NGEF receives COM approval to lend to Government-funded institutions
December 12, 2024 6:18 am | Posted in Business News | Share now TwitterFacebook
The National Green Energy Fund (NGEF) has confirmed approval from the Council of Ministers (COM) in its Decision 344 of 2024, allowing its lending products to be offered to government-funded institutions, as clearly stipulated in the updated National Energy Road Map (NERM) 2016–2030.
The NERM objectives, as implemented under the Ministry of Climate Change Adaptation (MoCCA) through the Department of Energy (DoE), are to electrify 100% of Vanuatu’s households, businesses and public institutions using only renewable energy sources in addition to promoting energy efficient end-use by 2030.
NGEF is in its sixth year of operations and has been successful during its establishment as a financing mechanism for the energy sector by funding its first 222 solar PV systems plus energy efficient appliances, inclusive of wiring and lighting, that have already been implemented in the Torres Groups in the north through to the TAFEA Outer islands in the south. The purpose of the Fund is to address affordability and access issues for renewable energy sources and energy efficient end-sue currently faced by the citizens of Vanuatu.
By 2024, NGEF has successfully funded the following projects in the table shown here. The total electricity generation from the systems is over 954 Kilowatt Hours per day. The allocation to SHEFA is the highest because of the solar streetlight project and the UN Women collaboration with Vanuatu Women’s Development Scheme (VANWODS) Microfinance with its headquarter located on Efate.
The installed projects are currently providing energy services to 47 primary schools, 21 secondary schools, 24 cooperative societies, 12 area council offices, 2 Local Authorities, 2 government institutions, 92 individual households, 2 rural tourism operators and 1 energy vendor. Interesting to note that there are two clinics electrified from two of the systems; 81 solar streetlights for Beverly Hills, Bladinier Estate and Blacksands in Port Vila suburbs, 35 in Unity Park/La Place and the Luganville Municipal Cemetery in Luganville. The installations also targeted Futuna Fishermen Cooperative located at Mission Bay in Futuna Island and Vuthev Cooperative’s recently established butchery in Hog Harbour village. One of the systems installed at Naniu Cooperative Society is a handicraft and retail business owned solely by women.
The NGEF Board conveys its gratitude to the previous and current Government of the day for the support in establishing a revolving fund worth Vatu (VT) 472 million. Funds disbursed by the NGEF directly benefitted approximately 21,600 students, members of cooperatives, local authorities, tourism operators, energy vendors and members of communities, in addition to approximately 7500 indirect members of communities that access energy needs from the installed systems. For more detailed information, anyone can visit the www.ngef.vu website and see for themselves.
Vanuatu is prone to natural disasters; however, with the endorsement of the Natural Disaster Recovery Fund Policy by the NGEF Board, projects that were damaged by disasters such as cyclones and lightning since 2022 have been fully replaced at no cost to the beneficiary. As a service provider, NGEF is always flexible and lenient to its customers and continue to build a robust relationship not only with its clients but also with its registered vendors or suppliers.
On this note and on behalf of the Board, the Fund wishes to acknowledge its partners, firstly those financially contributing an approximate 47% and subsidising the cost of the systems inclusive of transport and installations namely, the World Bank through the Vanuatu Rural Electrification Project (VREP) II, the Korean International Co-operation Agency (KOICA), the Government of Luxemburg, through the Global Green Growth Institute (GGGI), UN Women through the VANWODS MFI and the beneficiaries themselves. Without such intervention, demand for NGEF products would not have been attractive enough compared to the successful achievement so far. Secondly, the three registered vendors or suppliers namely, PCS Ltd, Energy4All and eTech (Vanuatu) Ltd who have been facing logistical difficulties during the importation, transportation and installations of all the systems to this day. NGEF recognises the vendors as key partners not only during the transport and installation but also maintaining and repairing the systems.
