E/CN.17/1996/20/Add.2 Progress in the implementation of the programme of action for the sustainable development of small island developing states Addendum on sustainable development of energy resources

United Nations

E/CN.17/1996/20/Add.2


Economic and Social Council

 Distr. GENERAL
29 February 1996
ORIGINAL: ENGLISH


COMMISSION ON SUSTAINABLE DEVELOPMENT
Fourth session
18 April-3 May 1996


                      PROGRESS IN THE IMPLEMENTATION OF THE PROGRAMME
                        OF ACTION FOR THE SUSTAINABLE DEVELOPMENT OF
                             SMALL ISLAND DEVELOPING STATES

                              Report of the Secretary-General

                                  Addendum
                  Sustainable development of energy resources
                       in small island developing States


                                    SUMMARY

     In small island developing States, imported petroleum is the chief source
of primary commercial energy.  Their total daily petroleum consumption,
however, is only about 1.3 per cent of total world consumption.  Per capita
energy consumption in small island developing States varies widely, from
levels exceeding that in industrialized nations to as low as that in least
developed countries, making it difficult to make many meaningful
generalizations in consumption patterns and trends in small island developing
States as a whole.  Considering the dependence on imported energy supplies,
small island developing States need to remain focused on improving the
management and regulation of conventional power supply and petroleum imports.

     Most small island developing States remain heavily dependent on
traditional forms of energy such as fuelwood and bagasse, particularly in
rural and remote areas.  Attempts to develop renewable energy technologies,
mostly small-scale, stand-alone units in dispersed settings, have had limited
success.  Solar energy has found use with solar photovoltaic systems for
electrification of remote areas, and solar water heating is used in homes,
hotels and commercial establishments.  In further developing renewable energy
sources, emphasis should be on the options that have shown some promise: 
solar photovoltaic systems in remote islands, solar water heating in urban
areas and hydropower.


                                   CONTENTS

                                                                              

                                                        Paragraphs       Page

EXPLANATORY NOTES ......................................                    3

INTRODUCTION ............................................1 - 3              4

    I.    PRIMARY ENERGY RESOURCES ......................4 - 7              4

   II.    NEW AND RENEWABLE SOURCES OF ENERGY ...........8 - 11             8

  III.    ENERGY DEMAND ............................... 12 - 18             8

   IV.    ENERGY RESOURCES DEVELOPMENT OPTIONS AND
          RECOMMENDATIONS ..............................19 - 28             17

                           Tables

    1.    Small island developing States - resources, primary energy 
          consumption and production ....................................... 6

    2.    Total and per capita primary energy consumption, 1982-1992 .......10

    3.    Share of petroleum imports in total merchandise imports and 
          exports, and in electricity generation, 1992 ............         12

    4.    Net installed capacity of electric-generating plants and  
          per capita consumption of electricity, 1982-1992 ................ 15

    5.    Characteristics of technologies for production of electricity ....18


                              EXPLANATORY NOTES


        The following abbreviations and symbols have been used:

b/d             barrels per day
EEZ             exclusive economic zone
ESCAP           Economic and Social Commission for Asia and the Pacific
GEF             Global Environment Facility
GNP             gross national product
ha              hectare
kgoe            kilogram of oil equivalent
km              kilometre
km2             square kilometre
kW              kilowatt
kWh             kilowatt-hour
kWp             kilowatt-peak
m               metre
m3              cubic metre
MW              megawatt
OECD            Organisation for Economic Cooperation and Development
t               metric ton
toe             metric ton of oil equivalent
UNDP            United Nations Development Programme
US$             United States dollars
%               per cent
--              not available
...             nil


                                     INTRODUCTION

1.      Limited or scarce indigenous commercial energy resources and
difficulties in securing energy supplies exacerbate the many constraints in
economic and social development of small island developing States.

2.      Imported petroleum is the chief source of primary commercial
energy; indeed with the exception of hydropower in less than a third of the
small island developing States, it is the only source of primary commercial
energy in these States and territories.  However, at the global level,
small island developing States and territories are not significant
consumers of petroleum.  Their total consumption of petroleum is estimated
at about 880,000 b/d out of a daily world consumption of more than 66
million b/d.

3.        The cost, source and usage of energy have become major concerns
for small island States, prompting a great need for careful energy
planning.  Energy management in small island developing States will
essentially include increasing efficiency of energy use as well as an
examination of indigenous energy resources.  Environmental impacts are also
of great importance and must be taken into careful consideration if the
integrity of the food and fuel resource base are to be maintained and the
natural endowments of the islands are to be preserved. 


                             I.  PRIMARY ENERGY RESOURCES

4.        Petroleum is the chief source of primary commercial energy.  It
is produced in Bahrain, Barbados, Cuba, Papua New Guinea and Trinidad and
Tobago.  Petroleum export is an important source of revenue for Papua New
Guinea, having exported about 120,000 b/d and Trinidad and Tobago, with an
export of more than 150,000 b/d, in 1994.  Bahrain is a major producer of
natural gas, with an output of about 4.8 million tons of oil equivalent in
1992. 1/1/

5.         Island arc basins in the Caribbean Sea and the south-western
Pacific have been investigated for their hydrocarbon potential.  However,
since 1985, virtually all licensed acreage in the Caribbean Sea has been
surrendered, in Aruba, the Bahamas, Barbados and the Netherlands Antilles. 
Elsewhere, in Seychelles, about 22,000 km2 is still under licence for
exploration, where marine seismic surveys of about 4,700 line-km were last
conducted in 1987/88, and in Maldives, where licensed acreage was
relinquished in 1991.  In most of the island States and territories in the
south-western Pacific, only preliminary reconnaissance exploration
activities have been carried out.  All licences in Fiji, Tonga and Vanuatu
have been relinquished since the mid-1980s.  In Fiji, four exploratory
wells were drilled in 1982, but all tested dry with minor gas shows. 2/2/

6.        As for coal resources, there are virtually no delineated coal
deposits in any of the small island developing States and territories.

7.        Hydropower resources for primary electricity production in the
small island developing countries range from zero in the low countries
(e.g., Maldives, Niue and Tuvalu) to moderate (many island countries have
mini-hydro power capacity of a few megawatts), to extensive (e.g., Fiji,
Solomon Islands and Vanuatu, with capacity of a few hundred megawatts).  As
shown in table 1, hydropower has been developed in 11 small island
developing States and territories, where it accounts for 4 to 13 per cent
of total commercial energy supply; Comoros, Mauritius and Sao Tome and
Principe in the Atlantic and Indian Oceans and adjacent areas; Fiji, Palau
and Samoa in the Pacific; and Dominica and Saint Vincent and the Grenadines
in the Caribbean Sea.  Total annual hydroelectricity generation varies
widely in these countries, from a high of about 460 million kWh in Papua
New Guinea to about 2 million kWh in Comoros.  The relative scarcity of
hydropower development in the island countries, while technically
successful, was in large part attributable to many financial and
institutional problems associated with their development and, not least,
environmental considerations.


          Table 1.  Small island developing States - resources, primary energy
                                   consumption and production                 


     Source:  Department for Policy Coordination and Sustainable
Development of the United Nations Secretariat, based on Energy Statistics
Yearbook, 1992 (United Nations publication, Sales No. 94.XVII.9); and
International Monetary Fund, International Financial Statistics, various
issues.

     a/   Included in United States EEZ.

     b/   Bahrain's natural gas production in 1992 = 4,791,000 toe.


                                 II.  NEW AND RENEWABLE SOURCES OF ENERGY

8.       Of the new and renewable sources of energy, biomass accounts by
far for the major share in small island countries.  Fuelwood is most
commonly used for cooking, especially in rural households.  Almost all
fuelwood for cooking is obtained at no financial cost from natural forests. 
Few island countries have any sizeable commercial production of fuelwood
and whatever is available in the market appears to be purchased by
relatively affluent households, for supply conveniences or for special
occasions; very few island countries have forest areas covering a
substantial part of their land area (see table 1).  Also widely used are
coconut residues (shells, husks and stemwood) and residues from coffee,
cocoa and such other crops as maize, cassava, peanuts and rice.  Biofuel is
also used in small-scale agro-industry for process heat for drying copra,
coffee, tea, fish and other foodstuffs.

9.      In those island countries where sugar cane is grown in large
quantities, bagasse is used as fuel for sugar mills.  Notably, in Fiji,
about 30 per cent of the peak electricity demand is produced from bagasse,
including electricity used in the sugar mills themselves. 3/3/

10.      The principal uses of direct solar energy in the island countries
are for heating and drying, for solar water heating in urban houses as well
as commercial establishments and drying of crops for consumption or
processing, as well as for solar water purification and distillation on a
limited scale.  Solar energy is also used for photovoltaic systems as
electric power sources in some rural areas and remote islands.  Solar
photovoltaic systems have been used on many islands, mainly in dispersed
settings, for telecommunication transmission and reception, lighting, small
medical refrigerators and water pumping.  The largest concentration of
photovoltaic modules (more than 8,000) is in the French Polynesian islands,
with a combined generating capacity of more than 280 kW (on average about
50 watts per unit, sufficient for an incandescent light-bulb).  Also, in
Tuvalu, photovoltaic-based electricity is used for lighting needs in a
number of households in the outer islands and customer growth is limited
only by the availability of new photovoltaic units, constrained by lack of
capital and reliant on donors.  Photovoltaic use is growing, owing in large
part to declining installation and operating costs. 

11.       Prospects have been improving for electricity generation by wind
turbines, but much depends on site availability.  In the tropics, locations
with favourable wind regimes are scarce.  However, several small island
developing States have favourable sites for wind energy, perhaps prone to
severe storm conditions; Cape Verde has a number of grid-connected wind
turbines in operation.


                              III.  ENERGY DEMAND

12.      Total energy consumption in the small island developing countries
under consideration has been gradually increasing during the period 1982-
1992, from about 7 million to about 8.4 million tons of oil equivalent, an
average annual increase of less than 2 per cent.  However, not all of these
small island developing States experienced increases; total energy
consumption in a number of them declined; in fact, there were more declines
registered in per capita energy consumption as increasing demand from
expanding populations outpaced energy supply (see table 2).

13.        In 1992, per capita energy consumption in these small island
developing States ranged widely from a low of less than 100 kilograms of
oil equivalent (kgoe) to more than 5,000 kgoe, averaging about 1,200 kgoe. 
In comparison, worldwide, an average of about 600 kgoe was registered for
all developing countries and about 60 kgoe in the least developed
countries.  Per capita energy consumption in more than 20 small island
developing States exceeds the average of developing countries as a whole,
but in a number of them consumption levels fall in the range of least
developed countries.  In four of the island developing countries and
territories - Bahrain, Nauru, Netherlands Antilles and United States Virgin
Islands - per capita energy consumption exceeds the average of OECD
countries.  Owing to the wide range in energy consumption among small
island developing States, it is difficult to make any generalizations in
consumption patterns and trends in these countries.  However, as elsewhere,
increasing use of modern fuels and per capita GNP are closely linked. 

14.       Most small island developing States depend heavily on traditional
forms of energy such as fuelwood, charcoal and bagasse, particularly in
rural areas.  Traditional fuels are estimated to account for more than
50 per cent of total energy in many small island developing States compared
to an average of about 25 per cent for all developing countries.  As
mentioned earlier, of the indigenous energy sources, biomass accounts for
the largest share of the energy requirement, as it is used extensively for
cooking and as a fuel in a variety of small-scale agro-industries.

15.        Imported oil, mainly end-use products, is the main source of
commercial energy, especially in small remote islands at great distances
away from mainland areas.  In fact it is the only source of primary
commercial energy in about 28 small island developing States.  However, to
put the daily petroleum consumption of small island developing States in
proper perspective, current daily demand is about 0.88 million b/d out of a
total world consumption of more than 66 million b/d, an amount of about
1.3 per cent of world petroleum demand.  Most of the imported petroleum,
mainly products, are used for transportation and electricity generation. 
The share of imported petroleum used for electricity generation varies
widely among small island developing States as seen in table 3, from about
70 to 100 per cent in the high range to less than 25 per cent in the low
end; on average, in small island developing States, more than a third of
the petroleum is converted to electricity.

16.        Table 3 also shows that, in small island developing States, the
share of petroleum imports in total imports ranges from a low of about
3 per cent to more than 20 per cent.  The ratio of petroleum imports to
total exports on average is comparatively higher than in other developing
countries:  in a number of small island developing States, the value of
petroleum imports exceeds the value of total merchandise exports.


         Table 2.  Total and per capita primary energy consumption, 1982-1992


State or territory                              Total energy consumption
                                                      (thousand toe)          

           
                                   1982               1992         Annual
change
                                                                  
(percentage)
Atlantic Ocean                       
  Cape Verde                         34                 36                 0.5
  Sao Tome and Principe              12                 25                 6.7
Indian Ocean and adjacent areas
  Comoros                            12                 22                 5.5
  Maldives                           6                  33                15.6
  Mauritius                          170               448                 8.8
  Seychelles                         28                50                  5.3
Pacific Ocean                        
  Cook Islands                       12                 7                 -4.9
  Fiji                               256                253               -0.1
  Kiribati                           9                  7                 -2.3
  Marshall Islands                   --                 --                 --
  Micronesia, Federated States of                       --                 --
  Nauru                              40                 44                 0.9
  Niue                               1                  1                  0.0
  Northern Marianas                  --                 --                 --
  Palau                              50                 82                 4.5
  Papua New Guinea                   667                784                1.5
  Samoa                              39                 45                 1.3
  Solomon Islands                    41                 53                 2.3
  Tokelau                            --                 --                 --
  Tonga                              14                 30                 6.9
  Tuvalu                             --                 --                 
  Vanuatu                            17                 20                 1.5
Caribbean Sea                                                              
  Antigua and Barbuda                83                 96                 1.3
  Aruba                              --                 213                
  Bahamas                            828                602               
-2.9
  Barbados                           210                328                4.1
  Cuba                               10 303             8 717             
-1.5
  Dominica                           13                 21                 4.4
  Dominican Republic                 1 775              3 203              5.4
  Grenada                            20                 40                 6.3
  Haiti                              223                244                0.8
  Jamaica                            1 917              2 604              2.8
  Netherlands Antilles               2 444              923               -8.8
  Saint Kitts and Nevis              21                 25                 1.6
  Saint Lucia                        36                 331               
20.3
  Saint Vincent and the Grenadines                      15               
316.6
  United States Virgin Islands       2 812              2 266             
-2.0
Mediterranean Sea 
  Cyprus                             831                1 446              5.0
Others
  Bahrain                            3 360              5 514              4.5
  Singapore                          10 496             16 482             4.1
  Trinidad and Tobago                4 549              7 458              4.5



State or territory                               Per capita consumption
                                                           (kgoe)             

                                         1982            1992      Annual
change
                                                                  
(percentage)
Atlantic Ocean                              
  Cape Verde                                110             94            -1.4
  Sao Tome and Principe                     135             202            3.7
Indian Ocean and adjacent areas
  Comoros                                   29              38             2.5
  Maldives                                  37              145           12.5
  Mauritius                                 171             408            7.9
  Seychelles                                406             694            4.9
Pacific Ocean
  Cook Islands                              632             412           -3.9
  Fiji                                      393             342           -1.3
  Kiribati                                  150             95            -4.1
  Marshall Islands                          --              --              
  Micronesia, Federated States of                                           
  Nauru                                     5 714           4 400         -2.4
  Niue                                      250             500            6.3
  Northern Marianas                           --             --             
--
  Palau                                     352             369            0.4
  Papua New Guinea                          195             193           -0.1
  Samoa                                     244             285            1.4
  Solomon Islands                           165             155           -0.6
  Tokelau                                   --                             
  Tonga                                     139             309            7.3
  Tuvalu                                    --              --              
  Vanuatu                                   134             127           -0.5
Caribbean Sea                                                               
  Antigua and Barbuda                       1 078           1 455          2.7
  Aruba                                     --              3 435           
  Bahamas                                   3 851           2 280         -4.8
  Barbados                                  814             1 266          4.0
  Cuba                                      1 046           806           -2.4
  Dominica                                  173             292            4.8
  Dominican Republic                        305             429            3.1
  Grenada                                   183             440            8.0
  Haiti                                     37              36            -0.2
  Jamaica                                   861             1 055          1.8
  Netherlands Antilles                      9 660           5 274         -5.5
  Saint Kitts and Nevis                     467             595            2.2
  Saint Lucia                               293             2 416         
19.3
  Saint Vincent and
  the Grenadines                            149             284            5.9
  United States Virgin
  Islands                                   28 120          21 178        -2.6
Mediterranean Sea                                                           
  Cyprus                                    1 292           2 020          4.1
Others                                                                      
  Bahrain                                   8 842           10 345         1.4
  Singapore                                 4 239           5 952          3.1
  Trinidad and Tobago                       4 208           5 896          3.1

     Source:  Department for Policy Coordination and Sustainable
Development of the United Nations Secretariat, based on Energy Statistics
Yearbook, 1984 and 1992 (United Nations publications, Sales Nos. 86.XVII.2
and 94.XVII.9).


            Table 3.  Share of petroleum imports in total merchandise
                imports and exports, and in electricity generation, 1992


State or territory            Petroleum     Value         Total
                              import        of            merchandise
                                 (in            petroleum      import
                                 thousand       import         (value
                                 toe)           (in            in
                                                million        million
                                                US dollars)    US dollars)
                                                (estimated)    
Atlantic Ocean                                                 
 Cape Verde                      36             5.26           180.00
 St. Pierre and Miquelon         32             4.67--
 Sao Tome and Principe           25             3.65--
Indian Ocean and adjacent
 areas                                          
 Comoros                         22             3.21           --
 Maldives                        33             4.82           189.00
 Mauritius                       448            65.41          1 623.00
 Seychelles                      50             7.30           192.00
Pacific Ocean                                                  
 Cook Islands                    7              1.02           --
 Fiji                            253            36.94          624.00
 Kiribati                        7              1.02           37.00
 Marshall Islands                --             --             --
 Micronesia, Federated
  States of                      --             --             --
 Nauru                           44             6.42           --
 Niue                            1              0.15           --
 Palau                           82             11.97          --
 Papua New Guinea                --             --             1 523.00
 Samoa                           45             6.57           113.00
 Solomon Islands                 53             7.74           --
 Tokelau                         --             0.00           --
 Tonga                           30             4.38           63.00
 Tuvalu                          --             --             --
 Vanuatu                         20             2.92           83.00
Caribbean Sea                                                  
 Antigua and Barbuda             96             14.02          --
 Aruba                           213            31.10          --
 Bahamas                         602            87.89          --
 Barbados                        328            47.89          471.00
 Cuba                            --             --             3 690.00
 Dominica                        21             3.07           111.00
 Grenada                         40             5.84           117.00
 Jamaica                         2 604          380.18         1 672.00
 Netherlands 
 Antilles                        923            134.76         2 174.00
 Saint Kitts and Nevis     25    3.65           --
 Saint Lucia                     331            48.33          313.00
 Saint Vincent and
 the Grenadines                  31             4.53           --
 United States Virgin
 Islands                         2 266          330.84         --
Mediterranean Sea                                              
 Cyprus                          1 446          211.12         3 289.00
Others                                                         
 Bahrain                         --             --             4 125.00
 Singapore                       16 482         2 406.37       72 534.00
 Trinidad and Tobago             --             --             1 431.00



State or territory               Oil            Total          Oil
                                 import         merchandise    import
                                 as             export         as
                                 percentage     (value         percentage
                                 of             in             of
                                 total          million        total exports
                                 imports        US dollars)    
Atlantic Ocean                                                 
 Cape Verde                      2.63           5.00           105.12
 St. Pierre and Miquelon         --             --             --
 Sao Tome and Principe           --             --             --
Indian Ocean and adjacent areas                 
 Comoros                         --             --             --
 Maldives                        2.29           40.00          12.05
 Mauritius                       3.63           1 290.00       5.07
 Seychelles                      3.42           44.00          16.59
Pacific Ocean                                                  
 Cook Islands                    --             --             --
 Fiji                            5.33           435.00         8.49
 Kiribati                        2.49           5.00           20.44
 Marshall Islands                --             --             --
 Micronesia, Federated
  States of                      --             --             --
 Nauru                           --             --             --
 Niue                            --             --             --
 Palau                           --             --             --
 Papua New Guinea                --             1 790.00       --
 Samoa                           5.23           6.00           109.50
 Solomon Islands                 --             --             --
 Tokelau                         --             --             --
 Tonga                           6.26           12.00          36.50
 Tuvalu                          --             --             --
 Vanuatu                         3.17           20.00          14.60
Caribbean Sea                                                  
 Antigua and Barbuda             --             --             --
 Aruba                           --             --             --
 Bahamas                         --             --             --
 Barbados                        9.15           190.00         25.20
 Cuba                            --             3 585.00       --
 Dominica                        2.49           56.00          5.48
 Grenada                         4.49           23.00          25.39
 Jamaica                         20.46          1 047.00       36.31
 Netherlands
    Antilles                     5.58           1 114.00       12.10
 Saint Kitts and Nevis           --             --             --
 Saint Lucia                     13.90          123.00         39.29
 Saint Vincent and
   the Grenadines                --             --             --
 United States Virgin
   Islands                       --             --             --
Mediterranean Sea                                              
 Cyprus                          5.78           1 002.00       21.07
Others                                                         
 Bahrain                         --             3 368.00       --
 Singapore                       2.99           63 516.00      3.79
 Trinidad and Tobago             --             1 869.00       --




State or territory               Petroleum      Electricity    Share
                                 import -       production     of
                                 approximate    by             petroleum
                                 calorific      thermal        import
                                 equivalent     plants         used
                                 (in            (in            in
                                 million        million        electricity
                                 kWh) a/        kWh) b/        generation
                                                               (percentage)
Atlantic Ocean                                                 
 Cape Verde                      144            37             25.7
 St. Pierre and Miquelon         128            4938.3
 Sao Tome and Principe           100            77.0
Indian Ocean and adjacent areas                 
 Comoros                         88             14             15.9
 Maldives                        132            30             22.7
 Mauritius                       1 792          812            45.3
 Seychelles                      200            109            54.5
Pacific Ocean                                                  
 Cook Islands                    28             16             57.1
 Fiji                            1 012          87             8.6
 Kiribati                        28             7              25.0
 Marshall Islands                --             --             --
 Micronesia, Federated
  States of                      --             --             --
 Nauru                           176            30             17.0
 Niue                            4              3              75.0
 Palau                           328            --             --
 Papua New Guinea                0              1 330          --
 Samoa                           180            28             15.6
 Solomon Islands                 212            30             14.2
 Tokelau                         --             --             --
 Tonga                           120            27             22.5
 Tuvalu                          --             --             --
 Vanuatu                         80             29             36.3

Caribbean Sea                                                  
 Antigua and Barbuda             384            95             24.7
 Aruba                           852            350            41.1
 Bahamas                         2 408          975            40.5
 Barbados                        1 312          537            40.9
 Cuba                            --             12 410         --
 Dominica                        84             15             17.9
 Grenada                         160            62             38.8
 Jamaica                         10 416         2 605          25.0
 Netherlands Antilles            3 692          853            23.1
 Saint Kitts and Nevis           100            40             40.0
 Saint Lucia                     1 324          107            8.1
 Saint Vincent and
    the Grenadines                 124          12             9.7
 United States Virgin
    Islands                      9 064          1 020          11.3
Mediterranean Sea                                              
 Cyprus                          5 784          2 404          41.6
Others                                                         
 Bahrain                         --             3 510          --
 Singapore                       65 928         17 543         26.6
 Trinidad and Tobago             0              3 945          --


    Source:  Department for Policy Coordination and Sustainable
Development of the United Nations Secretariat, based on Energy Statistics
Yearbook, 1992 (United Nations publication, Sales No. 94.XVII.9) and
Statistical Yearbook, No. 39 (United Nations publication, Sales
No. 94.XVII.1).

     a/   One million metric tons of oil produces about 4x109 kWh of
electricity in a modern power station.

     b/   It is assumed that thermal electricity generation in small island
developing States, as tabulated in Energy Statistics Yearbook, 1992, is by
oil-fired or diesel-based generating plants.  However, for all practical
purposes, petroleum-based products provided the bulk of primary energy in
almost all small island developing States.


17.    In absolute terms, the use of new and renewable sources of energy is
increasing, accounting for a substantial part of rural energy demand in
many small island developing States, although their share of total energy
supply remains at a level significantly below their potential.  Most
islands have abundant solar and ocean resources and considerable wind and
hydropower potential, as well as geothermal resources in a number of them. 
Given the remote location of many small island developing States, their
small energy demands and high costs of oil imports, the development of
renewable energy sources seems ideal.  However, in spite of efforts to
develop indigenous energy resources, using a variety of pilot projects,
including biogas from animal dung, biomass gasifiers, alcohol fuel, small-
scale wind systems and solar photovoltaics, the overall contribution of
renewable energy sources to the energy balance of most small island
developing States has been disappointing.  At present, only small-scale
hydropower, fuelwood and charcoal contribute significantly to the overall
energy needs of small island developing States, particularly in rural areas
and remote islands.  More recently, the use of solar energy in the Pacific
islands has been increasing.  Following a number of demonstration projects
in the early 1980s, solar water heating is being increasingly used
throughout the Pacific islands in upper-income homes, hotels and commercial
establishments. 4/4/  Solar photovoltaic systems have also been used as an
alternative to diesel generation for the electrification of remote areas. 

18.    As in most other developing countries, electricity in small island
developing States is available mainly in cities and surrounding rural
areas, and in most of these countries electricity is generated from
diesel-based systems, since that is the most economical option for power
generation in remote areas.  However, it is very costly because most
generation systems are on a small-scale to very small-scale basis.  In most
Pacific islands, for example, the cost of electricity generation using
diesel-based utilities with capacities of 5 to 20 MW is more than US$ 0.20
per kilowatt-hour.  By comparison, electricity generation costs in
industrialized countries average $0.10 to $0.15 per kilowatt-hour.  As can
be seen in table 4, in 1992, total net installed capacity of electricity-
generating plants in small island developing States and territories was
about 3,500 MW, with individual country capacities ranging from more than
400 MW in the Bahamas to 5 MW and less in a number of these countries.  Per
capita electricity consumption has been increasing substantially in most
small island developing States and territories, more than doubling during
the period 1982-1992.  However, in a number of these countries, negative
growth rates were registered.  The average per capita electricity
consumption in the OECD countries of more than 8,000 kWh far exceeds that
of the small island developing States.


       Table 4.  Net installed capacity of electric-generating plants
             and per capita consumption of electricity, 1982-1992


  State or territory               Net installed capacity of electric-
                                   generating plants (thousand kW)
                                   1982        1992          Average annual
                                                             change
(percentage)
Atlantic Ocean                                               
Cape Verde                         3           7             7.7
Sao Tome and 
Principe                            5          6             1.7
Indian Ocean and adjacent areas                              
Comoros                             4          5             2.0
Maldives                            2          14            17.8
Mauritius                           243        336           2.9
Seychelles                          19         28            3.5
Pacific Ocean                                                
Cook Islands                        6          6             0.0
Fiji                                113        200           5.2
Kiribati                            2          2             0.0
Marshall Islands                    --         --            
Micronesia, Federated States of                              
--                                  
--                                  
Nauru                               10         10            0.0
Niue                                1          1             0.0
Palau                               48         62            2.3
Papua New Guinea                    434        490           1.1
Samoa                               17         19            1.0
Solomon Islands                     12         12            0.0
Tokelau                             --         --            
Tonga                               6          7             1.4
Tuvalu                              --         --            
Vanuatu                             10         11            0.9
Caribbean Sea                                                
Antigua and Barbuda                 26         26            0.0
Aruba                               --         90            
Bahamas                             312        401           2.3
Barbados                            94         140           3.6
Cuba                                2 975      3 988         2.7
Dominica                            7          8             1.2
Dominican Republic                  960        1 447         3.7
Grenada                             8          9             1.1
Haiti                               126        153           1.8
Jamaica                             740        732           -0.1
Netherlands 
Antilles                            390        200           -6.1
Saint Kitts and 
Nevis                               15         15            0.0
Saint Lucia                         16         22            2.9
Saint Vincent and 
the Grenadines                      10         143.1
United States Virgin
 Islands                            341        316           -0.7
Mediterranean Sea                                            
Cyprus                              333        546           4.5
Others                                                       
Bahrain                             588        1 050         5.3
Singapore                           2 106      3 550         4.8
Trinidad and Tobago                 760        1 150         3.8


State or territory                  Per capita consumption of electricity
                                               (kWh)

                                    1982       1992          Average annual
                                                             change
(percentage)
Atlantic Ocean                                               
Cape Verde                          58         96            4.6
Sao Tome and Principe               124        126           0.1
Indian Ocean and adjacent areas                                             
Comoros                             24         27            1.1
Maldives                            49         132           9.0
Mauritius                           432        842           6.1
Seychelles                          768        1 514         6.2
Pacific Ocean                                                
Cook Islands                        526        941           5.3
Fiji                                497        645           2.4
Kiribati                            100        95            -0.5
Marshall Islands                    --         --            
Micronesia, Federated States of                              
--                                  
--                                  
Nauru                               3 714      3 000         -1.9
Niue                                750        1 500         6.3
Palau                               1 021      914           -1.0
Papua New Guinea                    382        441           1.3
Samoa                               275        304           0.9
Solomon Islands                     100        88            -1.2
Tokelau                             --         --            
Tonga                               119        278           7.7
Tuvalu                              --         --            
Vanuatu                             165        185           1.0
Caribbean Sea                                                
Antigua and Barbuda                 857        1 439         4.7
Aruba                               --         5 645         
Bahamas                             3 786      3 693         -0.2
Barbados                            1 341      2 073         4.0
Cuba                                1 124      1 155         0.2
Dominica                            147        431           9.8
Dominican Republic                  551        713           2.3
Grenada                             229        681           9.9
Haiti                               59         70            1.6
Jamaica                             1 011      1 108         0.8
Netherlands Antilles                9 130      4 874         -5.7
Saint Kitts and Nevis               778        952           1.8
Saint Lucia                         496        781           4.1
Saint Vincent and
 the Grenadines                     297        468           4.1
United States Virgin
 Islands                            8 550      9 533         1.0
Mediterranean Sea                                            
Cyprus                              1 779      3 358         5.8
Others                                                       
Bahrain                             5 287      6 585         2.0
Singapore                           3 153      6 336         6.4
Trinidad and Tobago                 2 482      3 119         2.1

     Source:  Department for Policy Coordination and Sustainable Development
of the United Nations Secretariat, based on Energy Statistics Yearbook,
1984 and 1992 (United Nations publications, Sales Nos. 86.XVII.2 and
94.XVII.9). 

               IV.   ENERGY RESOURCES DEVELOPMENT OPTIONS AND
RECOMMENDATIONS

19.     The modern economic sector of small island developing States depends
almost entirely on imported petroleum products for energy, accounting for
well over 90 per cent of the commercial energy used.  The lack of
indigenous fossil fuels in virtually all of these countries and the total
reliance on a single imported energy source have caused severe balance-of-
payment problems in their economies (see table 3 for the ratio of value of
petroleum imports and value of total merchandise exports). 

20.     During the 1980s, expectations were high for the development of
indigenous renewable energy resources.  It was widely believed then that
renewable energy technologies were becoming technically and economically
viable and that the energy environment of islands was ideal for these
technologies, given the remote locations, high cost of petroleum imports
and abundant supplies of indigenous solar, biomass, hydropower, wind and
ocean resources.  In spite of concerted efforts to develop the indigenous
renewable energy resources through a wide range of demonstration and
investment projects using a variety of technologies, renewable energy
sources have not yet made a significant contribution to the energy balance
of the small island developing economies.  However, the development of
hydropower in a number of island countries has been relatively successful,
as has been that of solar photovoltaics to a limited extent.  None the
less, during that time, petroleum-product demand in small island developing
States increased steadily and the outlook is that the growth rate will
increase well into the next century.

21.     Thus, the experiences of the 1980s indicate that the energy strategies
of small island developing economies may need to refocus on improving the
management and regulation of conventional power plants, at least until the
time when the energy supply mix in small island developing States becomes
more diversified with significant contributions from renewable energy
technologies.  In the meantime, small island developing States will
continue to require assistance in the management and supply of conventional
power sources and petroleum products. 

22.     The development of indigenous new and renewable sources of energy
should be focused on the few options that have proved to hold promise for
technical, economic and financial viabilities in the setting of small
island developing economies.  The renewable energy technologies and
resources that appear to be more promising in the near term are solar
photovoltaic-based utilities, particularly for remote islands; large-scale
and mini-hydropower plants, where adequate sites and institutional support
are available; wind turbine generators, depending on favourable wind
regimes; and the enhanced use of biomass fuel, where good sustainable
biomass cover exists.  In the long term, ocean thermal and seawave may
prove to be substantial energy sources, although attempts at their
commercial development have not yet met with success.  For a comparison
between technologies for production of electricity, characteristics of
these technologies are summarized in table 5. 

       Table 5.  Characteristics of technologies for production of electricity


Technology              Size/description       Estimated        Capacity
                        of system              cost/KwH a/      factor
                                               (US$)            range b/
                                                                (percentage)

Wind                    Few to tens of
                        kW, not grid connected   0.50-1.00       10-30

Photovoltaic            Several kW range,
                        not grid connected       1.00-2.00       15-25

Solar thermal
energy conversion       Several kW to tens
                        of MW, stand alone
                        or grid connected       0.50-2.00       15-25

Hydropower              Few MW and up, grid
                        connected               0.50-1.00       50-70

Ocean thermal
energy conversion-
shore based              5 MW
                        40 MW                   0.50-1.00       70-90
Solar pond              5 MW salt gradient
                        excavating/
                        diking                  0.50-1.00      70-90

Wood                    Few MW and up,
                        boiler, gasifier        0.15-0.25 c/   70-90

Coal                    Few MW and up           0.10-0.25 c/   70-90

Diesel                  Fractional to
                        several MW engine
                        generator              0.40-0.50 c/    70-90

Residual oil            Several tens of
                        MW boiler              0.25-0.30 c/    70-90


Technology              Area required          Temporal
                                               characteristics

Wind                    Little                 Intermittent, needs storage

Photovoltaic            20m2/kWp               Intermittent, needs storage

Solar thermal
energy conversion       3-15 ha/MW             Intermittent, needs storage

Hydropower              As required            Water availability dictates
                                               limitations

Ocean thermal
energy conversion-
shore based             Little                 Baseload power

Solar pond              20 ha/MW               Baseload power with peaking
                                               possibilities

Wood                    800 ha/MW              Baseload power

Coal                    1 ha/MW                Baseload power

Diesel                  Little                 Baseload power

Residual oil            Little                 Baseload power


          Source:  Department for Policy Coordination and Sustainable
Development of the United Nations Secretariat, based on various reports and
studies.

          a/   Very rough estimates; actual costs can be expected to be
higher.

          b/   Fraction of time source can produce energy, averaged over a
year
of operation.

          c/   Environmental protection equipment will increase cost.


23.  There are many and varied reasons for the disappointing results of
most renewable energy technologies promoted in the small island countries,
from a lack of detailed understanding of the economic and technical
viability of these technologies in the setting of small island developing
States, to insufficient efforts in organizing active participation of the
local community at the early planning stage.  It is important that adequate
training in system operation and maintenance be provided on a long-term
basis and support for local organizations to plan, operate, maintain,
finance and expand the use of the technology be continued until a truly
sustainable basis is achieved.  

24.       Energy conservation and efficiency measures play a key role in any
energy management/planning process.  Programmes designed for energy
conservation on both the supply and the demand sides are the most effective
ways to substantial savings in energy consumption.  Energy conservation and
efficiency measures are all the more imperative given that the economic
development process has traditionally led to higher energy intensities per
unit of economic output in its early stages.

25.       Increased use of fuelwood, a renewable energy source, has led to
much
deforestation.  To enhance the forest cover for sustainable fuelwood
resources development, the Global Environment Facility (GEF) can play a
role in the protection of forests and reforestation with new and additional
grant and concessional financing, as these activities clearly relate to the
four focal areas of GEF, are country-driven and are national priorities to
support sustainable development.  GEF financing could also contribute to
the transition from the pilot phase of those renewable energy technologies
with demonstrated viability, hydroelectricity, solar heating and
photovoltaics, to the longer term operational status. 

26.       It is apparent that small island developing economies will continue
to rely on imported petroleum products for their commercial energy
requirements and on biomass for non-commercial needs.  In a number of
island countries, hydroelectricity has gained significantly in the
commercial energy mix, although new installations of scale are not foreseen
in the near term.  On many of the islands, use of biomass as domestic fuel
and for process heat for drying agricultural products and foodstuff appears
to be sustainable; however, increased consumption and long-term
environmental impacts may need closer attention.  For the petroleum
products import sector, the main issues are, on the economics side, the
need to monitor and analyse petroleum products transportation and
distribution costs, and on environment-related matters, for  increased
surveillance of the integrity of offshore and onshore transportation of
petroleum products, storage safety standards and waste oil disposal.  

27.       Several factors constrain the market penetration of renewable energy
technologies in small island developing States:  mainly, technology, as
local producers are not in a position to service a larger-scale demand, and
price constraints, as in the case of solar photovoltaic units, customer
growth for which is limited by lack of capital and in several cases
reliance on donors.

28.       The development of electric power supply and most attempts to
develop
renewable energy sources in small island developing States were largely
funded by donor countries, on grant, concessional and, in a few cases,
near-commercial terms.  Small island developing States will continue to
need such assistance to enable them to make the  necessary investments to
expand energy services beyond urban areas.


                                                         Notes

  1/  All energy statistics are based on Energy Statistics Yearbook, various
      issues. 

  2/  World Petroleum Trends, various issues.

  3/  Pacific Regional Energy Assessment, vol. 1, Overview, (World Bank, in
      cooperation with the UNDP/ESCAP Pacific Energy Development Programme,
      Asian Development Bank and the Forum Secretariat Energy Division, 1992).

  4/  Ibid.

                                 -----

 


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Date last posted: 3 December 1999 10:25:35
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