Pacific Climate Infrastructure Financing Partnership

Australia is contributing at least $350 million in climate infrastructure to help the region transition away from fossil fuels and build a climate-resilient future through the Pacific Climate Infrastructure Financing Partnership (PCIFP).

The PCIFP achieves this through: 

• Major climate-specific infrastructure projects, including:
  • Adaptation projects like Reducing the impact of floods in Nadi, Fiji and expanding Funafuti's land by around six per cent through the Tuvalu Coastal Adaptation Project, helping Tuvaluans live and thrive at home and preserve their culture.
  • Grid-scale solar and hydropower projects such as Building Palau's first utility-scale solar power plant.
  • Connecting Solomon Islands' capital to electricity via transmission line. 
• Existing and future AIFFP infrastructure enhancements, which reduce carbon emissions and increase climate resilience across the portfolio.
• Small scale, off-grid renewable energy infrastructure to boost development in remote and rural communities, including:
  • REnew Pacific, a five-year, $75 million program to deliver off-grid renewable energy to rural and remote communities across the Pacific and Timor-Leste.
  • Off-Grid Renewable Energy Partnerships, the pilot program for REnew Pacific, which launched in 2024 and includes 13 partnerships across Fiji, Kiribati, Papua New Guinea, Solomon Islands, Timor-Leste and Vanuatu. 

The PCIFP invests in three climate infrastructure priority areas:

• Mitigation: brings grid scale or off-grid renewable energy infrastructure to the Pacific to displace costly diesel-fuelled electricity generation and provide inclusive access to energy for economic and social development.
• Adaptation: infrastructure works that can directly target climate impacts through flood alleviation, coastal protection and water purification.
• Resilience: ensuring all AIFFP infrastructure in all sectors (e.g. roads, bridges, ports, airports or telecommunications services) are resilient to rising temperatures, increased flood risk, sea level rise and severe weather events.

PCIFP investments are directly benefitting remote and rural off-grid communities across the Pacific and Timor-Leste, supporting 23 innovative projects that deliver renewable energy for health, education and economic development outcomes – with more projects to come.

In 2023 extensive consultation with over 200 stakeholders was undertaken to understand the needs of remote and rural communities in the Pacific and understand how Australia can provide support through PCIFP.

An initial Call for Off-grid Renewable Energy Partnerships (August–October 2023) attracted more than 70 project proposals from private sector and community groups across nine countries. As a result, 13 partnerships were established across six countries in Fiji, Kiribati, Papua New Guinea, Solomon Islands, Timor-Leste and Vanuatu. This includes a $3.6 million investment by the Australian Government, with additional cash and in-kind contributions from partners, totalling a combined investment of $5.8 million.

Building the successful Partnerships, REnew Pacific was officially launched at COP29 by Minister for Climate Change and the Environment Chris Bowen. 

REnew Pacific is the Australian Government’s $75 million investment in off-grid renewable energy for rural and remote communities across the Pacific and Timor-Leste.

The five-year program will deliver locally led, inclusive and sustainable projects that enable lighting, access to water, improved agriculture, better food security, quality education and health services, reliable communications connectivity and enhanced incomes for remote Pacific communities.

REnew Pacific achieves this by providing grants to develop off-grid renewable energy projects, leveraging co-financing and partnering with non-government organisations, the private sector, investors, community organisations and government agencies. 

REnew Pacific's first round of grants took place between February to April 2025, attracting a huge amount of proposals from across every Pacific nation. More grant windows will be announced soon.

For more information and updates, visit REnew Pacific: https://renewpacific.com.au/ 

In addition, through the PCIFP, Australia is partnering with the Secretariat of the Pacific Community (SPC) on two projects to expand the Outer Islands Electrification Program in the Federated States of Micronesia. States of Micronesia. This program comprised of two projects.

REnew Pacific’s first project is set to benefit over 81,000 people in Solomon Islands by providing clean, renewable energy to power healthcare, education and essential services. Read more

Around 80,000 people living in off-grid communities across Vanuatu are set to benefit from improved healthcare with 40 health facilities receiving new or upgraded solar power systems and improved support of key medical appliances. Read more

Over 4,700 people across eight rural communities in Vanuatu’s Santo, Paama, Tanna, and Malekula islands will soon benefit from better water security, sanitation and hygiene, together with reliable, clean energy to power their health centres and schools. Read more

This partnership between Superfly Limited, the Good Samaritan Hospital and the Australian Government aims to build a more resilient healthcare system in Tetere through greater energy security. Read more.

This partnership between Its Time Foundation and the Australian Government aims to create a scalable model for future-proofing solar systems through effective monitoring and maintenance for schools within remote communities to benefit from reliable and renewable energy. Read more.

This 22-month partnership between Action on Poverty, Foundation for the Peoples of the South Pacific and the Australian Government aims to empower local women and enable greater access to electricity and water on Aranuka, one of Kiribati’s remote outer islands. Read more.

The partnership between Kokoda Track Foundation, Kokoda College and the Australian Government is transforming Kokoda College’s students’ outcomes through greater access to reliable and sustainable off-grid energy. Read more.

This partnership between Archipelago Energy and the Australian Government aims to support the Savo Island community gain access to renewable solar energy while powering the economic development of the island. Read more.

This partnership between Pelena and the Australian Government aims to power up the Vavanga community with micro-hydro system enabling all 116 households to gain access to affordable, reliable energy, while creating new opportunities for the community’s economic development. Read more.

The partnership between Superfly, Save the Children Solomon Islands, Mai Maasina Green Belt and the Australian Government aims to trial an adaptable, scalable and economically viable model for addressing the challenges of reliable energy in rural Solomon Island communities. Read more.

This partnership between Engineers Without Borders Australia, Raw Material, Mara Mresa and the Australian Government aims to establish renewable-energy powered coffee hubs, empowering off-grid communities in Timor Leste by providing access to energy and improving coffee production for global specialty markets. Read more.

This partnership between ActionAid Australia, Women TokTok Tugeta (WITT) Network, PowerWells and the Australian Government aims to improve lives, livelihoods and access to clean and affordable energy for women and their communities in the remote Lawital, Vanuatu, with a focus on women’s leadership and meaningful participation. Read more.

The partnership between Caritas, Catholic Church Health Services and the Australian Government aims to improve the energy infrastructure of New Ireland’s Mapua and Puas health facilities in Papua New Guinea. Read more.

The partnership between MEA Power Up, Master Electricians Australia and the Australian Government aims to enhance four critical health infrastructure sites in Timor-Leste's Cova-Lima Province. Read more.

This partnership between University of New South Wales, Vanuatu Disability Promotion Advocacy Association, Vanuatu Institute of Technology, Vanuatu Department of Energy, University of the South Pacific and the Australian Government aims to tackle the growing environment issue of e-waste from solar energy systems. Read more.

This partnership between Sola PayGo, MiBank and the Australian Government aims to enable greater access to renewable energy and job opportunities for Papua New Guinea’s most remote communities, increasing take up of solar energy while also enabling local community members, particularly women, to gain employment to promote renewable energy solutions and maintain local services through technical support. Read more.

Comprising two projects, this two year partnership between the Secretariat of the Pacific Community (SPC) and the Australian Government is the extension of our Outer Islands Electrification Program to remote communities in Yap and Pohnpei states. The Australian Government is now investing an additional AUD 4.1million to provide accessible electricity to Woleai atoll in Yap state and Pingelap in Pohnpei state.

The project aims to provide new electrification connections including installation of a solar minigrid, with battery energy storage including house wiring and power to schools, dispensaries, churches and reproductive centres on the islands. This project will make a real difference while providing lighting to promote safety, education, and health, new livelihood opportunities, and helping remote communities connect with the rest of their nation through phone charging, radio, and television. The generation of solar electricity with battery energy storage will lower the electricity tariff and reduce reliance on ageing diesel generators.

Australia is investing AUD8.25 million into the Fiji Rural Electrification Fund (FREF), the fund’s largest investment to date. This funding includes AUD7.25 million from the AIFFP through the PCIFP. It will help bring solar power to some of Fiji’s most remote communities. This investment will directly support solar electrification for at least five off-grid island communities, pushing Fiji closer to its goal of providing 100 per cent of its population with access to reliable electricity.