Support for Energy Sector Regulatory Capacity and Electrification Investment Planning

ADB 2017 technical assistance  supported the development of institutional capacity for regulation of Fiji’s electricity sector, and for development of a sector investment planning framework. Fiji’s power sector is dominated by the Fiji Electricity Authority (FEA) as the sole entity authorized to generate, transmit, distribute, and sell electricity in Fiji, and to license other entities to operate in the power sector. The Government of Fiji has indicated its intention to increase the share of private-sector participation in the power sector through corporatization and privatization of FEA.

ADB technical assistance supported the government in the partial divestment of FEA, Investment in capital projects (both private and public) needed to be guided by a coherent investment planning framework that is consistent with government policy objectives and public interest.

Castlerock undertook the following tasks:

  • Prepared a new sector planning framework that can support tariff design as well as identify least-cost capacity additions;
  • Prepared a new framework for private participation in power generation to ensure these projects are selected and implemented in the best interests of consumers;
  • Provided capacity building for the Fiji Competition and Consumer Commission (FCCC) on tariff design and review of system least cost plans;
  • Provided capacity building for Ministry of Infrastructure and Transport on the design and  implementation of hybrid power systems and the integration of economic and financial analysis and social and environmental safeguards into electricity projects;
  • Prepared a national electricity access plan that will guide MoIT’s efforts going forward, and delineate the ultimate boundaries of the FEA/NewCo grid. This national electricity access plan  identified the least-cost means of serving every community in the country that did not yet have access; options for procurement packaging and project implementation and supervision; financial and economic analysis of the potential investment; and social and environmental safeguard strategies for program implementation and
  • Supported GIS development within MoIT.