The Solomon Islands Renewable Energy Development Project will fund the construction of two photovoltaic (PV) parks and a large-scale grid-connected energy storage system in the Solomon Islands with financing provided by the Asian Development Bank, the Saudi Fund for Development and Solomon Power.
ADB-Led Group Partners with Solomon Islands to Boost Solar Energy
A consortium of investment firms led by the Asian Development Bank (ADB) has partnered with the Solomon Islands government to fund the construction of new solar PV power plants, enhance rooftop solar PV installations and assist in reforms within the islands' power sector.
The project is financed through a $10 million concessional loan and a $5 million grant from the Asian Development Bank (ADB). Additionally, both the Saudi Fund for Development and state-owned Solomon Power are contributing $10 million each, while the government of the Solomon Islands is providing $7 million.
The Solomon Islands Renewable Energy Development Project aims to help the island transition to renewable energy by enabling clean energy production and installing battery storage systems. It will also back power sector reforms and encourage private sector involvement in renewable energy generation.
The funding will specifically support the construction of two new solar PV power plants in Guadalcanal and Malaita, along with a utility-scale grid-connected energy storage system in Honiara. The exact sizes of these projects have not been revealed.
Solomon Islands to Reduce Diesel Dependence with Renewables
Nearly all of the Solomon Islands' grid electricity is generated from diesel, with renewables accounting for only about 2% of the energy mix. The project will lessen reliance on costly fossil fuel imports.
“Poor access to clean and sustainable electricity and high electricity prices limit Solomon Islands’ opportunities for economic growth and prosperity. This project will reduce dependency on expensive fossil fuel imports and constitute an important milestone for the Solomon Islands in its transition to renewable energy. It will install additional solar PV 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.” said Shane Rosenthal, regional director of ADB’s Pacific liaison and coordination office.
Solomon Islands Solar Initiative to Boost Energy and Sustainability
The initiative includes financing new solar farms in Guadalcanal and Malaita provinces and a utility-scale grid-connected energy storage system in Honiara. It also involves piloting a rooftop solar business model at two regional schools, supporting power sector reforms by identifying and developing at least one private sector renewable energy project and promoting gender equality, climate resilience, environmental sustainability and better governance.
The ADB is committed to fostering a prosperous, inclusive, resilient and sustainable Asia and the Pacific while maintaining its mission to eliminate extreme poverty. Founded in 1966, ADB has 68 members, 49 of which are from the region.