Intended Nationally Determined Contribution (INDC) of Tuvalu

1. To  generate  electricity  with  100%  renewable  energy  by  2020,  and  

2. To  increase  energy  efficiency  on  Funafuti  by  30%.         According   to   TMPREE,   Tuvalu   must   develop   6   MW   renewable   energy   electricity   generation  capacity  in  the  next  eight  years.    The  initial  capital  cost  of  solar  arrays,  wind   turbines   and   batteries   to   replace   the   current   energy   demand   is   estimated   to   be   A$52   million.     By  the  end  of  2012,  the  output  capacity  of  renewable  energy  electricity  generation  using   PV   technology   totaled   a   mere   146   kW   (peak).   There   has   been   a   steady   increase   in   installations  over  the  last  three  years  and  the  country  is  tracking  well  in  terms  of  meeting   most  of  its  target  by  2020.  The  remaining  time  will  be  used  to  make  any  shortfall  due  to   production   efficiencies,   weather   conditions   (that   will   affect   available   renewable   resources)  and  other  demands  from  the  consumers.   Large  scale  implementation  of  energy  efficiency  improvements  will  also  help  reduce  the   electricity  demand.    Given  the  steady  and  continuing  increase  in  the  price  of  diesel  oil,  the   renewable   electricity   and   energy   efficiency   programme   will   not   only   be   cost   effective   but   will  ensure  that  affordable  electricity  is  available  to  the  people  of  Tuvalu.   It   is   estimated   that   following   the   completion   of   the   renewable   electricity   and   energy   efficiency  programme,  the  use  of  the  diesel  generator  plant  will  reduce  by  up  to  95%  with   a  consequent  reduction  in  diesel  fuel  consumption.    Savings  in  diesel  fuel  over  the  30  year   life   of   the   overall   programme   are   estimated   to   be   A$152   million   (2011   dollars)   assuming   oil  prices  continue  to  increase  at  the  current  long  term  trend.  After  allowing  for  battery   replacements  and  other  maintenance,  which  are  estimated  to  cost  A$115  million,  the  net   saving  over  the  30  year  programme  will  be  A$37  million.     Whilst   the   focus   in   renewable   energy   has   largely   been   the   solar   through   PVs,   Tuvalu   is   ready   to   embrace   other   technologies,   for   example   harnessing   ocean   energy,   once   these   become  available  and  affordable.   6       Planned  Mitigation  Actions  

1. Renewable  Energy     To  meet  the  above  objectives,  electricity  will  be  generated  using  renewable  energy  in  all   the  nine  islands  of  Tuvalu.    The  Outer  Islands  are  being  developed  as  a  priority  because   fuel   transportation   from   Funafuti   increases   the   cost   of   generation   and   has   environmental   risks   associated   with   potential   fuel   spill.     Furthermore,   the   Outer   Islands   generate   18   hours  a  day  (rather  than  24  hours)  and  the  power  systems  are  less  reliable.       On   Fogafale,   the   main   island   of   Funafuti   atoll,   due   to   the   high   population   density,   available   land   is   scarce   and   ground-­‐mounting   of   the   proposed   photovoltaic   (PV)   arrays   that  will  form  the  major  component  of  the  renewable  electricity  system,  is  not  considered   practicable.  In  order  to  provide  the  required  area  for  the  PV  arrays,  in  2011  the  Tuvalu   Electricity   Corporation   (TEC)   announced   the   “1000   Solar   Roof   Programme”.     In   this   programme,   about   half   of   the   current   roof   space   of   the   buildings   in   Funafuti   will   be   occupied   by   PV   arrays.   In   the   case   of   the   Outer   Islands   where   more   ground   space   is   available,   it   is   likely   that   a   mix   of   roof   mounted   and   ground   mounted   arrays   will   be   adopted.   Initially  the  renewable  electricity  programme  in  Funafuti  will  comprise  of  the  installation   of  PV  arrays  with  battery  storage  because  this  technology  is  well  proven  in  Tuvalu.  In  the   early  stages  of  the  programme,  a  detailed  investigation  examined  the  feasibility  of  wind   turbine   generation   in   Funafuti   as   wind   generation   could   offer   significant   technical   and   economic   benefits.   Wind   measurements   in   several   parts   of   Funafuti,   show   good   potential   for  wind  energy.  Under  a  World  Bank  project  proposal  (described  below)  wind  turbines   will  be  installed  from  2016  onwards.    A  wind-­‐solar  mix  will  optimise  the  level  of  battery   storage  required  and  the  level  of  diesel  generation  required.   The   system   will   require   standby   diesel   generation   to   provide   a   back-­‐up   to   the   renewable   energy   when   prolonged   weather   conditions   limit   renewable   energy   generation.   Conversion   or  replacement  of  the  existing   diesel  generators   to   run   on   bio-­‐diesel   fuel   was   proposed   to   take   place   in   the   last   stage   of   the   renewable   electricity   programme.   It   is   estimated   that   5%   of   the   annual   electricity   production   will   be   supplied   from   bio-­‐diesel   generation.  This,  however,  is  incumbent  upon  the  development  of  a  master  plan  for  the   coconut  industry.         7       The   following   Tables   summarises   the   status   of   the   various   Renewable   Energy   Installations     Table:  Summary  of  Power  systems  in  Tuvalu   Stations   Diesel  Capacity   Solar  Capacity   Comments   (kW)   (kW)   Nanumea   144   195   actual  output  approx.  90%   Nanumaga   144   205   actual  output  approx.  90%   Niutao   144   230   to  be  online  by  end  2015   Nui   120   60   actual  output  approx.  60%   Vaitupu   144   400   to  be  online  by  end  2015   Nukufetau   120   77   actual  output  approx.  60%   Nukulaelae   60   45   actual  output  approx.  60%           Funafuti   1200   735   connected  to  grid,  no  storage           Total   2076   1947             Proposed  World     Bank  Project   2015/2017       Solar     925     Wind     200       2076   3072   5148      

2. Energy  Efficiency     Energy   efficiency   improvements   will   be   initially   targeted   on   Funafuti.     Funafuti   has   a   higher   power   demand   per   capita   than   the   outer   islands   and   also   consumes   85%   of   the   electricity  generated  by  the  Tuvalu  Electricity  Corporation  (TEC).  Meeting  the  30%  target   will   allow   Tuvalu   to   maintain   current   generation   levels   over   the   next   eight   years   at   2%   annual   growth   of   GDP.   The   energy   efficiency   programme   will   include   public   education,   energy  audits  and  technology  improvements.     A  proposed  World  Bank  project  is  aimed  at  providing  additional  energy  generation  from   solar  PV  and  will  include  investment  in  modest  wind-­‐power  capacity.  Even  if,  for  various   reasons,  the  role  of  wind  in  Tuvalu’s  future  power  mix  is  likely  to  be  smaller  than  solar   PV,  it  will  serve  as  an  important  capacity  building  in  this  technology  for  TEC.  The  solar  PV   investment   will   provide   sufficient   battery   storage   and   a   power-­‐conditioning   system   to   ensure   grid   stability,   as   intermittent   RE   sources   become   an   increasingly   dominant   portion  of  Fogafale’s  power  mix.       8       In   addition,   the   project   will   finance   strategic   EE   investments   in   the   largest   electricity-­‐ consuming   sectors.   These   investments   could   significantly   reduce   the   need   for   future   investments   on   the   generation   side.   Moreover,   the   project   will   bring   a   longer-­‐term   perspective   on   RE   investments   from   all   sources   by   including   battery   storage   and   grid-­‐ forming   inverters   that   represent   major   investments   but   are   critical   for   long-­‐term   grid   stability.   Thus,   this   project   will   facilitate   the   planned   and   other   future   incremental   RE   additions   without   leading   to   grid   instability   and   other   system   problems   that   would   seriously   set   back   the   country’s   plans   toward   achieving   the   goal   of   100   percent   penetration  of  RE  in  the  future.      

3. Plans,  Policies  and  Regulations   Under   a   proposed   Energy   Efficiency   Act,   The   Government   of   Tuvalu   will   introduce   legislation   to   promote   energy   efficiency,   and   control   the   importation,   use   and   sale   of   inefficient  electrical  appliances  into  the  country.  Under  the  Energy  Efficiency  Regulations,   2015,  which  will  come  into  effect  on  1  January  2016,  Minimum  Energy  and  Performance   Standards  and  Labelling  (MESPL)  will  determine  importation  and  use  of  appliances  and   goods.   This   is   in   line   with   GOT’s   objective   to   promote   energy   efficiency,   energy   conservation  and  the  use  of  renewable  sources  of  energy  as  part  of  Tuvalu’s  obligations   under  the  UNFCCC  and  related  conventions.       Means  of  Implementation     The  Government  of  Tuvalu  believes  that  climate  change  is  real  and  is  the  greatest  threat   to  its  low  lying  atolls  and  people.  Negative  effects  are  already  taking  place  and  these  will   gravely   undermine   efforts   towards   sustainable   development   and   threaten   the   survival   and  the  sovereignty  of  the  nation  and  her  people.  While  longer  term  impacts  such  as  sea   level  rise  could  result  in  the  unavoidable  out-­‐migration  of  some  of  her  people,  they  have  a   right   to   pursue   any   and   all   means   to   ensure   their   nation   survives   and   the   legacy   remains,   with  future  generations  living  productive  lives  on  these  islands.           Climate   change   is   a   cross-­‐cutting   development   issue   as   it   affects   every   aspect   of   the   Tuvaluan  way  of  life  and  livelihoods.      Climate  change  impacts  exacerbate  existing  cultural   and  socio-­‐economic  vulnerabilities.  These  impacts  threaten  the  security  of  the  nation.  To   this   end,   the   people   of   Tuvalu   must   collectively   build   and   strengthen   the   nation’s   resilience  to  combat  climate  change.  However,  this  cannot  be  done  alone  and  in  isolation;   regional   and   global   cooperation   is   imperative   to   put   Tuvalu   on   a   pathway   to   climate   change  resilience  and  sustainable  development.           9       Tuvalu   is   of   the   view   that   the   scientific   underpinnings   of   the   discussions   on   climate   change   are   clear   in   defining   impact   thresholds.     Therefore,   international   cooperation   is   required.  Any  failure  to  reach  an  agreement  to  radically  cut  emissions  would  jeopardize   Tuvalu’s  development  and  survivability.             Tuvalu   continues   to   revise   its   policies   in   energy,   climate   change   and   the   electricity   sector   in   line   with   its   sustainable   development   as   contained   in   the   National   Strategic   Development   Plan.   The   significant   costs   of   imported   fossil   fuels   are   a   major   factor   in   Tuvalu’s   balance   of   payments.   Whilst   Tuvalu   continues   to   take   actions   to   reduce   its   fossil   fuel   import   bill,   thereby   reducing   its   carbon   footprint,   it   will   underscore   the   need   for   support  to  assist  in  its  ambition  for  transforming  the  energy  sector  to  non-­‐carbon  sources   through   greater   use   of   renewables   such   as   solar   and   wind   and   use   of   transformational   technology.       Tuvalu’s   INDC   includes   unconditional,   conditional   and   aspirational   contribution   to   reducing   emissions.   The   unconditional   contribution   includes   actions   that   Tuvalu   has   already   undertaken   through   renewable   energy   programmes   to   reduce,   significantly,   its   reliance   on   imported   fossil   fuels   for   electricity   generation.   It   will   continue   to   push,   through  other  measures  such  as  conservation,  education  and  energy  efficiency  and  other   measures,  recognizing  its  extreme  vulnerability  to  the  impacts  of  fossil  fuel  prices.  These   comprise  approximately  a  quarter  of  the  total  imports,  and  any  reduction  in  the  energy   bills  would  assist  in  diverting  development  funds  to  other  priority  areas  such  as  poverty   reduction.     International  support  is  crucial  to  enable  Tuvalu  implement  further  actions  enshrined  in   its  Policies  and  Plans,  including  at  sectorial  level.    For  example,  the  growing  emissions  in   the   transport   sector,   as   evidenced   from   the   increased   numbers   of   vehicles   on   land   and   vessel   for   sea   transport,   needs   to   be   addressed   through   technological   innovations.   The   goal  to  pursue  a  zero  carbon  development  pathway  by  2050  is  dependent  on  availability   of  finance  and  technology.       10