Pacific Energy Update 2015

The heavy reliance of Pacific countries on imported fossil fuel for power generation exposes their economies to foreign exchange fluctuations and fuel price rises. Electricity tariffs are typically high, even though service quality, reliability, and access levels in many countries remain poor. In countries where electricity utilities are subsidized, the high cost of imported fossil fuels weakens the fiscal position of the governments. This diverts resources away from productive social and infrastructure investments.

Supporting renewable energy solutions in the Pacific

ADB identifies energy as one of its top four operational priorities in the Pacific region. A particular emphasis is on the role of renewable energy and energy efficiency in cutting energy costs, reducing reliance on fossil fuels, and lowering greenhouse gas emissions in the Pacific. ADB facilitates clean energy development in Pacific countries by providing financial and technical support.

ADB provides assistance to support electricity sector expansion programs, training and capacity building of government energy agencies, power sector reforms, improved sector governance, and efficiency improvements. Its operations focus on:

• installing new generation capacity from renewable sources;
• expanding electricity access;
• increasing power generation capacity;
• upgrading and rehabilitating transmission and distribution networks;
• promoting more efficient use of energy;
• training and building the capacity of government energy agencies and beneficiary communities; and
• strengthening energy regulatory frameworks.

Measuring outcome

ADB measures its contribution to outcomes through a range of indicators that gauge improvements in energy security (proportion of energy imported), deployment of renewable energy, and the availability and affordability of energy services, as well as reductions in greenhouse gas emissions from the power sector.

About this publication

This document provides an update of ongoing, proposed, and recently completed Pacific energy projects and assistance for 2015.