GLOBAL fuel price volatility remains one of the biggest risks to electricity prices, a factor Fiji has little control over, says Energy Fiji Ltd chief executive officer Fatiaki Gibson.
He said EFL was moving decisively to reduce this risk by transitioning to renewable energy, an effort that would require an estimated $2billion investment in hydropower, solar generation, battery storage, and transmission, and power evacuation lines.
“One of the biggest risks to electricity prices globally is fuel price volatility, which Fiji cannot control,” Mr Gibson said.
To address this, he said EFL was transitioning decisively toward renewable energy.
“This includes major investment in hydropower, solar generation, battery storage, as well as transmission and power evacuation lines.”
Mr Gibson said increasing renewable energy would help “reduce our exposure to global fuel price shocks, stabilise electricity prices over the long term, support Fiji’s climate commitments and strengthen our energy security”.
He said electricity demand in Fiji was expected to grow by around 5 per cent each year and warned of the consequences if investment was delayed.
“Without timely investment, new connections could be delayed, businesses could face uncertainty and economic growth could slow.”
He said a stable tariff framework was essential to support the sector’s future development.
“A stable tariff framework enables reliable investment planning, timely expansion of supply and confidence for households, businesses and investors.”
He added Fiji’s energy future depended on collective support aligned with the Government’s National Energy Policy.
“This requires the support of customers, regulators, government, development partners and EFL working together.”
Mr Gibson said the tariff decision was designed to strike a careful balance.
“The tariff decision balances affordability with sustainability, protects vulnerable households, supports economic growth and enables a cleaner, more reliable energy system.
“By working together, we can ensure a future-proofed electricity supply that meets the needs of today while safeguarding generations to come.”
