Renewable Energy & Energy Efficiency in Solomon Islands Renewable Energy & Energy Efficiency...

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Transcript of Renewable Energy & Energy Efficiency in Solomon Islands Renewable Energy & Energy Efficiency...

  • Renewable Energy & Energy Efficiency

    in Solomon Islands

    A case study at a rural grid-connected hospital

    James Ward

    [Bachelor of Engineering, Bachelor of Commerce, Postgraduate Diploma in Energy Studies]

    Dissertation for Master of Science (Renewable Energy)

    School of Engineering & Information Technology

    Murdoch University

    October 2014

  • 1

    Figure 1. Helena Goldie Hospital Maternity Ward

  • 2

    Declaration

    I declare that this dissertation is a product of my research alone. All external information

    sources have been acknowledged and referenced where appropriate.

    James Ward

  • 3

    Abstract

    Solomon Islands, with a 2010 population of only 538,000 (TRADING ECONOMICS 2014b)

    among almost 1000 islands, is an island nation heavily dependent on fossil fuels for its energy

    needs. With a renewable energy share of less than 1% of its 2009 energy mix (IRENA 2012b),

    and likely little increase by the time this research was performed (2014), the country’s

    renewable energy target of 50% electricity generation capacity by 2015 (REN21 2013, 106)

    seems, at first, rather far-fetched. Plans for new large-scale hydro and geothermal power

    projects, however, may soon change the nation’s electricity supply mix considerably, albeit a

    little later than the target date. Focus on delivering “green” energy to Honiara, the nation’s

    capital, whilst attractive from a statistical point of view – as this is where about 90% of the

    nation’s generating capacity exists (SIEA 2014c, 14) – may be detracting interest from the

    development of sustainable energy opportunities in rural areas, where about 90% of the

    population live (Ellis 2014, sec.1, par. 7).

    Helena Goldie Hospital, a grid-connected 70-bed hospital operating among the proportionally

    expansive rural population, has endured significant financial hardship attempting to maintain

    service delivery quality whilst accruing a growing debt to the nation’s electricity utility,

    Solomon Islands Electricity Authority (SIEA). Solomon Islands’ electricity prices, the highest

    among Pacific island developing nations (SPC 2012a), are part of the issue, as well as limited

    knowledge of (and limited existence of) energy efficiency and alternative energy supply

    policies and possibilities.

    This project delves into the current state of Solomon Islands’ energy sector, and attempts to

    find reason behind the lack of government policy or programs targeted at encouraging private

    renewable energy generation, particularly in rural grid-connected areas. The hospital case

    study is used as a practical mechanism to both draw out the enabling factors and barriers to

    private renewable energy generation in Solomon Islands, and to relieve the hospital of its

    electricity consumption financial burden.

  • 4

    Table of Contents Declaration .................................................................................................................................... 2

    Abstract ......................................................................................................................................... 3

    Table of Contents .......................................................................................................................... 4

    Acknowledgements ....................................................................................................................... 8

    Acronyms & Abbreviations ............................................................................................................ 9

    Units of Measurement ................................................................................................................ 11

    1 Introduction .......................................................................................................................... 12

    1.1 Background .................................................................................................................... 12

    1.2 Aims & Objectives .......................................................................................................... 13

    1.2.1 Research Question(s) .............................................................................................. 13

    1.2.2 Sharing Findings ...................................................................................................... 14

    1.3 Scope ............................................................................................................................. 14

    1.4 Methodology ................................................................................................................. 16

    PART I .......................................................................................................................................... 21

    2 Renewable Energy in Solomon Islands ................................................................................. 21

    2.1 Solomon Islands Energy Sector Overview ..................................................................... 21

    2.2 Comparison with other Pacific Small Island Developing States .................................... 24

    2.3 Solomon Islands Electricity Authority ............................................................................ 29

    2.4 What is being done to Achieve Solomon Islands’ Renewable Energy Target?.............. 31

    2.4.1 Urban RE Projects ................................................................................................... 31

    2.4.2 Rural Grid-Connected Projects ............................................................................... 32

    2.4.3 Off-the-Grid Projects .............................................................................................. 33

    2.5 Policy Affecting Renewable Energy Development ........................................................ 34

    2.5.1 Electricity Act .......................................................................................................... 34

    2.5.2 Solar System Connection Manual ........................................................................... 35

    2.5.3 Energy Efficiency Policy .......................................................................................... 37

    2.6 Barriers to Renewable Energy Development in Solomon Islands ................................. 37

    2.7 Conclusions for Renewable Energy in Solomon Islands ................................................ 40

    PART II ......................................................................................................................................... 41

    3 Case Study Section 1: Energy Audit at Helena Goldie Hospital ............................................ 41

    3.1 Hospital Overview .......................................................................................................... 41

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    3.1.1 Location & Client Demography ............................................................................... 41

    3.1.2 Service & Operation ................................................................................................ 42

    3.2 Hospital Energy Audit Overview .................................................................................... 43

    3.2.1 Audit Scope & Boundaries ...................................................................................... 44

    3.3 Audit of Historical Data .................................................................................................. 47

    3.3.1 2013 Balance of Payments ..................................................................................... 47

    3.3.2 Historical Energy Consumption .............................................................................. 49

    3.3.3 Historical Energy Supply & Consumption ............................................................... 51

    3.4 Screening Survey ........................................................................................................... 55

    3.4.1 Electricity Demand Profile ...................................................................................... 55

    3.4.2 Walkthrough Audit Results ..................................................................................... 57

    3.5 Investigation & Analysis - Demand-Side Energy Efficiency & Conservation Opportunities .......................................................................................................................... 58

    3.5.1 Pre-existing Energy Efficiency Initiatives ................................................................ 58

    3.5.2 Proposed Energy Efficiency Initiatives .................................................................... 58

    3.5.3 Energy Efficiency Economic Analysis Summary ...................................................... 64

    3.5.4 Projected Electricity Demand Profile ...................................................................... 66

    3.6 Energy Audit Summary .................................................................................................. 68

    4 Case Study Section 2: Alternative Electricity Supply Options at Helena Goldie Hospital ..... 70

    4.1 Rene