fbpx 49450-009: Solar Power Development Project | Asian Development Bank

Nauru: Solar Power Development Project

Sovereign (Public) Project | 49450-009 Status: Approved

The facility will finance the grant to Nauru for the 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 (MWh), 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 (NUC).

 
Project Name Solar Power Development Project
Project Number 49450-009
Country Nauru
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0664-NAU: Solar Power Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 22.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Energy / Renewable energy generation - solar

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The facility will finance the grant to Nauru for the 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 (MWh), 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 (NUC). Project preparatory technical assistance (TA) 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

A reliable, affordable, secure, and sustainable energy supply to meet the socio-economic 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)

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
Implementation Progress
Description of Project Outputs

Solar power plant installed

Battery storage system installed

Institutional capacity of NUC strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
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
Responsible ADB Officer Cinderella Tiangco
Responsible ADB Department Pacific Department
Responsible ADB Division PAEN
Executing Agencies
Department of Finance
Yaren District, Republic of Nauru,
Central Pacific
Ministry of Commerce, Industry and Environment
Government House, Yaren Nauru
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 26 Sep 2019

Grant 0664-NAU

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Sep 2019 27 Sep 2019 - 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 18 Sep 2019 0.00 0.00 0%
Counterpart 4.98 Cumulative Disbursements
Cofinancing 0.00 18 Sep 2019 0.00 0.00 0%

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

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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.

Title Document Type Document Datesort descending
Solar Power Development Project: Initial Environmental Examination Initial Environmental Examination Jul 2019
Solar Power Development Project: Land Due Diligence Report Safeguards Due Diligence Reports Jul 2019

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
49450-NAU: Solar Power Development Project Advance Notice Active 11 Sep 2019
49450-NAU: Solar Power Development Project Advance Notice Active 11 Sep 2019
SPDP2-Project Implementation Consultants Firm - Consulting Closed 11 Sep 2019 15 Nov 2019
49450-NAU: Solar Power Development Project [NUC/SPDP1] Invitation for Bids Closed 12 Sep 2019 05 Dec 2019

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.