en.Wedoany.com Reported - The Australian Pacific Infrastructure Financing Fund (AIFFP) will support the expansion of an existing solar-plus-storage facility in the Republic of Palau, adding a new 19.8MWh battery energy storage system (BESS).
Law firm Gilbert+Tobin provided legal advice to AIFFP on the expansion transaction. The fund is managed by Export Finance Australia (EFA). The expansion project will be developed and operated by Solar Pacific Pristine Power (SPPP), a subsidiary of Philippine renewable energy company Alternergy and the developer of the original facility.
The expanded system will be connected to the grid of the Palau Public Utilities Corporation (PPUC), aiming to improve renewable energy integration and reduce the country's reliance on imported diesel for power generation. The existing site has a 10.2MWac/12.9MWh BESS, and upon completion of the expansion, the total battery energy storage capacity will reach 15MWac/32.7MWh.
The original Palau solar project, commissioned in June 2023, was the largest solar-plus-storage facility in the Western Pacific at the time. The project consists of 15.28MWp solar photovoltaic panels and a 12.9MWh BESS, with a long-term power supply agreement with PPUC. Located on Babeldaob, Palau's largest island, the project cost $29 million and can meet approximately one-quarter of the country's electricity demand, helping Palau fulfill its Nationally Determined Contribution under the Paris Agreement. AIFFP provided an $18 million loan and a $4 million grant for the initial phase of the project and now continues to support its expansion.
The original solar-plus-storage facility was developed by German EPC contractor Juwi Renewable Energies, with DNV serving as owner's engineer, using First Solar photovoltaic modules, SAFT batteries, and SMA inverters. Before the project was commissioned, over 99% of Palau's electricity was generated by burning automotive diesel, with the energy sector accounting for 96% of the country's greenhouse gas emissions. The original facility was Palau's first utility-scale solar photovoltaic plant, and this expansion will deepen its transition away from fossil fuel power generation.
Established by the Australian government in 2019, AIFFP has committed approximately A$1.1 billion (about US$760 million) in loans and A$850 million in grants to 58 projects across 11 Pacific countries to date. The fund's energy portfolio is increasingly focusing on renewable energy and storage projects in the region. In January 2026, Australia's Foreign Minister announced an additional A$550 million in facility financing, bringing AIFFP's total to A$4.55 billion.
