en.Wedoany.com Reported - The Asian Development Bank (ADB) has signed a transaction advisory services agreement with the Solomon Islands Electricity Authority (SIEA) to develop the country's first large-scale grid-connected solar photovoltaic plant in Honiara, with the project adopting a private sector investment model.

SIEA Chief Executive Officer Delia Homelo and ADB Country Director Anthony Gill jointly signed the agreement. ADB's Office of Markets Development and Public-Private Partnership will serve as transaction advisor, responsible for project preparation, tendering, and assisting SIEA in awarding the power supply contract. The technical assessment will also examine whether to deploy a battery energy storage system (BESS).

Currently, diesel generation accounts for as much as 98% of Honiara's power grid, making the country vulnerable to fuel supply disruptions and international oil price fluctuations, a risk further exacerbated by instability in the Middle East. According to data from the International Renewable Energy Agency (IRENA), the Solomon Islands' cumulative installed photovoltaic capacity reached 8 MW by the end of 2025, up from 6 MW at the end of 2024.

Gill stated: "Through public-private partnerships, ADB helps bring in private investors, reduces investment risks, and gives businesses the confidence to participate. This project will reduce the country's dependence on imported diesel and lower greenhouse gas emissions."

This agreement is part of the Solomon Islands government's efforts to attract renewable energy investment. The country's Renewable Energy Roadmap sets a target of achieving 100% renewable energy power supply by 2030. Previously, in September 2024, ADB led investment companies in providing a $10 million concessional loan and a $5 million grant for the Solomon Islands Renewable Energy Development Project. The Saudi Fund for Development and the state-owned power utility Solomon Power each provided $10 million, while the Solomon Islands government contributed $7 million, for the construction of photovoltaic plants on Guadalcanal Island and in Malaita Province, as well as a utility-scale grid-connected energy storage system in Honiara.

Australia is also supporting the energy transition in the Pacific region. In November 2024, PV Tech reported that Australia agreed to invest AUD 75 million (approximately USD 80 million) through the "REnew Pacific" program, and AUD 50 million through the "Australia-Pacific Partnership for Energy Transition" (APPET) initiative, to support the deployment of renewable energy technologies in the Pacific. Australia's "REnew Pacific" program focuses on off-grid and community-scale renewable energy projects in remote rural areas, where solar PV will play a key role due to its low installation costs and rapid deployment.

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