Prior to 2004, there was 100% electrification rate in Niue where all residences and businesses have access to the grid line. However, since Hurricane Heta in 2004, a number of households have moved inland from the coast, removing them from access to electricity. Current estimates based on the 2011 Niue planning and policy workshop stand at around 99%.Much of the power generation and transmission system has been identified as being in need of replacement, and large flow batteries are currently being employed in an effort to improve network stability.
In NIUE, energy sector development is a priority for the Government. The National Energy Policy is supportive of renewable energy and energy efficiency technologies. Niue’s current National Integrated Strategic Plan 2009-2013 also considers policies and strategies in the field of economic and sustainable development and was adopted with the environment, climate change, achieving the MDGs, and poverty alleviation measures ranking high on its priorities for sustaining a living and vibrant community on Niue. In Niue 2005 Energy Policy Document has the following subsectoral policy statements showing consistency with the country’s priorities and the project activities will build on ongoing programs, policies and political commitments: The Electricity Sector: ‘Establish and maintain an efficient, semi-autonomous and commercially orientated power corporation, the Niue Power Corporation (NPC) that is able to provide an ongoing, cost-effective, affordable, user-friendly and reliable electricity supply to meet the developing demand for electricity in its areas of service. New and Renewable Sources of Energy: ‘Promote low-carbon energy options for power generation including solar, wind and biomass energy resource; and assess and promote the natural resource potential and improve the technical capacity to meet Niue’s energy needs. Energy Conservation and Efficiency: ‘Minimize Niue's energy demand and consumption without adversely affecting Niue's economic and social well being; and maximize the efficiency with which energy is used. Private sector: To mobilize development assistance and financing from international and multilateral development partners and the private sector, for the implementation of national and regional energy strategies.The Niue National Strategic Plan 2009-2013 (NNSP) has replaced the National Integrated Strategic Plan 2003-2008 with adapted and strengthened strategic objectives. The central purpose of the NNSP is to focus and invest on creating opportunities for everyone on Niue through financial stability, governance, economic development, social, environment and Tāoga Niue (Niue culture) development pillars, with economic growth as the identified anchor and vital for prosperity.The NNSP remains the goal for the Energy Sector to provide reliable energy to all residents. The NNSP states that the aim is for Niue to be 100% carbon neutral within the next three years while power is generated using diesel presently. Niue is thus exploring renewable energy options to reduce reliance on fossil fuels and is considering energy efficient products such as electric cars and solar powered street lights.The NNSP specifies four strategic areas for implementation.1) Review and implement Niue Strategic Energy Policy and Action Plan (consistent with the Pacific Plan, Pacific Islands Energy Policy and the outcomes of the 2007 Pacific Energy Ministers Meeting, as appropriate) for energy security to ensure:Cost effective and sustainable procurement and supply of fuel;Efficient energy supply, including power supply and utility management;Management of demand focusing on consumption efficiency; andIncreased use of renewable energy and other alternative forms of energy.2) Upgrade the underground cable system for 100% underground power distribution.3) Place remaining High Voltage Aerial Cables underground.4) Scheduling main overhaul for the generators.It set the targets of grid stability of 20% renewable energy, and other forms of alternative energy to total electricity power supply increased to 20% by 2013.Under the 9th EDF, a renewable energy/energy efficiency programme, Support to the Energy Sector in Five ACP Pacific Island Countries (REP-5), was implemented from 2006 to 2009. Through REP-5, 240 solar water heaters were supplied and grid-connected 52 kWp of solar photovoltaic systems were installed which are expected to generate 73 MWh per year, or roughly 2.4% of the current electricity consumption. Diesel fuel savings at the NPC are expected to be 18,000 L/year, which translates into a CO2 emissions reduction of 53 tons. The REP-5 energy efficiency projects supplied 380 LPG cook stoves to displace the use of electricity for cooking and implemented energy efficiency awareness campaign.The country is a full member of the South Pacific Applied Geoscience Commission (SOPAC) since 1994.
Solar energyNiue has ample solar resources, more than sufficient to meet all its energy needs. Average horizontal irradiation over the year is 5.4 kWh/m2/day. Both photovoltaics (PV) and solar thermal systems have seen use in the country. The country received 9 grid-connected PV systems for use in the country's hospital and high school, with a total capacity of 52 kW. Over 240 solar thermal units have also been provided at discounted rates to home-owners in the country. However, the maximum impact that is practical to attain is unlikely to exceed 5% of the energy delivered by the NPC grid.Wind energyNiue has one of the highest wind-energy intensities in the South Pacific. Mean wind speeds of 6 m/s were recorded over a two-year period on the eastern side of the island, which has recently been proposed as the potential site for a grid-connected wind power system. Current utilisation of the technology in the country includes a demonstration 150 kW turbine, installed with assistance from the Danish Forum for Energy and Development (FED). However, unless complex load shifting control systems are included, wind energy is not likely to deliver more than about 10% of the total energy delivered by the NPC grid.Biomass energyCurrent government plans include the scaling-up of biomass energy use to contribute 30% to total energy consumption by 2015. Traditional biomass use has declined in recent years, and the potential for biomass energy use in power generation has been recognised, although currently, examination of the potential, and utilisation of the resource, are both limited. The protected status of forests and the lack of large plantations of economically useful tree crops are considered to limit the development of biomass as a significant energy source.Biogas The population is dispersed over the area of the island, there is no distinctive urban and rural area. Collecting manure for economically reasonable biogas generation is not reasonable and the quantity of urban waste that could be used for digestion is small. Biogas is therefore not considered a significant potential for GHG reduction.Ocean energyBoth wave and ocean thermal resources are good, but at this time there are no commercially available systems that can be used in Niue to convert these energy sources to useable power. There are no known tidal resources developable in Niue.Hydropower/Geothermal energyNiue has no known potential for hydropower, possibly due to the very low geological profile of the island, whose highest point is 68 metres above sea level. In addition, the geothermal potential of the island has been assessed to be zero, with no identified geothermal resources.