‘EFL will struggle’

Energy Fiji Ltd will struggle to achieve its target of 90 per cent renewable energy generation by 2025, said Asian Development Bank (ADB).

In a new report released this week, ADB studied the financial performance of State-owned enterprises in nine Pacific economies and also looked at risks State-owned power utilities faced as a result of climate change.

“While EFL has an ambitious pipeline of renewable energy projects, it has struggled in recent years to successfully tender and negotiate independent power producer (IPP) contracts, with COVID-19 contributing to delays,” the report said.

“As a result, EFL has fallen short of the National Development Plan target of 81 per cent of renewable energy generation by 2021, and will struggle to achieve the target of 90 per cent by 2025.

“A further target of 100 percent has been set for 2050,” according to the report.

Tropical cyclones remain one of EFL’s biggest threats given the extensive infrastructure damage it sustained following five tropical cyclones in 2020 alone.

Total restoration costs incurred by EFL for the four cyclones were estimated at F$4.5 million in 2020, and a further F$7.2 million in 2021.

The increasing frequency and severity of tropical storms heightened the need for EFL to invest in protecting and reinforcing its system assets, which has been an ongoing effort, the report said.

EFL declined to comment.

In its 2021 annual report, EFL was confident it would achieve its targets through the involvement of new shareholder Sevens Pacific Pte Ltd, a joint venture owned by Japanese firm Chugoku Electric Power Co Inc (CEPCO) and Japan Bank for International Cooperation (JBIC). “With over 50 per cent of EFL’s electricity already generated by renewable sources, Fiji is well placed to achieve its long-term targets with the expertise and capital of CEPCO and JBIC,” the company said.

Energy Fiji Limited has found a reputable partner for change in CEPCO.