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Energy Policy

legislation type Executive
Passed in 2012
The Energy Policy aims to reduce the dependence on imported sources of energy and on fluctuating energy prices, by increasing share of renewable energy in the energy mix, cross-sectoral energy conservation and energy efficiency standards. .
 The stated targets of the policy are:
  • 30% of energy produced by renewables by 2020
  • 50% increase in energy efficiency by 2020
 Policy intermediate goals are:
  • Provision of affordable and safe electricity to all the households in the main island centres by 2015
  • Electrification of 80% of rural public facilities by 2015
  • Electrification of 90% of rural households by 2020
  • Enhance the supply-side energy efficiency of the FSM utilities by 20% by 2015
 The policy includes action plans on four main components:
 A National Energy Workgroup has been established, co-ordinated by the Energy Division in the Department of R&D, which is responsible for:
  • Overseeing all national efforts in the energy sector
  • Co-ordinating overseas development assistance that will be used for implementing the Action Plans
  • Developing timely a nationwide energy statistic database for effective and fact-finding planning, monitoring and evaluation.
  • Assisting in implementing the action plans by the State Energy Workgroup (SEW)
  • Providing technical assistance to the State Energy Workgroup, as requested
  • Annually reviewing the Energy Policy and revising this Energy Policy as needed in consultation with the SEW
 Conventional Energy
  • Effectively co-ordinate with regional/sub-regional organisations for stable and affordable energy supply
  • Energy Division (R&D) to act as a centre for implementation of Energy Policy
 Renewable Energy
  • Effectively co-ordinate with donors and regional/sub-regional organisations to support
  • Technical/financial source of states' investment plans
  • Conduct nationwide study for renewable energy assessment
 The action plan includes a renewable energy target across all four states, focusing on solar, and also on wind, hydro, biofuel and bio-gas.
 Energy Efficiency and Conservation
  • Implement government facility conservation plan
  • Advance regulation on building and construction
  • Conduct awareness campaign on energy efficiency and conservation
  • Conduct training and capacity building programme


  • 30% renewables of total energy production by 2020
    Energy | Base year target | Target year: 2020 | Base year: 2020
  • 20% energy loss reduction from production by 2015 against a 2012 baseline
    Energy | Base year target | Target year: 2015 | Base year: 2012
  • 50% increase in energy efficiency by 2020 against a 2012 baseline
    Energy | Base year target | Target year: 2020 | Base year: 2012
from the Grantham Research Institute
from the Grantham Research Institute
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