Energy Fiji Limited (EFL) CEO Fatiaki Gibson has called on international funding partners to implement a de-risking guarantee provision to enhance investor confidence in energy projects across the Pacific. Addressing attendees at the European Union Pacific Business Forum in Nadi, Gibson emphasized that such a provision would empower EFL to engage in the energy sector with greater assurance.
“I’d like to request that the forum, especially our funding partners, consider this de-risking guarantee provision,” he stated, explaining that it would be integrated into power purchase agreements. This approach would alleviate the perceived risks for independent power producers and investors, thus making investments more attractive.
Gibson highlighted that adopting this de-risking measure could significantly assist not only EFL but also various energy projects throughout the Pacific Islands, thereby reducing private sector investment risks and promoting development in the region. He noted that while the Climate Investment Fund already has similar provisions in place, they are typically distributed through established organizations such as the Asian Development Bank, World Bank, or the EU.
EFL has recently announced ambitious plans to secure approximately $2 billion in investments over the next decade, aligning with broader goals to shift Fiji’s energy framework towards renewable sources. They aim to increase the nation’s renewable energy target from 50% to 90% by 2035. This will include agreements with independent power producers and a blend of financing strategies to bolster investments in solar, hydro, and thermal power.
The proactive initiatives introduced by EFL signal a positive future for Fiji’s energy sector, focusing on sustainability and resilience. By collaborating with international partners and emphasizing innovative financing solutions, EFL is keen on ensuring a reliable and eco-friendly energy landscape for its citizens, balancing economic advancement with environmental responsibility.