Palau Solar project sets new benchmark for quality Pacific infrastructure

The Palau Solar project is delivering low emissions and climate resilient infrastructure alongside robust environmental and social standards.

Australia, through the AIFFP, has provided AUD31 million in financing to Solar Pacific Pristine Power to support the construction of Palau’s first utility-scale solar and battery energy storage facility.

Located on Palau’s largest island, Babeldaob, the project is expected to generate 20 per cent of Palau’s energy needs by replacing diesel with renewable energy. It will play a key role in Palau’s efforts to meet its renewable energy targets by 2025 and be one of the largest hybrid facilities of its kind in the Pacific.

Palau is home to the most species-diverse native forests in Micronesia, with many rare and endangered plants and animals. Solar Pacific Pristine Power has worked closely with local stakeholders and biodiversity experts to preserve this unique ecology, ensuring all environmental requirements are met and mitigating any risks that the solar and battery facility would damage the surrounding pristine environment.

As a wholly private sector led project, Australia’s partnership with Solar Pacific Pristine Power demonstrates how financing can encourage private sector investment in major infrastructure projects in the Pacific to prioritise inclusive social and environment standards, without adding to sovereign debt.

The AIFFP is committed to ensuring that robust social and environmental standards are met to ensure the infrastructure meets the development needs of Pacific countries and Timor-Leste, without harming the environment.

For more information, contact aiffp@dfat.gov.au