Low rainfall is forcing greater reliance on diesel generation in Fiji, with Energy Fiji Limited estimating that the combined impact of fuel price volatility and increased thermal electricity generation will amount to approximately $44 million through to December 2026.
In his ministerial statement in Parliament, Minister for Public Works, Meteorological Services and Transport, Ro Filipe Tuisawau highlighted that the current decline in hydropower generation has increased the need for diesel and other thermal generation to maintain a reliable electricity supply.
Ro Filipe says hydropower remains a major contributor to Fiji's electricity generation, accounting for the majority of the country's renewable energy output.
He says EFL currently generates close to 52 percent of its electricity from renewable sources, predominantly hydropower, while 48 percent comes from fossil fuel generation.
He says changing rainfall patterns and reduced water availability are affecting hydropower production, requiring greater reliance on imported fossil fuels.
He says international developments, including instability in the Middle East and concerns over global oil supply routes, have also contributed to fuel price volatility.
The Minister says Fiji remains exposed to these external pressures because of its dependence on imported fuel for transportation and electricity generation.
He says the combined impact of increased thermal generation and fuel price fluctuations is estimated by EFL to be approximately $44 million through to December 2026.
He says temporary fuel surcharges are intended to recover most of these extraordinary costs and are not designed to increase EFL's underlying profitability.
He says the situation reinforces the importance of accelerating Fiji's transition towards renewable energy to reduce dependence on imported fossil fuels.
Ro Filipe says the Government is progressing major investments in hydropower, solar farms and battery energy storage systems as part of efforts to strengthen the country's energy security.
He says EFL is also progressing the first phase of an electricity development programme estimated at approximately $2 billion.
The programme includes $731 million for transmission infrastructure, $653 million for hydropower development, approximately $400 million for solar generation and battery storage, and $250 million for replacing ageing assets and developing a modern national control centre.
Ro Filipe says rural electrification also remains an important Government priority, with 59 grid extension projects completed during the 2025-2026 financial year in partnership with EFL, connecting 848 households.
He says the Ministry aims to complete another 24 committed grid extension projects valued at $9.8 million, benefiting 883 households by December this year.
He says strengthening renewable energy generation, improving electricity infrastructure and investing in battery storage will help Fiji build a more reliable and resilient energy system.
He says the transition will take time, as fossil fuels will continue to play an important role in maintaining electricity supply in the short to medium term, particularly during periods of low rainfall.
The Minister says the Government remains committed to building an energy sector that is less dependent on imported fuel, more resilient to international price shocks and increasingly powered by Fiji's own renewable resources.
Meanwhile, Opposition MP Jone Usamate has raised concerns over Fiji's dependence on imported fuel, delays in renewable energy projects and the need for greater transparency in electricity generation costs.
Usamate says the Government has outlined several renewable energy plans and targets, but progress remains too slow.
INSERT: Usamate on implementation 4th Nov
He says the reliability of Fiji's electricity infrastructure is another major concern, particularly following Tropical Cyclone Vaianu, when the failure of a single 132-kilovolt transmission line affected electricity supply across Viti Levu within a short period.
He says the incident highlights the need for stronger backup systems to ensure electricity supply can continue when major infrastructure fails.
The Opposition MP says Fiji is also facing challenges from changing rainfall patterns, international fuel price shocks and the need to reduce dependence on fossil fuels.
He has also questioned delays in rural electrification, saying that 24 grid extension projects remain pending, while another 184 grid applications are awaiting attention.
He says there is approximately $131 million worth of demand that needs to be addressed.
While acknowledging the shortage of contractors and skilled workers, he says these challenges must be addressed to ensure rural communities are not left behind.
Usamate has also questioned the continued reduction in the Department of Energy's budget, which he says has fallen from $14.1 million in 2023 to $9.6 million in 2024-2025, $8.9 million in 2025-2026 and $6.4 million in the 2026-2027 financial year.
He says the declining allocations raise questions about whether the Government's financial commitment matches its stated priorities for the energy sector.
He is also calling for greater transparency on electricity generation costs, particularly EFL's costs per unit for hydropower, diesel and electricity from independent power producers.
He says electricity tariffs should not become political theatre, stressing the need for accurate disclosure of the actual costs involved in generating electricity.
The Opposition MP has further questioned the official figures for renewable energy generation, saying different percentages of 35 percent and 57 percent have been mentioned for 2025 and 2026.
He says the Government must clarify the actual renewable energy contribution and provide a clear timeline for achieving its 100 percent renewable energy target.
Usamate says there is also a need to explain a draft plan suggesting the target could shift from 2030 to 2045.
He says Fiji must move beyond announcing targets and ensure renewable energy projects are delivered, electricity infrastructure is strengthened and communities receive reliable and affordable power.
Energy Fiji Limited has made a new submission to the Fijian Competition and Consumer Commission, asking for a further increase in the electricity fuel surcharge as water levels in hydro dams continue to fall.
FCCC says it is assessing EFL's submission and will keep the public updated on its progress.
In the meantime, the current surcharge rate remains unchanged.
Questions have been sent to Energy Fiji Limited Chief Executive Officer, Fatiaki Gibson on the current hydro dam levels and the situation at hand during this El Nino period.
