The Solomon Islands Renewable Energy Development Project will fund the construction of two photovoltaic (PV) parks and a large-scale grid-connected energy storage system in the Solomon Islands, financed by the Asian Development Bank, the Saudi Fund for Development, and Solomon Power.
ADB-Led Group Partners with Solomon Islands to Boost Solar Energy
A consortium of investment firms led by the Asian Development Bank (ADB) has partnered with the Solomon Islands government to fund the construction of new solar PV power plants, enhance rooftop solar PV installations, and support reforms within the islands’ power sector.
The project is financed through a $10 million concessional loan and a $5 million grant from the Asian Development Bank (ADB). Additional funding includes $10 million each from the Saudi Fund for Development and state-owned Solomon Power, while the government of the Solomon Islands is providing $7 million.
The Solomon Islands Renewable Energy Development Project is designed to help the islands transition to renewable energy by enabling clean energy production and installing battery storage systems. It will also support power sector reforms and encourage private sector involvement in renewable energy generation.
Solomon Islands Renewable Energy
The funding will support the construction of two new solar PV power plants in Guadalcanal and Malaita, along with a utility-scale grid-connected energy storage system in Honiara. The exact sizes of these projects have not yet been revealed.
Solomon Islands to Reduce Diesel Dependence with Renewables
Nearly all of the Solomon Islands’ grid electricity comes from diesel, with renewables accounting for only about 2% of the energy mix. This project will significantly reduce the country’s reliance on costly fossil fuel imports.
“Poor access to clean and sustainable electricity and high electricity prices limit Solomon Islands’ opportunities for economic growth and prosperity,” said Shane Rosenthal, regional director of ADB’s Pacific liaison and coordination office.
“This project will reduce dependency on expensive fossil fuel imports and constitute an important milestone for the Solomon Islands in its transition to renewable energy. It will install additional solar PV capacity in the country and deliver the largest grid-connected battery storage system in the Pacific, which is a crucial first step in expanding grid-connected renewable energy through private sector investment.”
Solomon Islands Solar Initiative to Boost Energy and Sustainability
The initiative includes financing for new solar farms in Guadalcanal and Malaita provinces and a utility-scale grid-connected energy storage system in Honiara. The project will also pilot a rooftop solar business model at two regional schools.
Beyond infrastructure, the project supports power sector reforms to identify and develop at least one private sector renewable energy project, while also promoting gender equality, climate resilience, environmental sustainability, and better governance.
The ADB is committed to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while maintaining its mission to eliminate extreme poverty. Founded in 1966, the ADB has 68 members, 49 of which are from the region.
