Review of Tariff of Palau Utility Corporation Final Report

This report was prepared by Ridgeway Capital Projects Limited and Empower Consultant Limited for the Palau Energy Office as the implementing partner for The United Nations Development Program. With 99.3% of its electricity being produced from diesel based generation, Palau is exposed to the risk of volatile and rising electricity prices. As fuel costs comprise almost two thirds of all operating expenses, any rise in the price of diesel has a consequent impact on required tariffs. There are a number of alternatives to diesel generation of electricity for Palau. These include biodiesel, geothermal, hydro, Ocean Thermal Energy Conversion (OTEC), solar photo-voltaic (PV), solar thermal, wave and wind power. Some options, such as solar PV and biofuels are already proven, mature technologies, whereas others like OTEC and wave power are not proven, but may become viable in the future.

Keywords: Palau, Palau Utility Corporation, PPUC, Tarriff