Palau, like many small developing islands in the Pacific, is focused on moving in the direction of a more sustainable energy path and reducing its dependency on fossil fuel.
Being one of the highest per-capita energy users in the Pacific Island Countries with a population of 20, 000 people, Palau is taking firm steps to lower their energy consumption and promote energy efficiency and conservation through their Energy Efficiency Subsidy Program.The EESP is a voluntary program aimed at providing home loans that specifically targets the inclusion of energy efficiency measures in new homes to lower household electricity consumption. It is estimated that through this program, electricity usage in new homes will drop by 15 percent.This new innovative program by the National Development Bank of Palau promises to lift the standard of living in Palau while embracing environmentally sound practices.Since its inception in Oct. 2008, the program has received a total of thirty two applications with two energy model homes completed in Koror state and construction already commencing for another two: one in Airai state and another in Koror. In addition six energy efficient standard homes are under construction with twenty-two more applications being processed. Through this Energy Efficiency home loan program, the NDBP helps moderate income families build new homes, with choices of energy saving features suitable for the Palau environment. The bank provides subsidies to the borrower ranging from a minimum of $3,000 to $10, 000, depending on the type and number of features selected by the new home owner.It’s more than just using energy saver lights and using energy star appliances. Home owners will have a range of energy saving options to choose from including: tinted or high performance glass, solar water heaters, hot water piping insulation, exterior window shading or awnings and more.The concept of energy efficiency is usually associated with higher costs. In terms of initial costs the energy-efficient house could cost 2 to 10 percent more than a house without energy efficient features. However, you’ll pay less in electricity bills each month, usually more than enough to offset any increase in your mortgage payments.Awareness has been a major tool for the program and the team at NDBP has been working tirelessly to promote this concept which is new to many Palauns.“We have placed a lot of effort in our awareness campaigns and have been working with our Energy Office, local partners, other leading agencies and the communities to help people understand energy efficiency and the Energy Efficiency home loan program,” said Clarinda Ziegler, the project manager for the EESP. The program had also launched an intensive village outreach program earlier in April of this year reaching out to 16 states in the country.
