General Update on

TERM – Proof of Concept

Nov 15

Where is Tonga?

Tonga In General

Tonga in General Population 103,252 (51,979 males

and 51,273 females)

Area 720,000 km² land/sea 747 km² land 172 Islands

Language Tongan, English

Religion Christian 96%

Political System Constitutional Monarchy

Major Industries Agriculture, Fisheries, Tourism

GDP per capita (2014)

US$ 5,000

Major Exporting Products

Fish, Vanilla, Squash, root crops

Major Importing Products

Foodstuffs, machinery, transport equipment, fuel, chemicals

1 MW PV Installations - Tongatapu

Generation Projects

Generate

Project Name Funder Cost Currency TOP Eqv. Capacity Tariff Impact Status

Maama Mai Solar Farm NZ 7.9M NZD $

11.29 M 1.4MW $ 0.0333 Installed

La'a Lahi Solar Farm UAE 2.5M USD $

4.72 M 0.45MW $ 0.0100 Installed

Mata ‘o e La’a Solar Farm Japan 14.5M USD $ 26.36 M 1MW

$ 0.0200 Installed

Outer Island Renewable Energy Project (OIREP) ADB/DFAT 6.5M USD

$ 10.32 M 0.75MW

$ 0.0100 Procurement

Ha’apai Micro Wind Turbine TPL TOP $ 0.3 M 0.011 MW $ 0.0001 Installed

Tongatapu Wind Farm MFAT/JICA 4.4 MW Development

Eua Biomass Project 3.7M NZD $

5.5 M 0.25 MW $ 0.0014 Development

Tongatapu Biomass Project 6.5M NZD $

9.42 M 1.25 MW $ 0.0240 Development

CNO, Landfill Gas, IPP and Others

Generate

Project Name Current Status Proposed Action

Completion Date Project Name

Current Status

Proposed Action

Completion Date

Large 3rd Party Solar Generation Development Find suitable IPP

Jan 2017

Switchboard Replacement Approved

Implementation Plan Jun 2016

Medium 3rd Party Solar Generation Development Sustainable model

Jan 2016

Generator Replacement TBU Inception

Inception Report Jun 2016

Small 3rd Party Solar Generation Development Retail Store

Jan 2017

Generator Replacement VAV Inception

Inception Report Jun 2016

3rd Party Wind Generation Inception Find suitable IPP TBC

Generator Replacement HAP Inception

Inception Report Jun 2016

Energy Storage Development Feasibility Study Jan

2016 Generator

Replacement EUA Inception Inception

Report Jun 2016

Coconut Oil Inception On Hold (Long Term) Landfill Gas Inception On Hold (Long Term)

Heat Recovery Development Identify Technology Jun

2016

Bio – gas Inception On Hold (un-

economic)

Tidal Development Social and EIA (Long

Term) Jun

2018

Vava’u Biomass Inception On Hold

Loss Reduction and Supply Side Management

Distribution Projects

Distribute

Project Name Funder Cost Currency TOP Eqv. Capacity Tariff Impact Status

TVNUP 1 NZ 7M TOP $

10.02 M 17 Villages $

0.0100 Complete

Least Cost Development Planning WB 1.8M USD

$ 3.27 M

Fourth Feeder / Ring

Topology TBC Implementation

TVNUP 2 and 3 NZ 22.5M NZD $

37.6M 33 Villages $

0.0200 Construction Ha'apai Cyclone Ian Recovery Project (HCIRP) ADB 2.5M USD

$ 5.2M All of Ha’apai

$ 0.0010 Construction

Outer Islands Energy Efficiency Project (OIEEP) VAV+EUA ADB 5M USD

$ 9.2M Outer Islands 0.0020 Development

Nuku'alofa Network Upgrade 21.5M USD

$ 43.16M Nuku’alofa

$ 0.0300 Seeking Funding

Generate Distribute

Project Name Current Status Proposed

Action Completion

Date Project Name Current Status Proposed

Action Completion

Date GIS Enhancement

Project Development Consolidate

Project Dec 2016 HV Pole

Replacement Development CAPEX

Proposal 2020

Sub-marine Cable Replacement Development

Inception Report Jun 2016

TBU HV Pole-top Equipment

Replacement Development CAPEX

Proposal 2020

CBD Feeder Development

Co-ordinate with Fourth

Feeder Jun 2017

TBU LV Pole-top Equipment

Replacement Development CAPEX

Proposal 2020

TBU HV Cabling Development CAPEX

Proposal 2020

TBU LV Cabling Development CAPEX

Proposal 2020

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2007 2008 2009 2010 2011 2012 2013 2014 2015

Total System Losses (%)

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e

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t

r

i

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i

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Year

Stage 1 – Understanding the existing power system

November 23, 2015 Preparing the Grid for Renewables

Page

13

Nuk1 Feeder Nuk2 Feeder Vaini Feeder

Demand Side Management

Retail Projects

Retail

Project Name Funder Cost Capacity Proposed

Action Status Date

PEEP 2 ADB $

500 k Demand Side Management Evaluation Complete Sep 2015

Smart Prepay Metering NZ

$ 4.1 M

Prepay and Smart Meters

Back office and meters Implementation Jun 2016

Lifeline Tariff WB/GoT $ 500 k Electricity subsidy

Await GoT direction to implement Implementation TBC

Street Lighting GoT $ 400 k/yr 350 LED St Lts P.A. Overall Plan Implementation Ongoing

Energy Efficiency Strategy

Cost cutting for customers

Inception Report Inception Jun 2016

Customer Inspection Service

Safety of Electricity Consumers

Institutional Reform Development Jun 2016

Retail Projects

Project Name Current Status Proposed Action Completion Date

National Grid Code On Hold Re-commence Jan 2017

Enterprise Resource Planning Software Inception Inception Report Jun 2016

Marketing Strategy Inception Inception Report Jun 2016 Staff Development Strategy Inception Inception Report Jun 2016 Business Process Strategy Inception Inception Report Jun 2017

Funding Strategy Inception Inception Report Jun 2016

Fuel Supply Project Implementation Sign Supply Contract Jun 2016

Pricing Strategy Inception Inception Report Jun 2016

Future IT Infrastructure Inception Inception Report Jun 2016

Enterprise Resource Planning (ERP) and Information/Communication Technologies

(ICT)

Malo ‘aupito!