| Project Detail |
Project Name
Renewable Energy Development Project
Project Number
57006-001
Country / Economy
Solomon Islands
Project Status
Proposed
Project Type / Modality of Assistance
Grant
Loan
The proposed project aims to (i) improve energy security by increasing the clean energy share in the countrys energy mix, which is dominated by fossil fuel generation (over 97%); and (ii) contribute to sector reforms for better governance and public-private partnership (PPP) enabling environment in the development of renewable energy.
Project Rationale and Linkage to Country/Regional Strategy
Solomon Islands, a small island developing state, is classified as experiencing fragile and conflict-affected situations. Electricity tariffs in Solomon Islands are among the highest in the world (over $0.75 per kilowatt-hour [kWh]), and the power supply is most vulnerable to disasters caused by natural hazards. With a generation capacity of 34 megawatt (MW), Solomon Islands Electricity Authority, trading as Solomon Power, is responsible for generation, transmission, and distribution throughout the country. All grid-connected power in the country is diesel-generated, and the share of renewable energy in the generation mix is about 3%. The high dependence on imported fossil fuel (equivalent to 6% of the gross domestic product and about 20% of total imports) imposes a significant burden on foreign exchange reserves, making the country vulnerable to energy supply disruptions and global price fluctuations. To reduce fuel dependency, the government is prioritizing investments in renewable energy for generation. Several renewable energy projects are under development by Solomon Power, including new small solar-diesel hybrid grids and modernization of hydropower plants.
Impact
Energy transition enhanced |
