Torba Province Electrification Feasibility Study

Jan Cloin, Energy Adviser SOPAC Community Lifelines Programme June 2006

Contents

Vanuatu ...... 3 Torba Province ...... 3 Energy as a tool for sustainable development ...... 5 Present Sola Energy Situation ...... 6 Cost of the current Energy Supply ...... 8 Power Grid Planning ...... 9 Hydro Potential in Betaqren River ...... 10 Torba Rural Energy Service Company ...... 11 Institutional Arrangements ...... 12 Summary Discussion Energy Issues in Torba ...... 13 Conclusions and Recommendations ...... 14 References ...... 15 List of Meetings ...... 15 Annex 1: Terms of Reference ...... 16 Annex 2: Map of Vanuatu ...... 18 Annex 3: Map of Vanua Lava ...... 19 Annex 4: Report on meeting with Sola women representatives ...... 20 Annex 5: Torba Hydro potential report ...... 23

List of acronyms and abbreviations

A Ampère, measure of electric current AREP Name of the Torba Secondary School CIA Central Intelligence Agency DVD Digital Video Disc DOBT Diocese of Banks and Torres GDP Gross Domestic Product, measure of income per head of population kW Kilowatt, measure of power kWh Kilowatt- hour, measure of energy PREFACE Pacific Renewable Energy France and Australia Common Endeavour PWD Public Works Department RESCO Rural Energy Service Company SOPAC South Pacific Applied Geoscience Commission Torba Province of Torres and Banks UK United Kingdom US United States VSO Voluntary Services Overseas Vt Vatu, Vanuatu currency unit, rate April 2006: 107 per US$ W Watt, measure of power

Acknowledgement The writer herewith would like to acknowledge the great support from Mr Donald Wouloseje, and Mr Moli Janjea of the Energy Unit, Government of Vanuatu.

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Introduction During the beginning of 2006, SOPAC Community Lifelines Programme was approached by the Vanuatu Energy Unit to assist with the feasibility of using biofuel for electrification of the Torba Provincial Centre on Sola, TORBA province. As a response to this request, a joint mission was undertaken from 28 March – 11 April 2006 by a SOPAC energy adviser, together with two Vanuatu energy unit staff to gather data and to discuss options with the people of Torba and local authorities. Vanuatu The republic of Vanuatu is located on the 16 degrees south and 167 degrees east in the Pacific Ocean. It is home to some 210,000 people with an average GDP of US$ 2,900 Purchasing Power Parity.

Vanuatu became independent from the UK and France in 1980. Small scale agriculture provides a living for 65% of the population. Fishing, offshore financial services and tourism are other mainstays of the economy. Mineral deposits are negligible; the country has no know petroleum deposits. A small light industry sector caters the local market. Tax revenues come mainly from import duties as there is no income tax in Vanuatu. This also results in a relatively high price level of groceries and commodities, however in comparison with countries surrounding Vanuatu, the disposable income is also slightly higher.

Economic development is hindered by dependence on relatively few commodity exports, vulnerability to natural disasters and long distances from main markets and between constituent islands. GDP growth was less than 3% on average in the 1990s. Most foreign aid (5% of GDP) comes from Australia and New Zealand, with China and the US increasingly involved in aid packages as well. (CIA world factbook) Torba Province The republic of Vanuatu has been divided into different provinces with groups of islands comprising the names of the province. Torba is an augmentation of the Torres islands and the Banks islands, the most northern islands of the Vanuatu Archipelago. Refer to Annex 1 for a full map of Vanuatu. Figure 1 shows a map of Torba province with the Torres Islands to the north and the Banks Islands to the south.

The provincial administration is located in Sola on the island of Vanua Lava (See Annex 2 for a map of Vanua Lava), more or less the centre of the Southern Banks islands. The 62 islands, of which 13 are inhabited, are

Figure 1: Map of the islands in TORBA province

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well known for their Coconut Crab and cultural festivals. Most of the estimated 13,500 people in Torba live from subsistence agriculture and have had little exposure to western luxuries.

The economic opportunities for the people are extremely limited through the remoteness of the islands. Only three islands are serviced with at least two flights per week and a Chinese trading vessel visits most inhabited islands once a month to pick up copra and to supply food, fuel and other groceries. Sometimes these vessels ‘miss’ an island due to bad weather or lack of volume of goods, resulting in one visit per two months only. If this happens, fuel and groceries need to be rationed on the particular island.

Figure 2: Aerial view of Sola Provincial Centre

Tourism is limited, but there are some 10 small scale resorts catering for off-the- beaten-track tourists and yachties. The major cash crop on the island is the kava root, which is grinded and mixed with water as a relaxing drink. The second major cash crop is coconut, which is cut and dried into copra and shipped to Santo, the agricultural capital of Vanuatu.

Islands Inhabitants Vanua Lava (Sola, provincial centre) 300 Vanua Lava, remainder 2,700 Mota 700 Mota Lava 2,500 Ure parapara 600 Ga’ua (Santa Maria) 3,200 Mere Lava 700 Torres Islands (Hiu, Tegua, Loh, Toga) 650 Total 11,350 Table 1: Inhabitants of the islands of Torba Province (Source: Provincial Administration)

Based on the census of 1999, the average household is 5.5 persons, indicating that Torba is home to a mere 2,100 households.

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Energy as a tool for sustainable development Energy is often referred to as a tool for sustainable development, as it does not cause economic development by itself, but is perceived as a tool to achieve a higher standard of living. Before we focus our attention on energy in Sola, it is important to reflect what it is that we really want to achieve, and, more importantly, whether it is what the people of Sola want to achieve.

Table 2 indicates the “top 10 problems in Sola” as an outcome of a workshop carried out by VSO volunteer Noel Biadnes. Next to the problems experienced, the potential role of an increased level of energy services is indicated to show the integral importance that is attached to energy in addressing these problems.

Top 10 Sola Problems Potential role of increased level of energy services in addressing problems 1. No safe water Energy for Water pumping, filtering, storage 2. Absence of key government Energy for ice-making by Fisheries Department, sectors Energy for administration 3. Inadequate health facilities Energy for hospital (to be built) 4. Unreliable communication Energy for satellite communication and increased system power for existing point-to-point radio 5. Poor waste disposal Energy from Waste / Energy to collect waste. 6. Weak security Energy for improved bank security system 7. Land disputes - 8. Poor bank/postal services Energy for increased level of service (ATM, computer for administration, email facilities, Telegraphic Transfers) 9 Irregular Shipping services Biofuel to provide more resilience from shipping frequency supply of fossil fuel. 10. No Anglophone school Energy for new school for computer education, lighting, audio-visual aids in education Table 2: Top 10 problems in Sola (Source: Workshop carried out end 2005 by VSO volunteer Noel Biadnes)

During discussion of the results, the participants addressed the question why ‘lack of money’ was not part of the points; the response was that this was a general underlying problem that was linked to most problems. Similar links can be identified for energy services and its role in improving the standard of life in Torba.

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Present Sola Energy Situation In general, people in Torba have an ample supply of biomass to cook and heat their houses. Even though the supply of firewood is not a problem, the cooking in the smoky environment is very detrimental for the health of the women that are tasked with preparing the food. Biomass used for cooking includes dried wood from surrounding woods and husk from coconuts.

In addition to wood for cooking, the people of Torba utilise kerosene lights at night and candles in special cases or when there is no more kerosene. They utilise batteries for torches, to move around during the night.

In case of a lack of kerosene supply, some people revert to utilising self made coconut oil lights. These are halved coconuts with green copra still Figure 3: Open Style wood fire in kitchen in inside, filled halfway with coconut oil. Sola The coconut oil has been prepared by scraping fresh coconuts, squeezing the juice out and cooking. After leaving this overnight, the oil separates from the water and the oil is subsequently filtered. This is a very clean, albeit labour intensive, fuel for lighting. The coconut light utilises a wick made from old cotton clothing kept up with a stick and lasts for two-three hours.

Some people own small petrol generators to power a TV and a DVD player at night, or to provide light to their Nakamal (Kava bar). These people represent the upper class of the island, generally with access to remittances from abroad or commercial activities such as a tourism resort.

The provincial centre has been electrified in 1998 with a 48 kW diesel generator. This community diesel generator (running 4 days per week from 17.30 – 19.30hrs) is loaded to about 10 kW while its rated capacity is 48 kW. This leads to very inefficient Figure 4: Home-made coconut light electricity generation, at an estimated 1 litre/kWh. Considering the already very high costs of fuel on the island, addressing this extremely inefficient use is a major priority as it is currently draining the provincial general budget.

During the day, various small petrol generators are used. A 3 kW generator is powering the Provincial council. It is currently restricted by an overload protection

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of 10 Amps, which sometimes trips if too many appliances are switched on in the office. This corresponds with a maximum load of 2.4 kW. There are plans to connect the Police Office to the same petrol generator, with a load limiter. The maximum allowable load from the Police Office will be 600 W, corresponding with 2.5A.

The Diocese of Banks and Torres (DOBT), a regional Church office, has its own generator running on petrol with a maximum supply of 3 kW. It is connected to several computers, office equipment and some households on the compound. DOBT is not served by the communal grid at night and therefore the generator also runs several hours every night. DOBT is located at some 400 metres from the closest existing grid.

AREP Secondary School is located at some 1 km from the communal electricity grid. It is running a small Figure 5: Sola Government Generator house with Lister engine to generate electricity low voltage connection cables at night. It only runs for several hours per day for lighting and power for the residential teachers and boarding students.

Public Works Department runs their own generator (petrol, 3 kW) and is also not connected to the existing grid. It is located an estimated 2 km from the closest electricity grid. PWD is currently building a hall for storage of maintenance equipment and repair.

During a community meeting, it was indicated that 11 out of 50 men present had some sort of a generator for own use. This usually refers to a small 500-750 W generator to power a TV, DVD and some lights for a few hours when the communal generator is not running. Otherwise households use batteries for torches, kerosene lights and candles for lighting. The representatives of the community indicated that they were spending some 200 Vatu per month on Figure 6: Community Generator batteries, 200 Vatu on Candles and 200 Vatu on kerosene.

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Cost of the current Energy Supply Every connection to the grid is charged 1,000 Vatu per month. At the moment of visiting 46 households were connected to the grid and 22 had paid their monthly fees since the beginning of the year.

During a meeting at the Provincial Government with the Secretary General and his accountant, the real price of electricity was calculated and discussed. The generator runs for 3 hours in the evening, during 4 days per week or 208 days per year. It was calculated that the cost of electricity is about 102 Vt/kWh (Refer table 3). This is about twice the price of electricity in Vila and about the same cost is associated with generating the same unit using a small petrol generator that many households have.

Cost Component Amount [Vt] Based on Fuel 287,000 6 litres of fuel for each running day Oil 17,000 3 oil changes, 8 litres, 800 Vt/litre Filter 5,700 3 filter changes, 1,900 Vt/filter Maintenance 30,000 Technician’s part-time salary Total 339,700

Yield 3,328 kWh Based on 8 kW times 208 running days Cost of Electricity (COE) 102 Vt / kWh Cost of Electricity based on measurements during site visit Table 3: Cost of Electricity Sola (Source: Own Survey, April 2006)

The major problem with the fee is that it is not charging customers for their use of electricity, just for the fact that they are connected. This could be a shop with many lights and a fridge but it could also mean a household with one fluorescent light. During a meeting with the provincial council this was discussed and it was indicated that it neither was a fair system, nor encouraged people to save electricity. The more equitable system would charge users per unit kWh.

Figure 6: Post Office and Bank with own PV solar panel for supply after generator running hours Page 8 of 30

Fuel Supply on Torba

Fuel Price in Vila Price in Sola Price in Sola [Vt/litre] [Vt/litre] [US$/litre] Diesel (Mazut) 141 200 US$ 1.86 Petrol (Benzene) 153 230 US$ 2.13 Kerosene 145 210 US$ 1.95 Table 4: Price of fuel in Torba Province (Source: own survey, April 2006)

Table 4 outlines the current cost of fuel supply in Vila and in Sola. Delivery of the fuel is sometimes delayed by the supply boats ‘skipping’ the islands if not sufficient produce is scheduled to be delivered or picked up (usually copra) to be delivered to Santo. Power Grid Planning Load Centre Distance to Generator [m] Estimated load [kW] DOBT 700 (300 m extension) 3 AREP Sec. School 1500 (900 m extension) 15 PWD 3000 (2,600 m extension 3 Table 5: Current load centres in Sola not connected to the provincial generator network (Source: own survey, April 2006)

It is recommended to have DOBT be connected to the low-voltage line that has already been installed. This implies an extension of 900 metres to AREP Secondary School and an extension of 300 metres to the Diocese office. The provincial government must make the connections on a cost recovering basis to the benefit of all parties.

It is recommended that AREP Secondary School (extension 900 m) remain using their own generator, just like PWD (extension 2,600m) until there are sufficient funds to invest in medium-voltage distribution network.

Figure 7: AREP Secondary School buildings

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Future load to be expected in Sola

Hospital. The Vanuatu Government, with the help of Rotary International is planning to build a hospital with 23 rooms for an estimated 81 million Vatu of which the Rotary is planning to fund 79 million. The hospital will be built during 2007. There is a need to further gather information on the power demand and possibly the budget allocated for power provision, as well as the interconnector between the local grid and the backup generator.

Ice Factory. The Fisheries Department is planning to build an ice factory to facilitate the storage of fish on Sola. The estimated power demand is 15 kW and could come on-stream by the end Figure 8: Aerial view of Musina Bay; this is where most of of 2007. There is a need to Sola's copra production is shipped from further assess the details of these plans, especially on the power demand of the proposed factory.

PWD Expansion. While the survey was carried out, PWD were flattening an area for a storage hall in which machinery will be stored and repairs will be carried out. Once this hall has been installed, the load can be expected to double from 3 to 6 kW.

Hydro Potential in Betaqren River A number of surveys have been undertaken to assess the Betaqren on Vanua Lava rivers’ hydro electric potential. Such a scheme could power the provincial centre and in addition supply electricity to a number of villages on the other side of the island of Vanua Lava.

A thorough survey has been undertaken by Mr. Whitbourne who visited the island in August 2005. This survey is attached in Annex 4. There appears to be the potential for about 1,000 kW which is more than sufficient to power the whole province. Nevertheless, for this to materialise, what is necessary is a confirmation of year on year data of the water level and flow. The Vanuatu Energy Unit has already acquired materials to gather this data. On the basis of the hydrological data and the geological assessment, the actual potential can be assessed.

The Betaqren hydro development is very promising for the whole of Vanua lava but will not come on stream in the coming 5-10 years because of the ground work that still needs to be carried out.

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Torba Rural Energy Service Company Electricity provision to the provincial headquarters, up to the bay of Musina (including PWD headquarters) and up to the airport (including the secondary school and the planned hospital appear to be best served by the setting up of a Rural Energy Service Company (RESCO), following the model that has been successfully applied by other similar islands in the region.

The RESCO is a vehicle to set up electrification, very often co-funded using both private and government finances. The RESCO maintains, owns and operates the electricity system, collects the fees and buys the fuel and spare parts. In all it is like a small power utility. The management of the RESCO should be an entrepreneur residing in TORBA provincial centre, while it can be governed through a board which can include government officials.

The RESCO should have a profit-oriented attitude to its service provision, safeguarding its own financial survival, within reasonable limits. It could have a number of shareholders such as UNELCO, the Provincial Government and private investors.

In this particular case the RESCO would also produce its own fuel by buying copra from local farmers who would have otherwise sold it to traders shipping it to Santo (See figure 8). The copra would be crushed by a small mill with a capacity of roughly 100kg per hour, or 50 litres per hour output. The oil can be used for a variety of purposes (refer Annex 4: meeting with women representatives) and the copra meal is good animal feed for the cattle that is raised around the provincial centre.

Copra COPRA MILL

Ship to Santo Copra meal Copra Oil REFINING

Animal Feed Cooking Oil Soap Production Body Products ADAPTED POWER GENERATOR

Figure 9: Biofuel RESCO Setup

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RESCO Investment Cost

Component Estimated Cost (Vt) Copra Oil Mill (Tinytech 60l/h) 1,500,000 Generator Set (29 kVA, Copra Biofuel) 5,300,000 Storage, piping, pumps, filters (est.) 500,000 Household kWh and disconnectors (est.) 1,000,000 Power line extension (est.) 2,000,000 Housing of RESCO and relocation (est.) 1,500,000 Transport (est.) 500,000 Unforeseen (10%) 1.230,000 Total 13,530,000 Table 6: Cost estimates of RESCO equipment (Source: quotes, own estimates)

Table 6 provides for an overview of estimated investment cost for a RESCO. Given the available funding from NZAid of 4 Million Vatu for PV electrification in Torba can be converted to use for setting up a RESCO, additional funding still needs to be sought. Possible funding could be identified from the Sarakata hydro funds that Government of Vanuatu is administering for Rural electrification. Other investors could include UNELCO and private parties. Institutional Arrangements

UNELCO Involvement During a discussion with UNELCO rural electrification officer it appeared that they are interested in supplying electricity services, provided the right incentives were given by the Government of Vanuatu. Given the vast amount of expertise that UNELCO has in Vanuatu and especially by electrifying other remote islands such as Malekula and Tanna it appears very beneficial for the sustainability of the power system to get UNELCO involved from the early stages of the project.

UNELCO has their own methodology for calculating the viability (and hence the local price for a kWh) using the expected load, the amount of customers and the demand expected, at a certain fuel price. They also have carried out their own investigations in the use of local biofuels such as the current experiments with blending coconut oil in their Vila power plant as well as experiments in smaller island systems.

Energy Unit The Energy Unit appears to have a co-ordinating role in the effort to provide better power supply to TORBA. They are at the centre of government processes and might be able to convince the relevant authorities to utilise some Sarakata – hydro funds for the electrification of Torba province. The Energy Unit further has a key-role in communicating with the Ministry of Health for the planned hospital and the Ministry of Fisheries for the planned ice-making facilities.

Provincial Council The Torba Provincial Council and administration currently is the only public provider of power at a huge cost to its own budget. It cannot sustainably carry on providing this service in the long run and in addition it does not appear to be its mandate to do so. For this project they however represent a reliable administrative centre as well as a major customer of the energy services to be provided. They are therefore perceived as a major shareholder in the project,

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providing administrative services and a channel for accountable government assistance.

Private Sector There are a number of small-scale private sector actors involved in retail, tourism, agriculture and nakamals. Very few of these actors appear to have the capability to run a copra oil-mill let alone a RESCO-type of electricity company, selling the electricity of a centrally- placed generation with the supply of oil from an oil mill.

Suggestion for RESCO management structure

The most likely workable approach with setting up a RESCO in TORBA would be to have a stakeholder from the private sector in an executive position of the RESCO, with support from a (minority) shareholder ship by UNELCO. The RESCO would be governed by a board with representatives from the Provincial Government and representatives from the community (women, men, entrepreneurs, traditional leaders). Summary Discussion Energy Issues in Torba 1) Fuel is very expensive in Torba province, and sometimes does not get delivered. Residents of Torba have therefore high fuel expenditures and if they live in the immediate vicinity of the community generator, they have the option of obtaining electricity during restricted hours, several days per week at a high cost. The real cost of generating power however, for the households and shops with larger power demands is subsidised by the Provincial Government.

2) During the limited hours that the communal generator generates power, it does so at extremely low efficiency, therefore wasting expensive fuel because it is not designed for the currently low demand of the village. In foresight of rapid demand increase after the availability of power, an oversized generator was chosen over a smaller one. If the rapid demand increase materialises after the installation of a more reliable power system, a 20 kW generator might not be sufficient; the existing generator can then be used as a backup.

3) The provincial council cannot recover the cost of running the communal generator with the fees paid by the households. The fees do not even cover fuel expenditure and therefore the electricity provision drains the provincial councils’ budget. When the system breaks, new lube oil needs to be bought or an overhaul is required, “general” funds from the Provincial Council need to be used to keep the system running. This is detrimental to other priorities in the Sola community and a reason to keep the Provincial Council out of the RESCO operatoin. On the other hand, they are an important financial and administrative actor in the village, perhaps the only actor that can channel government funding such as the Sarakata hydro-fund to improve the electrification system in Torba.

4) PV systems successfully provide remote health centres and schools with lighting, however were they to provide power for TVs, DVDs, computers, fans, it would come at an extremely high cost. Additional PV systems are therefore not an appropriate solution for the provincial centre, as most people live relatively close to each other. Other islands of Torba province have been successfully served with stand-alone PV systems under the PREFACE project, especially the health and education facilities.

5) The potential of 1 MW of hydro power has been identified and Government of Vanuatu is currently preparing the monitoring of water and flow levels as part of

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a resource assessment. Once fully operational, such a system would require an electricity network to the load centres as proposed. It will take at least 5 – 10 years to develop the hydro power plant and build power lines to load centres. So, even in the long term the hydro option will be the lowest-cost option, there is still need for a short term solution, as proposed the combination of fossil fuel and biofuel based generation. Conclusions and Recommendations

1) The current generator is running at an inefficient operating point due to over-design. In addition, there are future opportunities to produce coconut oil on the island at a cost which is lower than the cost of diesel. It is therefore recommended to investigate the acquisition of a smaller 20 kW generator set that has the opportunity to run on biofuel. This could be financed out of the available donor assistance through NZAid allocated for Torba Province.

2) The current users of electricity connected to the central generator do not pay the real cost of electricity. Users who do not pay their bills are often not disconnected, therefore the incentive to pay is very limited. It is therefore recommended to acquire kWh meters and disconnection switches for all user so that the actual electricity used can be measured and paid for, while users who do not pay can be disconnected.

3) There are opportunities in Torba to start producing coconut oil by adding local value to the copra that is normally shipped to Santo. It is therefore recommended to investigate the production of coconut oil to be used as a fuel and a commodity for other industries such as soap and cosmetics using a small-scale mill capable of milling 100 tonnes of copra or 50,000 litres per year.

4) Once the real costs of electricity are paid by the users, it is possible to extend the grid without going into high-voltage lines. It is therefore recommended that the Low voltage grid be extended to include DOBT and the AREP Secondary School.

5) Solar PV systems successfully provide electricity to low-power appliances in schools and health centres in Torba province such as lighting and radio communication. For applications with a higher power demand such as TVs, DVDs, computers, fans, kitchen appliances, a generator will still be necessary. Considering the relatively small distances on Sola, it is recommended that assistance is bundled in expanding the existing electricity network, more than providing additional stand-alone PV systems or individual generators.

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References

Banks and Torres Islands Travellers Guide “The last of the real islands” (Torba tourism office)

Biofuel Energy from Coconuts in the Pacific Islands, MSc. Thesis, Leplus, A., Wageningen University, 2005.

CIA world fact book Vanuatu: http://www.cia.gov/cia/publications/factbook/geos/nh.html

CocoGen, Feasibility Study into the use of Coconut Oil Fuel in EPC power generation, SOPAC, Fiji, 2006.

Etude de faisabilité d’un projet de valorisation de l’huile de coprah à l’échelle villageoise, Le cas de la cooperative “Lory”, Nord Santo, Ribier, V., Laouisse, JP., Rouzière, A. Vaitilingom, G., CIRAD, 2005

Vanuatu Economic Development Strategy; Stage 1: Report to the Government of Vanuatu and NZAID, May 2005 (UniQuest; Macfarlane et al.)

PREFACE Project Web-site: http://www.spc.int/preface/news.htm

Torba REDI Five Year Master Plan, Government of Vanuatu, 2006.

List of Meetings  40 Sola representatives on 3 April 2006 (Community meeting) on opportunities for utilising coconut oil as a biofuel.

 12 women representatives Sola on income opportunities that could be achieved utilising a copra mill and extended hours of electrification in the provincial centre.

 HE Mary Oliver, Deputy High Commissioner at the New Zealand High Commission to Vanuatu on Torba bilateral funding for PV systems and the opportunities to utilise these funds or biofuel.

 REDI representatives at Energy Unit on the planning for Torba electrification between the ministries of Fisheries, Agriculture, Economic planning, Energy unit.

 Meeting with Francois Py, UNELCO on rural electrification plans for UNELCO in the coming years and the feasibility of a rural electrification scheme in Sola.

 Meeting with Noel Biadnes at Torba Provincial Government on the general planning on development in Torba.

 Meeting with Mr. Leo Moli, Head Energy Unit, Vanuatu on general approach of the feasibility study.

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Annex 1: Terms of Reference Draft Terms of Reference for Torba Biofuel Feasibility Study

Introduction Torba is the northernmost province of Vanuatu, including the Banks Islands and the Torres Islands. It has a population of 7,870 people and an area of 882 km². Its capital is Sola. Torba Province in Vanuatu is currently electrified by means of small diesel generators and PV systems.

Background The average access to electricity in rural areas in Vanuatu is 7%, while urban dwellers enjoy 19%1. This is one of the lowest in the Pacific. Most rural households use kerosene for lighting. In the urban areas, up to 19% is electrified and the cost of a kWh is with 0.30 US$/kWh the highest in the region.

Torba province has been assisted with electrification through the PREFACE project in 2001 and 2002. After that, plans have been developed to electrify the Government Headquarters by means of PV, funded through the New Zealand aid programme, NZAID.

The Vanuatu Economic Development Strategy document commissioned by NZAID in July 2005 indicates as part of the agriculture sub-sector development opportunities that “The coconut industry could be stimulate through appropriate promotion of mini-mills, local use of oil as an alternative to diesel ..”

It further states that: “Donors and Vanuatu Government have failed to recognise through GIP the fundamental importance of developing viable, affordable energy alternatives to petroleum based power – whether solar, tidal/ocean surge, wind, mini-hydro or biofuel. This innovative sub-project provides the opportunity to provide a springboard for committed pubic sector an NDOG operatives and Torba rural communities to collaborate. In support of solar and wind power – …” “.. It is recommended that GIP 04748 Establishment of Torba and Penama Provincial Fisheries Office & Facility Project be used by Vanuatu Government to accommodate this project. Increasing the use of solar powered refrigeration for enhanced food security and income generation from fish and crustacean sales to Santo and Vila will be an integral part of this new sub-project”.

With the above recommendation, NZAID has approached the Government of Vanuatu to electrify the Torba and Penama Provincial Fisheries Office and Facility.

Biofuel-based electrification The islands of the Torba province currently have a significant copra production, which is shipped to Luganville, Santo, to be crushed in the oil mill. If there would be a mini-mill on the central island in Sola to produce copra oil locally, the oil could then be used in a generator as a fuel. Sola could produce litres of coconut oil, which would replace diesel2.

Considering this great potential to utilise the copra oil for fuel replacement, it is proposed to adapt this initiative into a Rural Energy Service Company concept, by setting up a biofuel-powered generator selling electricity to various users in Sola as apposed to a PV-powered refrigerator only.

1 Source: 1999 National Census Data 2 Compared to a PV module, a 50 Wp module can produce some 90 kWh annually, which is equivalent to 45 litre of coconut oil producing electricity in a small generator.

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Objective

To assess the viability of a biofuel-based RESCO in Sola, Torba province.

Activities  Interview and discuss with stakeholders in Vanuatu Government;  Interview and discuss with stakeholders in aid community;  Visit the island of Vanua Lava and provincial centre Sola and estimate electricity demand, potential supply of copra, potential of establishing an oil mill, requirements for adaptations on generator sets, technical support;  Visit one of the islands that have been electrified under the PREFACE project;  Visit the oil mill COPV in Santo;  Analyse the data and recommend on a full-size feasiblity study on Torba electrification.

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Annex 2: Map of Vanuatu

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Annex 3: Map of Vanua Lava

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Annex 4: Report on meeting with Sola women representatives Originally agreed meeting time 14.00 hrs, but started at 14.15 hrs (Melanesian time) with 10 women participants: Lilian Taton, Arma Linis, Irene Sovan, Rona Dini, Shelly Smith, Mathilda Elman, Lilian Williams, Anne Fred, Veronica April, Welefia Moses. Also present: Moli Janjae, Robbert, Donald Wouloseje, Jan Cloin (Chair)

Languages: Bislama and English (at request translated)

Women’s meeting at Sola Provincial Centre

Chair welcomed everybody and explained the objective of the meeting: to consult women representatives on the proposed installation for an oil mill. That the oil mill will be part of a greater electrification master plan to get 24 hour power to the village. It was observed by the chair that only 2 of the 50 representatives from the village community were women during the initial stakeholder meeting on Monday 3 April, hence the request for a separate meeting with women representatives.

After introduction of the concept the first remark was a vote of thanks for having the meeting, considering women’s opinion with the project, as so many times they have been left out, but it is highly appreciated that they can have their say.

1) What will be the capacity of the mill and what will be the environmental impact of the mill? This, with reference to the possible impact of waste from the mill to the water quality and the marine resources? In this context it should be taken into account that the women are fishing. Very important question, an environmental impact will be taken into account during the feasibility study. Specifically mentioned were waste oil, drainage and coconut meal.

2) A representative mentioned the existence of a micro-finance group, called Vanwood, that encourages women’s’ businesses. It lends money to groups with a minimum of 20 women that borrow money and then repay it after a short while. After that, more money can be borrowed.

3) What can, according to the women, be produced with the oil?  Soap  Cooking Oil

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 Coconut Light  Fuel for generators, cars

4) Is there a women’s’ organisation in Sola? Answer: There is one as part of the church, and there used to be one but it is non-functional. After this meeting, the president (on Mota Lava) will be contacted to meet up and prepare for a potential participation with the oil mill. The Provincial SG will be contacted by a women’s’ representative on this. 5) Would women have spare time to work in the oil mill or in for example the soap making facility? Yes, this will create opportunities for many young women that now have spare time next to their household activities and could supply household income. 6) A round was made to ask all women individually what they would do if they were to realise their business opportunity (either with or without 24 hour power or with coconut oil)  Soap making (using coconut oil)  Dress Making and sell it to the outer islands such as Torres (using 24 hour power)  Selling of Ice cream and chicken ; she already has a shop but the cooling would be much cheaper and would not have to be reliant on benzene  Already has a 10-bungalow lodge, but would improve facilities significantly with 24 hour power, with a kitchen also used for baking and open a restaurant and bar;  Make Soap and sell it to the outer islands; in Torres especially they run out of soap and use natural materials instead;  Already has a bakery, but is faced with the problem that she cannot buy very much flour and would like to have credit to be able to buy more flour. Also, if there is no power, lighting of the bakery operations is difficult. This would make the quality of the produce more consistent;  Already Sewing Clothes with a hand machine now and would set up operations to make more clothes with an electric sewing machine  Already has a business running a nakamal at night (also works for provincial government), 24 hour power would be highly appreciated to light the Nakamal, as now she needs to buy candles and kerosene. If given the opportunity most women would prefer the use of coconut oil over kerosene, at the same price;  Already has a second hand clothing store and would like to use 24 hour power to iron the clothes so they are easier to sell;  Already has a shop and would use 24 hour power to get a deep freezer to sell fresh drinks and ice cream; as may customers ask for a fresh drink but she cannot cool the drinks sufficiently with the current provincial connection;

What is your opinion of the choice of PV systems for community electrification (health centres and schools) versus the introduction of an oil mill?  This is a good project with better impact as compared with PV electrification  Would the 4 million Vatu be sufficient to finance the hydro site? Answer: No, probably not, but the hydro will be part of the future electrification plan, has to be placed in the waiting line for now;  Project is the right choice as the current income stream of Vanua Lava is through copra and this will create income opportunities related to that, higher up the value chain;  Propose to set up a women’s’ centre which exchanges handicraft and clothing, sewing, soap making;

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 What is the chance of the 4 million vatu to upgrade roads and/or buy a boat? Answer: this is probably not sufficient;

Is Sola the best place to build the oil mill; Musina is the copra centre and nobody in Sola is producing copra?  Sola is the best place as it is the economic centre of the island and is close to other facilities; transport can be organised from other parts of the island;

The women’s group is requested to consult amongst the women members of the community after the meeting and report to the SG on any suggestions on involvement on the Torba Council of Women. The current president on Mota Lava will be contacted.

A woman who is involved in fuel sales: what will happen to the use of kerosene, mazut (diesel), benzene (petrol)? Answer: Kerosene and benzene will remain, you might sell coconut oil as fuel in addition to the current fuels.

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Annex 5: Torba Hydro potential report The excerpt below is a report by Mr. Whitbourne, who has investigated the hydro potential in the Betaqren River on Vanua lava.

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