The Chugoku Electric Power Company and the Japan Bank for International Cooperation (JBIC) will jointly invest in Energy Fiji Limited (EFL), Fiji’s sole electricity company. The three parties signed an agreement on March 25. Chugoku and JBIC will own over 40% of EFL’s shares. The amount invested has not been disclosed but is thought to be between 20 and 30 billion yen. Chugoku’s expertise in hydroelectric power generation will promote the introduction of renewable energy in Fiji.
Chugoku and JBIC will acquire 44% of EFL’s issued shares from the Fijian government through an investment company launched in March 2021 by Chugoku and JBIC in Singapore. The Fijian government will own 51% of EFL’s shares, the two Japanese companies 44%, and Fijian consumers 5%.
Chugoku will own 60% and JBIC will own 40% of the Japanese-owned shares.
EFL is a comprehensive electric power company that performs power generation, transmission, and distribution, as well as retail businesses. Half of EFL’s power is generated by hydroelectric generation and the rest by diesel-powered generation. The Fijian government has set the goal of using renewable sources for all energy by 2036 and aims to achieve this through hydroelectric and solar power generation by leveraging Chugoku’s technology.
This is the first time for Chugoku to participate, through investment, in the management of a foreign electricity company whose operations span from power generation through retail. Chugoku owns 90 hydroelectric power plants in Japan and is involved in power generation projects in Indonesia and Taiwan. Chugoku is focusing on overseas projects and intends to participate in more projects like the one with EFL.
JBIC has been building cooperative frameworks for energy and infrastructure projects in the Indo-Pacific region after signing business cooperation agreements with American and Australian governmental financial institutions in 2018. This is in line with the Japanese government’s policy on China. JBIC intends to actively engage in projects in the Indo-Pacific region going forward.