Pacific Climate Infrastructure Financing Partnership

The Pacific Climate Infrastructure Financing Partnership (PCIFP) is an AUD350 million investment in building climate resilience and supporting the transition to renewable energy in the Pacific. It is implemented by the Australian Financing Facility for the Pacific (AIFFP).

Announced by Prime Minister Albanese at the November 2023 Pacific Islands Forum Leaders’ Meeting, the initiative has three components:

• rolling out off-grid renewable energy to rural and remote parts of the Pacific and Timor Leste
• financing major climate-specific infrastructure projects
• making AIFFP investments in all sectors greener and more climate resilient

Powering remote communities through Off-grid Renewable Energy

Since 2023, the AIFFP has financed 26 off-grid renewable energy projects through four investment vehicles:

• REnew Pacific, the AIFFP’s dedicated AUD75 million program delivering off-grid renewable energy to the Pacific. This program, launched at COP29 in November 2024, announced 6 projects making a big impact in rural and remote communities, with many more projects to come over the next five years.
• Off-grid Renewable Energy Partnerships, an AUD5.8 million grant round launched in 2023 and managed by DFAT’s Business Partnerships Platform, which has funded 13 projects across six countries, 6 of which have already been completed.
• Support to the Fiji Rural Electrification Fund (FREF), an AUD7.25 million contribution to this Fiji government-managed trust fund implemented by UNDP. Scaling up earlier funding by Australia, New Zealand and United Kingdom, the AIFFP’s anchor contribution funds all of Phase 2 of FREF, which will provide solar mini-grids for at least five remote maritime communities in Lau, Lomaiviti and Kadvau.
• Expanding the Federated States of Micronesia Outer Islands
  Electrification Program, an AUD4m project managed by SPC which will provide whole-island electrification for two remote islands, in Yap and Ponhpei states.

Major climate infrastructure projects underway

• Through the PCIFP, the AIFFP is making a breakthrough on the long-planned Reducing the impact of floods in Nadi, Fiji project, which will alleviate flooding in heavily populated areas of the Nadi flood plain. Backed by detailed flood modelling and options assessments, the project is expected to start early infrastructure works in 2026.
• The Tuvalu Coastal Adaptation Project, part of the Falepili Partnership Australia has with Tuvalu, is a nation-building investment in land reclamation for the island of Funafuti. This PCIFP project is implemented by UNDP and financed by DFAT’s bilateral development program managed by the Australian High Commission in Tuvalu.

Building the climate resilience of AIFFP infrastructure

• To complement the AIFFP’s investment in the successful Building Palau’s first utility-scale solar power plant project – one of the biggest solar farms in the Pacific – we are now implementing a battery energy storage system in Palau via the Palau Renewable Energy Integration Project, which will help Palau’s electricity grid to extract even more renewable energy from the solar array.
• The AIFFP is working with Live and Learn Environmental Education to deploy community-driven nature-based solutions in Fiji, Papua New Guinea, Tuvalu and Kiribati through the AUD2.7 million Climate Infrastructure for Resilient Coastlines and Riverbanks program. Strengthening mangroves, coral reefs and riverbanks, alongside hard infrastructure such as seawalls, will help protect the AIFFP’s road and telecommunications infrastructure and surrounding from the impacts of climate change.
• The AIFFP is also developing a range of solar and nature-based solutions projects to improve the resilience of and reduce emissions from our ports, airports and telecommunications projects in Solomon Islands, Timor Leste, Papua New Guinea, Tuvalu and Federated States of Micronesia.

30 remote schools in Fiji will have modern digital education facilities and 24-hour clean energy, backed by a dedicated maintenance model called the Solar Fund (Fiji). Learn more.

Transitioning from costly, less reliable, diesel-powered water provision to clean, resilient solar-driven water systems for 4,900 people living on Fiji’s remote maritime islands of Lakeba, Rotum and Vanuabalavu. Learn more.

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 AUD4.9 million to provide accessible electricity to Woleai atoll in Yap state and Pingelap in Pohnpei state. This funding includes AUD4 million from the AIFFP through the PCIFP.

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.