The Republic of Fiji is a group of 300 islands covering 18,376 km2 located in the Pacific Ocean to the Northeast of Australia. Fiji has a population of 898,760 as of 2016, and major languages spoken are English, Fijian and Hindi. Of the 300 islands, about 100 are inhabited and 90% of the population resides in the three biggest islands of VitiLevu, Vanua Levu, and Ovalau. The capital, Suva, on Viti Levu, serves as the country's principal cruise-ship port. Fiji is an upper-middle-income country, relying heavily on its tourism and sugar industries. The service sector is growing strongly driven by tourism, and along with construction, manufacturing and retail activity, are the key drivers of growth.
Fiji is currently dependent on imported fossil fuels and hydroelectricity as its main source of energy. Fiji's energy demand is driven by household consumption of electricity and transport fuels and by the need of its major industries, in particular agriculture, forestry, tourism, and mining.
The Fijian government is actively seeking alternative energy sources to supplement its heavy dependence on imported fuels with the objective of being 80% reliant on renewable energy for electricity by 2020 and fully reliant by 2030.Fiji has made commitments to renewable energy development in its Green Growth Framework, its five-year National Development Plan, and in its 20-year Strategic Vision. It has pledged to transition to 100% renewable electricity by 2035 as part of its Nationally Determined Contribution to the Paris Agreement on reducing greenhouse gas emissions.
In Fiji, rural communities in the smaller islands are not connected to the main grid. Off-grid solar PV has become the Department of Energy's preferred rural electrification option for areas without grid access. The government is eager to facilitate the sustainable production and management of solar power and non-grid electrification systems, such as the development of solar home systems, solar power water supply systems, solar systems for schools and clinics, and solar water heating systems for homes and institutions. Under the Rural Electrification Project, the government has allocated USD 42.6 million towards rural electrification and is installing solar power home systems in rural communities. By the end of 2014, the Department of Energy had installed over 5,700 solar home systems. The goal for the Department is to implement 18,000 systems throughout the country.
The Department of Energy, the Global Green Growth Institute and the Korean International Cooperation Agency are developing a 1.55MW solar PV project on the island of Taveuni. Expected to be completed in 2020, the project aims to increase renewable energy generation to 65 % on the island with benefits in the form of increased energy security and reduction in GHG emissions.
The Department of Energy is expanding the installation of mini grids powered by solar and diesel generators; as well as installing PV solar home systems through establishing RESCO companies to increase electrification rates amongst Fiji’s rural communities.
In 2016, the Department of Energy assisted villages in Tavea Island and Mali Island to install two solar water pumps to cater for village water supply needs. The communities contributed 10% of the cost while the government contributed the remaining 90 %.
Commercial investors, primarily in the tourism industry, are installing roof-mounted solar to partially generate their own electricity. In 2010, one of the first few solar farms was built on one of the main islands, VitiLevu, with7 MW capacity. The farm being built by Swiss-clean energy company Meeco AG and is expected to provide energy for a gold mine on the island.
Since 2017, the Fijian government has partnered with private company, Sunergise (Fiji) Limited, and the Leonardo DiCaprio Foundation to bring solar power in a phased approach to rural villages such as Vio and Nacula in Fiji. In the first phase, a solar, battery micro-grid, with a diesel generator (as a back-up) provided a renewables-system with smart-metered, pre-paid electricity to Vio. The next phases are expected to see the design and installation of similar off-grid systems in 500 communities. The solar energy provider has also installed 783kW solar PV array solar systems in resorts in Vanuatu.
Fiscal incentives include a five-year tax holiday to taxpayers undertaking a new activity in renewable energy and cogeneration projects, including for solar projects. Incentive in the form of a five-year tax holiday is also provided for imported renewable energy equipment including for solar appliances, such as solar heaters and solar water pumps.