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.

What is Kiribati integrated energy roadmap?

The resulting Kiribati Integrated Energy Roadmap (KIER) highlights key challenges and presents solutions to make Kiribati’s entire energy sector cleaner and more cost effective. As a small, remote island state, Kiribati is highly dependent on imported energy supply. Electricity is one of the government’s largest expenditures.

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