No Pains, More Gains, as Seychelles Rolls Out Bold Energy Policy for Economy and Climate

 No Pains, More Gains, as Seychelles Rolls Out Bold Energy Policy for Economy and Climate

 By I.B Lawal

Asset-based community development (ABCD) Advocate 

abcdadvocate@gmail.com

13th April, 2026.

The Government of Seychelles has unveiled a groundbreaking energy conservation policy aimed at cutting costs, easing infrastructure strain, and accelerating climate action. Officials have dubbed the initiative a case of “no pains, more gains.”

Formalized under Circular No. 03 of 2026 (Read the complete circular here)the policy introduces a weekly Energy Conservation Day every Friday, during which non-essential public sector operations are suspended and workers shift to remote duties.

Major Gains Expected Across Key Sectors

 Energy Demand Reduction;

The policy targets 1,181 government electricity accounts, aiming to significantly lower national peak demand, which previously reached 63.8 MW on Mahé. This move will help ease pressure on Seychelles’ power grid.

Bigger Government Savings;

With government electricity priced at $0.41 per kWh, more than double residential rates, every unit saved translates into substantial fiscal relief, freeing up funds for other national priorities.

Improved Trade Balance;

By reducing reliance on imported fuel, valued at $304 million in 2024, the initiative could shrink Seychelles’ 7.9% current account deficit, bolstering the nation’s external finances.

Less Traffic, Lower Fuel Use;

By cutting official travel and commuting, the policy is expected to ease pressure on a road network handling over 42,000 vehicles. If 5,000 public workers stay home weekly, it could eliminate nearly 3.9 million kilometers of annual travel.

Climate Action Boost;

This measure supports Seychelles’ climate commitments, targeting a reduction of 293.8 ktCO2e by 2030. High-energy sectors like cooling and air conditioning are key areas of focus.

Stronger Debt Outlook;

Savings on fuel and electricity will help maintain a primary surplus of 3.2% of GDP and support efforts to reduce national debt from 60.7% to 50% of GDP.

Productivity & Well-being Gains;

Remote work is expected to enhance efficiency and staff welfare, with global trends suggesting up to 22% higher productivity and 46% lower fatigue*.

A Strategic Shift, Not Just a Temporary Fix;

The government emphasizes that this initiative is more than a reaction to global energy volatility, it represents a structural shift toward sustainability, digital governance, and smarter resource management.

With energy savings, economic relief, and environmental progress all on the table, Seychelles’ new policy is shaping up to be a rare reform where both government and citizens stand to gain.