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Yap Renewable Energy Development Project.

Project Type / Modality of Assistance :


Source of Funding / Amount :

Loan 3004-FSM: Yap Renewable Energy Development Project

Ordinary capital resources-US$ 4.68 million

Loan 3005-FSM: Yap Renewable Energy Development Project

Asian Development Fund-US$ 4.36 million

Strategic Agendas-

Environmentally sustainable growth

Inclusive economic growth

Drivers of Change

Sector / Subsector : Energy - Conventional energy generation - Renewable energy generation - solar - Renewable energy generation - wind

Gender Equity and Mainstreaming : Effective gender mainstreaming

Description : The Yap Renewable Energy Development Project (Project) supports development of the power system in State of Yap (Yap), Federated States of Micronesia (FSM) in order to reduce dependency on imported diesel through expansion of renewable power generation and improving the supply-side efficiencies of power delivery.

Project Rationale and Linkage to Country/Regional Strategy : Yap (population 11,400) is one of four states within FSM (population 107,000). Yap State is nearly entirely dependent on imported diesel for power generation on the main island (Yap Proper). Power generation is supplied by Yap State Public Service Corporation (YSPSC) which is a 100% state owned corporatized utility. Approximately 65% of the population lives on the main island (Yap Proper), while the remainder lives on outer islands. There is a single power grid on Yap Proper with an installed capacity of 8.3MW (peak load 2.4MW) and about 1,500 residential customers. Access to electricity is high on Yap Proper (estimated 97%). Each state in FSM has a separate utility corporation with separate tariff structures. Due to remoteness and high diesel transportation costs, power tariffs are high and the Yap economy is highly vulnerable to fuel price shocks. In 2010 average power tariff was $0.45/kWh (generation cost $0.32/kWh). Power tariffs allow for full cost recovery for YSPSC; however, tariff reform is required to ensure YSPSC can continue to operate on a sustainable basis, while reduction in generation costs is needed to moderate the impact on YSPSC's customers. In Yap, about half of all imported fuel is used for power generation. In 2005 and 2006, the value of diesel imported to Yap for power generation exceeded the total value of exports. In 2008, diesel imported for power generation represented 17.6% of all imports by value to Yap.

The power supply in Yap is relatively stable, with adequate capacity, however oversized diesel generators have resulted in low generation efficiencies. Due to low terrain and small catchments, Yap does not have potential for hydropower, however initial assessments indicate financially viable wind and solar resources . There is currently no wind power generation in Yap, however there are a number of community solar power mini-grids established in the outer islands which are managed by YSPSC. While household consumption is low due to predominance

Project completion date : 2017-12-31 12:00:00


Address : P.O. Box 667

Colonia, Yap 96943

Country :Micronesia, Federated States of


Financier address : Asian Development Bank (ADB)

Responsible ADB Officer-James Trainor

Pacific Department

6 ADB Avenue, 0401

Mandaluyong City, Manila,

Philippines 1501

Website :

Tel : +63 2 632 4444

Fax : +63 2 636 2444

Responsible ADB Division-Transport, Energy and Natural Resources Division, PARD

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Publication:Mena Report
Date:Jul 8, 2016
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