Project Name
Pacific Renewable Energy Investment Facility (formerly Pacific Renewable Energy and Energy Efficiency Investment Facility)
Project Number
49450-004
Country / Economy
  • Regional
  • Cook Islands
  • Fiji
  • Micronesia, Federated States of
  • Kiribati
  • Nauru
  • Marshall Islands
  • Samoa
  • Solomon Islands
  • Tonga
  • Tuvalu
  • Vanuatu
Project Status
Active
Project Type / Modality of Assistance
  • Grant
  • Loan
Source of Funding / Amount
Grant 0001-REG: Pacific Renewable Energy and Energy Efficiency Investment Facility
Source Amount
Asian Development Fund US$ 80.00 million
Loan 0001-REG: Pacific Renewable Energy and Energy Efficiency Investment Facility
Source Amount
Concessional ordinary capital resources lending US$ 110.00 million
Loan 0001-REG: Pacific Renewable Energy Investment Facility (formerly Pacific Renewable Energy and Energy Efficiency Investment Facility)
Source Amount
Ordinary capital resources US$ 10.00 million
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
  • Regional integration
Drivers of Change
  • Governance and capacity development
  • Knowledge solutions
  • Partnerships
  • Private sector development
Sector / Subsector
  • Energy / Energy sector development and institutional reform

Gender
No gender elements
Description
The majority of Pacific Small Island Developing States (SIDS) are heavily dependent on diesel for power generation which has resulted in high electricity tariffs. The average supply cost for electricity across the Pacific is about $0.45/kilo-watt hour (kWh), which is high by international standards. The high cost of electricity is negatively impacting economic growth. Over reliance on imported fuel also depletes limited foreign reserves and exposes the SIDS economies to diesel price spikes. The proposed investment facility in renewable energy will target eleven smaller Pacific SIDS. Ten of the participating SIDS, except for Solomon Islands, are among the world's 25 smallest countries by population size. Total population of the eleven countries is less than 1.5 million.
Project Rationale and Linkage to Country/Regional Strategy
Pacific SIDS have recognized the need to structurally shift power generation from diesel to renewable energy and all have aggressive national renewable energy targets, in some cases of up to 100%. The SIDS are endowed with cost-competitive renewable energy resources. However, the lack of access to adequate funding has limited the uptake of renewable energy. In order to fill the financing gap, Pacific SIDS are attracting independent power providers to invest in the sector amid significant barriers to entry of the private sector. Additionally, Pacific SIDS face significant capacity barriers to plan, design, implement and manage renewable energy investments. Continuous sector reform is also required to encourage the structural shift.
Impact

Improved regional energy security in the Pacific.

Project Outcome

Description of Outcome

Increased generation of lower cost, reliable, and clean energy

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

Renewable energy generation plants put into operation by Pacific SIDS

Transmission and distribution constructed or rehabilitated by Pacific SIDS

Efficiency of X diesel power systems improved by Pacific SIDS

Energy sector reform undertaken in seven Pacific SIDS

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Regional

Safeguard Categories

Environment
B
Involuntary Resettlement
B
Indigenous Peoples
A

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Contact

Responsible ADB Officer
Tiangco, Cinderella C.
Responsible ADB Department
Pacific Department
Responsible ADB Division
Energy Division, PARD
Executing Agencies
Asian Development Bank

Timetable

Concept Clearance
24 Nov 2016
Fact Finding
18 Oct 2016 to 18 Oct 2016
MRM
28 Apr 2017
Approval
22 Jun 2017
Last Review Mission
-
Last PDS Update
29 Sep 2017

Funding

Loan 0001-REG

Financing Plan
  Total (Amount in US$ million)
Project Cost 200.00
ADB 200.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards - 0.00 0.00 %
Cumulative Disbursements - 0.00 0.00 %
 
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Source URL: https://www.adb.org/projects/49450-004/main