As of 2022, Vanuatu’s installed solar power capacity was approximately 5 megawatts (MW).⁵

Vanuatu has set ambitious targets to expand its solar power capacity as part of its commitment to renewable energy. According to the country’s Intended Nationally Determined Contribution (INDC) submitted to the United Nations Framework Convention on Climate Change, Vanuatu aims to install 10 megawatts (MW) of grid-connected solar photovoltaic (PV) capacity by 2025, with an additional 10 MW planned by 2030.⁶

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Solar PV: Cost estimates are derived from the Efate Energy Road Map, which outlines investment and operational expenses for integrating 7.4 MWpeak of solar PV into the grid.

• Investment cost: $1.68 million per MWpeak
• Operation cost: $61,000 per MWpeak per year
• Technology lifespan: 15 years

Wind: Cost estimates are based on the Efate Energy Road Map, detailing the investment and operational costs for adding 5.1 MW of wind power to the grid.

• Investment cost: $2.64 million per MWpeak
• Operation cost: $134,000 per MWpeak per year
• Technology lifespan: 15 years

Coconut Oil: UNELCO has quoted the price of coconut oil between 0.588USD and 0.672USD per liter, with an average cost assumption of 0.63USD per liter.

Diesel: Diesel prices have fluctuated significantly in recent years. Based on data from the Customs Office, the cost per liter ranges from 0.6384USD (minimum) to 1.0752USD (maximum).

Batteries: Additional costs for battery storage are factored in for both solar PV and wind energy, supplementing the core technology costs.

As of 2022, Vanuatu’s electricity generation sources were distributed as follows: ³²

• Diesel: 81.7%
• Hydro: 11.3%
• Wind: 3.5%
• Solar: 3.5%
• Copra oil: 0%

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Assessing the average daily availability of electricity from the national grid in Vanuatu involves examining the reliability metrics reported by the Utilities Regulatory Authority (URA). A key indicator used is the System Average Interruption Duration Index (SAIDI), which measures the total duration of interruptions experienced by the average customer over a specific period, typically expressed in minutes per year.

According to the URA’s Electricity Fact Sheet covering 2016 to 2022, the SAIDI values for the Port Vila concession area were as follows:

2016: 361.7 minutes

2017: 805.9 minutes

2018: 446.6 minutes

2019: 625.1 minutes

2020: 663.3 minutes

2021: 766.9 minutes

2022: 616.2 minutes

To determine the average daily availability, we can subtract the annual SAIDI from the total number of minutes in a year (525,600 minutes) and then divide by 365 days:

2022: (525,600 – 616.16) / 365 ≈ 1438.3 minutes per day

This calculation suggests that, on average, electricity was available for approximately 1,438.3 minutes per day in 2022, which equates to about 23.99 hours per day.

It’s important to note that these figures pertain specifically to the Port Vila concession area. Other regions in Vanuatu may experience different levels of electricity availability due to varying infrastructure and operational factors. Additionally, while SAIDI provides a useful measure of average outage duration, actual experiences can vary among individual customers.

As of the latest available data, specific figures on the exact number of residential solar panel installations in Vanuatu are limited. However, several initiatives highlight the country’s progress in adopting solar energy.

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Total number of solar farms (installed and projected) in vanuatu

Vanuatu has been making strides in renewable energy, particularly solar power. However, specific data on the total number of solar farms, both installed and projected, isn’t readily available.

Efate’s Solar Revolution: Vanuatu recently unveiled its largest solar farm on the island of Efate. This project, in collaboration with the Asian Development Bank (ADB) and the European Union (EU), has a capacity of 5 megawatts and is expected to produce 7,500 megawatt-hours of electricity annually.

National Energy Road Map (NERM): Vanuatu’s NERM 2016-2030 outlines ambitious targets for renewable energy deployment, aiming for 65% renewable energy by 2020. The updated NERM reiterates the government’s commitment to achieving these objectives.

Additional Initiatives: Beyond large-scale projects, Vanuatu has introduced solar-powered streetlights and small-scale solar systems in isolated communities. The country aims to source 100% of its electricity from renewable resources by 2030.

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Current Market Demand

Currently, Vanuatu’s off-grid solar market is growing steadily. The country has several small-scale solar projects, particularly in remote and rural areas where grid connectivity is challenging. These projects are crucial for providing reliable power to communities that are otherwise dependent on diesel generators.

Projected Market Demand

The demand for off-grid solar panels in Vanuatu is expected to increase significantly in the coming years. The Vanuatu Off-Grid Solar Energy Market report forecasts substantial growth from 2024 to 2030. This growth is attributed to ongoing government initiatives, international support, and the increasing recognition of the benefits of renewable energy.

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Current Demand:

Government Initiatives: In August 2024, Vanuatu validated its On-Grid Electricity Nationally Determined Contribution (NDC) Investment Strategy, emphasizing projects such as solar photovoltaic (PV) and battery storage for mini-grids. This strategy underscores the nation’s commitment to expanding on-grid solar capacity.

Community Projects: The launch of Vanuatu’s first community-run solar power station on Malekula Island has provided clean and reliable electricity to over 2,800 residents, demonstrating the practical benefits and increasing acceptance of on-grid solar solutions.

Projected Demand:

Renewable Energy Targets: Vanuatu aims to transition to nearly 100% renewable energy in electricity generation by 2030. This ambitious goal indicates a substantial projected demand for on-grid solar panels as the country seeks to enhance its renewable energy infrastructure.

Planned Installations: The country’s Intended Nationally Determined Contribution (INDC) includes plans to install 10 megawatts (MW) of grid-connected solar PV by 2025, signaling a clear trajectory for increased on-grid solar panel deployment.

In Vanuatu, compensation for professionals in the solar industry varies based on role, experience, and education. For instance, a Solar Energy Systems Engineer earns an average annual salary of approximately $9,796.20 USD.which translates to about $816.55 USD per month. This figure can range from $5,093.8USD to $15,021 USD annually, depending on factors such as experience and education.¹⁴

As of January 2025, Vanuatu’s population is estimated to be approximately 335,169 people.¹⁵

Factory Rental Rates: ¹⁶

Commercial rental prices in Vanuatu can vary depending on location, size, and amenities. For instance:

Warehouse in Bellevue: A 200 square meter warehouse is listed at $16.8 USD per square meter per month, plus VAT. This equates to a monthly rent of  $3,360 USD.

Commercial Property in Melcoffe, Port Vila: A 270 square meter space is available for $3,780USD per month, plus VAT. ¹⁷

Administrative Cost: ¹⁴

In Vanuatu, compensation for professionals in the solar industry varies based on role, experience, and education. For instance, a Solar Energy Systems Engineer earns an average annual salary of approximately $9,796.20 USD.which translates to about $816.55 USD per month. This figure can range from $5,093.8USD to $15,021USD annually, depending on factors such as experience and education.

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Electricity Access:

Approximately 30% of households across Vanuatu’s dispersed islands lack electricity access, though this figure may be higher in certain areas.

Renewable Energy Initiatives:

Recent projects have focused on deploying hybrid solar and hydropower minigrids to improve energy access in remote communities. For instance, in Loltong village on Pentecost Island, a minigrid now supplies electricity to around 100 households, schools, a clinic, and businesses, significantly enhancing local living standards.

The government has established concession areas for private utilities to manage energy distribution, aiming to improve service delivery and infrastructure development.

Challenges:

Vanuatu’s energy infrastructure is vulnerable to climate-induced disasters, which can disrupt power supply and damage facilities. High energy costs and limited infrastructure pose challenges to establishing local manufacturing facilities, such as solar panel production.

Policy and Development:

The National Energy Road Map 2016–2030 outlines strategies to provide all households with access to electricity, primarily through individual solar systems, and to improve energy efficiency by 2030. The National Green Energy Fund, approved in 2016, aims to mobilize US$20 million to support these objectives.

Utilities Regulatory Authority (URA) Standards: ¹⁹

Grid-Tied Solar PV Systems: The URA has established „Regulatory Safety and Reliability Standards for Grid-Tied Solar PV System Installations and Connection to VUI’s Low Voltage Network.“ These standards ensure that installations are safe and do not compromise the reliability of the electricity grid.

Connection Charges: The URA has revised the solar PV connection charge from 26 Vt/kWh to 23 Vt/kWh, calculated based on energy consumed by the customer from the power generated by their grid-tied solar PV system. This charge applies to customers with solar systems connected to the VUI electricity grid.

Environmental Code of Practice: ²⁰

Solar Home Systems (SHS) and Micro-Grids: The Environmental Code of Practice outlines requirements for SHS and micro-grids, including technical standards for installation and operation. These systems are intended to provide electricity to rural households and community facilities such as health centers, churches, and schools.

National Energy Policy Framework: ²¹

Regulatory Framework: The National Energy Policy Framework emphasizes the need for an appropriate regulatory framework to encourage the promotion of alternative sources of energy for power production. 

Renewable Energy and Energy Efficiency Guide:

Installation Guidelines: The guide provides recommendations for the installation of solar home systems, including optimal tilt angles for solar panels to maximize energy output, especially during months with lower peak sun hours.

Regulatory Challenges:

Integration and Enforcement: Despite the established framework, challenges remain in integrating renewable energy regulations beyond a project focus and in empowering regulatory bodies to enforce decisions effectively. There is a need to streamline cooperation among regulatory agencies with overlapping portfolios to enhance the uptake of renewable energy generation.

National Green Energy Fund (NGEF): ²²

Established in 2016, the NGEF aims to facilitate capital investment opportunities to improve energy access for households and businesses in rural and peri-urban areas. The fund focuses on renewable energy and energy efficiency projects, providing concessional loans and subsidized solar systems to households, micro-small and medium enterprises, and public institutions.

Vanuatu Rural Electrification Project (VREP): ²³

Launched in 2016, VREP aims to increase access to electricity in rural areas through the distribution of solar home systems (SHS) and micro-grids. The project provides subsidies covering one-third of the total cost of approved systems, including installation and freight to provincial centers.

Scaling Up Renewable Energy Program (SREP): ²⁴

Through the Climate Investment Funds, Vanuatu has developed a $14-million SREP investment plan targeting the implementation of renewable energy interventions to overcome barriers to rural electrification. The plan focuses on addressing challenges such as unclear land ownership, regulatory restrictions, high upfront capital costs, and maintenance constraints in remote locations. It aims to increase electricity access from an estimated 27% to 90%, benefiting approximately 80% of the dispersed off-grid population.

Asian Development Bank (ADB) Grant: ²⁵

The ADB has provided a $6 million grant, complemented by $1.2 million from the Government of Vanuatu, to establish a network delivering renewable energy. This initiative focuses on expanding renewable energy infrastructure and access across the country.

Community-Run Solar Micro-Grid on Malekula Island: ²⁶

In September 2020, Vanuatu launched its first community-managed solar micro-grid in the villages of Wintua and Lorlow on Malekula Island. This system provides electricity to over 2,800 residents, powering homes, schools, health centers, and businesses. The project is unique in that the communities own and manage the micro-grid, keeping energy costs low and fostering local development.

Solar Water Pump Project on Nguna Island: ²⁷

Initiated in 2019, this project has installed 38 solar-powered water pumps across Vanuatu, aiming to benefit 20,000 people in rural and peri-urban areas. On Nguna Island, the solar water pump system provides reliable access to clean water for over 400 residents and supports the island’s Junior Secondary School, serving 313 staff and students.

Hybrid Solar and Hydropower Minigrid in Loltong Village: ²⁸

In the village of Loltong on Pentecost Island, a hybrid solar and hydropower minigrid has transformed life for its 300 residents. The system electrifies approximately 100 households, two schools, a clinic, and several businesses, enhancing social and economic opportunities. Residents now have access to reliable lighting, improved cooking facilities, and better educational resources.

Solar Installations by UNSW Engineering on Tanna Island: ²⁹

Since 2007, UNSW Engineering students and staff have collaborated with local communities on Tanna Island to install solar-powered lighting and phone charging facilities in 14 rural health aid posts. They have also upgraded renewable energy services for three schools and worked on a mini-grid to provide energy security to Imaki village.

UAE’s Masdar Solar Power Initiative: ³⁰

As part of a $50 million initiative managed by Masdar, Abu Dhabi’s renewable energy company, solar photovoltaic installations have been completed in Vanuatu. These include a 644 kWp ground-mounted system and car park structures at the Parliament House premises, and a 123 kWp ground-mounted installation at the Meteorology and Geo-Hazard Department building. 

Luganville Grid-Connected Solar Power Trial: ³¹

This pilot project involved installing grid-connected solar panels on public buildings in Luganville, generating up to 40 kilowatts of solar energy. The initiative aimed to demonstrate the feasibility of integrating solar power into the existing grid infrastructure.

eTech Solar

eTech Solar specializes in supplying and installing solar systems tailored for households, communities, villages, aid posts, the hospitality industry, tourism sector, agricultural farms, and schools. They offer a range of products, including solar lighting systems, solar-powered appliances, and larger setups for comprehensive energy needs. The company emphasizes quality and affordability, aiming to accelerate the adoption of solar technology throughout Vanuatu.

etechsolarsolutions.com

PCS Limited

PCS Limited is a leader in sustainable energy solutions, focusing primarily on solar-battery and solar-hybrid systems. With extensive local experience in both on-grid and off-grid applications, PCS provides tailored energy solutions designed to meet the specific needs of Vanuatu’s diverse environments.

pcspacific.com

AusPac Solar Limited

AusPac Solar offers cost-effective solar power systems aimed at reducing electricity expenses for residents and businesses in Vanuatu. Their product lineup includes portable solar generators, power stations, and off-grid solutions suitable for various applications, from island travels to permanent home installations. The company also provides online support and genuine warranties, ensuring customer satisfaction and reliable service.

auspacvila.com

GreenTech Vanuatu

GreenTech Vanuatu focuses on the recycling of dead solar batteries, providing free pickup services and offering compensation for recyclable materials. This initiative supports environmental sustainability by ensuring the proper disposal and recycling of solar batteries, contributing to the overall health of Vanuatu’s ecosystem.

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UNELCO Engie

UNELCO Engie has been a pioneer in developing and managing renewable energy sources in Vanuatu, including hydroelectric dams, wind energy, copra oil generation, and photovoltaic (PV) solar systems. The company offers individual solar solutions, contributing to the diversification and sustainability of Vanuatu’s energy mix.

unelco.engie.com