ADB, SIG join forces with other partners to transition SI to renewable energy under a $10million loan and $5million grant
THE Asian Development Bank (ADB) and Solomon Islands Government are joining other partners to help Solomon Islands transition to renewable energy with a transformational project, ADB’s Shane Rosenthal announced Thursday.
This project will accelerate renewable energy generation and battery storage system installation, support power sector reforms and promote private sector participation in the renewable energy generation.
“Poor access to clean and sustainable electricity and high electricity prices limits Solomon Islands opportunities for economic growth and prosperity. This project will reduce dependency on expensive fossil fuel imports and constitute an important milestone for Solomon Islands on its transition to renewable energy.
“It will install additional solar capacity in the country and deliver the largest grid-connected battery storage system in the Pacific, which is a crucial first step in expanding grid-connected renewable energy through private sector investment,” ADB’s Pacific Liaison and Coordination Office Regional Director Mr Rosenthal said.
The project is funded by a $10 million concessional loan and a $5 million grant from the Asian Development Fund, which provides grants to ADB’s poorest and most vulnerable developing member countries.
The Saudi Fund for Development (SFD) and Solomon Power are providing $10 million each. This is the first joint project financing by ADB and SFD. Solomon Islands Government is providing $7 million in exempted duties and taxes.
Virtually, all of Solomon Islands grid electricity is diesel generated, with renewables making up only around 2 percent of the energy mix.
The Solomon Islands Renewable Energy Development Project complements other ADB energy sector interventions that help install more renewable energy generation, including the Tina River Hydropower Project as well as another project that is converting five diesel-powered provincial grids to solar hybrid systems.
The renewable energy project will:
- finance new solar farms in Guadalcanal and Malaita province, along with a new utility-scale grid-connected energy storage system in Honiara;
- pilot a business model for rooftop solar systems at two regional schools;
- support Solomon Islands’ power sector reforms including identifying and preparing at least one private sector renewable project; and
- accelerate progress in gender equality, tackling climate change, fostering climate and disaster resilience, environmental sustainability and improving governance.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members —49 from the region.
