Does Kiribati need electricity?

As a small, remote island state, Kiribati is highly dependent on imported energy supply. Electricity is one of the government’s largest expenditures. Yet the current fossil fuel-based power system is inadequate to meet future demand.

Why is electricity so expensive in Kiribati?

Of the 7,877 households in South Tarawa (44% of total households in Kiribati), 72.4% are connected to grid electricity. Access is largely for lighting, and that lighting is often insufficient, inefficient, and expensive. The high electricity cost has suppressed demand and has hindered growth in the commercial and tourism sectors.

Who generates electricity in Kiribati?

Sector context. Grid-connected electricity in Kiribati’s capital, South Tarawa, is generated 4. and distributed by the Public Utilities Board (PUB), a state-owned electricity and water utility.

Why are there no independent power providers in Kiribati?

Also, despite the potential for revenue generation from the high electricity costs, there are currently no independent power providers in Kiribati. Barriers to private sector investment include (i) lack of an enabling policy and regulatory framework, (ii) credit worthiness of PUB as an off-taker, and (iii) small transaction sizes.8

Why is Kiribati so expensive?

Kiribati’s remoteness from major markets and most resources leads to high import costs, while its low elevation - averaging only 2 meters above sea level - creates severe vulnerability to sea-level rise and other climate change impacts and natural hazards.

What is the poverty rate in Kiribati?

Kiribati’s poverty rate is estimated at 22% in 2006. South Tarawa has the highest number of poor people with a poverty rate of 24%.6 Around 20-25% of households are headed by women. Overcrowding is stressing the natural environment, housing, land management, sanitation services and underground water reserves.