Project Name Renewable Energy Project
Project Number 49450-012
Country / Economy Tonga
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0640-TON: Renewable Energy Project
Asian Development Fund US$ 12.20 million
Grant 0641-TON: Renewable Energy Project
Green Climate Fund US$ 29.90 million
Grant 0642-TON: Renewable Energy Project
Government of Australia US$ 2.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution - Renewable energy generation - solar

Gender Effective gender mainstreaming
Description Tonga Renewable Energy Project (TREP) has three components: (i) a large BESS capacity on Tongatapu to ensure that the intermittent electricity generated from solar photovoltaic and wind power to be funded by private independent power producers can be stored and used overnight without negatively affecting Tonga Power Limited's grids; (ii) electricity generation from the most feasible renewable resources in Tonga in Eua and Vava'u islands, and in five outer islands (O'ua, Tungua, Kotu, Mo'unga'one, and Niuafo'ou); and (iii) grid technologies and management upgrade to adapt to new electricity sources in five outer islands. The project also includes capacity building and project management support, with an emphasis on providing women with training and economic empowerment opportunities.
Project Rationale and Linkage to Country/Regional Strategy TREP will help Tonga rapidly move from its heavy dependence on imported fossil fuels for power generation (about 90%) to using clean and renewable energy resources that are low carbon and climate resilient. TREP will also provide technical solutions, such as a battery energy storage system, and capacity building for promoting more private sector investments in renewables, which will help Tonga meet its 50% renewable energy target by 2020 and 70% by 2030. TREP will also increase energy access of marginalized populations in the outer islands, where access is low and limited.
Impact

Reduced Tonga's dependency on imported fossil fuel for power generation

Project Outcome
Description of Outcome

Expanded access to clean, resilient and affordable energy for the population in Tonga at a lower cost

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Battery Energy storage system (BESS) facilities on Tongatapu installed

Grid-connected renewable energy generation on 'Eua and Vava'u installed

Renewable-based hybrid systems and mini-grids on outer-Islands installed

Strengthening of capacity building installed

Status of Implementation Progress (Outputs, Activities, and Issues) Achieved - BESS on Tongatapu completed Nov 2021 and commissioned Oct 2022. Achieved - Eua and Vavau commissioned March 2023. Renovation works to TPL's Control Room in Eua is ongoing.Ongoing - a contract to construct renewable energy-based hybrid mini-grids on 4 Haapai outer islands and Niuafoou was awarded in Mar 2020 but delayed faced due to COVID-19 pandemic and finalization of contract variations which was completed in April 2023. Local sub-contractor mobilized to start site preparatory works in June 2023. Main contractor mobilizing to Niuafoou in September 2023. A contract to construct mini grids on 4 Vavau outer islands was awarded in July 2023 and the contractor will mobilize in December 2023. 2 contracts to modernize TPL's control centre are ongoing.Work by the PMU consultants and the Consultancy Services Contract firm continues. 2 consultants for the independent power producer transaction advisory services continue to work with TPL to achieve Tonga's 80% renewable energy target.
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Enviro- The IEE has been approved by the Department of Environment and has been revised to include additional scope. The CEMPs for each site have also been approved and complied with. The EA/IA are complying with the legal covenants and no actions are required to maintain compliance.
Involuntary Resettlement IR- The RP has also been approved and has been revised to include additional scope. The EA/IA are complying with legal covenants.
Indigenous Peoples IP- Not applicable.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation The IA has been undertaking consultations with the communities before construction works commenced and these are ongoing until the project is complete. Several consultations have also been done for landowners and affected persons prior to construction works commencing.
Responsible ADB Officer King, Grace
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji (SPSO)
Executing Agencies
Ministry of Finance
Timetable
Concept Clearance 14 Dec 2019
Fact Finding 30 Jul 2018 to 03 Aug 2018
MRM 22 Jan 2019
Approval 11 Mar 2019
Last Review Mission -
Last PDS Update 17 Sep 2023

Grant 0640-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Mar 2019 13 Sep 2019 22 Nov 2019 30 Apr 2023 30 Apr 2024 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 17.80 Cumulative Contract Awards
ADB 12.20 23 Oct 2023 11.75 0.00 96%
Counterpart 5.60 Cumulative Disbursements
Cofinancing 0.00 23 Oct 2023 7.94 0.00 65%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Partly satisfactory Satisfactory Satisfactory

Grant 0641-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Mar 2019 13 Sep 2019 22 Nov 2019 30 Apr 2023 30 Apr 2024 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 29.90 Cumulative Contract Awards
ADB 0.00 23 Oct 2023 0.00 28.92 97%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 29.90 23 Oct 2023 0.00 20.85 70%

Grant 0642-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Mar 2019 13 Sep 2019 22 Nov 2019 30 Apr 2023 30 Apr 2024 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.50 Cumulative Contract Awards
ADB 0.00 23 Oct 2023 0.00 2.51 100%
Counterpart 3.00 Cumulative Disbursements
Cofinancing 2.50 23 Oct 2023 0.00 1.98 79%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory
 
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Source URL: https://www.adb.org/projects/49450-012/main