Pre-feasibility Study of Efate Geothermal Power Plant and Island Ring Grid Development Program

The objectives of the World Bank 2011  assignment were to: (i) define and cost at a conceptual level the principal technical options for geothermal power generation and associated transmission and distribution in Efate, Vanuatu (ii) determine the economically optimal option, taking into account both the potential for displacing diesel generation in the Port Vila concession as well as new services to areas outside the concession, and (iii) formulate commercial and regulatory arrangements to facilitate financially least-cost development of this option.

This study was aimed at providing inputs for the Government of Vanuatu to formulate and implement commercial and regulatory framework to initiate the development of geothermal potential on Efate, Vanuatu. The approach of  this study entailed five steps:

• Defining various scenarios of geothermal power potential
• Identifying network and geothermal development options corresponding to these geothermal resource scenarios and expected load growth
• Evaluating which development option is economically optimal taking into account the uncertainty in key parameters and the cost of competing technologies (diesel, wind and solar photovoltaics).
• Assessing the financial impacts of the economically optimal development option on consumers and UNELCO under various development scenarios, and
• Formulating a framework for geothermal development, and associated changes to policies, regulations and concession agreements that facilitate implementation of the optimal approach taking into account the uncertainty in key parameters.