The overall target of the NAMA is to support Vanuatu in achieving the goal defined in the National Energy Road Map (NERM), namely to provide access to electricity to all households in Vanuatu. The NAMA will reduce GHG emissions through the replacement of fossil fuels with renewable energies. The NAMA will also contribute to Sustainable Development (SD) benefits, such as improvement of the situation of groups with specific vulnerabilities, women and the poor.

The NAMA covers two interventions. Under Intervention 1, micro grids will be established. Rural communities/tourism and agricultural facilities/health centres/schools are the focus of these micro grids due to their demand for electricity for lighting, cooling and appliances. The micro grids will use renewable energy sources (solar, wind, hydro) and will provide electricity for lighting, radio and phone charging for households, and for service and production activities in Rural Productivity Zones (RPZs).

Intervention 2 will support extension of existing electricity grids on different islands. Households, public institutions and tourism/commercial consumers in the proximity of lines will be connected. Electricity will be provided for lighting, audio/TV, mobile phone charging, coastal fishing (refrigeration of the fish catch), tourism facilities (lodges), agricultural facilities (preparing, processing and packaging produces) or the production of handicrafts.

In its first phase, the NAMA aims to establish five micro grids under Intervention 1 and support the extension of five electricity grids in Intervention 2. This will provide electricity to around 1,000 households and around 4,700 people. Over the 15-year lifetime of the NAMA, emission reductions will reach around 13,500 tons of CO2.

Capacity-building will be a key component in the implementation of the NAMA. Special emphasis will be given to identifying and supporting the development of income-generating activities in the Rural Productivity Zones (RPZs), as this is the key to positive rural development. Another important component will be technical support during the identification and implementation of the different projects under the two interventions, as the aim is to implement technically sound projects with low operating costs.

 The baseline scenario for this NAMA consists of two components, a GHG baseline and a sustainable development (SD) baseline. Setting the baseline scenario in this way allows all effects to be properly assessed and quantified through the monitoring activities described in the Measurement, Reporting and Verification (MRV) system. In the MRV, the UN Framework Convention on Climate Change's (UNFCCC) "Small-scale Methodology: AMS-I.L.: Electrification of rural communities using renewable energy, Version 03.0" will be used to monitor GHG emission reductions.

The total cost of the NAMA is estimated at around US$5.5 million. This includes support to cover the investment costs of the two interventions as well as extensive capacity-building efforts. Cyclone Pam, which hit Vanuatu in March 2015, has curtailed the ability of Vanuatu to contribute to the financing of the NAMA. In total, the Vanuatu government is committed to providing around 12 per cent of the required funding and the private sector is expected to contribute around 6 per cent. The remaining 82 per cent is expected to come from NAMA donors.

Implementation of the NAMA will be led by the Ministry of Climate Change and Natural Disasters as the NAMA Coordinating Authority (NCA). The National Advisory Board (NAB) will be appointed as NAMA Approver/Focal Point to the UNFCCC. The role of NAMA Implementing Entity (NIE) will be taken by the Department of Energy (DoE) in cooperation with the Project Management Unit (PMU).

The NAMA will receive capacity development support over a period of five years. Initial efforts will focus on securing national and international funding as well as establishing the institutional structure. The first five projects in each of the two interventions will be prepared and implemented in the years 2016 and 2017. Upon availability of additional funding, further projects can be implemented in the two interventions. After the implementation of the interventions, the NAMA will operate over a period of 15 years.