In 2009, 96% of households had electricity. Transmission infrastructure is currently operating at 33 kV, with 11 kV distribution lines to the majority of inhabited islands. Roughly 243 km of medium-voltage above-ground network exists, with a further 126 km of underground distribution network.
The Seychelles commissioned a new energy policy in 2009 and the UNDP is supporting a team of experts, including a renewable energy specialist, to develop a 2nd National Energy Policy during the period 2009-2010. The new energy policy is supposed to improve on the previous energy policy of 1999, especially in terms of a more in-depth analysis of the energy potential of the country. So far, a first draft has been produced. Common themes for the two policies are likely to be improving the security of energy supply, the availability of modern energy services to the population, and the further implementation of energy conservation projects. As of August 2011, many of the recommendations made for the 2010-2011 period in the draft of the Second National Energy Policy remained unfulfilled, including the drafting of energy strategies and scenarios, as well as re-assessing the institutional role of the Ministry responsible for Energy, and the reform of the PUC Act to create a modern, comprehensive Electricity Act. In addition, the Government has set out targets for RE deployment in the country, of 15% of the energy mix from RES by 2020, rising to 30% by 2030. However, the Seychelles does not currently have any form of legal or financial framework in place for renewable energy.In 2011, the SEC invited submissions from international consultants for the drafting of a new Energy Bill, the scope of which is to address many of the pertinent issues surrounding current energy legislation in the country. The Bill is set to include legal recognition and a definition of activities for IPPs, formats for power purchase agreements, third-party grid connection and electricity sales, reformation of regulatory functions in the energy sector, and provisions for financial incentives for sustainable energy uptake, including tax exemptions for equipment and feed-in tariffs.
Solar energyGiven that Seychelles is a tropical country receiving large amounts of sunshine, with an average 6.9 hours of sunshine per day, and an average irradiance of 5.8 kWh/m2/day, there is great potential to replace at least some of the current oil-generated (and polluting) electricity with solar energy systems. One opportunity with high economic, financial and environmental viability is the implementation of rooftop grid-connected PV systems. At present, the only active grid-connected PV system in the entire country is a 600- watt (4-panel) PV system installed by the Public Utilities Corporation (PUC). The PUC would like to expand its use of PV systems, but has not done so to date because of relatively low oil prices and a lack of investment capital. A few organisations and companies (Island Development Corporation, Seychelles Islands Foundation, etc.), which manage some of the smaller islands of the Seychelles archipelago, are investigating opportunities for alternatives to oil-generated electricity, in some cases including PV systems. The interest and experience of these other organisations represents an opportunity for partnerships in the demonstration of PV systems in the country. Solar thermal systems have also been proven viable in the country through pilot projects in the 1980s/90s, and there are currently five companies offering import and installation of solar thermal home systems in the country.Wind energyThe potential for electricity generation from wind energy is present in the islands, with some sites having been identified as having average wind speeds of 6.9-7.5 m/s at 80m. MASDAR, an Abu-Dhabi based energy initiative, is currently further investigating the potential of Mahé island in particular, with a view to installing 18 MW of offshore wind power in the near future. MASDAR is currently overseeing the design, development and construction of 6 MW of this, in the form of 8 750 kW turbines on the uninhabited islands of Ile du Port and Ile Romainville. Estimates put annual production of the wind turbines in the region of 6-7 GWh. The US$28 million expected investment is to be provided entirely by MASDAR, with the PUC not having to contribute financially until the system transfers to their control after a contracted period.Biomass energyFew studies have been conducted into the potential for biomass in Seychelles, although preliminary trials were conducted through the Biomass Technology Group, with funding from the World Bank, for gasifiers in rural communities as a means of electrification, with promising results. As of 2011, the SEC has received five IPP proposals for waste-to-energy projects at the existing landfill sight in Mahe, including an incinerator, two biogas plants, a waste gasifier, and a landfill gas plant. So far, a decision has not been made as to which option is most suitable for the Seychelles. In addition, the Chinese Government, in partnership with the Ministry of Agriculture, is financing pilot biogas projects at four animal farms in the country.Geothermal energyNo study has yet been conducted into the geothermal potential of the islands.HydropowerSeychelles does not have any installed hydropower capacity, nor does the potential exist for hydro-electric power generation, due to the erratic nature of the water resource.