OPINION I Fiji’s energy future – People or the system?

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The author says the 2021 partial divestment of EFL introduced 44 per cent foreign private shareholding, while EFL’s exemption from oversight by the Office of the Auditor-General under the Audit Exemption Regulations 2021 reduced public transparency in a monopoly utility precisely when stronger safeguards were needed. Picture: FILE

The massive wave of public opposition to the recent waste-to-energy project isn’t a debate about trash — it’s a debate about authority.

At its heart, this is not just a technical disagreement. It is a fundamental question of who holds the pen when designing the systems that shape our cost of living, our health, and our national sovereignty.

It is a demand for power over the decisions that will lock in Fiji’s economic future for generations to come.

More than 875 formal submissions were lodged with the Ministry of Environment. In addition, over 8,800 petition signatures were recorded — including more than 5,600 online and around 3,200 in hard copy.

This was not limited to one group. Concerns were raised by local residents, landowners, tourism operators, and environmental organisations.

This is not noise. This is participation.

So we must ask the real questions:

Why this project? Why now? Why is Energy Fiji Limited supporting it — while significant public concern remains? Why proceed with an EIA consultation for a major energy project before a full national energy debate? And why are the people of Fiji not being given a clear choice in shaping that future?

Because this is not just about waste. It is about control — over energy, over revenue, and ultimately over the structure of the economy itself.

The System Beneath the Surface

Fiji’s vulnerability can be reduced to one line:

Fuel imports ≈ FJD 1.6–1.7B + Food imports ≈ FJD 1.1B = ≈ FJD 2.7B annual leakage

This is not just expenditure. It is wealth leaving the country.

Every dollar spent on imported fuel is a dollar not invested in healthcare, education, agriculture, infrastructure, or village enterprise.

That is the hidden subsidy of the current system.

And in March this year, global oil prices surged past US$100 per barrel, driven by geopolitical tensions.

The impact was immediate:

· Pressure on foreign reserves

· Rising electricity and transport costs

· Higher food prices

· Greater strain on households and businesses

This is the reality:

Fiji cannot be truly independent while its economy remains exposed to global fuel volatility.

 

At the same time:

· Solar resource: 5–6 peak sun hours per day

· Solar contribution: less than 5% of electricity mix

· Electricity demand growth: around 5% annually, with a recent spike approaching 9%

· This is not a resource problem.

This is not a technology problem. This is a system design problem.

Because once fuel dependency is embedded, a predictable chain follows:

Fuel dependence ↑ → exposure to global shocks ↑ → fuel and transport costs ↑ → electricity costs ↑ → EFL fuel-linked revenue ↑ → cost of living ↑ → VAT revenue ↑ → government revenue ↑

Energy is no longer just a service.

It is a revenue structure embedded within the economy.

Who Benefits From the Current System?

 

The current structure creates clear, aligned incentives:

· Fuel import and supply chains

· Centralised generation models

· Utilities dependent on electricity sales volume

· Government revenue through duties, VAT, and dividends

· Contractors and financiers of large capital projects — often concentrated among a small, well-connected group

A utility that can recover fuel costs through pass-through mechanisms or tariff adjustments has less incentive to aggressively reduce underlying costs or empower consumers as producers.

When revenue is linked to fuel consumption, reducing fuel use becomes economically disruptive to the system itself.

That is the structural conflict.

It is like putting Dracula in charge of a blood bank — the incentive is not to reduce demand, but to sustain it. Who Pays the Price?

The burden falls widely:

· Households through higher bills

· Businesses through rising operating costs

· Farmers through fuel-linked inputs

· Rural and maritime communities through unequal access

· Future generations through long-term cost lock-in

The system concentrates benefits — but distributes the cost.

This is not just inefficient. It is inequitable.

Energy: Commodity or Right?

Is energy a commodity to be priced and taxed?

Or is it a foundational service essential to daily life?

Affordable energy strengthens society.

It lowers the cost of living, supports businesses, and underpins national development.

It should not be treated as a threat to revenue.

It should be designed as a public good.

Why Waste-to-Energy Fits the Model

And this is exactly the kind of system in which projects like waste-to-energy emerge.

Seen through this lens, waste-to-energy is not surprising.

It aligns closely with the existing system:

· Centralised

· Capital-intensive

· Contract-driven

· Revenue-stable

· Long-term in structure

In short, it reinforces the current model — not disrupts it.

Such facilities require a continuous supply of waste to remain viable, creating incentives that can run counter to waste reduction, recycling, and circular economy goals.

Recent concerns have also raised the possibility of waste imports to sustain operations — prompting a broader national question about Fiji’s environmental and economic positioning.

Public confidence was further damaged when solar was dismissed at consultation level with claims that Fiji had the “wrong type of sunlight.”

That is not serious energy analysis.

Solar suitability is measured by irradiance and peak sun hours, and Fiji’s solar resource is strong by regional standards.

Fiji does not lack sunlight.

Fiji risks lacking alignment.

Waste-to-energy does not solve Fiji’s core problem.

It locks it in.

The Existing Policy Gap

Fiji has a National Energy Policy 2023–2030 with ambitious targets:

*Near 100% renewable electricity

*Reduced fossil fuel dependence

*Long-term decarbonisation

That ambition matters.

But policy is not just targets.

It is design.

And the current design still leans toward:

*Centralised generation

*Limited household participation

*Weak distributed frameworks

*Incomplete grid modernisation

*Silent preservation of existing revenue structures

Critically, this policy has been shaped and repeatedly reviewed within the same institutional ecosystem — led by Energy Fiji Limited and supported by government agencies that operate within, and benefit from, the current system.

The result is predictable.

Reviews occur.

Targets are reaffirmed.

But outcomes remain largely unchanged.

Renewable transition is acknowledged — but repeatedly delayed.

Fiji built its first major hydro infrastructure in the early 1980s.

Decades later — despite advances in solar, storage, and distributed systems — the generation mix still carries close to 50% fuel component.

That is not a technology constraint.

It is a policy outcome.

And when delays persist despite viable alternatives, the question must be asked:

Are these delays incidental — or structural?

Because a system built around fuel throughput has little incentive to rapidly replace it.

The issue is no longer ambition.

It is accountability.

 

The Structural Conflict: Policy, Regulation, and Control

At the core of the problem lies a structural conflict.

Regulatory influence and operational control remain too closely aligned with the incumbent system.

The 2021 partial divestment of EFL introduced 44% foreign private shareholding, while EFL’s exemption from oversight by the Office of the Auditor-General under the Audit Exemption Regulations 2021 reduced public transparency in a monopoly utility precisely when stronger safeguards were needed.

No system can claim credibility when the same institutional ecosystem effectively designs policy, influences regulation, and operates the market.

No one can credibly act as designer, operator, and regulator at the same time.

That is not oversight.

That is concentration of power.

Because when the system regulates itself, outcomes tend to preserve the system — not transform it.

A credible transition requires clear separation:

*Policy design

*Regulation and oversight

*Market operation

*Each must function independently.

Without that separation, reform is constrained.

With it, accountability becomes possible.

What is now required is clear:

*Stronger regulatory oversight

*Independent review mechanisms

*Transparent timelines for renewable transition

*Active public engagement to ensure delivery

Because without accountability, policy remains aspirational.

With accountability — and people power — it becomes action.

The Alternative We Are Not Being Offered

The real alternative is distributed energy:

*Rooftop solar

*Battery storage

*Community microgrids

*EV integration

*Smart grid management systems

But Fiji’s rooftop pathway remains constrained.

Household systems are effectively limited at the 5 kW threshold, with more demanding requirements beyond that level — a size too small for many modern households once electricity use, EV charging, and induction cooking are considered.

Adoption is not lagging by accident.

It is constrained by design.

This changes the equation:

Solar ↑ → Fuel ↓ → Electricity costs ↓ → Cost of living ↓ → Economic resilience ↑

It also changes speed.

While large, centralised projects take years to build, distributed systems can be deployed immediately — household by household, island by island.

In a fuel price crisis, speed matters.

Distributed energy is not just more efficient.

It is more responsive.

Modern grid systems — already operating in countries like Australia — use:

*Battery storage

*Smart demand management

*Virtual power plants

*to deliver reliable supply without relying solely on large, centralised baseload plants.

A distributed system is also more resilient to shocks.

If one node fails, others continue.

That is resilience by design.

What the Evidence Actually Shows

 

A structured comparative assessment of Fiji’s energy options — using a 13-criteria framework covering cost, reliability, scalability, energy independence, environmental and health impact, and system flexibility — tells a clear story.

This approach aligns with the intent of the Environment Management Act 2005 and EIA requirements, which require feasible alternatives and cumulative impacts to be evaluated before major approvals.

When assessed on this basis, the results are decisive:

*Solar + Battery — 91% (best)

*Hydro — 65%

*Wind — 52%

*Geothermal — 52%

*Waste-to-Energy — 49%

*Nuclear — 46%

*Diesel / HFO — 45%

The implication is straightforward.

Higher-performing, lower-cost, and more resilient pathways already exist — and are deployable today.

Yet without a clearly defined, people-endorsed national energy pathway, Fiji risks approving weaker options while stronger, proven alternatives remain underutilised.

The constraint is not technology. It is system design. It is policy choice.

And ultimately, it is a question of whether people step in to ensure that the best option — not the most convenient one — is chosen.

The FJD 1.4 Billion Question

The proposed waste-to-energy project is estimated in the range of FJD 900 million to FJD 1.4 billion, depending on structure and reporting.

 

This raises a fundamental question:

What else could that level of investment achieve?

It could:

*Support tens of thousands of rooftop solar installations

*Fund dozens of outer-island microgrids

*Solar-enable schools, hospitals, and public infrastructure

*Provide battery support for low-income households

*Accelerate grid modernisation nationwide

At the same time, Energy Fiji Limited has indicated roughly FJD 2 billion is required over 10 years for the national energy transition.

So the question becomes unavoidable:

If Fiji can mobilise FJD 1.4 billion, why concentrate it in a single facility — instead of deploying it across the entire nation?

This is not a funding question.

It is a choice:

One facility — or an entire nation.

The Hidden Trap: The Utility Death Spiral

As solar adoption increases, a predictable dynamic emerges:

Solar ↑ → Grid use ↓ → Utility revenue ↓ → Tariffs ↑

This is the utility death spiral — well understood globally.

The problem is not solar.

It is the business model.

Countries such as Australia and parts of the United States have already responded by redesigning utility regulation — shifting utilities from energy sellers to network operators.

In a fuel crisis, Australia can cushion consumers because the system beneath is already shifting: rooftop solar is mainstream, batteries are expanding, and utilities are increasingly being forced to behave as grid enablers rather than old-style central generators.

Fiji cannot copy the relief model without first copying the structural reform.

That is the direction Fiji must now consider.