ADB and Solomon Islands Partner to Boost Renewable Energy Transition

The project is supported by a $10 million concessional loan and a $5 million grant from the Asian Development Fund, which aids the most vulnerable ADB member countries.

The Asian Development Bank (ADB) and the Government of Solomon Islands have teamed up with other partners to launch a transformative renewable energy project aimed at accelerating the country's shift towards cleaner energy. This initiative will focus on increasing renewable energy generation, installing large-scale battery storage systems, supporting power sector reforms, and encouraging private sector investment in renewable energy.

“Limited access to clean and affordable electricity, along with high electricity prices, hampers economic growth in the Solomon Islands," said Shane Rosenthal, Regional Director of ADB's Pacific Liaison and Coordination Office. "This project marks a significant step in reducing dependence on costly fossil fuel imports and advancing the nation’s transition to renewable energy." The project will also deliver the largest grid-connected battery storage system in the Pacific and install new solar capacity.

The project is supported by a $10 million concessional loan and a $5 million grant from the Asian Development Fund, which aids the most vulnerable ADB member countries. Additional funding includes $10 million each from the Saudi Fund for Development (SFD) and Solomon Power. The Government of Solomon Islands is contributing $7 million through tax exemptions and duties. Notably, this marks the first collaboration between ADB and SFD on project financing.

Currently, nearly all of Solomon Islands’ grid electricity is generated from diesel, with renewables contributing just 2% to the energy mix. The Solomon Islands Renewable Energy Development Project complements other ADB efforts, such as the Tina River Hydropower Project and the conversion of five provincial grids from diesel to solar hybrid systems.

Key elements of the project include:

New solar farms in Guadalcanal and Malaita provinces, along with a utility-scale energy storage system in Honiara.

A pilot program for rooftop solar systems at two regional schools.

Support for power sector reforms, including the identification and preparation of at least one private sector-led renewable energy project.

Advancement of gender equality, climate change mitigation, climate resilience, environmental sustainability, and improved governance.