FOSSIL FUEL TAXATION IN SEYCHELLES

Mamy Razanajatovo

Principal Officer for Energy Policy and Planning

Seychelles Energy Commission

Email: mrazanajatovo@sec.sc

UNOSD Capacity Development Workshop on Taxation Policy for Fossil Fuel and Renewable Energy for IO and African SIDS, Mauritius 12-16 May 2014

1. GENERAL DATA Population: 88,311 (Census of Aug.2010)

Total Land Area: 456 km2

Maritime EEZ: Over 1 million km2

GDP (at current prices for 2010) Million SCR 11,621 Million US$ 915

Per capita GDP: US$ 10,193

• Number of households: 22,100 Average Size of Household: 4 persons/household

Consuls Conference at Ephélia Resort, 25th October 2011 Seychelles Energy Commission

2

UNOSD Capacity Development Workshop on Taxation Policy for Fossil Fuel and Renewable Energy for IO and African SIDS, Mauritius 12-16 May 2014

ENERGY BALANCE FOR 2010

ENERGY SUPPLY

Primary Energy Supply= Production + Imports

- Exports

- International Marine Bunkers

± Stock Changes

= 167 000 TOE in 2010

LPG3%

Mo-tor

Gasoline 9%

Jet A-1 Kerosene30%

Gas/Diesel Oil 29%

Fuel Oil 29%

Structure of Primary Energy Supply in 2010

Seychelles Energy Commission 4

PRIMARY ENERGY DEMAND (BY SECTOR)

Seychelles Energy Commission5

Electricity Generation (PUC)37%

Autoproducers of electricity

10%

Industry (Food&Beverg)2%

Road Transports18%

International Aviation27%

Domestic Aviation1%

Domestic Navigation1%

Residential2%

Commerce (Hotels & Businesses)1%

ENERGY DEMAND FINAL ENERGY

CONSUMPTION = 121,825 TOE IN 2010

Seychelles Energy Commission 6

LPG4%

Motor Gaso-line 12%

Jet A-1 Kerosene

41%

Gas Oil 15%

Fuel Oil 3%

Elec-tricity24%

Structure of FEC by energy form in 2010

Transport68%Ser-

vices11%

In-dustry

11%

Domestic9%

Agriculture1%

Final Energy Consumption by Sector in 2010

ENERGY POLICY

Seychelles Energy Commission7

Main Goal: To Develop a Sustainable Energy sector

Objectives: To Reduce Dependence on Oil

(Seychelles is presently 100% dependent on oil)

To Increase Energy Efficiency (Reduce energy losses and wastages in all sectors)

To Increase the share of Renewable Energy in the energy supply mix

TARGETS FOR RENEWABLE ENERGY (RE)

Seychelles Energy Commission8

5% of RE by 2020 in the Final Energy

15% of RE by 2030 in the Final Energy

100% of RE in the long-term in the Final Energy

INCENTIVES FOR PROMOTING RE

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Power Purchase Agreement

Feed-in tariffs for different RE sources

Fiscal incentives on imports of RE equipment (Exemption of GST: GST Amendment No.3, Regulations, 2010: 163F. )

INSTRUMENTS IN PREPARATION

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Model Power Purchase Agreement to be studied/prepared

Feed-In Tariffs for Solar PV and others to be studied/ prepared

Grid absorption capacity to be studied

The Energy Commission in preparation phase

GREENHOUSE GAS EMISSIONS FROM THE ENERGY SECTOR IN 2000 (IN METRIC TONNE)

Increased from 185,000 to 233,000 tonnes from 1995 to 2000

An increase of 26% 1 key sector for abating GHG in Seychelles is: Electricity

Generation

Consuls Conference at Ephélia Resort, 25th October 2011 Seychelles Energy Commission 11

1995 20000

50000

100000

150000

200000

250000

OthersRoad TransportElec Gen

UNOSD Capacity Development Workshop on Taxation Policy for Fossil Fuel and Renewable Energy for IO and African SIDS, Mauritius 12-16 May 2014

WIND FARM – 6 MW

UNOSD Capacity Development Workshop on Taxation Policy for Fossil Fuel and Renewable Energy for IO and African SIDS, Mauritius 12-16 May 2014

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

0

2

4

6

8

10

12

14

16

18

12.37 11.9610.91 10.39

11.1812.37

11.25 11.8110.5 10.5 10.5 10

98 8.03 8.03

4.133.99

2.94 4.523.73

4.13

3.753.94

2 2 2

0.33

0.33

0.44 0.3 0.3

Retail Price of L.P.G

Retail Price Without Tax Tax

Year

SR

/Kg

UNOSD Capacity Development Workshop on Taxation Policy for Fossil Fuel and Renewable Energy for IO and African SIDS, Mauritius 12-16 May 2014

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

0

1

2

3

4

5

6

1.83 1.83 1.83 1.83 1.83 1.83 1.83 1.83 1.83 1.83 1.83 1.83 1.83 1.83 1.83 1.83

2.11 2.24 2.24 2.44 2.44 2.44 2.44 2.44 2.44 2.44 2.44 2.44 2.44 2.44 2.44

3.17

Retail Price of Gasoil

Retail Price Without Tax Tax

Year

SR

/l

UNOSD Capacity Development Workshop on Taxation Policy for Fossil Fuel and Renewable Energy for IO and African SIDS, Mauritius 12-16 May 2014

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

0

1

2

3

4

5

6

7

8

2.08 2.08 2.08 2.08 2.08 2.08

3.35 3.35 3.35 3.35 3.35 3.35 3.35 3.35 3.35 3.35

2.79 2.89 2.89 3.13 3.13 3.13

3.16 3.16 3.16 3.16 3.16 3.16 3.16 3.16 3.163.65

Retail Price of Gasoline

Retail Price Without Tax Tax

Year

SR

/l

UNOSD Capacity Development Workshop on Taxation Policy for Fossil Fuel and Renewable Energy for IO and African SIDS, Mauritius 12-16 May 2014

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

0

1

2

3

4

5

6

1.82 1.82 1.82 1.82 1.82 1.82 1.82 1.91 1.91 1.91 1.91 1.91 1.91 1.91 1.91 1.91

0.18 0.28 0.28 0.38 0.38 0.38 0.38 0.29 0.29 0.29 0.29 0.29 0.29 0.29 0.29

3.09

Retail Price of Kerosene

Retail Price Without Tax Tax

Year

SR

/litr

e

UNOSD Capacity Development Workshop on Taxation Policy for Fossil Fuel and Renewable Energy for IO and African SIDS, Mauritius 12-16 May 2014

Gasoline Gasoil Kerosene HFO0

5

10

15

20

25

30

35

Retail Price Structure for Petroleum Fuels in 2014

TaxPrice Excl tax

SR/L

THANK YOU

Contact: Seychelles Energy Commission

Unity House, Block B, 3rd Floor, Room 307-308

Victoria, Mahé, Seychelles

Email: mrazanajatovo@sec.sc

Tel: +248. 4610822

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