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Add to Preferred SourcesThe Asian Development Bank (ADB) will invest over $1 billion worth of energy projects in the Pacific from 2019 to 2021 to increase renewable energy generation and improve access to affordable and sustainable electricity in the subregion.
Many Pacific countries are implementing plans to run on 100% renewables, with the transition to cleaner, more efficient power reducing dependency on imported fossil fuels, increasing access to affordable and reliable electricity, and reducing carbon dioxide emissions.
ADB is helping Pacific countries make this transition by providing finance and direct technical assistance. Projects financed by ADB are developing solar, wind, and hydropower facilities; installing battery storage technology; and improving or extending transmission lines. Technical assistance provided by ADB, meanwhile, is helping utilities operate more efficiently through legal, policy, regulatory, and institutional reforms, as well as improving financial management and corporate governance.
In Papua New Guinea, the Power Sector Development Project—ADB’s biggest energy project in the Pacific—will expand the transmission and distribution network to increase the national electrification rate from 12% to 19% by 2028. Other ADB financing is extending Port Moresby’s power grid, constructing or refurbishing hydropower plants, and increasing operators’ abilities to manage and maintain power facilities.
In the Solomon Islands, the 15MW Tina River Hydropower Project represents a paradigm shift in power generation. It is projected to meet 68% of the country’s needs while reducing its carbon dioxide emissions by 49,500 tons per year—more than twice what the government has committed to.
In Samoa, ADB financing has helped rehabilitate and increase the output of hydropower facilities damaged in 2012’s Cyclone Evan, as well as build a new dam that will prevent flooding, secure water supplies, and generate power. ADB is also facilitating private sector investment to expand a local solar plant.
ADB has also financed the restoration and improved storm resilience of Tonga’s electricity network following damage from two cyclones. The Outer Island Renewable Energy Project, meanwhile, is helping Tonga achieve 70% renewable energy generation by 2030 by establishing new solar power systems on the country’s eight outer islands.
Similarly, ADB financing in the Cook Islands is helping install battery-supported solar generation systems on five islands, reducing the use of diesel power and helping the country pursue its goal of 100% renewable energy generation.
Regionally, the Pacific Renewable Energy Investment Facility is enabling the rapid provision of funding for a large volume of small-scale energy projects in the smallest 11 Pacific island countries. One of the 20 projects the facility is supporting is the Tonga Renewable Energy Project, with $12 million contributing to batteries, grid improvements, and new solar farms to increase electricity access for outer-island communities. The facility is also overseeing energy sector reforms, preparing further investment channels, promoting private sector engagement, and sharing best practices and lessons.
Another regional project, the Pacific Renewable Energy Program, is working to make renewable energy projects bankable for the private sector. By offsetting risks associated with renewables investment in the Pacific, providing loans and letters of credit, and assisting with transactions, the project is enabling increased private sector participation in Pacific energy production.
ADB is currently supporting 14 active energy projects in 10 countries in the Pacific worth $371 million.
Original source: ADB
Published on 17 December 2019