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Table 4.4 Electricity generation by generator and source, 2016-21
Contribution by source (%):
Wind and solar: (2016) 0.39, (2017) 0.21, (2018) 0.26, (2019) 0.34, (2020) 0.12, (2021) 0.03
(...)

4.48. On 24 September 2022, the Climate Change Act 2021 entered into force. The Act provides a legal basis for the Government to pursue its sustainable development objectives, long-term climate ambition, net-zero emission target by 2050, and commitment to protecting its environment. The Act empowers the Minister responsible for climate change to "introduce and implement a carbon pricing mechanism, including an emissions trading scheme". With a view to encouraging investment in, inter alia, renewable energy and energy efficient infrastructure, the Minister may also adopt fiscal incentives and levies. [42]
[42] Climate Change Act 2021, Section 43.2; and Ministry of Economy, Fiji National Climate Change Policy 2018-2030. Viewed at: https://www.economy.gov.fj/images/CCIC/uploads/General/FIJI-National-Climate-Change-Policy-2018-2030-FINAL.pdf.

4.51. During the review period, EFL [Energy Fiji Ltd] underwent a partial privatization through divestment by the Government. In March 2021, the Government entered into an agreement under which a consortium of two Japanese companies acquired 44% of shareholdings in EFL. [44] (...) The Government views that deep operational expertise and experience in electricity generation and networks brought by the consortium will enable Fiji to accommodate its growing energy demand and meet its renewable energy targets.
[44] Chugoku Electric Power Company Ltd and the JBIC.

4.53. As for the generation sector, at the time of writing, there are three Independent Power Producers (IPPs) – Tropik Wood Industries Ltd, FSC [Fiji Sugar Corporation], and Nabou Green Energy Ltd. Two are state‑owned entities: (i) Tropik Wood is a 100%-owned subsidiary of Fiji Pine Ltd, 99.8% of whose shares are owned by the Government; and (ii) FSC, 68% of whose shares are owned by the Government. These IPPs produce energy based on biomass materials; they convert industrial residues such as wood chips and sugar by-product into electricity.

4.54. (...) The power purchase agreements between the EFL [Energy Fiji Ltd] and IPPs [Independent Power Producers] are confidential; the contents are not made available to the Department of Energy. However, the prices for the supply of electricity from IPPs to the electricity supplier is deregulated. This was done in view to encourage IPPs and EFL to invest in renewable energy sources by having a commercial negotiation to ensure the security and reliability of power supply and to encourage fair and efficient markets.

4.56. Regarding policies aimed at increasing energy efficiency, the authorities state that Fiji has implemented the Minimum Energy Performance and Standards Labelling (MEPSL) as of 2012. (...) Currently only household refrigerators and freezers need to comply. Fiji is line to expand the MEPSL programme to television sets. This has already been endorsed by the Cabinet, and the legislation is expected to be gazetted this year.

4.57. Fiji provides tax incentives for investment in the renewable energy sector. Such incentives include duty-free importation of renewable energy equipment (e.g. solar, hydro, biomass, biogas, wind, geothermal, solar heaters, and solar water pumps), as well as a five-year tax exemption for businesses undertaking a new activity in renewable energy and co-generation power projects.

4.63. Fiji encourages new investment activity in processing agricultural commodities into bio fuels as an alternative to fossil fuels. Businesses that undertake such projects and employ 20 or more local workers every income year may benefit from a tax holiday. The length of the tax holiday is between 5 and 13 consecutive years, depending on the amount of invested capital. Other incentives include duty-free importation of plant, machinery, and equipment for the initial establishment of a factory; duty-free importation of chemical products required for biofuel production; and duty-free importation of all agricultural items with the permission by the Ministry of Agriculture.

4.67. (...) Fiji has conducted a national branding campaign ("Fijian Made – Buy Fijian") since 2011, with a view to promoting import substitution of items that can be easily produced in Fiji. (...) In November 2018, Fiji added a new brand category named "Fijian Organic" to eight existing categories. The new brand may be licensed to products that are (i) grown or processed in Fiji; and (ii) certified with the Pacific Organic Guarantee Scheme standards or any international standard. (...)

4.68. The Government continues to provide financial support to manufacturing operators to encourage import substitution. The Reserve Bank of Fiji (RBF)'s Import Substitution and Export Finance Facility (ISEFF) was established in 2010 to offer affordable financing (maximum interest of 5%) to import substitution, exporters, and renewable energy industries, including the manufacturing sector.