June 23 (Renewables Now) - The Asian Development Bank (ADB) has committed to provide up to USD 200 million (EUR 179m) to back renewables in the smallest Pacific island countries through a new Pacific renewable energy investment facility.
The initiative aims to provide funds for renewable energy projects and sector reforms in scarcely-populated areas with limited resources, which rely on diesel-based power systems. The targeted countries are the Cook Islands, the Federated States of Micronesia, Kiribati, Nauru, Palau, the Republic of Marshall Islands, Samoa, the Solomon Islands, Tonga, Tuvalu,and Vanuatu.
“The Facility was developed to respond to the growing demand from the region and will provide innovative financing mechanisms and upscale support for the countries' sector reform programs,” said Anthony Maxwell, principal energy specialist from ADB’s Pacific department. It will focus on projects for installing solar, wind and hydropower capacities, as well as grid improvement plans. The first three projects to receive funding will be in the Cook Islands, Tonga and Vanuatu.
The lender noted its will be sourcing additional financing to further support the facility.
ADB has a portfolio of 13 renewable energy schemes in nine of the targeted nations. They will be developed in the next three years.
(USD 1.0 = EUR 0.896)