Fossil-based energy imposes huge costs to the domestic economy. These include risk from the volatility of oil prices, trade deficits due to high energy imports; and greenhouse gas emissions contribution to global warming. Rural electrification projects in remote areas of Fiji have been predominantly diesel based. Under the Fiji Rural Electrification Policy, Government will contribute up to 95 per cent of project cost whilst the community/village provides the remaining 5 per cent.

This paper describes a preliminary economic analysis of the feasibility of the project.