Energy Sector Development Project

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The objective of the Energy Sector Development Project for Tuvalu is to enhance Tuvalu’s energy security by reducing its dependence on imported fuel for power generation and by improving the efficiency and sustainability of its electricity system. This project consists of the following three components: Component 1. Renewable Energy Investments. Supply and installation, for Tuvalu Electricity Corporation (TEC), of power-generation and grid-management equipment to increase the contribution of renewable energy in Tuvalu’s hybrid generation system and to reduce diesel generation. This equipment will include (a) solar photovoltaic (PV) and wind-power generation; (b) batteries, sufficient for the hybrid system’s storage requirements, including the expected energy spillovers from the New Zealand and Masdar solar PV systems that are now being built without storage; (c) battery inverters and an integrated power control system to provide grid stability and other ancillary services; and (d) a satellite-based communications system on Funafuti and three of the seven outer islands. Component 2. Energy Efficiency Investments. A program of activities designed to enhance efficient use of energy will be carried out. These activities include: (a) Supply and installation of prepayment meters for TEC consumers and smart meters for the largest electricity consumers; (b) Supply and installation of selected energy efficiency (EE) investments, such as enhanced insulation in buildings to be selected by TEC in accordance with criteria agreed with the Bank, and replacement of inefficient lighting and appliances in said buildings; (c) Development of policy, standards and labeling for EE; and (d) Activities aimed at raising consumer awareness on EE and related capacity-building activities and training. Component 3. Technical Assistance and Project Management Support. A program of activities designed to enhance the capacity of TEC and other Government of Tuvalu staff for project implementation will be carried out. These activities include coordination, administration, technical operation, procurement, financial management, environmental and social management, monitoring, evaluation, and reporting.