Nuku'alofa, Tonga, March 21, 2019. A large solar plant is to be built on Tongatapu to start operating by 2020, after a Power Purchase Agreement was signed with Sunergise New Zealand Limited on March 21, in Nuku'alofa.

This is Tonga's second commercially financed public-private partnership (PPP) signed by Tonga Power Ltd (TPL).

Sunergise will finance, build and operate the 6-megawatt solar farm on Tongatapu and sell the electricity generated to Tonga Power for 25-years.

The solar plant is expected to begin operations by April 2020. To achieve its goal of 50% renewable energy by 2020 and 70% by 2030, Tonga is also developing wind and biomass generation sources, and will integrate these with multiple units of battery energy storage. 

Built over three sites, the solar plant will be the second biggest in the Pacific islands region (Guam has the largest) and the second that Tonga Power has established with an independent power producer. 

Minister of Public Enterprises Hon Saia Piukala, said the solar plant will form an integral part of Tonga Power's Renewable Energy Program, 10-gigawatt hours to be exact, equivalent to 15% of the whole of Tonga’s anticipated electricity demand by 2020.

This will contribute to lowering the cost of power and to Tonga producing at least 50% of its power from renewable sources by 2020, he said.

ADB Regional Director at the South Pacific Subregional Office, Mr. Masayuki Tachiiri said, this transaction demonstrates the appropriateness of renewable energy PPPs in the Pacific and the value for money that can be achieved by running a fully transparent and competitive tender process.

It has resulted in a very competitive feed-in tariff for Tonga Power and establishes a benchmark for future power generation PPP transactions across the region, he said.

Sunergise was selected through a highly competitive tender process, which was undertaken with transaction advisory support from ADB’s Pacific Private Sector Development Initiative (PSDI).

The agreement was signed by Tonga Power CEO Setitaia Chen and Sunergise New Zealand Limited CEO Paul Makumbe.

Present was the CEO for the Ministry of Public Enterprises Sione ‘Akau’ola, Tonga Power Board Director Sione Taione, New Zealand Deputy High Commissioner Ms. Elena Procuta, Australian High Commission Second Secretary Ms. Chantelle Boland, ADB Senior Energy Specialist Mr. Woo Yul Lee, and ADB Country Coordinator for Tonga Tatafu Moeaki.

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Source: Matangi Tonga Online