The Fiji Commerce and Employers Federation (FCEF) has raised concerns regarding what it describes as a “strategic failure” by Energy Fiji Ltd (EFL) in failing to embrace solar photovoltaic generation, despite significant drops in global costs. In its comprehensive submission to the Fijian Competition and Consumer Commission (FCCC), FCEF argues that any new tariff increases could unfairly burden consumers who had no part in the decision-making process leading to these failures.
The submission, spanning 21 pages, highlights a staggering decline in utility-scale solar PV costs over the past decade, plummeting by 85-90% globally. The International Renewable Energy Agency (IRENA) reports a decrease in the global weighted-average levelized cost of electricity (LCOE) from utility-scale solar PV from approximately $0.38 per kWh in 2010 to an estimated $0.04 per kWh by 2024. Despite Fiji’s strong solar capabilities, EFL’s adoption of solar energy remains minimal.
FCEF pointed out that solar and wind generation decreased from 3.0 GWh (0.30%) in 2019 to only 0.8 GWh (0.07%) by 2024, while diesel has continued to dominate with over 500 GWh per year. The federation criticized this trend, labeling it “technology abandonment,” suggesting that if EFL had actively pursued solar energy deployment during 2015-2016, it could have taken advantage of declining costs and lessened reliance on diesel.
FCEF elaborated that accelerating solar integration could have significantly diminished diesel consumption during the expensive high-price period of 2022-2024 and potentially saved tens of millions in fuel costs, directly benefiting EFL’s financial standing and lowering consumer rates.
The submission called attention to similar island nations like Hawaii, Barbados, Seychelles, and Maldives that achieved 20-40% renewable energy penetration during the time Fiji saw minimal solar deployment. FCEF warned that allowing consumers to shoulder costs stemming from delayed technology adoption serves only to reward poor strategic decisions and creates unintended consequences.
FCCC’s chief executive officer, Senikavika Jiuta, stated that consultations aim to gather input from all stakeholders, including a specific session with FCEF to incorporate their insights into the final decision-making process. FCEF is advocating for a reevaluation of the tariff determination set for December 19, 2025, urging the commission to consider restarting the assessment process to address these pressing concerns.
This push for a shift towards renewable energy reflects a growing global trend to prioritize sustainable sources, potentially enhancing energy security and economic efficiency in Fiji while reducing the environmental impact associated with traditional fossil fuels.