A new power plant to be built in Fiji's Western Division is expected to save the Fiji Electricity Authority more than 12.4 million US dollars a year in foreign exchange.
The Fiji Times newspaper reports that the deal was sealed at the signing of a power purchase agreement with Tropik Energy Limited, a subsidiary of Tropik Woods Limited in a major push towards providing energy through renewable resources.
The new plant, to be commissioned in the first quarter of 2009, is expected to reduce the use of expensive diesel power generation.
The Authority's chief executive Rokoseru Nabalarua says the idea was to provide more than 90 per cent of energy through renewable resources by 2010 to replace diesel generation sources.
The power station to be based in Qeleloa, Nadi is planned to add 20 megawatts of power capacity to the FEA grid.
