The Solomon Islands and the Asian Development Bank (ADB) have signed an agreement to develop the first solar independent power producer in the Solomon Islands.
The ADB signed a Transaction Advisory Services Agreement with the Solomon Islands Electricity Authority (SIEA) with the aim of developing a significant grid-connected solar photovoltaic (PV) power plant in the capital, primarily through the mobilisation of private sector investment.
Currently, the Honiara grid is almost entirely dependent on fossil fuels, with diesel accounting for a staggering 98 per cent of total power generation. This over-reliance has long exposed the SIEA and local consumers to international price volatility and potential supply chain disruptions.
ADB Country Director for the Solomon Islands, Anthony Gill, noted that the project is designed to de-risk the sector for commercial players.
“ADB helps bring in private investors for important projects such as this grid-connected solar PV project in Solomon Islands,” said Gill.
“This project will unlock investment through public-private partnerships and reduce risks so that businesses feel confident to invest, at the same time reducing the country’s reliance on imported diesel and reducing greenhouse gas emissions.”
Under the agreement, the ADB’s Office of Markets Development and Public-Private Partnership will serve as the lead transaction advisor.
Their role will encompass project preparation, managing the tendering process, and assisting the SIEA in awarding the final electricity supply contract.
Technical assessments will also determine the feasibility of an integrated battery energy storage system to ensure grid stability.
The initiative aligns with the Solomon Islands government’s broader strategy to transition toward sustainable, resilient growth by attracting international renewable energy expertise.
By diversifying the energy mix, the SIEA hopes to stabilise the national power supply and place long-term downward pressure on electricity tariffs for residents and businesses.
The ADB, established in 1966, continues to be a primary driver of infrastructure development in the Pacific, leveraging strategic partnerships to address complex climate and energy challenges across its 69 member nations.