The majority of Tonga’s electricity generators are supplied through imported fossil fuels leading to high and volatile energy prices. Small rises in oil prices have a significant impact on national revenue as the government limits electricity price raises. Furthermore there are high transmission and distribution costs (estimated at 18%) due to poor infrastructure (primarily lines, meters, transformers).
Nevertheless, the Kingdom of Tonga is planning to move forward with its energy policy and the Implementation of Tonga Energy Road Map (TERM). It wants to be part of the technological development of renewable and sustainable energy and improve their energy supply.
Since the price of energy in Tonga depends on the price of oil, energy is expensive and too much of a burden for its population and its economy. Many households can hardly pay for the electricity
and the schools and other public institutions often lack power completely due to insufficient funds for the bills. The same applies to people running a business in Tonga. Often their margin is
eaten up by the high energy prices.
In addition Tonga is often too small for both an interest of other governments for a strategic investment and for companies to enter the market. Finally, there are no sufficient funds available to initiate the “solarisation of the private sector”, i.e. to motivate local families, institutions and companies to go the solar way.
We have formed a Swiss, German and Dutch team – SIT - with Tongan family roots and experience in both Tongan government and investment activities to bundle our know how, energy and funds to set up an operation for the promotion and operation of solar energy production in the private sector on Tonga and neighboring islands in the Pacific.