Fiji Rural Electrification Initiative
About 4% of Fiji’s population lives without electricity access, representing more than 7,000 Fijian households. These Fijians dwell in more than 300 rural communities and 110 islands, far from the nearest national electricity grid. Infrastructure development, particularly for basic services, focuses on urban and semi-urban hotspots. That leaves large areas without grid electricity, which also tend to have higher poverty and school dropout rates. The Fiji Rural Electrification Fund (FREF) is a Fiji government-led initiative supported by the United Nations Development Program (UNDP), established to entice private sector investments in rural electrification. The project has received financial backing from the Asian Development Bank (ADB) and United Kingdom, New Zealand, Australian, and Japanese governments for various phases of the project. FREF aims to be a sustainable venture providing clean and affordable electricity to outer and rural communities in Fiji that are not currently served by the main electric power grid. FREF uses a revolving fund structure under which affordable monthly tariff payments for rural communities, combined with grant financing received from development and donor partners, are placed into a trust fund and used to electrify additional rural communities throughout Fiji. Through the FREF program, the Fijian government aims to electrify these areas without access to electricity, and to replace over 2,500 diesel village community generators.
The FREF initiative will help reduce Fiji’s dependence on imported fossil fuel. The Fijian government seeks to attain 100% of electricity services from renewable energy sources as possible by 2030. Other initiatives outlined in the Fiji National Energy Policy 2023-2030 include reduction of emissions from domestic marine transport by 40% by 2030, and to enable remote communities to work with the private sector to cooperatively manage off-grid renewable energy systems. The Fiji government has allocated $1.3 million (FJ$3 million) for the Solar Home Systems program in the 2024-2025 budget, with a further $1.2 million (FJ$2.8 million) allocated for house-wiring, hydro turbine replacements, rehabilitation and upgrade works for hydro and solar micro grids.
To further accelerate off-grid electrification in the remote areas of Fiji, the United States Trade & Development Agency (USTDA) provided grant support for a feasibility study carried out by Arizona State University’s Laboratory for Energy and Power Solutions (ASU), in collaboration with Global Green Growth Institute (GGGI), California-based XENDEE Corporation, the Community Energy Toolkit (COMET), the Government of Fiji Department of Energy, the Government of Fiji Climate Change Division, FREF, and UNDP.
The study supports development of up to 75 solar-powered mini-grids with energy storage. It assessed 300 isolated communities that lack access to reliable and affordable electricity and prioritized 75 for community engagement and detailed feasibility assessments. For these 75 locations the study delivered in-person site assessments, power system design, geospatial site planning, business model review, and climate change impact assessments. Details of the 75 selected sites were recently released, with plans to construct hybrid solar PV mini grids through an estimated $60 million in capital investment. The resulting mini grids will support residential energy needs, public services, productive uses of energy, and community expansion to power new homes and small businesses.
The government will issue public tenders for mini-grid construction, operation, and maintenance, and will be open for public comment through a Request for Information (RFI).
There are opportunities for American companies offering solar PV mini grid construction, operation, maintenance services and solar technology solutions to collaborate and partner with local firms for FREF and other rural electrification projects.
Companies interested in pursuing these opportunities should contact the U.S. Commercial Service for assistance with market information and introductions to potential partners in Fiji: Office.Fiji@trade.gov.