Since its invention, electricity has become crucial to our daily lives, powering everything from household lights to transportation systems. Yet, many countries still lack reliable electricity sources. The Solomon Islands is among those facing significant developmental challenges due to inadequate and expensive energy solutions. For the Solomon Islands, renewable energy represents a promising path forward.
Aside from energy hurdles, the Solomon Islands bear the brunt of climate change like other Pacific nations. From extreme weather events, saltwater intrusions, and rising sea levels, the archipelago has experienced it all. Transitioning to renewable energy will not only help the country’s electricity problems but will also pave the way for a more sustainable and resilient future.
In September, the Asian Development Bank (ADB) partnered with the Solomon Islands to help the country transition to renewable energy. This collaboration is essential to lowering the nation’s reliance on imported fossil fuels. It also advances environmentally friendly procurement methods that support more ambitious international climate targets.
This initiative will be carried out for five years. It is projected to be completed by July 2029 and expected to be closed by January 2030. The Ministry of Finance and Treasury will execute the project. The implementation will be Solomon Power and the Ministry of Mines, Energy, and Rural Electrification.
The project will use open competitive bidding per ADB’s procurement policy to acquire products, works, and services. In Q4 2024, the company will launch advertisements for the main package, which includes solar panel design, delivery, installation, batteries, and inverters. The project also allows for advanced contracting.
This program will accelerate renewable energy production and battery storage system installation and support power sector change. It will also encourage private sector involvement in renewable energy production. Other than that, these investments help the Solomon Islands maintain economic stability by lowering the cost of fuel imports. These can also increase self-sufficiency.
Shane Rosenthal, Pacific Liaison and Coordination Office regional director of ADB, said that the high electricity costs and limited availability of sustainable, clean energy reduce the Solomon Islands’ potential for economic expansion. He hopes that this project will lessen the Solomon Islands’ reliance on costly fossil fuel imports and mark a significant turning point in the country’s shift to renewable energy. He also added that the initiative “will install additional solar 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.”
A $10 million concessional loan and a $5 million grant from the Asian Development Fund, along with $10 million each from Solomon Power and the Saudi Fund for Development (SFD), are used to finance the project. This is ADB and SFD’s first collaborative financing. Through exemptions from taxes and duties, the Solomon Islands government is providing $7 million.
Just 16% of the households in the Solomon Islands are connected to the grid, according to a World Bank report in 2020. Geographical, economic, and systemic obstacles to grid expansion account for the Solomon Islands’ low degree of electricity. Meanwhile, electricity access is only at 76% due to poverty, rapid population growth, and expensive fossil fuel imports.
Only about 2% of the energy used in the Solomon Islands is produced by renewable sources and diesel generates almost all of the grid’s electricity. ADB’s energy sector interventions, such as the Tina River Hydropower Project and another project that converts five diesel-powered provincial grids to solar hybrid systems, help install more renewable energy generation. These interventions are complemented by the Solomon Islands Renewable Energy Development Project.
New solar farms in the provinces of Guadalcanal and Malaita, as well as a utility-scale energy storage system linked to the Honiara grid, will be financed by the renewable energy project. Additionally, it will provide an initial business plan for two regional schools’ rooftop solar installations. In addition, the project will advance initiatives in gender equality, climate change mitigation, disaster resilience, environmental sustainability, and governance enhancements. It will also help power sector changes in the Solomon Islands by preparing a private-sector renewable energy initiative.
The Solomon Islands’ renewable energy transition is also a part of the country’s commitment to lower its greenhouse gas emissions.