Energy Fiji Limited (EFL) CEO Fatiaki Gibson has urged international funding partners to implement a de-risking guarantee provision aimed at bolstering investor confidence in energy projects throughout the Pacific region. Speaking at the European Union Pacific Business Forum in Nadi, Gibson stressed that such a provision would enable EFL to engage more confidently in energy sector initiatives.
“I’d like to request that the forum, especially our funding partners, consider this de-risking guarantee provision,” he said, indicating that it would become part of power purchase agreements. This strategy seeks to mitigate perceived risks faced by independent power producers and investors, making investments in the sector more appealing.
Gibson pointed out that introducing this de-risking measure could significantly benefit not just EFL but various energy initiatives across the Pacific Islands, ultimately lowering private sector investment risks and stimulating regional development. Although the Climate Investment Fund has a similar framework, he noted that it generally flows through established entities like the Asian Development Bank, World Bank, or the European Union.
In line with these developments, EFL has ambitious plans to attract approximately $2 billion in investments over the next decade, focusing on transitioning Fiji’s energy framework to renewable sources. Their goal is to elevate the nation’s renewable energy target from 50% to 90% by 2035, including partnerships with independent power producers and diversifying financing strategies to enhance investments in solar, hydro, and thermal power.
These proactive measures from EFL herald a promising outlook for Fiji’s energy sector, which prioritizes sustainability and resilience. By fostering collaboration with international partners and emphasizing innovative financing solutions, EFL aims to create a reliable and environmentally friendly energy landscape for its citizens, marrying economic progression with ecological stewardship.