Millions of people across the Pacific lack access to electricity, making the simplest tasks in life a burden, and curtailing growth opportunities. Less than a quarter of people are connected to a grid. Those who do have access to electricity often pay tariffs that are amongst the highest in the world.
IFC commissioned Economic Consulting Associates to prepare a detailed guide to investing in renewable electricity generation in the Pacific. The aim of this report is to promote the development of bankable renewable energy (RE) projects in the Pacific Island countries (PICs) and Papua New Guinea (PNG). It provides a high-level overview of the Pacific region’s RE potential and comprehensive guidelines for investing in the four most populous countries: PNG, Fiji, Solomon Islands, and Vanuatu.
Most Pacific nations have ambitious renewable energy targets which call for huge investment, much of which is expected to come from the private sector. There are already around 40 renewable energy projects across the PICs which are either operating, under construction, or are planned for commissioning in the next decade. Together they will add an estimated 420 mega-watts of renewable generation to the region, which will benefit millions of people by delivering a clean source of electricity and reducing reliance on imported and polluting sources of energy.
IFC’s work in the Pacific is guided by the Pacific Partnership and IFC’s work in PNG is guided by the PNG Partnership. Australia, New Zealand and IFC are working together through the Partnerships to stimulate private sector investment and reduce poverty in the Pacific and Papua New Guinea.