North-REP Socio Economic Baseline Report Republic of the Marshall Islands

This report was prepared by the Ecocnomic Development Division of the Pacific Community and was funded by the European Union. It summarises the results of household surveys undertaken in outer islands of the Republic of the Marshall Islands (RMI) to provide a baseline against which to measure the socio-economic impact of the North Pacific ACP Renewable Energy and Energy Efficiency Project (North-REP). Analysis of the impacts at household and community level will not only enable an assessment of the project’s benefits, but will also add to the evidence base for the socio-economic value of this type of investment in renewable energy and energy efficiency in remote areas that have not previously had access to grid-connected electricity. Many rural households on the outer islands of RMI do not have access to safe, clean and affordable electricity.

Many rural households on the outer islands of RMI do not have access to safe, clean and affordable electricity. This has wide socio-economic consequences, on employment opportunities, for example, and on health and education services; children cannot study in the evening and medicines cannot be refrigerated. Access to affordable and reliable sources of energy is therefore considered one of the key enablers of sustainable livelihoods and progress towards the Millennium Development Goals.1 Furthermore, reliance on imported petroleum products reduces energy security, and increasing the energy mix is considered a key priority of energy policies throughout Pacific Island countries and territories (PICTs).

To tackle this and spur economic development, the stated purpose of the North-REP project is: ‘improve the overall efficiency of the energy sector through energy efficiency and grid connected renewable energy (RMI, FSM and Palau) and increase access of remote populations to reliable renewable electricity services (RMI and FSM)’ (see Annex 1). The project will provide households, schools and dispensaries in the outer islands with access to grid-connected electricity for the first time; train staff at government ministries and utilities companies on energy efficiency; and set up maintenance programmes to ensure that the equipment can be maintained and repaired and that the investments work for their intended life.

In order to monitor success of the project and evaluate its impacts, a logical framework was developed, setting out specific, measurable objectives. A socio-economic assessment will determine the extent to which the key results have been achieved. This report will provide baseline data to be used in an ex post evaluation of effects, and also assess the effects expected prior to implementation. It will also assess the ability of the project to sustain itself in the long run after European Development Fund (EDF) support is withdrawn, when it must fund its on-going costs from its own revenue.

The baseline data were predominantly obtained through household surveys that collected data on population demographics, current energy usage, attitudes to improved access to electricity, and how households anticipate making use of it. By way of further surveys after the project activities and infrastructure installation, and gathering of data on actual use of electricity, the effect of the project on socio-economic variables in the project areas can be assessed through an ex-post assessment. This report does not attempt to perform a comprehensive cost benefit analysis, as investment costs are borne by donor funding and will be evaluated elsewhere; this report provides an analysis of socio-economic conditions in order to assess the effects of the project at community level.

Keywords: Republic of the Marshall Islands, RMI, North Pacific ACP Renewable Energy and Energy Efficiency Project, North REP, Renewable Energy, Energy Efficiency, European Development Fund, EDF