UNELCO enters into PPP operation for solar farm

UNELCO has entered into its first Public Private Partnership (PPP) arrangement with the European Union and the Government of Vanuatu as part of the power generation company’s renewable energy program.

The Chief Executive Officer of UNELCO, Yves Morault, says under the PPP operation, UNELCO are co-financing a big solar farm to be installed at their Kawene site on Devil’s Point outside Port Vila, between the company’s wind turbines.

Once completed and in operation, Morault says the solar farm is expected to provide 1.5 megawatt of power which is about 5 or 6% of the whole Efate electricity consumption.

“It will also contribute to decrease in the tariff by 1.5 to 2%,” he added.

The project is also expected to generate 2 million kilowatt/hours per year, which will result in 500,000 litters of imported fuel savings and reductions by 1,300 tons of CO2 emissions.

Under the PPP agreement, the European Union is providing 2.5 million Euros (Vt316.5 million) in grant to the Vanuatu Government for the Project, UNELCO’s private sector investment 1 million Euros (Vt126.5 million) and the Government of Vanuatu 700,000 Euros (Vt88.6 million), totally 4,200 Euros (Vt531.5 million).

There is more solar operation in the pipeline with the assistance of the United Arab Emirates that will be installed near Convention Centre being built near the Parliament Complex, which UNELCO expects will take solar energy contribution to about 8% of consumption.

UNELCO’s development program for renewable energy in the energy mix of Port Vila is based on four main resources that we know that we have identified — coconut oil, wind, sun and the biomass.

For the wind, Morault says this year they have installed two more turbines of 275 kilowatt on the Kawenes site taking their total turbines to 13, which he says will contribute to the decrease in tariff for consumers.

“I wish to explain that even if this decrease is 1-2% this is important because if we stop wind today the increase in tariff will be 5%. That’s the importance of the contribution from wind turbines to the pricing of the kilowatt hour.”

UNELCO has been in partnership with government over many years and involved in energy transition and they are now reaching some important stage in renewable energy in the energy mix of Port Vila.

In 2005 they started experimenting with biodiesel using coconut oil from copra and they have now achieved at their power plant at Tagabe where they are now able to use 100% of coconut oil.