ADB to Invest $1 bn for Renewable Transition in the Pacific

ADB will invest over USD 1 billion worth of energy projects in the Pacific from 2019 to 2021 to increase renewable energy generation

The Asian Development Bank (ADB) will invest over USD 1 billion worth of energy projects in the Pacific from 2019 to 2021 to increase renewable energy generation and improve access to affordable and sustainable electricity in the subregion.

ADB’s Pacific Energy Update 2019 details how the bank is helping its Pacific developing member countries undertake a structural shift away from fossil fuel-based energy sources and towards renewables. The report provides a country-by-country snapshot of energy needs and opportunities, and profiles how 29 ADB-supported projects are enabling governments, communities, and the private sector to improve energy security, lower the cost of power, and reduce carbon emissions.

“Between 2007 and 2018, ADB-financed projects in the Pacific installed 62 megawatts (MW) of renewable energy generation capacity, constructed or refurbished 1,600 kilometers of power lines, and connected 10,000 households to electricity grids,” said ADB Pacific Department Energy Division Director, Olly Norojono.

“Over 2019 to 2021, we are building on these achievements by helping install new sources of renewable power, improve supply-side efficiency, and integrate battery storage. We are also providing support to better manage and regulate countries’ energy sectors.”

The report highlights that many Pacific countries are implementing plans to run on 100 percent renewables, with the transition to cleaner, more efficient power reducing dependency on imported fossil fuels, increasing access to affordable and reliable electricity, and reducing carbon dioxide emissions.

ADB is helping these countries make this transition by providing finance and direct technical assistance. Projects financed by ADB are developing solar, wind, and hydropower facilities; installing battery storage technology; and improving or extending transmission lines. Technical assistance provided by ADB, meanwhile, is helping utilities operate more efficiently through legal, policy, regulatory, and institutional reforms, as well as improving financial management and corporate governance.

The bank is currently supporting 14 active energy projects in 10 countries in the Pacific worth USD 371 million.