News

Geothermal Electric Fiji proposes Public Private Partnership for project

Savusavu hot spring, Fiji (source: flickr/ jasabout, creative commons)
Alexander Richter 15 Jul 2011

Fiji based geothermal development company Geothermal Electric LImited proposes a public-private partnership that could result in a reasonable return for investors and dividends to the government, replacing diesel power generation with geothermal power at a site in Vanua Levu.

In a recent announcement, Fiji based Geothermal Electric Limited Fiji proposes “a public-private partnership that could result in electricity being sold for between 18 cents and 21 cents per unit.

Geothermal Electric Limited Fiji CEO Timothy Daniel said the partnership would provide a reasonable rate of return to investors and dividends to the Government.

He said the investment would be supercharged for the State because savings on diesel from a 10 megawatt geothermal plant in Vanua Levu would deliver an additional rate of return of 1200 per cent each year.

GEL has proposed a $4million public private-partnership, which Mr Daniel said was equivalent to how much the nation sent out of the country to pay for electricity every 10 days.

The proposal comes in response to comments by Works Minister Timoci Natuva on the need for renewable energy with the involvement of the private sector power producers to join them in a public-private partnership.

“The great thing for the Government in investing in a public-private partnership to deliver renewable energy is that it supercharges their rate of return,” he said.

“The benefits to the nation and the Government from renewable energy are so great, there is no other investment in Fiji that comes close in rates of return.

“Some government investments have struggled to break even but investment in renewable energy does not have that problem.

“Renewable electricity from Monasavu Dam is the only thing that has stopped Fiji from having an electricity price of more than $1 per unit – compared with 37 cents per unit now.

“It is an outstanding return on investment to the Government and our people.”

Source: The Fiji Times Online