Posted by Big Gav in marshall islands, ocean power, oil price, otec, pacific ocean

I made a brief mention of this story on the weekend in "Short Takes", but I came across a more detailed accounting of what is happening from Pacific Magazine which is worth a read. In summary - rising oil prices are pushing smaller countries like the Marshall Islands that generate power using diesel to the (economic) brink. In this case they are taking the novel approach of considering using OTEC to supply their energy needs.



With spiraling fuel costs threatening the government’s ability to maintain power services in Majuro, Ebeye and other islands, the Marshall Islands declared a state of emergency Thursday afternoon to address the deteriorating economic situation.



Government officials said that declaration of a national state of economic emergency is aimed at fast-tracking domestic energy reduction and cost cutting measures, while lending weight to appeals by the Marshall Islands to donor countries and regional lending agencies for help.



“The national power utilities are projected to face an estimated shortfall of $17.5 million to $21 million over the next 12 months assuming the global trend continues,” said President Litokwa Tomeing in a nationally broadcast statement Thursday night. This deficit amounts to close to 20 percent of the entire national budget.



The government’s utility companies have raised power rates three times since January, but revenues have fallen as customers have cut back energy use or been disconnected for not being able to afford power costs that now range from 39 cents per kilowatt hour for “lifeline” residential use to 47 cents for businesses.



The Marshall Islands has enough diesel on island to keep the lights on until the end of August. But if it cannot come up with $8.5 million by next weekend to pay Seoul-based SK Networks for last month’s diesel shipment and a down payment on the next shipment, the likelihood of power rationing — and the possibility of running out of fuel — is looming.



The Marshalls Energy Company told Cabinet last week that without an immediate cash injection, it cannot raise the $8.5 million by next weekend. ...



While over the past three years a big alternative energy push has led to nearly half of the remote outer atoll homes getting donor-funded solar units, the state of emergency has ordered government agencies to redirect their alternative energy efforts to the two urban centers to help get people off costly electricity supplied by the government’s diesel-fired power plants.



The Cabinet has called for an fast-tracking a study on the feasibility of ocean thermal energy conversion (OTEC) as an alternative to using fossil fuels for power generation, while also ordering the cost-cutting measure of parking government vehicles immediately after work to end the current practice of workers using government vehicles for personal needs after working hours.