SPC/ 2017 Energy & Transport Ministers Meeting Agenda Item E2 Original: English PACIFIC COMMUNITY THIRD PACIFIC REGIONAL ENERGY AND TRANSPORT MINISTERS’ MEETING (Nuku’alofa, Tonga, 24–28 April 2017) Theme: Affordable, reliable and sustainable energy and transport services for all AGENDA ITEM E2 – Energy sector reforms through legislative frameworks [Submitted by Pacific Community (SPC)] Purpose 1. The purpose of this paper is to update and seek meeting’s support to the legislative reform in the energy sector of Pacific Island countries and territories (PICTs). Background 2. The recent adoption of national energy targets in renewable energy and energy efficiency, the adoption of greenhouse gas mitigation targets in the nationally determined contributions to the Paris Agreement and the pursuit of the global targets contained in the sustainable development goals, coupled with the desires of governments to have safe, clean, reliable and affordable energy services, signal the need for reforms in PICTs energy sector. 3. In all cases, energy sector is made up of various sub-sectors including coordination and planning, petroleum, power, renewable energy and energy efficiency. The planning and coordination of energy sector to meet governments’ sustainable development aspirations and obligation becomes a tedious task when these sub-sectors are managed and planned in isolation and independently of each other – when some have very old legislations and when there is no overarching legislative framework to coordinate them. 4. Various studies in energy sector have pointed to the absence of an energy sector legislative framework to be a key obstacle to achieving the energy sector aspirations of PICTs. Current status 5. There is an observed encouraging trend towards enacting energy sector legislative frameworks as a priority measure for reforming PICTs energy sector. 6. In 2012 and parallel to the adoption of Cook Islands Renewable Energy Chart, the government of Cook Islands amended its Energy Act (1998) by defining functions of the Office of the Energy Commissioner and spelling out the responsibilities of the Minister of Energy. 7. In 2013, driven largely by the need to strengthen the capacity of its energy planning and coordination office, SPC led the development of Palau Energy Bill and this was signed into law on 5 February 2016. 8. In 2015, as part of the priority activities of Tonga Energy Road Map, World Bank and SPC started a collaboration with Tonga to develop its Energy Sector Bill. The Bill was finalised in December 2016 and plans are underway to table it for consideration of Parliament in 2017. 9. In 2016, following the adoption of Niue Strategic Energy Road Map, SPC and the International Union for Conservation of Nature have joined forces and are currently reviewing Niue’s Electric Power Act (1960). 1 SPC/ 2017 Energy & Transport Ministers Meeting Agenda Item E2 Original: English 10. In February 2017 and under the European Union - Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (EU-GIZ) Adaptation to Climate Change and Sustainable Energy Programme, the government of Samoa has called for expressions of interests for the development of its overarching Energy Bill. 11. In March 2017, SPC has commenced working on assessments and consultations that are part of the process for developing Kiribati’s Energy Bill. The secretariat is awaiting confirmation from Marshall Islands for the development of its energy sector legislative framework. 12. Tuvalu has shown interest in reviewing its Petroleum Ordinance of 1965 together with its subsequent amendments and associated regulations. Issues 13. Management, planning and coordination of energy sector is weak in some countries where the functions, powers and roles of, and the inter-connections among, the institutions are not well defined. An energy act would establish and clarify the functions, powers and roles of these institutions, in particular the energy department / division. It would also establish the platform for adoption of regulations to operationalise the official working relationships among these energy sub-sectors and to set the parameters for their performance. 14. Most national energy offices in the region were established through a decision of cabinet and in some places it was established to respond to the needs of some regional or multilateral programme. National energy offices has expanded but without the legal authority to effectively coordinate and manage energy sector and its sub-sectors. Recommendations 15. The meeting is invited to: i. support regional effort to reform PICTs energy sector through energy sector legislative frameworks. [24 March 2017] 2
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