Global fuel price volatility is a significant challenge facing electricity prices, particularly for Fiji, as noted by Energy Fiji Ltd’s chief executive officer, Fatiaki Gibson. He highlighted that while this is a risk largely beyond Fiji’s control, the company is actively pursuing strategies to mitigate these fluctuations by shifting towards renewable energy sources.
Gibson revealed that the transition will necessitate a substantial investment of approximately $2 billion aimed at enhancing hydropower capabilities, solar energy production, battery storage, and the development of transmission and power evacuation infrastructure. This comprehensive approach is expected to diminish Fiji’s vulnerability to the unpredictable nature of global fuel prices, ultimately stabilizing electricity costs and fulfilling the nation’s climate commitments while bolstering energy security.
He pointed out that electricity demand in Fiji is projected to rise by about 5 percent annually, stressing the urgency of timely investment to avoid potential delays in new connections, which could disrupt economic growth and create uncertainty for businesses. A stable tariff framework is essential, according to Gibson, as it fosters reliable investment planning, facilitates prompt supply expansion, and instills confidence among households, businesses, and investors.
Furthermore, he emphasized the importance of a collaborative effort in shaping Fiji’s energy future, aligning with the Government’s National Energy Policy. This collective endeavor must involve customers, regulatory bodies, the government, and development partners working alongside Energy Fiji Ltd.
Mr. Gibson indicated that decisions regarding tariffs are crafted to maintain a delicate balance between affordability and sustainability, ensuring support for vulnerable households while promoting economic growth and a cleaner, more reliable energy system. Through cooperation, Fiji aims to secure a robust electricity supply that meets current demands while protecting the interests of future generations.
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