Nauru: Solar Power Development Project
The project will finance (i) a grid-connected solar power plant with a capacity of 6 megawatts (MW) of alternating current; and (ii) a 2.5-megawatt-hour, 5 MW battery energy storage system (BESS) to enable smoothing of intermittent solar energy. The system will be fully automated and integrated with the existing diesel generation system (17.9 MW of installed capacity, currently operated manually) to optimize solar energy use, enable optimal BESS charging and discharging, and allow optimal shut-off of the diesel engines. This will reduce Nauru's reliance on diesel for power generation and decrease production costs. The project will also support the institutional strengthening of Nauru Utilities Corporation. Project preparatory technical assistance was used to carry out project-enabling activities such as a Solar Power Expansion Plan for Nauru, project feasibility study, detailed design, and plant procurement contract bidding documents.
Project Details
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Project Officer
Abbasov, Rafayil
Pacific Department
Request for information -
Country/Economy
Nauru -
Sector
- Energy
Related Projects
| Project Name | Solar Power Development Project | ||||
| Project Number | 49450-009 | ||||
| Country / Economy | Nauru |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Grant |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions |
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| Sector / Subsector | Energy / Renewable energy generation - solar |
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| Gender Equity and Mainstreaming | Effective gender mainstreaming | ||||
| Description | The project will finance (i) a grid-connected solar power plant with a capacity of 6 megawatts (MW) of alternating current; and (ii) a 2.5-megawatt-hour, 5 MW battery energy storage system (BESS) to enable smoothing of intermittent solar energy. The system will be fully automated and integrated with the existing diesel generation system (17.9 MW of installed capacity, currently operated manually) to optimize solar energy use, enable optimal BESS charging and discharging, and allow optimal shut-off of the diesel engines. This will reduce Nauru's reliance on diesel for power generation and decrease production costs. The project will also support the institutional strengthening of Nauru Utilities Corporation. Project preparatory technical assistance was used to carry out project-enabling activities such as a Solar Power Expansion Plan for Nauru, project feasibility study, detailed design, and plant procurement contract bidding documents. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | The project supports the operational priorities of ADB's Strategy 2030 by (i) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; (ii) accelerating progress in gender equality; and (iii) strengthening governance and institutional capacity. The project is also aligned with ADB's Strategy 2030 because it supports a country that is both a small island developing state and in a fragile and conflict-affected situation. Also, the project will directly support the target of 50% renewable energy for Nauru under the Nauru Energy Road Map 2018-2020, and assist the country in achieving its nationally determined contributions under the United Nations Framework Convention on Climate Change. The project is included in ADB's country operations business plan for 11 small Pacific island countries, 2019-2021. | ||||
| Impact | Reliable, affordable, secure, and sustainable energy supply to meet the socioeconomic development needs of Nauru The project is aligned with 50% of grid electricity supplied from renewable energy sources (Nauru Energy Road Map 2018-2020) Viable power-generating capacity, including alternative (renewable) energy sources (Long-term Milestone 2025, National Sustainable Development Strategy 2005-2025) |
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| Project Outcome | |
|---|---|
| Description of Outcome | The use of renewable energy within the grid will have increased and the cost of electricity generation will have decreased. |
| Progress Toward Outcome | The contract NUC/SPDP1 for Solar Farm/BESS/Substation/SCADA was awarded in July 2020. Effective date of contract commencement was 15 January 2021. Personnel mobilization started on 7 December 2021 when chartered flight arrived in Nauru. |
| Implementation Progress | |
| Description of Project Outputs | Solar power plant installed Battery energy storage system installed Institutional capacity of NUC strengthened |
| Status of Implementation Progress (Outputs, Activities, and Issues) | In progress. |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | All consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Consulting services will be recruited through firms using the quality- and cost-based selection method (QCBS) with a quality to cost ratio of 90:10. Consulting services will include a Project Implementation Consultant (PIC) to review designs prepared by the contractor and provide supervision services/advice to NUC during the PPC. |
| Procurement | Procurement of goods and works for the Plant Procurement Contract (PPC) will follow ADB's Procurement Guidelines (2015, as amended from time to time) and will be based on ADB SBD (ICB Plant Procurement Method, and the Stage 1 Envelope Bidding Procedure) for the Procurement of Plant, Design, Supply and Installation. The contract will include final design and engineering, supply and installation of equipment, construction works and commissioning, and an O&M knowledge transfer program. Advance contracting and retroactive financing will apply for the procurement of civil works and consultancy contracts. The amount to be retroactively financed will not exceed 20% of the ADB grant and can be done prior to grant effectiveness but not later than 12 months before the signing date of the grant agreement. |
| Responsible ADB Officer | Abbasov, Rafayil |
| Responsible ADB Department | Pacific Department |
| Responsible ADB Division | PAEN |
| Executing Agencies |
Department of Finance and Sustainable Development Ministry of Commerce, Industry and Environment |
| Timetable | |
|---|---|
| Concept Clearance | 29 Nov 2017 |
| Fact Finding | 29 May 2019 to 05 Jun 2019 |
| MRM | 12 Aug 2019 |
| Approval | 18 Sep 2019 |
| Last Review Mission | - |
| Last PDS Update | 28 Sep 2022 |
Grant 0664-NAU
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 18 Sep 2019 | 27 Sep 2019 | 30 Mar 2020 | 28 Feb 2024 | - | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 26.98 | Cumulative Contract Awards | |||
| ADB | 22.00 | 24 Jan 2023 | 16.55 | 0.00 | 75% |
| Counterpart | 4.98 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 24 Jan 2023 | 9.45 | 0.00 | 43% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
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Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Tariff and Regulation Expert | Individual - Consulting | Closed | 02 Dec 2020 | 08 Dec 2020 |
| 49450-NAU: Solar Power Development Project [NUC/SPDP1] | Invitation for Bids | Closed | 12 Sep 2019 | 16 Jan 2020 |
| SPDP2-Project Implementation Consultants | Firm - Consulting | Closed | 11 Sep 2019 | 15 Nov 2019 |
| 49450-NAU: Solar Power Development Project | Advance Notice | Active | 11 Sep 2019 | |
| 49450-NAU: Solar Power Development Project | Advance Notice | Active | 11 Sep 2019 |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| PROJECT IMPLEMENTATION CONSULTANTS | Grant 0664 | 12 Nov 2020 | GHD LIMITED (NEW ZEALAND) | MANUKAU AUCKLAND 2105 NEW ZEALAND | Department of Finance | 1,612,721.83 | — |
| 6.0 MW SOLAR FARM BATTERY ENERGY STORAGE SYSTEM WITH A CAPACITY OF 2.5 MWH/5.0 MW AND AN 11KV | Grant 0664 | 15 Jul 2020 | CHEC-HNAC-RISEN JV | NO. 9 CHUN XIU ROAD DONGCHENG DISTRICT BEIJING CHINA PEOPLE'SREP.OF | Department of Finance | 14,311,732.68 | — |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Solar Power Development Project: Procurement Plan | Procurement Plans | Dec 2020 |