In June 2018, the parliament of Vanuatu approved the National Green Energy Fund (NGEF) bill, supported unanimously by both the government and opposition members. The bill was then gazetted in July 2018 as Act 10 of 2018. As the first national financing vehicle for the Vanuatu energy sector, this legislation will contribute towards accelerating the objectives and targets of the Updated National Energy Road Map (NERM) by 2030.
100% electricity access throughout Vanuatu, 100% use of renewable energy sources, 14% reduction of energy use using energy efficient products, and 65% of tourism bungalows using renewable energy sources of electricity by 2030.
The NGEF will operate as a revolving fund, attracting both domestic and external funds, which will then on-lend to customers through approved intermediaries. It will consolidate existing energy funds as part of its domestic resources and the Government’s financial contribution, which will be used as leverage to attract a larger portion of funding expected to come in from Vanuatu’s development partners. The revenues derived from its financial activities are expected to bring in additional funds into the NGEF. The initial focus of the NGEF will be on electricity access, mainly in off-grid areas, use of renewable energy and energy-efficient products.
Original source: GGGI
Published on 6 August 2018
