PEPP's innovative and collaborative approach to problem-solving is reflected in its inaugural project, which will address the long-term electrical power needs of the State of Pohnpei, in the Federated States of Micronesia.
Pohnpei's electricity rate is among the highest in the world. Because of production shortages, electrical power is daily cut off to a sizeable percentage of Pohnpei's population, with devastating effect on hospitals, businesses and families.
After Pohnpei's governor declared an emergency, the issue then became enmeshed in an imbroglio of lawsuits and recriminations involving Pohnpei's executive, legislators, the Pohnpei Utilities Corporation, and rival energy service providers.
Even before incorporating, PEPP immediately mobilized a team, together with accredited USA-based strategic partners, who devised a plan for easing Pohnpei's electricity shortage by constructing a solar power farm on Pohnpei and amortizing the cost through a Power Purchasing Agreement with the PUC. Without fanfare, PEPP launched a whirlwind of consultations with stakeholders, who swiftly coalesced around our plan to slash electricity costs to Pohnpei consumers.
The project will reduce Pohnpei's carbon footprint significantly. It will also safeguard Pohnpei's energy needs for many years to come. After just 15 years, the entire project, capitalized at over $20 million, will transfer, without cost, to the State of Pohnpei, providing it with many more years of free renewable energy using the best solar technology.
The solar project in Pohnpei is a concept that can be replicated by other Small Island Developing States. It is proof positive that PEPP has the imagination to visualize the needs of Pacific Island societies and the technological and broad social understanding to bring that vision to reality.
PEPP's proposed $20 million 5 MW solar power farm for Pohnpei would help to establish the Federated States of Micronesia as a world trendsetter in the application of renewable energy. It would give the FSM greater energy independence. It would also enable Pohnpei to end its electricity outages and meet its aspirations for balanced long-term economic development.
PEPP's solar power project would help to end Pohnpei's reliance on hazardous and costly diesel fuel for its electricity generation. Pohnpei currently pays approximately $.52/kWh in diesel fuel costs. PEPP's project would cut that cost to virtually zero. It would also dramatically diminish Pohnpei's carbon footprint by eliminating the need to import so many bulk shipments of diesel.
The photovoltaic panels at the heart of PEPP's solar power project design come with 25-year warranties. PEPP's proposed project would pay for itself in just 15 years' time, leaving 10 years of warranty remaining on the panels. Properly maintained, the PV panels should have many more years of serviceable life beyond the warranty period, during which time Pohnpei's electricity generation costs will be negligible.