EFL requires $2.5bn to fund Power Development Plan
3 December, 2018, 8:35 am
ENERGY Fiji Limited (formerly the Fiji Electricity Authority – FEA) requires an estimated $2.5billion to invest in the generation, transmission, and distribution sectors as part of its 10-year Power Development Plan (PDP).
EFL had carried out a review of its 10-year PDP to end in 2026.
The plan contains load forecasting and power generation planning for power systems throughout Viti Levu, Vanua Levu, Taveuni and Ovalau, and maps out the necessary associated network assets and investments required for the augmentation of the 132kV and 33kV transmission networks.
Of the total $2.5bn investment required through 2026, EFL expects to fund $870million.
EFL chairperson Daksesh Patel said in their 2017 annual report that EFL’s financial performance over the next three years would be critical in determining how they would fund those commitments.
“We plan to achieve a profitability of at least $60million a year to fund our three-year capital expenditure plan, and we expect that this will be driven by a continued growth in profitability in the coming years,” Mr Patel said via the annual report.
“We also anticipate an influx of private sector investment in the power generation sector as more Independent Power Producers (IPPs) come on board to sell electricity to FEA through long-term Power Purchase Agreements.
“We maintain the stance that borrowing is our last resort and will only be considered when no other options are available.
“We plan to emulate our 2017 approach of internal funding through expanded profits where at all possible, as it served us incredibly well this year.
“While many of the factors that will affect the implementation of our PDP are outside of our control—namely, tariff rates, weather events, and fuel prices—we are confident that, on our current path, we will continue to find the same success that we witnessed in 2017.
“Because while the next decade poses challenges, FEA has proven its ability to overcome obstacles and adversity. With these challenges comes opportunity, and this is what ultimately motivates us in our dedication to lighting the way to a better Fiji.”