Fiji Electricity System - Research Paper Example

The value of imports from Fiji has been increasing and hit the $3 billion US mark in 2006. The main contributing factor to the increase is the mineral fuels importation. The mineral fuels have increased in value since 2004 to 2008. It represents a change from US$400 to about $1.2 billion. The overdependence of the industry’s on fuel importation reveals how the economy is vulnerable to the rising fuel prices. The vulnerability is of concern given that the increase in demand for electric power has overwhelmed Monasavu Hydropower Station limits over the last decade.

It results in the supplementation of its energy requirements with diesel generation (F.E.A. n.d.). Fiji can be termed as better than its larger neighbors. It has about 80% of its people (about 92% in urban areas) accessing electricity. By 2008, its average electricity production mix was composed of 33.7% diesel, 62.1% hydro, 0.6% wind and 3.6% biomass. Energy consumption in Fiji has increased to 715.2 million kWh in 2009 from 202.8 million kWh in 1980. Because the hydropower component is variable as it depends on the weather patterns, the ever growing demand for electric power has to be fulfilled by importing diesel-based generation.

FEA has an ambitious plan of producing 90% of its electricity by use of renewable energy resources by 2015 (Lal & Atul n.d) Fijis pricing tariff rates are the lowest in the Pacific Islands region. As of recent times, its rates have stagnated though there was a marked increase in its demand and diesel usage. The cause of its low tariff prices is its rejection by the independent power producers because FEA could not pay them suitable buying rates. As at present, FEA supplies about 54% of the electricity market from its hydropower stations as it gets the rest from thermal generation.

This condition is expected to change upon the installation of a new 42-MW hydropower system. In regards to estimates made by FEA, generation of