18-12, Nishiochiai 2-chome,
Shinjuku-ku, Tokyo 161-8575, Japan
Phone: +81-3-5906-0211
FAX: +81-3-5906-0112

Energy

BACKGROUND & PURPOSE OF PROJECT

The Republic of Palau's political and economic center is Koror island and Babelthaup island where the country's capital Melekeok is situated, and approx. 93% of the nation's population reside on these two islands (according to the 2005 national census). The average electricity demand (peak load) for both islands increased 7.3% a year during the 9 year period from 1997-2005 due to a stable population growth of around 2% a year, an increase of electricity demand per citizen and the development of the tourism business. In spite of this increase, electricity supply facilities of the Koror-Babelthaup electricity system are not capable of providing a stable supply of electricity due to deterioration and a lack of maintenance. In August 2006, a planned power cut of 8 hours per day was enforced for one and a half months because of equipment breakdown.
Nevertheless it must be said that the Ministry of Resources and Development (MRD) and the Palau Public Utilities Corporation (PPUC), two bodies which are responsible for the supply of electricity in the Republic of Palau, do not have sufficient capability in terms of planning, operation and maintenance. Countermeasures against a possible electricity crisis in the future have not been sufficiently examined either.
Against this backdrop, the Republic of Palau requested Japan to conduct a development study to define an improvement program for the facilitation of the supply of electricity including a forecast of electricity demand in Koror and Babelthaup islands, the planning for electricity supply facilities, a feasibility study regarding electricity facilities that will be necessary in the mid- to long-term, financial analysis, reforms to the management structure of the PPUC, human resources development and for improvements in the operation of electricity supply facilities.

CHARACTERISTICS, CONCEPT, STANCE & SKILLS OF PROJECT

(1) The Republic of Palau is now in a transitional period where there is a widely changing supply and demand situation of electricity in the regions due to the relocation of the capital in October, 2006 and replacement works to be carried out at the Aimeliik Power Plant in the near future. This study aims to define the most suitable power development plan considering the recent change in supply and demand of electricity in the Republic of Palau.
(2) To improve the capability of PPUC to operate and maintain electricity supply facilities we will make specific and effective suggestions by utilizing our experiences in the previous grant aid project, information from follow-up studies, soft-components available from similar projects and the know-how of electric utility companies.
(3) In relation to management improvement strategies and financing, we will propose a specific, feasible plan to enable PPUC to implement the priority project that is a target of the pre-feasibility study as early as possible.

EFFECT OF PROJECT

The implementation of a master plan including the following items will bring about a stable supply of electricity in the islands of Koror and Babelthaup in the Republic of Palau over the mid- and long-term.
(1) Power plant construction plan and enhancement program for power transmission, substation and distribution facilities
We proposed a project for the construction of power plants and enhancement of power transmission, substation and distribution facilities as a part of the power development program for electricity supply system for the period between 2010-2025 in the islands of Koror and Babelthaup in the Republic of Palau, and then calculated the estimated expenses required for its implementation.
(2) Program for the introduction of renewable energy
We proposed a program for the introduction of renewable energy which would utilize solar power, hydro power and solar heat.
(3) Management improvement of the PPUC
To improve the management of the PPUC, we proposed revisions to electricity tariffs for short term (FY2009-2013) and for the long term (after FY2013).
(4) Proposal for reforms of electricity facility operations
We proposed reforms related to the operation and routine checkup of power generation, transmission, substation and distribution facilities.