EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
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Figure A.9: Access to Electricity<br />
100<br />
90<br />
% Population with Access to Electricity<br />
80<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
Source: Castalia Research, SOPAC.<br />
0<br />
Solomon Islands<br />
Timor<br />
Vanuatu<br />
Kiribati<br />
FSM<br />
PNG<br />
Palau<br />
Fiji<br />
Tonga<br />
Jamaica<br />
St Kitts<br />
Samoa<br />
Dominica<br />
St Lucia<br />
Grenada<br />
Marshall Islands<br />
Barbados<br />
New Zealand<br />
Notes: PNG: Papua New Guinea, FSM: Federated States of Micronesia<br />
Price<br />
Electricity prices are driven primarily by four factors: 39<br />
1. <strong>The</strong> cost of primary energy used to generate electricity. <strong>The</strong> highest cost tends to be<br />
imported fossil fuels. Countries with substantial hydro generation (such as Fiji)<br />
could be expected to have lower generation costs<br />
2. <strong>The</strong> underlying costs of the generation, transmission and distribution assets which<br />
are influenced by geographical dispersal of the population, the particular technologies<br />
used, the age of the assets, and the efficiency with which they are operated<br />
3. <strong>The</strong> efficiency of each of: primary energy supply, generation, transmission or<br />
distribution unit, and utilities’ performance in minimizing system losses and<br />
maximizing the electricity delivered to consumers from each unit of primary energy<br />
input.<br />
4. presents system losses<br />
5. <strong>The</strong> extent to which government subsidizes electricity supply 40 .<br />
Figure A10 below presents average electricity tariffs for the <strong>Pacific</strong> and comparator<br />
countries. Residential tariffs are often cross-subsidized by commercial tariffs. <strong>The</strong>se data<br />
reflect the average tariffs across all customers.<br />
39 This section of the report uses prices as the basis for analysis rather than costs because reliable information<br />
about costs was very difficult to obtain. Prices do not necessarily reflect costs, but in absence of cost data,<br />
prices are the only reasonable proxy. Given the prevalence of subsidization of electricity considerable care in<br />
interpreting this data is needed.<br />
40 For example, FSM had access to considerable rural electrification programs from the United States<br />
91