Energy demand in Vanuatu is met primarily by biomass and oil products. Biomass is a major energy source, as three quarters of the population still live in rural areas where it is the dominant energy source for cooking.
Diesel is the largest volume imported (63% or 33 million litres) as it is also used in electricity generation (18 million litres including use for outer islands generation). Land transport is the largest consumption sector representing 50 percent share of demand.
Vanuatu has considerable technical potential for hydropower generation, and also a number of potential geothermal sites which have been identified, however, utilization of these renewable energy potentials has been limited to date.
High dependency on imports and exposure to price volatility Consumers of petroleum in Vanuatu are currently served predominantly by two private suppliers— Pacific Petroleum Company (diesel, petrol, kerosene and lubricants) and Origin Energy (LPG).