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Economy of Tonga


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he overseas population has been declining since the onset of the 2008 global economic crisis. The tourism industry is improving, but remains modest at under 90,000 tourists per year.

Energy

Tonga has begun implementing tailor-made policies to power its remote islands in a sustainable way – without turning to expensive grid-extensions. A number of islands within the Kingdom of Tonga lack a basic electricity supply. A supply entirely coming from imported diesel. Also, in 2009, 19% of Tonga's GDP and 25% of its imports consisted of diesel purchases.

In view of the decreasing reliability of fossil-fuel electricity generation, its increasing costs and negative environmental side-effects, renewable energy solutions have attracted the government’s attention. Together with IRENA, Tonga has charted out a renewable energy based strategy to power the main and outer islands alike. The strategy focuses on Solar Home Systems that turn individual households into small power plants. In addition, it calls for the involvement of local operators, finance institutions and technicians to provide sustainable business models as well as strategies to ensure the effective operation, management and maintenance once the systems are installed.

With the assistance of IRENA, Tonga has developed the 2010–2020 Tonga Energy Road Map (TERM), which aims for a 50% reduction of diesel importation. This will be accomplished through a range of appropriate renewable technologies, including wind and solar, as well as innovative efficiencies
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