Parliament approves the EU funded Tonga Energy Act 2021 ^Featured

Following the passage of the Energy Act 2021, the National Authorizing Officer and Minister of Finance, Hon. Tevita Lavemaau stated – “the passage of the Energy Act 2021 is an aspiring step, one which the Ministry responsible for energy, (Ministry of Meteorology, Energy, Information, Disaster Management, Environment, Climate Change and Communications) has been working toward for some years. 

It reflects the Kingdom of Tonga’s strong commitment to lowering the country’s cost and dependence on imported fuels and to achieving its renewable energy target of 70% renewable energy by 2030”.

Development of the Energy Act 2021 has been possible through the financial support of the European Union (EU) under its allocation from the 11th European Development Fund (EDF).

The EU is one of the key partners in the energy sector in Tonga. It has provided support of more than EUR 21 million (approximately TOPS 55 million) for the past seven years in shaping Tonga’s commitment towards renewable energy and energy efficiency.

In congratulating the Government of Tonga, the Ambassador of the European Union to the Pacific and Ambassador-designate to the Kingdom of Tonga, His Excellency Sujiro Seam said, “Under the European Green Deal, the European Union is very much committed to energy transition.

The approval of the Energy Act 2021 by the Legislative Assembly of Tonga is a key achievement towards energy transition. It provides a robust legal framework for the regulation of the energy sector, including over electricity, gas, petroleum, renewable energy and other energy sources. It paves the way for all Tongans to energy resilience, affordability, security, safety, access, reliability, and sustainability”.

The Energy Act 2021 now awaits submission in the Privy Council for royal assent before it comes into force.

ENDS

Background

The drafting of the Energy Bill was awarded through a tender procedure to Solutions Consulting House Limited.  The drafting process involved reviewing, reforming and incorporating the following energy sector laws into one umbrella bill:.

1. Electricity Act 2007
2. Petroleum Act 1959; and
3. Renewable Energy Act 2008.

The key objective of the Energy Act 2021 is to establish:

1. an effective policy oversight of the energy sector by the Ministry responsible for energy;
2. clarity of functions of the Ministry responsible for energy and key governing bodies;
3. a new Energy Commission to be responsible for regulation of the energy sector;
4. a robust legal framework for the regulation of the energy sector, including over electricity, gas, petroleum, renewable energy and other energy sources; and
5. greater coordination between Government and non-government stakeholders.