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Fiji Rural Electrification Fund (FREF) Support Project

Project ID: 1003490 (UNDP)

Project Details

ID: 1003490 (UNDP)
Project Number: 1003490 (UNDP)
Programme / Project Status: Active
Total Amount (USD): 5,110,000.00
Start Date: 30/09/2024
End Date: 29/09/2028
Donor: Government of Australia (Department of Foreign Affairs and Trade -DFAT), Government of New Zealand (NZ Mnistry of Foreign Affairs and Trade), Government of the United Kingdom (UK Aid), Leonardo DiCaprio Foundation, United Nations Development Programme (UNDP)
Implementing Agency: United Nations Development Programme (UNDP)
Partner Agencies: Energy Fiji Limited (EFL), Fiji Department of Energy (DoE), Fiji Locally Managed Marine Area (FLMMA), Fiji Ministry of Environment and Climate Change (MECC), Fiji Rural Electrification Fund (FREF), Fijian Competition & Consumer Commission (FCCC), Global Green Growth Institute (GGGI), Private Financing Advisory Network (PFAN)
Location: National
Division: Central, Eastern, Northern, Western
Province: Ba, Cakaudrove, Kadavu, Lau, Lomaiviti, Macuata, Nadroga/Navosa, Rewa, Rotuma
Tikina: Batiki, Cicia, Koro, Lakeba, Malolo, Matuku, Moala, Moce, Naviti, Nayau, Oneata, Rabi, Totoya
Sector: Digital Economy & Information Technology, Energy, Gender and social inclusion (GESI), Renewable Energy
Funding Instruments: Grant
Type of Support: Cross-cutting
Channel: Multilateral
Contribution to Technology Development and Transfer: Yes
Contribution to Capacity Building Objectives: Yes
Update Date: 04/12/2025
Creation Date: 20/08/2025

Project Information

Description

This project aims to foster the development of rural mini-grids to improve access to clean, affordable, reliable renewable energy. In doing so, it plans to also diversify Fiji’s energy mix to reduce carbon dioxide emissions from the Fijian power sector, contribute to national electricity access objectives and promote gender-balanced economic growth using electricity as an enabler for inclusive sustainable development. FREF is envisaged to electrify approximately 300 rural communities (households, schools and hospitals) in Fiji over the next 10 years using innovative renewable energy solutions. The provision of electricity is combined with modern auxiliary services such as smart meters, mobile payment, digital connectivity and clean water and sanitation solutions to - among other things – induce productive electricity use cases and lift standards of living in rural communities. The ability to productively harness the provided clean electricity is expected to enable rural Fijians to increase community income through multiple economic activities, reduce social inequality and promote gender inclusivity. All of which also contributes to building more climate informed resilient livelihoods. This project will seek to electrify at least 20 rural communities in 4 years to support the expeditious implementation of FREF as well as demonstrate best practices to shore up investments in FREF and its rural electrification objectives while building long term implementation and management capacity within the Department of Energy to continue FREF on a long-term basis.

Objectives

The project seeks to achieve the overall impact of empowered and climate-resilient rural communities with equitable access to sustainable energy solutions, driving inclusive socio-economic development and helping achieve national climate goals.
With effective implementation of this project (project Outputs), there are two layers of outcomes that can be achieved over two time horizons short term (1 - 3 years) and long term (5 - 10 years).
The long-term project outcomes focus on Fiji's climate actions that underpin its development priorities and can be differentiated into climate adaptation and mitigation outcomes. It must be noted that these long term outcomes do mutually benefit and reinforce each other. For example, mini grid generated clean electricity would allow the implementation of usually energy-intensive adaptation solutions such as solar ice plants/fridges, desalination plants, and irrigation with net-zero emissions.
Climate Mitigation Outcome: Rural and remote communities in Fiji have improved access to renewable energy (improved = universal, sufficient, clean, affordable, reliable and sustainable).
Climate Adaptation Outcome: Rural and remote communities in Fiji, especially women and people with disabilities, have improved adaptive capacity, safety and socio-economic development through improved access to renewable, reliable and affordable electricity solutions.
The following short term outcomes are envisaged to be achieved by the project:
- Strengthened policy, regulations, and institutional capacity for rural renewable energy and electrification;
- Improved private sector engagement in renewable energy generation, transmission, and distribution; and
- Improved affordability and access to risk informed electricity and to unlock gender sensitive development opportunities.

Expected Outputs

Output 1: National Rural Electrification Regulations and rural mini-grid tariff setting structure developed using gender considerations and being used by the national energy regulator and the Department of Energy.
Output Indicator 1.1: Percentage completion FREF business plan, financial models and incentive structures developed.
Output Indicator 1.2: Percentage completion of tariff algorithms, structures and regulations/guidelines for mini grids. 2024 Baseline: 0 2028 Target 100%
Output Indicator 1.3: Number of capacity building initiatives undertaken to revert FREF operations to the Government of Fiji and Number of communities based rural technicians trained to manage FREF systems. 2024 Baseline: 0 and 0 2028 Target: 6 and 60 (30 females)
Output 2: 20 rural solar mini grids constructed using public private partnership models with an installed capacity of 2 megawatts and a particular focus on supporting women led partnerships.
Output Indicator 2.1: Number of FREF tenders successfully awarded 2024 Baseline: 0 2028 Target 3 tender packages awarded.
Output Indicator 2.2: Total investment (USD) mobilized from private sector entities for FREF projects per tender round and Number of jobs created in renewable energy generation and distribution through private sector involvement in FREF projects, disaggregated by gender and age. 2024 Baseline: $0 0 Jobs 2028 Target US $5.93 million 60 Jobs Created
Output 3: 6,500 people living in 20 rural communities, half of whom are females, have access to clean, affordable and reliable energy and telecommunications solutions.
Output Indicator 3.1: Number of sites for which technical assessments, socio economic baselines, land tenure arrangements completed 2024 Baseline: 3 2028 Target 20
Output Indicator 3.3: Amount (kilowatts) of renewable energy capacity installed (disaggregated by site/geographical location) 2024 Baseline: 0 2028 Target 2,000 kilowatts of installed renewable energy

Gender Relevant Information

The impact of electrifying communities has heterogeneous effects by gender. Global research indicates that men who gain access to electricity tend to increase their working hours in their primary jobs and are less inclined to take on a second job. While this shift in time allocation might lead to non-monetary advantages in the long run, such as improved specialization, their earnings do not change. In contrast, the effects for women are significantly different; in regions where electricity becomes available, women's earnings increase by roughly 30%.
In similar vein, this project and FREF in itself envisages to achieve such sizeable socio-economic impacts by providing access to electricity that allows women to perform more productive activities and earn more. Based on initial community engagements carried out by FLMMA (Community engagement partner of FREF for Phase 1), some of the key benefits of electrification and auxiliary services to women include:
• Women in electrified households would be reading more.
• 2-3 hours per day saving in avoided journeys for battery charging, kerosene purchasing, and household activities such as fishery preservation.
• Improving homework and school performance, avoiding eye problems, increased enrolment of girls.
• Increased opportunities for self- employment in electrified households such as sewing for sale and greater control over their income.
• Maternal health benefits from electrification of clinics and access to auxiliary services.
Interestingly, it was noted through Phase 1 on Vio Island, that electrification of communities has significant impacts for women and girls as the following:
• Security, especially for women and girls. Lighting at night improves the general security of a place. It is also important to note that most kitchens in rural dwellings are independent units outside the main house. In most cases, these facilities are not electrified and yet women and girls have to stay out cooking for the rest of the family. Targeting lighting in and around kitchen units specifically would go.
• Health and safety - there have been occasional fires started in rural dwellings caused by kerosene lamps and candles. The fact that most of these dwellings are wooden and grass- thatched puts these families at even greater risk. Access to mini-grid reticulated electricity is likely to negate this issue.
Overall, gender mainstreaming in rural electrification and provision for auxiliary services can:
• Further improve positive impacts on women.
• Maximize overall impacts of a rural and renewable electrification programme and contribute to women, and bringing about better gender relations within homes and communities.
• It ensures that both women and men benefit equally from development opportunities.

Technology Development and Transfer - Specification

• Technical assistance for the national electricity regular to develop gender sensitized rural electricification regulations, guidelines, grid codes and tariff setting mechanisms in line with the National Electicity Act of Fiji
• Technical assistance for FREF to establish robust operating and financial procedures, an effective business plan, and a realistic financial model to de-risk and unlock development potential in Fiji’s rural electrification sector.
• Technical assistance for FREF to monitor, evaluate, learn and report on its rural electrification initiatives, supporting continuous improvements in implementation.

Capacity Building - Specification

• Training for key stakeholders, particularly senior project beneficiaries, to build capacity in implementing high – quality rural solar mini-grid projects through FREF using PPP solutions.
• Facilitate capacity building for department of Energy to take on the responsibilities of administering FREF once the FREF support projects concludes, ensuring long-term sustainability.
• Technical capacity building and training of community based sola engineers through a certified technical institute with a particular emphasis on training rural woman as solar engineers.

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