Fiji Drives $2 Billion Cleaner Power Push to Cut Fuel Dependence

Fiji is embarking on a significant $2 billion renewable energy initiative, spearheaded by Energy Fiji Limited (EFL), to curb its reliance on imported fuels and bolster national power security. The ambitious plan aims to generate 60 percent of the country's electricity from renewable sources by 2030, escalating to 90 percent by 2035. This strategic shift is crucial as Fiji anticipates a substantial rise in electricity demand, projected to increase from approximately 230,000 customers in 2026 to 280,000 by 2030, driven by economic expansion, growing tourism, and increased household consumption.

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The renewable energy program will help increase cleaner power generation, with a target of 60 percent renewable electricity by 2030 and 90 percent by 2035.

EFL's Chief Executive Officer underscored the critical need to strengthen the national grid to accommodate this future demand while ensuring consistent power supply. The utility has also navigated the challenge of escalating global fuel prices, which impacted electricity generation costs. In response, EFL implemented an Interim Tariff Adjustment Framework, in collaboration with the Fijian Competition and Consumer Commission and the Government. This temporary measure was designed solely to offset additional fuel expenses stemming from the global crisis, thereby safeguarding investments in renewable energy projects.

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Strengthening the national grid is critical to meeting this future demand while keeping power supply reliable.

The transition away from diesel power is expected to insulate Fiji from the unpredictable shocks of international fuel prices, paving the way for more stable and predictable electricity costs. EFL has already reported tangible improvements in power reliability, with average outage durations per customer decreasing from 223 minutes in 2023 to 218 minutes in 2024. The company has set an ambitious target to reduce these outages to under two hours per customer by 2030.

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The temporary measure only recovered additional fuel costs caused by the global crisis while allowing investment in renewable energy projects to continue.

Major renewable energy projects, encompassing hydro, solar, and transmission upgrades, are currently in advanced stages of preparation. EFL has secured crucial backing from international development partners and is actively finalizing financing arrangements, with agreements anticipated by next year. This comprehensive push towards cleaner energy signifies Fiji's commitment to a sustainable and secure energy future.

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Moving away from diesel will help reduce exposure to international fuel price shocks and provide more stable electricity costs in the future.