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4.50. Tonga maintains exploration licences within the EEZ, which were granted in 2007. [49] (...).

[49] Secretariat of the Pacific Regional Environment Programme, Tonga Seeks Support to Determine the Best Way Forward to Explore Seabed Minerals While Protecting Its Marine Environment, 23 November 2018.

4.55. A 2009 Tonga Energy Road Map (TERM) 2010-2020 focused on reducing Tonga's fossil fuel dependence through increased energy efficiency and improved supply chains in an effort to mitigate the price volatility of imported products, as well as to reduce greenhouse gas emissions and improve national energy security. The TERM initially set a goal of approving a policy to supply 50% of electricity generation through renewable energy (RE) resources by 2020; the TSDF 2015 2025 (Section 2.3.2) revisits the original TERM goal of 50% renewable by 2025, and by 2020 for rural communities. The TERM includes (...) increasing the efficiency of converting petroleum to electricity (e.g. through increases in efficiency and reductions in losses at Tonga Power Limited (TPL) (Section 4.2.2.2)), and improving the efficiency of converting electricity into consumer electrical services (demand-side management measures). It also includes replacing a portion of current or future grid-based generation with RE. Several energy efficiency policies and initiatives that, inter alia, set goals and launch projects have been implemented since the creation of the TERM. [56] The Tonga Energy Efficiency Master Plan (TEEMP), complementing the TERM's approach, was endorsed by the Cabinet in September 2020.

[56] Projects since 2014 include Promoting Energy Efficiency in the Pacific (2014), the Outer Island Renewable Energy Project (2017), and the Tonga Renewable Energy Plan (2017). United Nations' Climate Technology Centre and Network (2018), Government of Tonga Energy Efficiency Master Plan, August.

4.56. As at 2019, Tonga's energy-related priorities consisted of reviewing the existing energy sector bill, developing new legislation and policies for rural electrification, implementing an energy roadmap and renewable energy (RE) projects for Tongatapu and outer islands (...).

4.59. During the review period, the share of petroleum oils and oils obtained from bituminous minerals in total merchandise imports dropped considerably from 20.3% (2014) to 12% (2019), inter alia, as a result of changes in world prices and reduced energy dependence on fossil fuels related to renewable energy (RE) initiatives, despite the growth of the liquid fuels market being driven by domestic economic growth

4.61. During the review period, Tonga's installed capacity increased, and its dependence on diesel generators decreased as more renewable energy generation was deployed. As at June 2019, the total installed electricity-generating capacity connected to the grid stood at 70.6 GWh, consisting of diesel generation (88.07%), solar photovoltaics (8.27%), and wind (3.66%), as compared with 54.7 GWh composed of diesel generation (94.47%) and solar (5.57%) in 2014. (...).

4.62. (...) Three independent power producers (IPPs), working with TPL benefit from corporate tax exemption (Section 3.3.1.1). As at 2019, Tonga Power Limited (TPL) generated, distributed, and sold electricity to approximately 24,054 customers on Tongatapu, Vava'u, Ha'apai, and 'Eua. Islands of Niuatoputapu , Niuafo'ou, and Ha'apai outer islands that use solar mini grids are under the Ministry of Meteorology, Energy, Information, Disaster Management, Environment, Climate Change, and Communications (MEIDECC). (...) In 2019, Tonga concluded a public private partnership (PPP) with Sunergise New Zealand, which will finance, build, operate a 6 MW solar farm, and sell its output to TPL for 25 years.

4.67. Renewable energy is a major element of the strategy to enhance energy security, as reflected in the TERM (see above) and other policy tools. During the review period, a number of projects were under way to contribute to meeting the Tonga Energy Road Map (term) renewable energy target and objectives, including installation of a 1.3 MW solar generation facility on Tongatapu, an on-grid solar generation facility on Vava'u, investment in off grid solar power systems for households on outer islands, research into other sources of RE (such as wind power, tidal power, and producing bio-fuel from coconuts), and investigation of options for stabilizing and potentially reducing the cost of petroleum fuels by measures such as hedging and/or improving the fuel supply chain.

4.68. The Ministry of Trade and Economic Development (MTED) and the Ministry of Meteorology, Energy, Information, Disaster Management, Environment, Climate Change, and Communications (MEIDECC) are tasked with technical and financial advisory and finance auditing of off-grid renewable energy (RE) projects. The functions of the RE division at the MEIDECC's Energy Department include: management and monitoring off-grid systems on the outer islands; implementing off-grid projects on the outer islands; seeking donor funding on RE projects, such as solar water pumps, solar freezers, and solar home systems; and conducting trainings for local technicians on RE equipment. An RE Authority under the MEIDECC is operational.

4.69. Renewable energy (RE) is regulated by the Renewable Energy Act 2008. Off-grid RE is regulated by the Incorporated Society Act/Regulation 2016 and Corporative Society Act/Regulations 1973 with diverse roles shared among key stakeholders including the MTED and the MEIDECC. Tonga Power Limited (TPL) permits IPPs to use its grid as a "storage battery" (i.e. selling and buying from the operator), but there has been no such case since 2014. TPL may enter into purchase agreements (generation connection contracts) with IPPs. In 2016, TPL signed a long-term Power Purchase Agreement with Zhuhai Singyes Green Building Technology Co. for the construction and commissioning of a 2 MW solar facility on Matatoa, which was commissioned in 2017. In addition to achieving the 50% RE target, TPL signed a power purchase agreement (PPA) with Sunergise New Zealand Limited in 2019 to finance, build, and operate the 6 MW solar farm on Tongatapu. No legal framework for a feed-in tariff regime exists. Electricity tariffs have important implications for incentivizing or disincentivizing energy efficiency investments. As at 2017, RE capacity stood at 4.2 MW, of which 6.7% was off-grid household generators, solar home systems, and solar water pump systems.

4.113. The main pieces of legislation on maritime shipping services remain the Shipping Act 1988 (last reviewed in 2016) and the Marine Pollution Prevention Act, as amended. (...)