slow-combustion stoves are probably not well-appreciated among this group. However, many of the families concerned live in government homes and do not have a choice. It is very much in the government's Interest to demonstrate the use of wood-stoves in place of electric or gas cookers. Solid-fueled stoves designed for thermal efficiency and convenience have a fuel cost of five to 20 percent of that of electricity. Based on cooking alone, the payback period for attractively designed stoves which ensure a low radiant heat load is two to two and one-half years, based on an installed cost of tala 1,300 to 1,500. However, household water heating is included at no additional fuel or capital cost, reducing the payback to about one year. The mission recommends that a government department make several demonstration installations of modern slow-combustion stoves in households with readily adaptable kitchens in order to assess management performance and costs. New government homes should have kitchens specifically designed for the use of solid-fueled slow-combustion stoves and related water heating facilities. The mission has allocated funds under UNDP for the purchase of one suitable demonstration stove in 1983 to initiate the project.
4.6.5 Solar water heating. Although the proportion of all households with electric water heating is very small, those that do use this facility consume a significant proportion of total household electricity. Within the government sector alone, there are 150 homes, flats, or mini-hostels with electric water heating. The average power consumption for water heating would be 2,000 kWh per year or WS$458 compared to the installed cost of a 200 1, 2m^ collector system costing WS$800 to install including cylinder. There would be a payback period of less than two years for a system of 10 to 20 years of life varying with quality of the product and the local water. It may reasonably be assumed that a government programme to retrofit its own housing with solar water heating will save 95,000 to 100,000 litres of diesel imports p.a. in displaced fuel use in electricity production. At a value of US$40,000 in foreign exchange, the retrofit programme could be paid off in three years. It is useful to view the retrofit programme also as a contribution to EPC-installed capacity as a coincidence factor of 0.6 to 0.7 can be anticipated for the demand for electric water heating with the peak demand on the EPC power system. If it is assumed that each installation has an element, or elements of 3 kW, the 44
installation of solar hot water systems is the equivalent of adding a further 270 kW set to meet peak demand. A similar investment in the EPC power house would cost WS$150,000 to WS$200,000. The extent of the solar retrofit programme will depend on the response of the government and consumers to the Installation of slow-combustion stoves with built-in water heating (see 4.6.3 above). However, a programme composed of all solar systems, or a mixture of solar- and wood-based water heating, would make an attractive aid package. The mission encourages the government to proceed with an application to a regional bilateral aid donor such as New Zealand or Australia for a suitable retrofit programme. As an alternative, or in addition, the occupants of the homes can well afford to pay a monthly fee. The fee will be based on a ten-year repayment of the solar system, collected as rent, or incorporated in the electricity bill. The monthly fee will, in most cases, be less than the present cost of electricity for water heating.
4.6.6 Charcoal irons. N.A. 45
5. PETROLEUM AND FOSSIL FUELS
5.1 Supply and Storage
5.1.1 Present supply patterns. Petroleum fuels are supplied to Western Samoa from Singapore and Fiji. Mobil is the chief supplier and brings products to Apia both by ocean tanker (MR class) from its Singapore refinery and by smaller coastal tanker loading from storage tanks in Fiji. Mobil also drops products in Asau in Savaii for itself and for British Petroleum (BP). Mobil carries products to Apia for Shell by arrangement between the companies, while BP supplies its facilities in Apia by coastal tanker from Fiji. Fuels supplied from Fiji originate either in Singapore or Australia (near Melbourne). During 1981. it became more common to supply Apia by coastal tanker from Fiji rather than by ocean tanker from Singapore (the latter voyage typically makes stops in New Caledonia and Tahiti as well as Apia).
5.1.2 Future supply. The government currently has an offer of supply from an American Samoan-based company, Marlex, which obtains products out of refineries on the west coast of the United States. This offer must be seriously evaluated against the continued supply of the particular product from the major oil companies. Marlex is offering products at considerable reductions in landed price, and the medium term prospect of supply at this discount is reasonable in the face of an oversupplied market. On the other hand, it is essential for the government to maintain a supply of at least some products from the major oil companies, if not the full range. Every effort must now be made to review and revise the terms of supply to ensure less costly products for the local market.
5.1.3 Fuel storage. Bulk storage facilities in Apia and Asau are owned by Mobil and BP. Shell utilises Mobil storage facilities, while Mobil and BP share facilities at Asau. Total tank capacity for the country and demand coverage (based on 1981 sales) are as follows:
kilolitres Demand Coverage Motor spirit 2911 102 days Kerosene 1421 240 days Distillate 3578 82 days Jet fuel 1126 145 days Avgas 218 414 days 46
5.1.4 Future arrangements with fuel storage. One part of the dilemma that the government faces in deciding on the future source and arrangements for supply is that it currently does not have control over strategic oil storage facilities and cannot offer them, therefore, for use by any alternative product supplier. In this circumstance, the availability of significantly cheaper products is of academic interest only, since the government is unable to use it to its advantage. This circumstance will persist and will represent a growing and significant foregone opportunity for savings unless the government acquires the oil storage and contracts back its maintenance and operations as part of every supply contract. The mission recommends that negotiations begin immediately toward this end.
5.1.5 Local marketing and distribution. In 1981, Mobil claimed just over one-half of the total petroleum fuels market. Mobil had about two-thirds of the market for distillate and split most of the market for motor spirit and kerosene with Shell. BP sold all aviation fuels and small amounts of other fuels. Since both Upolu and Savaii are supplied by tanker, shipment of fuels by drum is minimal.
5.2 Pricing and Price Control
5.2.1 Price composition. Proposed bulk selling prices of motor spirit, distillate, kerosene, and white benzine are submitted by the suppliers to the government for approval. The price buildup is based on an agreed formula. Key elements in the buildup for the proposed selling price of motor spirit (from April 1982) are shown below. A similar buildup applies for kerosene and distillate. Motor spirit (sene/litre) FOB Fiji 34.39 Freight 3.09 Landed cost 37.69 Wharfage .11 Duty 14.88 ACB levy 1.10 Onshore costs and margin 9.13 Other* 9.48 Wholesale 72.50 ^Includes various allowances to compensate for currency conversion difficulties.
Allowed retail prices are set periodically by price order. 47
5.2.2 Duty. Duty assessed is 4 percent of FOB price plus 36 percent of CIF for motor spirit, 22 percent of CIF for distillate, 6 percent of CIF for kerosene and white benzine, and 42 percent of CIF for LPG. Duty on petroleum fuels was Increased in late 1981.
5.2.3 Price control. The Commerce Board sets bulk and retail selling prices for motor spirit, kerosene, distillate fuel (dlesoline), and white benzine. The key disability with price control is that competition between oil companies locally is removed by virtue of the method applied. The government must do everything in its power to create and maintain real competition between oil companies operating on the local market in order to reduce or contain prices. Under the present arrangement, costs alleged to be experienced by oil companies are proposed to be allowed In the selling price in regular submissions by oil companies to the government. The government then averages the various cost components claimed and sets a composite price. This practice mitigates strongly against competition and should cease forthwith. Apart from ensuring that some companies over-recover, while others under-recover, it encourages a "relaxed" approach to price submissions. This is particularly the case where the government has not, for want of knowledge and experience, effectively scrutinised pricing proposals; the usual, if not invariable, outcome is for the price Increase to be allowed. This raises, the question of training of price controllers, as well as that of methodology of price control.
5.2.4 Price monitoring and negotiation. Throughout the Pacific, there is evidence that the inability of local price controllers and finance department officials to adequately verify costs experienced by oil companies, to adequately vet oil company price submissions, and to negotiate the best possible supply contract is very costly to local economies. This problem Is no less evident in Western Samoa. The mission recommended the use of expert advice on these matters through UNDP during its fieldwork in Western Samoa, and the government immediately took up this offer. However, in the longer term, the local capacity to deal with these issues effectively must be enhanced. To that end, the mission has proposed, and countries have agreed, to the use of UNDP funds in the Regional Energy Programme for training workshops on the petroleum Industry and price control and for the production of a manual on the desired method of price control in the region. The government Is urged to groom selected 48 staff members within its finance and planning departments to take advantage of this training and to assume long-term responsibility for this area of administration.
5.2.5 Local marketing and distribution. The government has received a preliminary report on the present price structure and practice of price control from the UNDP adviser, and now, through regional funding, there is the prospect of ongoing, "on-line" advice for supply contract negotiations and related matters. It is not appropriate to detail here the deficiencies of the present price regime, since these are a matter of government confidence. The general areas in which there is room for improvement include: overall profit margins; local retail and wholesale margins; the level of interest on working capital and the actual demand for working capital; and the structure, level, and components of landed prices. Underlying all of these Issues is the fundamental question of competition. It is very much in the government's interest to ensure a competitive basis for supply, as well as for local pricing. This goal will be well served by effective and informed negotiation over the above elements of price at all levels.
5.3 Resource Development. N.A.
» 49
6. ELECTRICITY
6.1 Institutional Arrangement
6.1.1 Overview. The Electric Power Corporation (EPC) is a statutory authority established and regulated by an Act of Parliament. It has a board of directors appointed by the minister for public works. The board Includes the director of works, a senior representative of the Department of Finance, and representatives of the private sector. The general manager is not a member of the Board. The Board has the authority to set tariffs, but before implementing them, refers its decision to the Cabinet. The Cabinet's response greatly influences the Board's final action.
6.2 The Power System
6.2.1 Generation. The majority of the energy now provided to the grid on Upolu is from hydrogeneration. The major portion of the plant is In the Tanugamanono Power Station, with an installed capacity of 8.4 MW. A further 1,132 kW of diesel capacity is installed in the Fuluasau Power Station, and 273 kW in the PWD (Public Works Department) yard in Savalalo. The details of this plant are provided in Appendix 6.2.1. The site-rated capacity of the diesel plant in Upolu at current capacity is 6.7 MW, excluding the Savalalo unit, which is to be retired in 1982. Other diesels In the EPC power system are at Salelogo, where 300 kW of capacity is installed. Hydrogeneration is represented in five stations, all of which are operating, with a combined firm and Installed wet season capacity of 4.53 MW. One hydrostatlon was commissioned on June 30, 1982. It has an installed and firm capacity of 1,600 kW. Another of 3,400 kW Installed and firm capacity is under construction and targeted for commissioning in 1985. Details of this plant are provided in Appendix 6.2.1. In addition to the above, there is a 2.5 MW wood-fired steam turbine installed at Asau and a number of small diesels in villages, on plantations, and in government outposts, especially on Savaii. These will be referred to in discussing rural electrification (in 6.6). The firm capacity of a power system can be estimated using a variety of "rules of thumb" about the numbers of units out of service or unavailable to meet demand, including a realistic assessment of the true continuous output capacity that can be expected if a unit is to be called into baseload operation. The rules must be tempered by a judgment of the quality of the system, on the one hand, and the cost of power disruptions, 50 on the other. The outcome of the application of universal "rules of thumb" can often be a dangerous imperative either to plant start-up at great cost or to risk of not meeting demand for extended periods. The mission has reviewed the recent reports on the Fagaloa-Afulilo basin development and finds that planning guidelines applied there give a false sense of security and that the present Installed capacity is adequate to meet demand. The mission would strongly prefer to regard sets Nos. 7 and 8 as being highly susceptible to outages. In calculating firm capacity, the mission regards one as being under maintenance and the other as being forced outage. That is, the two largest diesel sets are unavailable at any time (or 2,400 ktf out) plus the largest unit of hydrogeneration out on planned maintenance (300 kW). The rule applied by the ADB consultant was for one 1,200 kW and one 400 kW to be out at the one time in 1982 through 1984, and then for the largest hydros to be out instead of the 400 kW unit (No. 3) in 1985 and 1986. Under the ADB consultants' guidelines of firm capacity in the dry season, demand is met until 1985 and 1986, when it falls short of demand by 130 ktf and by 590 ktf, respectively. According to this mission's planning guidelines, firm capacity through 1986 is 5,300 kW rather than 6,500 kW. This indicates that dry season firm capacity is from 350 kW (in 1982) to 1,690 ktf (1986) under capacity. At this time, the earliest, most major addition to the generation plant will be made (wood-fired steam plant). In making this adjustment to firm capacity, we are at the same time acknowledging that maintenance problems currently exist and will probably persist and implying that a new generation plant Is required in 1983 to secure supply in the face of the forecast demand through 1986. The question of how to fill this implied generation deficiency is discussed in section 6.3 on planning.
6.2.2 Transmission and distribution. Transmission is at 6.6 kV and 22 kV, depending on where it is economical to transmit at higher voltage. Upgrading is continuously taking place from 6.6 kV to 22 kV. In 1981, there were 70.5 km of 6.6 kV on Upolu, 1.5 km of which was underground, and 23 km on Savii. In the same year, Upolu had 98 km of 22 kV lines, 1 km of which was underground. Low voltage (415/240V) lines extended 217 km on Upolu and 30 km on Savii. Total transformer capacity connected in 1981 was 16.7 MVa on Upolu and 483 kVa on Savaii. 51
6.3 Planning Issues
6.3.1 Overview. We deal here with the matter of generation expansion in the Upolu grid and, peripherally, with other matters. Our concern has been to review the proposed power system expansion programme. We have not sought to develop a new scenario of the likely demand over the period to 2002. Instead, we have adopted completely the demand forecast derived in the recent ADB report. The critical periods are obviously the dry seasons of each year when the energy deficiency of run-of-river hydropower must be met from alternative sources. The ADB has only considered diesel generation to fill these generation gaps, although acknowledging that a fuelwood option exists. In the discussion leading up to this section, we have first reviewed the woody fuel resource base of the economy, and of the Upolu region in particular, then the technologies that might economically convert these fuels to electricity. There have been identified two critical and potentially deficient assumptions which lie behind the existing generation plan: one, that the Fagaloa-Afulilo scheme will be built and will be on-line early in 1987, compared with our skeptical view that 1990 is more likely, if at all; and two, that the present firm capacity of existing diesel and hydrogeneration system is 6,400 kW rather than 5,300 kW by our method of assessment. In our view, there is an immediate need either to invest in new power generating equipment or to greatly reduce peak demand by economically substituting other energy forms for electricity at the point of end-use in the domestic and industrial sectors (see 4.4 and 4.6). In addition, in the likely event of delays In the commissioning of the Fagola-Afulilo hydro scheme, some alternative to diesel generation needs to be found to meet dry season hydro-energy deficiencies In the dry seasons of 1987 and beyond. The mission proposes wood-fueled alternatives to meet both of these requirements and these are now presented. It is useful to note that the Department of Finance gave the mission quite firm Instructions to concentrate on the displacement of imported diesel for power production. In line with this, the mission was instructed to design a generation plan which (if at all possible) avoids the need for new diesel generation equipment.
6.3.2 Options and recommendations. The mission has concluded that a serious deficiency In firm generating capacity will arise during the period 52 from 1983 to 1987, reaching 1,390 kW by 1986, unless either new plants are purchased or peak demand is contained. There Is a real prospect of reducing peak demand by tighter control on air conditioning, by substituting solar water heating for electric, and by more rapidly expanding the already growing use of solid fuels for industrial and domestic cooking and water heating. It Is obvious, though, that increasing electricity prices may not be politically acceptable and cannot be considered as a means of load control. Unfortunately, manipulating demand at the point of end-use is time-consuming and uncertain due to the dispersed nature of consumption and the ongoing constraints of management and capital, even despite the prospect of aid. It is reasonable for the EPC to prefer to augment capacity rather than to rely on demand modification when rational pricing cannot be applied. At the same time, the government will not readily approve the expansion of diesel generation per se. In this rather unique set of circumstances, the mission believes that wood gasification, despite being commercially unproven, is a reasonable compromise, and supports the proposal of the EPC and former government energy planners to use the EEC energy grant to Western Samoa for the purchase of dual fuel, wood-gas, and diesel-generating equipment. In 4.2, we estimated that even allowing for a low contribution of gas to the production of electricity and for the certainty of high maintenance costs, power could be produced below the present fuel cost of the EPC diesel generation system. Fuel imports could be reduced by about one million litres per year from as early as 1984. Wood gasification is the only technology that can offer early respite from heavy consumption of diesel for power generation in the dry season. At the same time, if robust diesel engines are purchased as prime movers, gaps in firm capacity will be filled until 1987.
A major disadvantage of the wood gasification system is the need for close attention for a long period of learning that must be endured to ensure stable production of clean gas from the feedstock ultimately chosen. Similarly, the production of a uniform and dry feedstock will prove troublesome, at least initially. For this reason, the mission believes that additional expert staff members must be hired to do nothing other in EPC than to manage the gasification system once installed. This assistance should be sought under aid as part of the global or regional programme designed to determine more accurately the costs and benefits of this 53
difficult but promising technology. Finally, the implementation of this project complements the mission's proposal to introduce wood steam power in 1986, since it will test the practicality of supplying large quantities of coconut or forest residues to the Apia market at a reasonable price. If, upon closer review, the government does not wish to proceed with large-scale wood gasification for power production, the EEC monies can be held for Investment in components of the future wood steam plant as was the original intention. It must be recognised that even with the satisfactory commissioning of the Fagaloa-Afulilo (F/A) scheme, the demand for an alternative power source in the dry season will grow under the existing ADB consultants' plan from a mere 2.3 GWh p.a. In 1987 to 50.3 GWh p.a. in 2002. Under this latter projection, a total of 15 MW of Installed diesel capacity is needed to be commissioned in units of 1.5 MW starting in 1992. If the F/A scheme is not commissioned until 1990, 7.5 MW of diesel capacity is required before 1990; it should start with 3 MW commissioned for the 1986 dry season. A total of 21 MW of diesel capacity is required by 2005. Here a comparison is made of the production costs of a wood-fired (steam turbine) and the above diesel expansion programme to meet the demand as forecast. In the process, the quantity of woody fuel required year by year is generated and can be compared with the existing resource base on Upolu (see 4.1). In Appendix 6.3.2, matching generation expansion plans are produced for the scenario in which the F/A scheme is commissioned in the 1990 wet season. The deficiency in hydrogeneration from 1986 through 2005, under this scenario, provides the basis for calculating fuel costs for both the diesel and woody fuel alternatives. Other assumptions are detailed in Appendix 6.3.2. Diesel fuel Is escalated in real price at two percent p.a. over the 1986 to 2005 period. The present value unit cost of diesel power is 20 WS cents/kWh and that of wood power is 11 WS cents/kWh. The assumption has been made that husk and shell is available fr om the SCPL) as whole-nut harvesting is gradually phased in over the next 15 years. Under this scenario, only about 40 percent of the SCPL copra must come from whole nuts brought to the factory to satisfy demand through 1995. Not until 2001 does whole-nut harvesting have to be almost complete, depending on the level of copra production at that time, in order to guarantee the supply of fuel for power generation. . The wood fuel available on Upolu other than husk is about 36,000 green tonnes of wood p.a. on average from forest logging and clear-felling for agriculture, 31,000 green tonnes of senile 54 coconut trees per year on a 30-year felling schedule, and (by the late 1990s) a further 31,000 green tonnes of plantation timber- Thus, residues will cover the demand through until the year 2005 if they are truly accessible, socially and economically- Beyond that time, wood fuel must be brought from Savaii, although hopefully plantation fuelwood is well established to sustain the difference between the sustainable husk and senile coconut tree resource and the demand.
6-3.3 Other planning aspects. Early commitment to wood steam appears warranted from this mission's review of the power supply situation facing Upolu. Senior finance officials reminded the mission that the major constraint facing the economy was the foreign exchange for recurrent expenditure. They pointed out that, because of the present status of Western Samoa, grant aid for capital projects that demonstrably reduced a reliance on imports was particularly attractive. The government is. strongly advised to proceed to build a fuelwood power station in Apia by 1986 and, if necessary, to delay the F/A hydro scheme until the 1990s when the wood-power station will most certainly be well utilised. Diesel fuel to supplement existing hydro will cost WS$14 million, and the diesel generation plant will cost up to WS$4.5 million. On the other hand, a ready and profitable market of one-half million to one million WS$ for coconut husks, shells, or stems as fuel over the same period would enhance the profitability of the oil mill and very likely lead to the harvest of a greater proportion of the copra crop through the introduction of whole-nut harvesting. As might be expected, the greatest uncertainty lies with the availability of fuel. The government is thus urged to clarify as soon as possible the practicality of whole nut harvesting on Upolu to supply the SCPL with husk, and possibly shell, for sale to an adjacent steam power plant. Failing this, a mix of forest residues, coconut stemwood, and husk and shell may prove feasible. Whatever the prospects, a wood-fired power plant cannot be examined further without the knowledge of a firm supply of fuel at an acceptable price. Once an acceptable fuel source and cost Is identified, a detailed design and costing is required for an acceptable site so as to package the project for an aid donor.
6.4 Management Issues
6.4.1 Overview. Here we will discuss related Issues of general and financial management. The mission did not attempt to establish the most 55
recent financial position of the EPC in depth or to calculate the present costs of production in detail- Thus we did not become closely familiar with many aspects of financial management that might normally be expected in reviewing the management and planning of a power utility.
It Is apparent that the EPC is competently run, given the very considerable constraints on financial decisionmaking and severe limitations on staff. The general manager is fully aware, for example, of all of the options available to the EPC for system expansion and of the analysis which must be undertaken to decide on a firm generation plan- However, without sufficient competent staff for economic and technical planning, the result will necessarily be more ad-hoc than planned decision making and more casual than routine maintenance throughout the power system, with a concurrent lack of knowledge of the actual state and full costs of the system. The government is therefore urged to permit the EPC to staff up to the required levels in engineering and economic planning and analysis and to facilitate maintenance with staffing, equipment, and spare parts as and when requested.
6.4.2 Financial management. The practice of management aid to the power sector in Western Samoa has been to on-lend some of the soft loans on commercial terms, or to Inject them as an increase in equity in the EPC. Both practices are acceptable, of course, although the latter can lead to a less-than-satisfactory return on the funds employed. In recent times, it is evident that the EPC has not been achieving a commercial rate of return on funds employed. Injecting equity in the EPC without raising the tariffs has ensured, in the present circumstances, that the government has received a lower overall return on Its Investment in the power sector and that the opportunity cost of this development capital has been high for the economy as a whole. The mission obviously prefers to see tariffs set at a level which guarantees a commercial return (eight to 10 percent real after tax) on funds employed. By virtue of the likelihood of falling costs of production in the near future, the present tariff may begin to recover more of an adequate return on investment.
6.4.3 Other management issues. N.A.
6.4.4 Recommendations. N.A. 56
6.5 Electricity Pricing
6.5.1 Overview. The mission has not attempted to estimate the present costs of power production since it was a task beyond our resources at that time and would not have proven especially rewarding. The production costs are highly variable due to seasonal factors in hydrogeneration and the constantly changing mix of diesel and hydropower. It Is not clear, however, that the production costs currently exceed the revenue by any significant margin nor that the EPC may take comfort in the knowledge that another major hydrostation is about to be commissioned, to relieve the burden of diesel fuel operating costs. Based on a wholesale diesel price of 54 sene/litre, the present diesel fuel cost of sales Is 20 sene/kWh, compared with the selling price of 23.1 sene/kWh. Capital charges, administrative and consumer-related costs, and maintenance will take this cost up to 26 sene/kWh. We are unable to estimate the counteracting effects of cheaper hydropower, although this will now be considerable. It was reported to the mission that reserves stood at 0.5 million tala in 1980 and that the current deficit is now about one million tala. It Is to be hoped that the commissioning of yet another hydropower station in June will sufficiently reduce costs to restore reserves in the near term and to enable a significant contribution by the EPC of equity to future power developments.
6.5.2 Present tariffs. N.A.
6.5.3 Other tariff issues. N.A.
6.5.4 Recommendations. N.A.
6.6 Rural Electrification
6.6.1 Overview. The technology of rural electrification has been discussed in section 4.3. Here we will discuss policy matters arising during the study as well as briefly review the plans for rural electrification to date. Rural power generation is common. There are believed to be more than 200 small diesel generators in rural areas outside of the main urban areas, although a large proportion are not in operation. Until recently, the EPC made arrangements to repair village generators for a charge, but this was never collected. The need now to collect the charges means that there are very few requests for EPC assistance. The mission endorses the 57 application of a commercial charge for this service by the EPC, acknowledging the extent to which servicing large numbers of small power systems can distract from the maintenance and operation of the central power supply. Any involvement by the EPC in rural electrification should be on a wholly commercial basis. It is clear from the schemes mounted to date that costs will be high and will not be recovered by the tariffs that can be anticipated. The government must subsidise the EPC to the extent of the difference between revenues and costs. The greatest effort in rural electrification, which is mainly for lighting, should be made in advising potential consumers of the most efficient appliances and the most cost- effective means of serving their demands. Serious effort should be made to have villagers finance their own small-scale electrification through the provision of loans for PVC lighting kits and possibly for micro-wind systems as they are proven commercially viable.
6.6.2 Recommendations. UNDP funding of US$2.4 million has been obtained for the construction of a 90 km transmission line from Asau to Salelogo connecting into the present wood-fired power system at Asau and displacing the current diesel generation at Salelogo. It Is expected that more than 31,000 people will benefit from this scheme, or 75 percent of the Savaii population. Larger consumers of diesel power to benefit Include health centres, hospitals, WESTEC plantations, abatoirs, and cocoa dryers. The daily demand, connected, would be about 19 MWhrs. Annual diesel fuel savings are estimated at 82,000 litres, at a value of about WS$58,000 at the current wholesale prices. The most substantial saving would appear to be kerosene, which is widely used for household lighting. The maximum consumption, if all households regularly used kerosene lamps, would be about 790,000 litres kerosene per year, or WS$470,000 p.a. on current wholesale prices* The combined maximum savings on the landed price of these fuels is roughly WS$350,000 p.a., although the actual consumption is probably closer to one-half the maximum figures we have deduced. The mission regards this rural electrification as a financially marginal venture which could have superior economic benefits. Apparently, a further WS$900,000 is required to complete the financing of the project, which has otherwise been ready for implementation for two years or more. Given that the opportunity cost of the UNDP funds now allocated is low, the incremental investment by government of WS$900,000 is justifiable as a means of reducing diesel and kerosene imports. The mission was Informed by the Department of Finance that this funding was available. 58
7. ENERGY CONSERVATION AND MANAGEMENT
7.1 Opportunities for Energy Savings
Western Samoa faces great hardship in meeting its foreign exchange bill. This is due in large measure to the high cost of imported oil, now WS$1 million per month, compared with foreign exchange earnings of WS$1.3 million per month. Yet the extent to which this imported oil is wasted is remarkable, especially when the waste is in the form of electricity generated from diesel. More Important is the fact that the government is the largest and most wasteful consumer. The government uses directly 26 percent of supply and is indirectly responsible for up to 10 percent through part or total ownership of major quasi-private sector enterprises such as hotels and plantations. Most measures to save significant quantities of energy are straightforward. Some Involve only a measure of bureaucratic resolve. Within the private sector, there has no doubt been some attempt to reduce the already high cost of energy by conservation, although government regulation does not assist with respect to import restrictions and duties and to out-of-date building codes. At the same time, it is clear that information Is simply not available to the private sector on the extent of the savings that can be made. The prospects for reducing electricity demand are great and have important implications for growth, possibly delaying capital Investment In the power sector for years. Here we can cover only some of the opportunities for economic conservation and some of the steps that are desirable to more closely define the problem and the benefits of timely action.
7.1.1 Households. It Is widely reported in documents relating to rural electrification projects that households have, as standard fixtures, 100 watt incandescent globes when 20 watt fluorescent tubes would be adequate. With new fixture cost of WS$30, Including tube, the payback Is as low as nine months for most households. This situation of inefficient lighting applies through the urban and rural villages, greatly Increasing the cost of power to consumers who use electricity for little else besides lighting (see section 3). Design standards for household wiring and for village electrification should be changed to ensure that fluorescent lighting is the norm, not the exception. 59
7.1.2 Lighting. Factories, large shops, and street lights are still using either fluorescent or incandescent lights when low pressure sodium vapour lights of between two and 12 times greater efficiencies and with longer lives are readily available. The 18 watt fluorescent "bulb," fitting normal bayonet sockets, has a payback of five mouths if replacing a 75 watt globe in use six hours per day. Eighteen watt sodium vapour lights for streets and industrial areas have a payback of one year against 40 watt fluorescent fittings. The EPC has alerted the mission to the poor power factor of the 18 watt fluorescent bulbs now marketed. The significance of this problem is certainly worthy of further examination prior to widespread installation. An energy administration could profitably survey the opportunities for savings through efficient lighting and provide Information on the opportunities for savings to each major consumer and, of course, to the government Department of Works.
7.1.3 Refrigeration and cooling. It is evident that the refrigerators and freezers in use are quite inefficient in comparison with those available on the Japanese and American markets. There is a need for improved public understanding of refrigerator and other appliance management for conservation. The mission has recommended a review of the refrigeration equipment available to the Pacific nations as part of the UNDP Regional Energy Programme funding in 1983. The objective here is to provide local departments of supply and major importers with a list of the most efficient and durable equipment. This list can also be the basis of import restrictions, or screening. The mission also recommends that the energy planners, when appointed, prepare and circulate through various groups a precise list of hints on household energy conservation. Industrial refrigeration and lighting is in the same state as in the domestic sector: costly and inefficient. Air conditioning is in a similar plight. Appliance efficiencies vary by a factor of three to four for all of these end-uses, which means careful, Informed procurement and appliance management can result in major savings. As with domestic-scale refrigeration, UNDP funds have been allocated for specialist advice to the region on the procurement of the most efficient and cost-effective industrial freezers, cool-rooms and refrigerators for hotels, bulk stores, fish storage, and the like. Advice will also be provided on the recovery of heat from refrigeration systems for water heating and drying. Air conditioning loads can first be reduced profitably by building design and 60 management (see below) and then by selection of the most efficient commercial equipment. Lighting is a special case.
7.1.4 Transportation. N.A.
7.1.5 Industry and commerce* N.A.
7.1.6 Building codes. N.A.
7.1.7 Energy audits. Energy audits of major commercial buildings and factories are needed to maximise the benefits of energy conservation. The opportunities for conservation are many. The action required to achieve savings is as much a matter of good management as the purchase of new hardware. The following list of conditions applies to an Apia hotel and is indicative of the nature of the problem. 1. No cross-ventilation. Rooms sealed on the windward side. Cool ambient temperatures, but stifling inside. Air conditioning necessary for comfort and sleep. 2. Air conditioning not thermostatically controlled. Large gaps in ceilings. No ceiling insulation. 3. Ten lights in one divided space. Lights oversized and twin fittings redundant. 4. Refrigerator set at full load. Water jug solid Ice. Refrigerator heat exchanger against wall and in cupboard. 5. Air conditioning turned on by maids when cleaning and left on all day, with no one present. 6. Scalding hot water (>70°C). The solutions are training of staff, providing for opening windows on the windward side, limiting the lower temperature of the air conditioners, insulating the ceilings, Installing fans, lowering the refrigerator setting, relocating the refrigerator, turning down or disposing of the electric water heating, and removing at least half of the light fittings. The management of large air conditioned commercial buildings is more complex than the management of the hotel described, but the real question Is to what extent air conditioning is needed at all. The mission has arranged under the UNDP Regional Energy Programme for a detailed energy audit of a suitable major building in Apia as a demonstration of the benefits of a systematic and professional approach to energy conservation. The mission is aware that one hotel, Aggie Greys, has cut energy demand by half in the last two years by Improving energy management. 61
7.2 Government Measures
7.2.1 Energy pricing. As a matter of principle, the mission would prefer that the main incentive to conserve energy, or to change from one form of energy to another for a particular end-use, is a price which reflects the full marginal cost of supply. The full cost is not Invariably passed on to the consumer, partly for political reasons (such as with the price of electricity in Apia now) and partly because it is not always known. A very large proportion of consumption occurs in circumstances in which there is no accountability for costs or no personal payment for the service. The prime example of no accountability is In government offices and in government-run institutions like police barracks, boarding schools, and hospitals. However, major private sector employers also commonly pay the full cost of the electricity used by key employees without limit and deduct this as an expense on the business rather than pay tax for it as a salary-related benefit* to employees. These circumstances illustrate the need for tight government regulation and control in the energy sector. Here we outline the key areas for urgent government action.
It is not unlikely that one-half of the government's electricity use is in air conditioning. Air conditioners are left on during nights and weekends in some buildings, and temperatures are low to the point of discomfort for visitors accustomed to the ambient conditions. There appear to be no firm rules governing the use of air conditioning in the government. Some senior staff member use it extensively; others go without. The mission recommends the following: 1. Air conditioning be strictly limited to buildings and rooms which cannot be cooled adequately without its use. Rules should also be adopted so as to minimise the use of air conditioning in an absolute sense, limiting it to top management and ministers, and then only upon request. 2. All non air conditioned spaces be equipped with fans and adequate window area, window shading, wall shading, and roof insulation. High ceilings have heat exhausts. 3. All air conditioned spaces have tightly sealed, full glass windows (not louvres), full insulation, window and wall shading, and thermostatic control. 4. No air conditioned office space be below 25°C. 62
5. A programme of remodeling of buildings (as above) and monitoring of implementation and impact be begun by the Department of Works. It is interesting to observe that the Finance Department, whose prime concern it is to reduce the country's oil bill, is fully and almost permanently air conditioned to very low temperatures and with no Insulation in ceiling or walls and no thermostatic control. This department could well lead the way to reform in this matter. The proportion of housing with electric water heating is small, but the housing combined with industry (hotels, hostels, etc.) add up to a considerable use of electricity for water heating. Again, the circumstances are not conducive to self-regulation in response to price. The mission recommends that electric water heating be prohibited and that a period of two years be allowed In which to retrofit existing electric water heating with other systems (solar or solid-fueled appliances). Modern, attractive solid-fueled water heaters are available in all sizes for both household and industry with a fraction of the operating costs and the same capital costs as the cheapest electric systems. The government is encouraged to restrict the Import of electric water heaters except for special applications (e.g., sterilizers). (In section 4.6, the proposals were made regarding solar retrofits to all government homes, or the use of wood/charcoal stoves and water heating combinations.)
7.2.2 Legislative controls. There is clear justification for the government to remove all duties and taxes now applying to any equipment that has as its sole or prime function the conversion of a local energy form to displace imported fuel or the more efficient use of imported fuels and electricity. Industry should be encouraged to Invest In energy saving or local energy conversion equipment, by granting accelerated depreciation or write-off in one or two years.
7.2.3 Other measures. N.A. 63
8. ENERGY ADMINISTRATION AND PLANNING
8.1 Present Arrangements
8.1.1 Overview. An energy committee was established by the Cabinet In 1976. During the life of the previous government, the committee was expanded and coordinated from the Prime Minister's department under the chairmanship of the Prime Minister himself. Since the elections early In 1982, the energy committee has conducted little business, although energy administration, such as exists, continues to be handled out of the Prime Minister's department. The energy policy document of October 1980 was the product of a committee of three staff members of the government, Including the present general manager of the EPC. The coordinator of the policy and planning analyses was a senior staff member of the Apia Observatory. For a period in 1980, there was a full-time secretary to the Energy Committee, and at least a focal point existed with which to communicate and exchange views. This position is now vacant and there is no clear Indication as to the future of the position. During the last three years, any positive action toward the development of local energy sources and further refinement has been undertaken by the EPC, in addition to its responsibility for power production.
8.2 Issues and Options
8.2.1 Overview. The energy policy referred to above appears not to have been actively implemented; although much of the document is quite general in nature, there are many specific measures which are again suggested and endorsed by this mission and which would, with equal justification, have been implemented two years ago. This points to the importance of a separate and fully accountable energy administration within the government. Without a coordinating and policy planning unit for the energy sector, it can equally well be assumed that the initiatives agreed on as a result of this report (and the now-major regional energy projects and programmes directed at Western Samoa) will simply lapse. There have been sufficient reviews of policy options, technologies, and resources available to the energy sector. This report is the most current, although UNDP funded the production of revised energy policy in 1981 (yet to be completed) and the World Bank intends to proceed with an energy sector review in 1983. With this report, there will be an adequate basis for 64 action for any new energy administration. The question is not whether an energy administration Is justified but rather what form should it take, how many staff members are needed, and where it is to be located.
8.2.2 The role of energy planning unit. The mission recommends the formation of an energy planning unit (EPU) of two full-time professional staff members with skills in both technical and economic decision making in the energy sector. Preferably, electrical and mechanical engineering and biological sciences should be represented. The unit must be supported by a clerical and administrative staff and be responsible for the training of local graduates in energy planning. Volunteers in energy policy and planning should also be attached to this unit, although a clear distinction must be drawn among policy, planning, project description, and preparation, as well as the the day-to-day Implementation of projects. Fieldwork for the EPU should be restricted to surveying and analysis and should specifically exclude extension work, technology testing and development, and project supervision. The latter should be done by arrangement with the implementing departments: forestry, agriculture, works, and in some circumstances the EPC. This distinction between policy planning and implementation Is very important and should be maintained unless it becomes obvious that the infrastructure of the implementing agencies cannot cope with the additional energy sector work.
Energy continues to be of fundamental importance to the economy of Western Samoa. In contrast to the import of food and manufactured goods, there are real and Immediate gains to be made which can significantly alter the balance of trade in response to simple but firm policies of energy management and conservation. Reducing government air conditioning, retrofitting houses and institutions with wood and solar devices, bringing WESTEC and the Copra Board into a whole-nut harvesting scheme for SCPL to provide residues for power generation: all of these require strong political direction and resolve to follow through. For these reasons, the mission recommends that the EPU remain within the Prime Minister's department, close to what should rightfully be the centre of power and leadership. It is even more important for the Prime Minister to continue to take a direct personal interest in the energy sector.
8.2.4 The National Energy Committee (NEC) should be much more of a working group with clear objectives and precise expectations by which to monitor performance. The head of the EPU, an experienced energy analyst, 65 would be the executive officer to the NEC. The NEC would consist also of the Secretary for Finance, the Director of Works, and the Secretary for Agriculture and Forests. The NEC would receive, debate, and agree on an affordable programme of high priority energy projects and programmes, together with designation of the Implementing agency, the action officer, and the necessary resources. A ranked programme of action would be funded by aid and internal revenue through the budget, as agreed to by the Prime Minister and Cabinet. They would also agree on a set of guidelines by which to measure the performance of each project. Those attending meetings held every two months would be presented with a concise report on progress and problems in implementation, as well as matters for special consideration and a regular briefing on key indices in the energy economy (prices and trends in consumption), all in a standard format. The greatest difficulty observed in this region with energy committees has been the absence of precise and well-documented choices to make, as well as the means to identify progress and change. In consequence, the NEC has been vague and unrewarding and has lacked any real sense of purpose and direction. The mission has attempted in this report to define a direction and a programme, but implementation requires continuity and discipline.
8.2.4 National coordination. The Electricity Power Corporation (EPC) is a single-purpose authority which should act to the greatest extent possible as a commercial enterprise. In the ideal circumstance, it does not have a policy role and should not be engaged in one. Its services may legitimately be used for project implementation, providing that the management can agree and can concur that an energy project with benefits for others will not interfere with Its main objective of securing a cost-effective power supply. Any work which the EPC performs for the EPU and NEC must be fully funded outside of its budget. In practice, while no energy administration exists In the government, the EPC will prove to be perhaps the only source of advice and technical support available; and some compromise of the above modus operandus will have to apply. The general manager of the EPC should always be consulted by the NEC and the EPU in electricity supply matters, and there must be a close working relationship developed to ensure that activities of the EPU and the persons implementing the project, which may influence the demand for electricity, are known and appreciated. There will invariably be conflicts between the essentially 66 financial concern of the EPC and the economic concerns of the EPU. The EPC management must have open access to the NEC to resolve or clarify such issues. 67
Annex 1
Appendix: 3.1.3
PETROLEUM FUEL CONSUMPTION lis 1981
This appendix refers specifically Co the breakdown of fuel use in Table 3.2. Fuel used In inter-island shipping and air transport Is included, as is all jet fuel purchased In the country by the national airline, Polynesian. Jet fuel picked up by foreign carriers Is not included. Total energy use for the various fuels refers to 1981 sales as reported by the suppliers.
Household uses
All kerosene and white benzine is allocated to this purpose, though there may be minor miscellaneous uses- as well. Two-thirds of total LPG use Is estimated as the household share.
Transportation
The amount of distillate used in transportation is estimated by subtracting distillate use in heat/steam-raising and electricity generation from total use, with the. additional subtraction of a small amount used for other purposes (see below). Nearly all motor spirit (some of which is used in subsistence and small-scale commercial fishing) and avgas is allocated to this purpose. The amount of jet fuel use by Polynesian is 1200 kl.
Heat/s tearn—rais ing
1981 fuel consumption by various consumers was estimated from Information collected. The category includes the brewery (480 kl), the soap factory (145 kl), two bakeries (200 kl), cocoa drying (120 kl), and other smaller users.
Electricity generation
EPC fuel use in 1981 is given as 7251 kl. Fuel use in small private diesel generators (220 kl) Is very roughly estimated as follows: 30 machines at 15 kW operating at 2/3 capacity factor for four hours per day using 0.5 1/ktfh.
Other
This heading includes etimated diesel fuel use in construction (700 kl), forestry (500 kl), and agriculture (400 kl), water pumping (260 kl), and estimated LPG use in restaurants. Estimates of diesel use are based on 1979/80 data and should be-considered as rough.
69
Annex 2
Appendix: 3.3.1
BIOMASS ENERGY USE Domestic Cooking
Wood and coconut husk are used for daily cooking by most rural households and by many urban households as well. Most households also use wood in their weekend umu. In our calculation we use data from a survey of Apia households conducted in mid-1981 by the Forestry Division* It Indicated that one-third of Apia households use wood only, while most of the rest use wood at least part of the time. It is not known what percentage of the latter group use wood for umu only. We assume that half of Apia households supplement wood with kerosene, gas or electricity (75 per cent wood). Eighty per cent of sampled households had an umu stove (heated stones in ground). We assume that on average half of these prepare an umu. (Many Apia families go to the villages for the umu). As for rural households, we assume that 70 per cent use biomass only, and another 20 per cent supplement biomass with kerosene (75 per cent biomass). We assume that all rural households prepare an umu.
The quantity of biomass used in cooking is not accurately known* For Apia households we adopt the average from the survey for households using wood only, 1.6 kg per head per day (9400 ODte on an annual basis assuming 30 per cent m.c). This apparently Includes umu consumption, which we estimate at 1 ODkg per head per umu (based on Fijian survey data). For rural households we use 400 ODkg for biomass consumption in daily cooking.
In our calculation we use an Apia population of 33,000 and a rural population of 125,000. Based on the above considerations, we arrive at total biomass consumption of 58,000 ODte. Using an energy content of 19 MJ/kg, energy consumption equals:
53,000 ODte x 19 GJ/ODte - 1100 TJ
Copra drying
Due in part ot the trend towards professional copra making (whereby smallholders sell green meat), wood seems to be more commonly used in copra drying than coconut husk and shell. Copra exports in 1981 were about .14,000 te, well below 1980 and 1979. (Part of the decrease may be due to the recently Initiated purchase of whole nuts by the coconut oil mill). Based on 1980 data, we assume plantation production of 5,000 te. For plantations, centralised drying uses on average an estimated 1.5 te wood and 0.5 te husk and shell per tonne of copra. Smallholders use husk and shell and wood in drying, while professional copra makers rely more heavily on wood. We assume, on average, consumption of 2.5 te of biomass per tonne of copra. 70
Based on the above considerations, we arrive at total biomass consumption of 32,500 te (as used). Using an average energy content of 12.2 MJ/kg (12.5 MJ/kg for "airdry" wood and 11.6 MJ/kg for combined husk and shell), energy consumption equals:
32,500 te x 12.2 GJ/te - 406 TJ
Other
For coconut husk used by the oil mill, we use an energy content of 10.9 MJ/kg (as received). For wood residues used at the Asau sawmill, we use an energy content of 8.6 MJ/kg. Annex 3
Appendix: 4.1.2(a)
NOTES ON REVISED FUELWOOD RESOURCE ASSESSMENTS: W. SAMOA In revising the fuelwood resource of W. Samoa derived from native forests the following assumptions were made -
That the canopy of the trees from which sawlogs have been extracted are an accessible resource (by harvesting large pieces for processing at the mill, and chipping small pieces to 10 cm diameter in the field).
That lower density species are economically accessible and assuming that these comprise 10% of total accessible volumes defined by ONLW.
That trees between 12.5 cm and. 25 cm dbh will now be economically accessible and will constitute 10% of the total accessible volumes defined by ONLW.
The canopy volumes will be assumed to be the same as for native hardwood species in Papua New Guinea with the bole, crown and retrievable buttress, 63, 28 and 6% respectively of total solid volume.
Thus the canopy volumes retrievable on Savaii and Upolu will be the 41% of the total sawlog, veneer log, and current assessments of residues of miliable and non-millable species. 72
Total woodfuel by this assessment is then (000 m3) NEW OLD
W. Savaii - OLNW fuelwood volumes 411 411 plus canopy residues 620 plus low density and smaller trees 302
E. Savaii - other fuelwood volumes 148 148 plus canopy residues 263 plus low density and smaller trees 128
Upolu OLNW fuelwood volumes 283 283 plus canopy residues 291 plus low density and smaller trees 142
2,588 842
3/ha Fuelwood volumes per unit area m
(Total area is 32,202 ha) 80 26 Sawlog volumes per unit area 63 Total recovered biomass 143 89 73 Annex 4
Appendix: 4.1.2(b)
NOTE ON PLANNED AND EXISTING PLANTATION FORESTS IN W. SAMOA
It is the intention of the government to preserve the rate of production now being experienced from native forests by planting short to medium rotation species in timber plantations.
Of course, these plantations are also fuelwood plantations by virtue of the portion not recoverable as sawn timber.
On Upolu the added advantage of timber plantations is the proposal to saw all. timber at the Valtele industrial area, hence generating free at site large volumes of good quality fuel.
The data provided in the OLNW/UNDP report of 1978 on plantation development have proven to be optimistic for Upolu and very likely for Asau and Savaii too, though the original data for the latter will be accepted as they were based on a fully planned and funded ADB project. A revised table is compiled below:
Planting year Area established (ha)
Asau E. Savaii Opolu Total
1971 to 1982 2754 250 320 3324 1983 450 350 180 980 1984 450 350 180 980 1985 450 350 240 980 1986 450 350 240 980 1987 450 350 240 980 1988 450 350 240 980 1989 450 350 240 980 1990 450 350 240 980 1991 Felling and 240 1992 replanting begins
The assumption is made that E. deglupta yields as sawlog material 15 m3 m.a.i. or 195 m3 over 15 years.
Field based residues will be the portion below 20 cm (0.6) at the crown which will be 10Z of total volume. Thus 19.5 m3/ha at harvest.
Recovery in the sawmill will be 45Z on true volume. Thus 107 m3/ha at harvest is available at the sawmill.
Total fuelwood from E. deglupta plantations is 127 m3/ha at harvest.
Other projections for the plantation forest harvest for sawlogs and fuelwood are adopted from the OLNW report. 74
Thus fuelwood supply from plantations is as follows:
('000 m3) Year W. Savii E. Savaii Upolu Total
1991 19.8 6.0 _ 25.8 1992 19.8 14.9 8.9 43.6 1993 19.8 20.8 8.9 49.5 1994 19.8 20.8 22.9 63.5 1995 39.7 20.8 22.9 83.4 1996 39.7 20.8 22.9 83.4 1997 39.7 20.8 30.5 83.4 1998 39.7 20.8 30.5 83.4 1999 39.7 20.8 30.5 83.4 2000 39.7 20.8 30.5 83.4 2001 39.7 6.9 30.5 77.1 2002 39.7 12.4 30.5 82.6 2003 39.7 14.9 30.5 85.1
Sustained at this level thereafter 75 Annex 5
Appendix: 4.1.3(a)
THE NATIONAL COCONUT HUSK AND SHELL RESOURCE, W. SAMOA : AN ESTIMATE (a) National overview
Copra production nationally will be assumed at 1980 levels of 25,250 te.
On the basis of the data derived in Appendix 4.1.3(b) and assuming all half nut-cutting the surplus with efficient drying is a maximum of -
te as received ODte Net heating value (TJ)
Husk 63,125 37,875 688 Shell 20,200 14,140 278
per year.
Informal consumption of one nut per head per day will not be regarded as generating a surplus fuel. The husk and shell component of the nut is 0.67 kg which is therefore the amount assumed to be used as fuel in the home. However, It is clear that forest timber is preferred as fuel and in some locations, husk and shell may not be utilized. Any scheme that seeks to buy residues at a fair price on a delivered basis may extract significant quantities:
Total produced 39,600 te (as received) 25,000 ODte
(b) Upolu
Copra production on Upolu Is advised at 15,152 te (1980) thus the husk and shell resource is a maximum of -
te (as received) ODte Net heating value (TJ)
Husk 37,900 22,700 413 Shell 12,100 8,500 166
50,000 31,200 579
per year. 76
If fingercutting were practiced and only the husk used in drying the data are:
te (as received) ODte Net heating value (TJ)
Husk 33,300 20,000. 363 Shell 10,303 9,700 "200
43,603 29,700 563
(c) WESTEC only
Consistent with the above, the 1980 yield for WESTEC plantations will be applied. This is 3692 te c.f. estimated 1982 yields of 3830 te.
All nuts are brought to driers on WESTEC plantations. There are two driers per plantation (17 in all?).
• Using modern drying methods now available in W. Samoa (demonstrated in cocoa drying In Cocoa Board stores, Apia) and dehusking the nut first the surplus should be:
te (as received) ODte Net heating value (TJ)
Husk 8120 4870 89 Shell 2510 2360 49
10,630 7230 138
Currently husk and shell is rotting in large piles or burnt off at each of the WESTEC driers.
Husk and shell is bought at about WS$5-8per te by the oil mill of SCPL. 77
Annex 6
Appendix: 4.1.3(b)
ENERGETICS OF DRYING COPRA BY MODERN EFFICIENT METHODS IN W. SAMOA
Parameters
The 'W. Samoan nut' has been surveyed by the Department of Agriculture and Forests. (Its composition is as follows):
kg (fresh weight) %
Husk 0.51 43 Meat* 0.33 28 Water 0.19 16 Shell 0.16 13
1.19 100
* allows for losses in cutting.
Coconut meat is assumed to be 50% m.c.w.b. and is dried to 6% m.c.w.b. in Copra production. Thus 0.330 kg meat yields 0.176 kg of copra, 1 kg copra requires 1.88 kg wet meat.
From this it follows that for each kg of copra there will be:
• 2.90 kg husk (40% m.c.w.b. as received) . 0.91 kg shell
3.31 kg total
Energy available in he husk and shell is : (MJ) Gross Net per kg dry copra
Husk 20.00 10.9 31.6 Shell 20.85 13.7 12.5
44.1
Energy""used In drying copra:
. Theoretical requirements: Meat at 28°C, At is 72°C. Water to be removed is 0.88 kg per kg dry copra. If shell is attached to meat as with fingercutting shell moisture reduction is 30% to 6% OR 0.23 kg water Total water to be evaporated is 1.11 kg. 78
• Enthalpy required is -
1.11 kg water x 0.0042 MJ x 72*^ t = 0.34 plus 1.11 kg water x 2.258 MJ/kg H20 -2.51
OR Total of 2.85 MJ/kg copra with shell
and 2.25 MJ/kg copra without shell
Recorded energy use in diesel copra drying is 140 1/te using hot- air draught chula-type driers OR 5.3 MJ/kg copra (about 2-6 times theoretical)•
The New Zealand makes of hot-air generators (Waterwide and Brugger) have thermal efficiencies of 90% or better than the equivalent in primary energy to the diesel data from PNG is 5.9 MJ/kg.
If the meat is dried by itself the energy is available as husk and shell surplus of drying requirement is, per te of copra:- Husk and Shell combined: 44.1 - 5.9 - 38.2 MJ/kg made up of Husk : 27.4 MJ or 2.5 kg (or 87% of available energy) and Shell: 10.8 MJ or 0.8 kg
If nuts were husked, and shells dried together with the meat, the additional actual drying requirements is assumed to be in the same proportion as the difference in theoretical requirement g"iving 7.5 MJ/kg copra.
After drying, the coconut shell energy value increases to 19.4 MJ/kg. The dry weight per kg of copra is now 0.68 kg and the energy value 13.1 MJ/kg c.f. 12.5 MJ/kg.
Thus if the meat is dried with the shell the energy available as husk and shell surplus of drying requirement Is:
Husk and Shell combined: 44.7 - 7.5 - 37.2 MJ/kg copra.
If the husk only were used as fuel for the drier the surpluses would be in the form of:
Husk: 31.6 - 7.5 - 24.1 MJ or 2.2 kg per kg copra Shell: (total) a 13.1 MJ or 0.68 kg (at 6% m.c) per kg copra. 79 Annex 7
Appendix: 4.2.4
COSTS OF PRODUCTION FROM 1740 kW (2 X 870 kW NPR) GASIFIER DUEL-FUEL OPERATION (ALL COSTS IN US$)
Parameters
The gasifier engine generator system referred to in the analysis is the Duvant 870 kW unit* Site conditions may warrant de-rating 20% to 696 ktf continuous capacity, thus 1392 ktf (2 x 696 ktf) is used here to determine energy production during operation on baseload.
Gasifier plant operation is for 24 hrs per day for 5 days and 12 hrs per day for 2 days during 6 months, and 12 hrs per day for 5 days and zero hours for two days for 3 months* This establishes production at 6.35 GWh gross, and with 5% use by ancillarles this is 6.03 GWh net.
Fuel consumption for the period of gasifier supply to the prime mover is that experienced by Electricite de Tahiti, and modified to allow for the higher efficiency of the large diesel sets* It Is thus:
. 1.04 kg husk/shell per kWh (at 12.5 MJ/kg husk and shell)
and 0.045 litre diesel/ktfh of diesel
• on diesel only, fuel consumption is 0*268 1/kWh.
The gasifier component of the duel fuel system is assumed to be on-line in fully operational mode 70% of the time that the diesel is operating. Thus 4.45 GWhs are produced in duel fuel mode and 1.9 GWhs in diesel only mode.
Energy use is thus:
(1) 4.45 x 106 ktfh x 1.04 kg husk/ktfh - 4628 te husk and shell
and
4.45 x 106 kWh x 0.045 1/diesel/kWh » 200,250 litres diesel
(2) 1.9 x 106 kWh x 0.268 1/ktfh - 509,200 litres diesel 80
or
709,450 1 diesel and 4628 te husk and shell.
Compared with a totally diesel operation of:
6.35 x 106 kWh x 0.268 1/kWh » 1,701,800 litres
Thus diesel savings annually are 992,350 litres and at 53$ US/litre, $526,000 p.a. or on ci.fi prices of 35$ US/litre $347,323 p.a.
Cost of energy for the gasifier is based on 53$ OS/litre for diesel and (JS$10/te husk and shell delivered.
Thus husk and shell costs $ 46,280. and diesel fuel costs $376,009
$422,289
Staffing costs No Cost p.a.
Supervision 1 only 6,000 Foreman-mechanic 4 8,320 Semi-skilled staff 4 10,400 Labourers 8 6,240
$30,960
Capital costs Unit Rate Total US$
1. Gasifiers (CIF) 350 609,000 2. Engine-generator (CIF) 450 783,000 3. Fuel-handing, drying & storage 100 174,000 4. Civil works 150 261,000
1,827,000
5. Contingencies 10Z 182,700 6. Engineering and Installation 10Z 200,970
2,210,670
Life of plant Is 15 years.
Maintenance Is 3Z of capital expenditure. 81
Annual costs of production
1. Capital charges (10% d.r) $ p.a. j/kWh
. Gasifier-engine generator 359,676 5.66
Operations and maintenance
. Maintenance 60,291 . Labour is 30,960
91,251 1.44
3. Fuel
husk and shell 46,280 diesel 376,009
(Note: saving of 1,020,225 litres of diesel p.a. 422,289 6.65
TOTAL 13.75 CI
I 83 Annex 8
Appendix: 4.2.5
WOOD-FIRED POWER STATION FOR 1-7. SAMOA : COSTS OF PRODUCTION (ALL COSTS IN US$) Parameters
The capital costs of the plants have been derived by adjustment to the original OLNW/UNDP study of 1978 rather than taking present regional data. This Is thought to preserve the location related variations. On balance the W. Samoan plant is more expensive by about 10Z in installed cost by using this method of costing (see Solomon Is, Tonga and Cook Is. reports for comparable analysis of wood-fired steam power plants).
The method applied is simply multiply the costs per unit in the 1978 report by 1*2 to bring costs in line with escalations in this type of plant elsewhere in the region, and declare these costs as in US dollars. Due to scaling up the unit size, the unit costs so derived are rounded down to the nearest $50/unIt. Adjustments are also made due to the different fuel-handling requirements, and civil work, for this plant Is intended for the Vaitele area of Apia, and will use husk and shell first, and offcuts, slabs and coconut trees later.
The capital costs are: Total ('000 US$) 1. TUrbine-alternator sets: US$300/kW 1,800 2. Boiler, feedwater treatment and ancillaries installed US$500/kW 3,000 3. Electrical works, switching and transmission linkages $100/kW 600 4. Civil works $100/kW 600 5. Fuel-handling and fuelyard $150/kW 900 (though scaled for 12 MW plant) 6. Mechanical and cooling water system $50/kW 300
7200 7. Contingency allowance (15Z) 1080 8. Engineering design, supervision & commissioning (10Z) 828
Total 9108
Operations and maintenance other than fuel and lajbour, are taken at 2Z p.a. of capital cost without engineering, of $8,280,000 OR $165,600 p.a.
Labour will be the same as for the OLNW/UNDP proposal though adjusted for inflation at 10Z p.a. for 1982 rates, and expressed in US dollars. Thus US$164,000 p.a. (0.8 US$ = 1.00 Tala). 84
Fuel Is coconut husk or wood provided at US$l(7/te. delivered and 10,900 MJ/te.
Life of plant is 20 years. Discount rate applied is 10%.
Annual costs of production will be estimated simply assuming a constant capacity load factor for the purposes of this analysis* A 'real' estimate of the costs of production based on load growth and hydropower dry season deficits under the missions scenario of Fagoloa-Afulilo being commissioned in 1990 is provided in 6*4.1*
Average capacity load factor: 70Z.
Annual production 36.8 GWhrs. Use by ancillarles is 10Z thus energy sent out Is 33.1 GWhrs.
Overall efficiency is 15%.
Costs of Production
Capital costs US$ j/kWh
Capital charges (10% d.r. 20 yrs recovery factor =* 0.1175) 1,070,190 3.23
Operations and Maintenance . Maintenance 165,600 0.50 . Labour 164,000 0.50
Fuel
72,880 te husk (. at $5/te) (379,400) (1.15) . at $10/te 758,800 2.29
(5.38) 2,158,590 6.52 85 Annex 9
Appendix: 4.2.2
THEORETICAL SURPLUS OF COCONUT HUSK AND SHELL FROM THE SAMOAN COCONUT PRODUCTS LTD., OIL MILL, VAITELE, APIA, W. SAMOA
Parameters
Processing rate for the oil mill in full production is 100 te copra per day (70,600 litres of oil per day).
Drying of the copra will be done on site with Brugger Industries hot air generators.
Data supplied in Appendix 4.1.3(b) on drying requirements and husk and shell surpluses is applied here.
Internal plant use for steam raising according to the management (D. Houston, pers. comm.), is 200 kg husk and shell per tonne of oil produced. Combined husk and shell as burnt is estimated at 11.9 MJ/kg, thus energy use in residue fired boilers is 2380 MJ/te oil. This is equivelant to 218 kg of husk burned separate from the shell- (Note: In the Tongan oil mill using diesel fired boilers, the energy required is 1159 MJ per te oil produced, thus the above estimate is pessimistic even despite the relative efficiencies of wood and diesel boilers).
Oil production is 19,299 te/yr thus husk required is 4207 te/yr
and husk and shell together is 3800 te/yr.
Surplus husk and shell is either:
1. 3.3 te husk and shell combined x 30,000 te copra = 99,000 te p.a, (at 11.6 MJ.kg) and 99,000 te - 3860 te - 95,140 te husk and shell.
2. 2.2 te x 30,000 te » 66,000 to husk and 66,000 te - 4207 te - 61,793 te husk (at 10.9 MJ/kg) plus 0.68 te x 30,000 te = 20,400 te shell (at 19.4 MJ/kg)
87 Annex 10
Appendix: 4.4.2(a)
RETROFIT OF HOT-AIR-GENERATORS TO BOILERS IN APIA, W. SAMOA
(A) Samoan Tropical Products
Parameters
The manufacturing industry is fruit juice and coconut cream.
A diesel-fired boiler using 430 litre per day, 5 days per week, and 24 hours per day. Average heat rate is 680 MJ/hr. Peak rate will be assumed to be 1000 MJ/hr.
Boiler is a Nelson Packaged boiler of New Zealand, 130 psi, 545 kg/hr steam.
Gasifier-hot-air generator will be nominally a Waterwide 70 DF with induction fan installed for WS$15,000. (Note; it Is likely that Brugger Industries could supply such a hot-air generator for less than WS510,000).
Gasifier and hot-air transfer efficiency is 852.
Wood fuel requirement is 1396 kg coconut shell (30% m.c.w.b.) or 1754 kg husk at 40% m.c.w.b, dally.
Husk is available at WS$5/te from WESTEC. Shell is generated internally at 1547 kg/day, sufficient to fuel the entire process. However, the. market value of the shell converted to charcoal is at least H$72/day whereas the husk fuel will cost WS$3.80 per day. Both cases will be run.
Diesel fuel cost 63 sene/litre wholesale orWS$67,725 p.a.
Labour requirements: one manual labourer atWS$4/day and one per shift with three shifts, thusWS$3000 per year.
Simple payback
Simple payback in months a Net capital Investment Net operating costs.
Net capital investment is WS$15,000.
Net operating costs of gasifier - hot-air-generator are fuel cost plus nbh-fuel operations and maintenance costs":-
Thus: - fuel cost is • WS$2200. - operations is one labourer per shift to load fuel : WS$3000. - maintenance is 2% capital expenditure per annum for both gasifier and boiler or WS$540 p.a. 88 Net annual operating costs of boiler are fuel plus maintenance - fuel cost is WS$67,625 p.a. - maintenance is WS$240 p.a.
Monthly net operating savings of gasifier:
= WS$67,865 - 5740/12 » $5,177
Simple payback = $15,000 =2.9 months: 5177
With no fuel cost per gasifier-hot-air-generator the payback is 2.8 months
(B) Apia Hospital Boiler
Parameters
Boilers are Cradley Vertical Multi-cross-tube of unidentified capacity, though producing steam at 100 psi, and sustaining a heat rate of 2.5 MM BTU/hr (2455 MJ/hr).
With modification to the kitchens, steam cooking will be used instead of electricity hence an additional fuel use of 1360 1/week is estimated making the new total 5000 litres of diesel per week at a cost of WS$ 163,800 p.a.
The hot-air-generator to be used is a Waterwide 70 DF with two hot air-flame ducts to the boilers, and a valve to switch from one boiler to the other as desired.
Total cost of installation is estimated at WS$17,000.
Wood fuel used will be coconut husks at WS$5.00/te and 10.9 MJ/kg (40% m.c.w.b.) from WESTEC plantations.
Total wood fuel required is 1060 te husk p.a. at a thermal efficiency of combustion and heat transfer from gasifier to boiler of 85%.
Annual woodfuel cost is WS$5303.
Labour requirement is two unskilled workers: WS$2920 total p.a.
Simple payback
Net capital investment is WS$17,000.
Net operating cost of gasifier-hot-air generator areWS$9190 p.a.
Net operating costs of boiler are WS$164,400.
Monthly net operating savings of gasifier: 164,400 - 9190/12 - 12,934
Simple payback = 17,000 ° 1.3 months. 12,934 89 Annex 11 Appendix: 4 .4.2(b)
COCOA DRYER RETROFIT WITH W. SAMOAN HOT-AIR-GENERATOR: PERFORMANCE COSTS AND .BENEFITS:
Background
A company of New Zealand origin, Brugger Industries, has been established in Apia, W. Samoa to build solar and wood fuel conversion and combustion equipment. It has just completed and tested a 720 MJ/hr hot-air-generator which is very similar in design to, though one third the size of, the. New Zealand Waterwide gasifier and hot-air-generator.
Bruggers first model has undergone testing at the Cocoa boards' central warehouse and drying facility, replacing a standard diesel dryer in a bank of 6 rotary driers of 3 te finished bean capacity.
The gasifier unit is approximately 1.25 metre high and 0.5 metre square with a vortex type secondary construction chamber and air supply shooting burnt and burning gases tangential!y into the combustion chamber formerly diesel-fired.
The hot gases are induced Into the dryer with an induction fan sized and placed to draw, ambient air and use it with the very hot air from the furnace exhaust. The draft of the fan controls combustion in the primary and secondary chamber of the furnace. In a boiler or heat exchanger, an induction fan on the exhaust would have the same effect.
Retrofitted to the diesel fired rotary cocoa dryers the hot-air- generator drys the cocoa in the same or less time than the diesel burner. Drying temperature is 70°C and is sustained for 20 hours at 25 kg wood (air dry) per hour.
Diesel drying requires at least 20 hours at 13 litre/hr diesel to finish the beans.
Cost Comparison : Cocoa board" dryers
Parameters
One cocoa dryer will finish drying 300 te of cocoa per year.
Diesel fuel per tonne of copra dried is 131/hr x- 20 hrs = 87 1/te. 3 te
Diesel fuel requirement per dryer per year is thus 87 1/te x 300 te = 26,100 1.
Current diesel cost is 63 sene/litre. Thus fuel cost per te cocoa dried is WS$54.80 and per dryer per year is $16,443. 90
Wood fuel is purchased by the Cocoa Board forWS$ 10/cord of 80 cu ft or 2.3 m3 of green wood at 400 kg/m3 basic density (Samanea saman was the species sighted by the mission) and 4C% m.c.w.b. or about 1.5 green tonnes.
Assume wood is fired t 30% m.c.w.b. thus costingWS$7.60 per tonne at the combustion chamber. Cost of fuel is thus 25 kg/hr xWS$7.60 te x 20 hrs =WS$3.80 per firing 1000 kg/te andWS$1.27/te cocoa dried.
Capital cost of retrofit (supplied by J. Robinson, Managing Director, Brugger Industries (Samoa) Ltd.): WS$
. Design and manufacture and supply of 72 0 MJ/hr (2 00 kW (t)) forefurnance 3,500
. Modify existing drying fan to operate with furnace 300
. Design and manufacture flop valve to exhaust and dryer 5 00
. Manufacture suitable protective guards and dryer 200
. Install and commission 600
5,100
Labour requirement:
an overhead of half of a labourers time per shift for three shifts 100 days per year. This is budgeted at $600.
Simple payback = Net capital cost of hot-air-generator (HAG) Net savings in operting costs
Net capital cost of HAG is $5,100.
Net operating costs of HAG are fuel plus O&M
- fuel is $381 - labour is $600 - maintenance Is 3% of capex = $153 Total is $1134
Net operating costs of dryer are fuel only: $16,443
Monthly net operting savings of HAG are:
16,443 - 1134 = %1,276 12
Simple payback = $5,100 =» 4 months $1,276 91
Annex 12
Appendix: 4.5.2
REVISION OF DAVY AGRO - DAVY MCKEE PACIFIC COSTS OF ETHANOL PRODUCTION FROM BREADFRUIT IN APIA; W. SAMOA
Parameters
Breadfruit will be gathered from surplus stocks now rotting to waste. A labour charge plus WS$5.00/te collected will be allocated as a royalty. Thus breadfruit is WS$15/te at site.
The minimum wage of WS$3.50/te will be applied.
Revised transport charges are US$8789 p.a. or WS$7.30/te of breadfruit delivered, for 1200 te breadfruit per 8 month period.
Factory cost estimate will be doubled. Thus US$4.25 million (based on recent experience with plant of this size In PNG). This includes fuel storage for similar supply year round to blending facilities.
All other material costs have been escalated 252 for 1982 costs. '
Fuel is US$10.00 per te based on coconut husks now available.
Production starts in year two at 50% level. 100% level in year 3 and thereafter. Production is 3 ML/yr (full year) Project life is 20 years.
Insurance is 1% of capital expenditure :US $42,500.
Byproduct credit is obtained from CO? sales 2000 te/yr at US$25/te.
Other costs as revised are as follows:
Materials $W$ p.a. Breadfruit - $15.00/te - 329,250 Transport (3 $7.30/te 160,235 General and special chemicals 106,250 Enzymes $7.80/kg 216,840
812,575 Utilities Woodfuel (8481 te at $10/te) 84,810 Uater ($100/1000 m3) 32,950 Ancillary fuel ($3.04/gallon) 7,870 Labour (escalated 20% over 1980) 156,039 281,668 Working capital 250,000 Maintenance charges . machinery (10%) 271,410 p.a, . building 4,240 p.a.
275,650 92
The present value unit cost with no escalation in the value of motor spirit is 63.8 sene/litre, 12% below the present retail price.
Incorporating an escalation rate for the value of ethanol of slightly in excess of 3% p.a., the maximum conceivable at this time, leads to a present value unit cost of 48.9 sene/litre. 93 Annex 13
Appendix: 4.6.3
COSTS OF PRODUCTION OF COCONUT SHELL CHARCOAL IN W. SAMOA
Parameters
Charcoal is produced with 200 litre second-hand oil drums by the Philippine method.
One person can manage 10 drum Kilns per day producing 12 kg charcoal each for there is no feedstock preparation with coconut shell available from copra drying.
Weekly production is 600 kg.
Daily labour rate is WS$4.00.
Efficiency of charcoal production is 25% by weight on an oven dry basis, i.e. 4 ODte shell produces 1 te charcoal (30 MJ/kg mln.).
Charcoal is packed into traditional woven palm frond or into multiwall cardboard bags. Both will be allocated a labour or material cost of WS$30/te, i.e. 30 sene per 10 kg bag, or 10 sene per 3.3 kg palm frond basket.
Drums are costed at WS$10 each (2nd hand) and have a life of 6 months.
Tools required are screen, shovel, tin snips, hammer, cole- chisel, scales and string/staples. Total of $50.00 p.a.
Annual production is 30 te.
Costs of production $ P*a. $ per tonne
1. Kilns 200 6.67 2. Tools 50 1.67 3. Packaging 9 00 30. 00 4. Labour 1000 33.33
71.67
5. Transport to market 20 6. Retail markings 25% 22.92
Retail Price 114.59 Appendix: 6.2.1 DIESEL AND HYDRO-POWER STATIONS OF WESTERN SAMOA Annex 14
Location Type Diesel First Year Rating kW Output capacity (1) kW Unit No. In service Nameplate No x rating rating of sets Continuous 2-hour Wet-season Dry season Savalalo Diesel 2(2) 1955 273 - 0 0 - - Fuluaaou Diesel 3(3) 1962 532 - 400 400 - - tanugamanono Diesel 4 1966 1672 - 1200 1400 - - Tanugamanono Diesel 5 1966 1672 - 1200 1400 - - Tanugamanono Diesel 6 1972 1456 - 1000 1200 - - Tanugamanono Diesel 7 1979 1800 - 1200 1500 - - Tanugamanono Diesel 8 1979 1800 - 1200 1500 - - Fuluasou Diesel 10 1978 300 - 250 300 - - Fuluasou Diesel 11 1978 300 - 250 300 - - tlaoa Hydro - 1957 - 1 x 1000 - - 1000 Pre Saunlatu service, Fuluasou Hydro - 1982(4) - 1 x 370 - - 370 1000 kW firm with Samasoni Hydro - 1982(4) - 2 x 900 - - 1560 all sets in service, Pale ole Fe'e Hydro - 1982(5) - 1 x 1600 - - 1600 700 kW with largest Saunaltu Hydro 1985(4) 2 x 1750 3400 set out of service; with Saunlatu: l300kW & lOOOkW,
9532 6700 respectively.
1. Estimated by EPC 2. To be retired in 1982 3. To be retired when Saunaitu hydro is commissioned (1985) A. Early in wet season 5. Early in dry season 95
Diesel Generating Plant in Service - UPOLU
Location Engine Make/Model/Type
PUD YARD, Mirrlees Type J6 Savalalo Serial No. 45351 (Capacity-273 kW)
Fuluasou Power English Electric Type 6RL Eng Station No. IH 2057 (capacity-532 kU)
Tanugamanono MAN V8V 30/45 MAL Power Station 402-427 (capacity-1,672 kW)
Tanugamanono MAN V8V 30/45 MAL (capacity-1,672 kU) 403-416
Tanugamanono MAN V7V 30/45 MAL (capacity-1,456 kW) 402-426
Tanugamanono Niigata Model 8L 31 EZ (capacity-1,800 kW) Serial No. 53009
Tanugamanono Niigata Model 8L 21 EZ (capacity-1,800 kU) Serial No. 53008
Fuluasou Cummins KTA 1150 C525 (capacity-300 kU)
Fuluasou Cummins KTA 1150 C525 (capacity-300 kU)
97 Annex 15
Appendix: 6.3.2
COMPARATIVE ECONOMY OF A WOOD-FUELED AND DIESEL-FUELED GENERATION EXPANSION PLAN TO MEET DRY SEASON HYDROPOWER SHORTAGES: 1986-2005 (ALL COSTS IN WS$)
Parameters
The costs of a wooji fuelled steam turbine power system are given in Appendix 4.2.\y* The unit size is 3MW.
The first installation is of 6MW (2x3 MW) at a cost of 10.929,000 dollars WS. Each unit addition of 3MW will cost US$1200/kW or $3.6 million in the year prior to commissioning.
For the wood-fuelled plan the standard reserve capacity will be one 3MW unit off line and the largest hydro-turbine of 300 kW on maintenance. This convention Is adopted for convenience of calculation. A thorough projection of firm capacity would assign diesel capacity to reserve status also.
Fuel costs for the wood station are determined as a transfer price for husk and then shell from the SCPL mill that is assumed to convert partly to whole nut harvesting to procure its copra. Fingercutting will be practiced allowing a market for dry shell to be served through until 1998 (before shell is required for power production).
Additional fuel is coconut wood and forest residues.
Fuel demand and costs are given in Table 1 below. There coconut husk is assumed to be 40% m.c.w.b. and 10*9 MJ/kg, coconut shell, 30% m.c.w.b. and 13.7 MJ/kg and coconut stemwood and forest residues 50% m.c.w.b. and 8.6 MJ/kg net heating value.
Overall efficiency to generator terminals of the steam plant is 15%.
The limits of coconut residues for power production are set by the copra throughput capacity of SCPL. Husk is exhausted first, then shell, before resorting to other wood fuels.
The basis of cost is $5/te husk, $15/te shell, and $25/te coconut wood and forest residues, all delivered to the fuelyard. 98
Table 1
Tear GWhrs of demand Husk of Shell of Other woody Cost '000 not serviced by coconut coconut residues (WS$) hydro '000 te '000 te '000 te
1986 12.5 27.5 137.5 1987 14.1 31.0 155.0 1988 16.5 36.3 181.5 1989 18.5 40.7 203.5 1980 9.5 20.9 104.5 1991 10.5 23.1 115.5 1992 13.3 29.3 146.5 1993 14.0 30.8 154.0 1994 15.9 35.0 175.0 1995 18.5 40.7 203.5 1996 22.2 48.9 244.5 1997 24.7 54.4 272.0 1998 29.2 61.8 1.4 330.0 1999 33.2 61.8 6.3 403.5 2000 38.8 61.8 13.3 508.5 2001 44.1 61.8 19.8 606.0 2002 50.8 61.8 20.4 17.4 1050 2003 56.7 61.8 20.4 33.9 1462.5 2004 62.2 61.8 20.4 49.2 1845 2005 68.4 61.8 20.4 66.5 2278
For the financial analysis the following costs are used:
Diesel
- maintenance is 1 sene/kWh produced.
- Fuel cost is based on the economic cost of 45 sene/litre In 1982 which is the wholesale price less duty and avoidable oil company and other costs.
- Fuel cost is escalated at 2X p.a. (real) as Is lube oil Incorporated at 2Z of the fuel cost.
The capital cost of diesel plant is taken at $600/kW installed. (Note: this is well below the ADB consultants estimates, but Is based on current market price).
The operating costs of a wood station are taken as 1.2 sene kWh produced for both labour and maintenance.
In order to establish the time schedule for investment In new generation plant, two new planting up programmes have been established around the central scenario we have developed: that of the F/A hydroscheme being commissioned in 1990 for that dry season, and not -In 1987.
All demand data, and hydrogeneration data are taken direct from the recent ADB consultants reports. 99
Table 2 (A) and (B) provide details of the planting up programmes.
Having established the capital and operating costs in the above manner, the present value unit cost of production was established for both options where:
Present value (PV) unit cost =*
present value total costs present value generation
At 102 discount rate
PV wood power =» 11.05 sene/kWh PV diesel power • 20.17 sene/kWh
Table 2 - Planting up programme with F/A project commissioned in 1990.
(A) Wood-fired steam turbines with modules of 3MW
Year Maximum Hydro Diesel Wood-steam Reserve Firm Demand capacity capacity capacity capacity capacity (MV) dry season Installed (MW) (MW) (MW) (MW)
1986 7.0 1.3 6.11 6.0 3.32 10.2 1987 7.5 1.4 3.73 6.0 3.3 7.8 1988 8.0 1.5 3.7 6.0 3.3 7.9 1989 8.6 1.5 3.7 9.0 3.3 10.9 1990 9.2 4.3 3.7 9.0 3.3 13.7 1991 9.8 4.7 3.7 9.0 3.3 14.1 1992 10.5 5.4 3.7 9.0 3.3 14.8 1993 11.2 5.9 3.7 9.0 3.3 15.3 1994 12.0 6.50 2.7 9.0 3.3 14.9 1995 12.8 6.5 2.7 9.0 3.3 14.9 1996 13.7 6.5 2.7 9.0 3.3 14.9 1997 14.7 7.0 2.7 9.0 3.3 15.4 1998 15.7 7.0 2.7 12.00 3.3 18.4 1999 16.8 7.2 0.34 15.00 3.3 19.2 2000 18.0 7.5 0.3 15.00 3.3 19.5 1001 19.3 7.6 0.3 15.00 3.3 19.6 1902 20.6 7.6 0.35 18.00 3.3 22.6 1903 21.9 7.6 - 18.00 3.3 22.3 1904 23.3 7.6 - 21.00 3.3 25.3 1905 24.8 7.6 - 21.00 3.3 25.3
1. Diesel Unit No. 6 retired 1986 (500 kW). 2. One steam-turbine and largest hydro out. 3. Diesel units No. 4 and No. 5 retired (2400 kW). 4. Retirement of Diesel units No. 2 and No. 8. 5. Retirement of last of diesels 100
Table 2 (continued)
(B) Diesel engine-generators in modules of 1 .5 MW
Year Maximum Hydro Diesel Wood-steam Reserve Firm Demand capacity capacity capacity capacity capacity (MW) dry season installed (MW) (MW) (MW) (MW)
1986 7.0 1.3 6.1 3.0 2.71 7.7 1987 7.5 1.4 3.7 6.0 2.7 8.4 1988 8.0 1.5 3.7 6.0 2.7 8.5 1989 8.6 1.5 3.7 7.5 2.7 10.0 1990 9.2 4.3 3.7 7.5 2.7 12.8 1991 9.8 4.7 3.7 7.5 2.7 13.2 1992 10.5 5.4 3.7 7.5 3.02 13.6 1993 11.2 5.7 3.7 7.5 3.0 13.9 1994 12.0 6.5 2.7 7.5 3.0 13.7 1995 12.8 6.5 2.7 7.5 3.0 13.7 1996 13.7 6.5 2.7 7.5 3.0 13.7 1997 14.7 7.0 2.7 7.5 3.0 14.2 1998 15.7 7.0 0.3 12.0 3.0 16.3 1999 16.8 7.2 0.3 13.5 3.0 18.0 2000 18.0 7.5 0.3 13.5 3.0 18.3 2001 19.3 7.6 0.3L 15.0 3.0 19.9 2002 20.6 7.6 16.5 3.0 21.1 2003 21.9 7.6 - 18.0 3.0 22.6 2004 23.3 7.6 - 19.5 3.0 24.1 2005 24.8 7.6 — 21.0 3.0 25.6
!• Diesel set No. 7 or No. 8 and one new set out on maintenance of forced outages (2700 kW total).
2. Two largest units (1500 kW) out at any time. 101
WESTERN SAMOA
SPECIFIC REFERENCES
Davy McKee Pacific. 1980. Feasibility of starch production in Western Samoa. Davy McKee Pacific, Melbourne (R. Brooks). Report.
ADB. 1982. Fagaloa-Afulilo Hydropower Project, Feasibility Study (Draft Report), prepared by Mander, Raikes, and Marshall (Bristol) and Merz and McLellan (Newcastle), April.
Cahusal, A.B. 1981 Report on a survey of woodfuel supply and usage carried out in Urban Apia, Western Samoa. Forestry Division, Government of Western Samoa, Apia, December, mimeo. pp.10.
Muller, D.A.P., WORRALL, J.R., BURGESS, R.J. 1980. Energy policy and planning for Western Samoa. Government of Western Samoa. October, pp.81.
Olwn. 1978. Electricity generation from wood and coconut wastes for Samoa. UNDP project No. SAM/78/001. Prepared by Leyland, Watson and Noble and P.F. Olsen and Co., pp.234.
EPC. 1982. Feasibility study an electric power generation from wood and coconut wastes. Prepared by Leyland, Watson and Noble, and Chandler, Fraser and Larsen, New Zealand for Electric Power Corporation, Government of Western Samoa. September, pp.75 plus appendices.
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