ADB and Partners to Support Solomon Islands in Transitioning to Renewable Energy

The Asian Development Bank (ADB) and the Government of Solomon Islands, in collaboration with other partners, have initiated a groundbreaking project aimed at accelerating the country’s transition to renewable energy. This transformative initiative will boost renewable energy generation, implement battery storage systems, support power sector reforms, and encourage private sector investment in the renewable energy sector.

Shane Rosenthal, Regional Director of ADB’s Pacific Liaison and Coordination Office, emphasized the significance of this project for the Solomon Islands. “Limited access to clean, sustainable electricity and high electricity prices have hindered the country’s economic growth and prosperity. This project will reduce reliance on costly fossil fuel imports and marks a significant milestone in the Solomon Islands’ journey towards renewable energy,” Rosenthal said. He highlighted that the project will introduce additional solar capacity and establish the largest grid-connected battery storage system in the Pacific, a critical first step in expanding renewable energy through private sector investment.

The project is financed by a $10 million concessional loan and a $5 million grant from the Asian Development Fund, which supports ADB’s most vulnerable member countries. The Saudi Fund for Development (SFD) and Solomon Power are each contributing $10 million, marking the first joint project financing by ADB and SFD. The Government of Solomon Islands is also supporting the project with $7 million in exempted duties and taxes.

Currently, nearly all of Solomon Islands’ grid electricity is diesel-generated, with renewables comprising only about 2% of the energy mix. The Solomon Islands Renewable Energy Development Project complements other ADB initiatives, such as the Tina River Hydropower Project and a project converting five diesel-powered provincial grids to solar hybrid systems.

Key components of the renewable energy project include:

• Financing new solar farms in Guadalcanal and Malaita provinces, along with a utility-scale grid-connected energy storage system in Honiara.
• Piloting a business model for rooftop solar systems at two regional schools.
• Supporting power sector reforms by identifying and preparing at least one private sector renewable project.
• Promoting gender equality, climate change resilience, environmental sustainability, and improved governance.

ADB remains dedicated to creating a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while continuing its mission to eradicate extreme poverty. Established in 1966, ADB is owned by 68 members, with 49 from the region.