Solomon Islands : Renewable Energy Development Project

Sovereign Project | 57006-001

The proposed project aims to (i) improve energy security by increasing the clean energy share in the country's energy mix, which is dominated by fossil fuel generation (over 97%); and (ii) contribute to sector reforms for better governance and public-private partnership (PPP) enabling environment in the development of renewable energy.

Project Details

Project Name
Renewable Energy Development Project
Project Number
57006-001
Country / Economy
  • Solomon Islands
Project Status
Proposed
Project Type / Modality of Assistance
  • Grant
  • Loan
Source of Funding / Amount
Grant: Renewable Energy Development Project
Source Amount
Asian Development Fund US$ 5.00 million
Loan: Renewable Energy Development Project
Source Amount
Concessional ordinary capital resources lending US$ 10.00 million
Operational Priorities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Energy / Renewable energy generation - solar

Gender
Effective gender mainstreaming
Description
The proposed project aims to (i) improve energy security by increasing the clean energy share in the country's energy mix, which is dominated by fossil fuel generation (over 97%); and (ii) contribute to sector reforms for better governance and public-private partnership (PPP) enabling environment in the development of renewable energy.
Project Rationale and Linkage to Country/Regional Strategy

Solomon Islands, a small island developing state, is classified as experiencing fragile and conflict-affected situations. Electricity tariffs in Solomon Islands are among the highest in the world (over $0.75 per kilowatt-hour [kWh]), and the power supply is most vulnerable to disasters caused by natural hazards. With a generation capacity of 34 megawatt (MW), Solomon Islands Electricity Authority, trading as Solomon Power, is responsible for generation, transmission, and distribution throughout the country. All grid-connected power in the country is diesel-generated, and the share of renewable energy in the generation mix is about 3%. The high dependence on imported fossil fuel (equivalent to 6% of the gross domestic product and about 20% of total imports) imposes a significant burden on foreign exchange reserves, making the country vulnerable to energy supply disruptions and global price fluctuations. To reduce fuel dependency, the government is prioritizing investments in renewable energy for generation. Several renewable energy projects are under development by Solomon Power, including new small solar-diesel hybrid grids and modernization of hydropower plants.

Impact

Energy security enhanced

Outcome

Increased access to renewable energy

Outputs

Clean energy generation commissioned

Energy sector reforms enhanced

Private sector participation in clean energy increased

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

Contact

Responsible ADB Officer
Abbasov, Rafayil
Responsible ADB Department
Sectors Group
Responsible ADB Division
Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
Executing Agencies
Ministry of Finance and Treasury

Timetable

Concept Clearance
16 Feb 2023
Fact Finding
25 Sep 2023 to 29 Sep 2023
MRM
-
Approval
-
Last Review Mission
-
Last PDS Update
20 Feb 2023

Funding

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.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Renewable Energy Development Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Feb 2023

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 Date
Renewable Energy Development Project: Involuntary Resettlement Due Diligence Report Safeguards Due Diligence Reports Oct 2023
Renewable Energy Development Project: Initial Environmental Examination Initial Environmental Examination Oct 2023

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
Project Implementation Consultants Firm - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.