Pacific Climate Infrastructure Financing Partnership

AIFFP’s new long-term program to take off-grid renewable energy to rural and remote communities in the Pacific is now ‘open for business’.  Minister for Climate Change and the Environment Chris Bowen launched REnew Pacific at the Australian Pavilion at COP29.  For further details please go to http://renewpacific.com.au

Australia will contribute at least $350 million in climate infrastructure for the region, including $75 million for a program for off-grid and community scale renewable energy in remote and rural parts of the Pacific.

Additional funding for the Tuvalu Coastal Adaptation Project will expand Funafuti's land by around 6 per cent, to help Tuvaluans live and thrive at home and preserve their culture.

The Pacific Climate Infrastructure Financing Partnership (PCIFP) is delivering climate infrastructure to assist our Pacific and Timor-Leste partners mitigate, adapt, and build resilience in the face of a changing climate through three components:

• Major climate-specific infrastructure projects, including:
  • Adaptation projects like Reducing the impact of floods in Nadi, Fiji
  • 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 
• $50m for enhancements to existing and future AIFFP infrastructure investments, which will 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. 

The PCIFP is focused on financing three priority areas of climate infrastructure:

• 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.

To date, 23 projects have been announced as part of component 3 of PCIFP for small scale, off-grid renewable energy infrastructure in remote and rural communities.

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.

Now Pacific communities are set to benefit directly from PCIFP, through innovative projects that provide renewable energy for health, education and economic development outcomes.

An initial Call for Off-grid Renewable Energy Partnerships (held August-October 2023) has seen over 70 proposals for projects in 9 countries across the region from private sector and community groups.

Proposals feature private and non-government sector partnerships that can bring solar, hydro or biogas home and mini-grid systems to remote island or rural locations, including for schools and health centres. Applications for community and business infrastructure powered by renewable energy, such as solar pumps for irrigation and cold storage also featured. 

This has resulted in a total investment of A $5.8 million in 13 Off-Grid Renewable Energy Partnerships, across six countries in the Pacific and Timor-Leste. This includes A $3.6 million by the Australian Government, with the remaining investment by partners through cash or in-kind contributions. 

PCIFP is also partnering with Secretariat of the Pacific Community (SPC) in the extension of Australia’s Outer Islands Electrification Program in Federated States of Micronesia. This program comprised of two projects.

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. This partnership was launched in February 2024.

The Good Samaritan Hospital serves over 63,000 people in Solomon Islands’ Guadalcanal province. Through this partnership, Superfly will install a solar hybrid system, which will create more sustainable and consistent energy generation for the hospital, enabling local community members to access a safer and more resilient healthcare setting. It will train staff to monitor and maintain the system safely, with Superfly visiting the hospital to monitor and maintain the system, as well as monitoring its operations via the Victron Remote Monitoring app. It will also use data-driven insights from the system to understand how to develop scalable models for future fuel-switching projects for other remote communities in the Solomon Islands and beyond. By switching to the solar hybrid system, the partnership is projected to secure 510 tonnes of CO2 from the environment over 10 years. 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. This will enable children and young people in remote communities to access all the benefits of a modern education that increasingly relies on computers and other electronic resources, while improving the quality of life for the wider community and reducing carbon emissions.

It will begin by installing a high-quality solar system at the remote Fijian Buakonikai Primary School on Rabi Island as a model system for development of the ongoing maintenance funding project. It will also install a StarLink remote monitoring system and establish a maintenance strategy, with a sustainable funding model for ongoing support from key stakeholders, ensuring its sustainability. Detailed guidelines and best practices will be developed for maintenance, with resources made available for broader use in renewable energy projects globally. 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.

The partnership sets out to empower local women to enable greater access to electricity and water on Kiribati’s remote outer island, Aranuka. It will deliver an off-grid energy solution on Aranuka using a model that is locally appropriate, sustainable over the long term, builds the capacity of women, and provides solar- powered energy to communities that do not currently have access to electricity. It also aims to improve access to fresh water, as well as safe and renewable energy, helping children better engage in education and allowing greater productivity, economic activity, and practice of culture, among community members. It will achieve this by supplying and installing low-maintenance solar-powered portable batteries, as well as solar powered water pumps and water storage tanks, and establishing women-led infrastructure management committees who are trained in maintaining the equipment. It will also establish a household levy scheme to provide funding for the initiative over the long term. Read more.

The partnership between Kokoda Track Foundation, Kokoda College and the Australian Government aims to transform Kokoda College’s students’ outcomes through greater access to reliable and sustainable off-grid energy. It will do this by setting up a solar mini grid at the College, which will be designed to meet the growing energy demands of the campus, enhancing educational facilities and supporting additional infrastructure to fulfil current needs and facilitate future growth. It will also establish an IT lab, a campus garden with solar irrigation, and develop a medical-grade incinerator for responsible waste management. The partnership will also promote climate-smart agriculture, digital literacy, educational outcomes and the inclusion of people with disabilities while addressing waste management concerns. It will also involve the local community and create employment opportunities, particularly for women. 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.

The partnership will explore a scalable model for a commercial off-grid renewable energy services business on Savo Island, home to 3,000 people, in 630 households and 13 formal communities. The model will examine how fish trading, an economic activity that 80% of the community participate in, could fund community energy services, such as schools and healthcare services, and contribute to building local energy infrastructure to grow the island’s trading capacity, which is currently limited due to traders not being able to refrigerate or freeze the fish. The partnership aims to transform the livelihoods of the local community who currently have no access to energy and provide a blueprint for other island communities in the Solomon Islands and the Pacific. 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.

The Vavanga community in Solomon Islands has successfully managed a micro-hydroelectric system since 1993. However, the village wiring, installed in 1993 to serve only a few houses, has a very low power capacity. This wiring was primarily designed to run lights, limiting opportunities for local income generation and business entrepreneurship. This partnership seeks to address this, collaborating closely with the local community to combine community-owned micro-hydro generation with a robust electrical reticulation system, enabling income generation opportunities that benefit the whole community. It aims to power all 116 households with 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.

The partnership aims to enable the East Are’are community to enjoy increased energy services at a household and community level, boosting local economic activity and climate resilience as well as piloting a scalable hub and spoke model approach to the challenge of electrification in rural and remote communities in the Solomon Islands. It will set up a large off-grid solar system – the hub – at Takataka in East Are’are, Malaita. This will provide mains-quality power to run income generating assets that boost the community’s climate resilience. It will work with West Are’are Rokotanikeni Association to engage with the local community to sell affordable household and solar freezer kits – the spokes – via a subscription model that is locally-driven and culturally tailored with consideration to gender and social contexts. 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.

This partnership will establish renewable-energy powered coffee hubs that empower off-grid communities in Timor Leste by providing access to energy and improving coffee production for global specialty markets. Focused on two off-grid coffee-producing communities, the partnership will install and maintain solar-powered coffee processing infrastructure hubs, benefiting from strong community relationships and collaboration. It aims to improve energy access, reduce emissions, create new job and income generating opportunities and increase participation of women in the coffee sector. The partnership also aims to enhance community inclusion and connection by establishing processing sites as multi-functional hubs offering various energy services for local households, contributing to long-term sustainability and economic growth. 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. Through this partnership, local women from the community of North Tanna will gain training, networks and technology to enable their community to access safe and reliable energy, replacing kerosene, diesel and candles. The partnership will provide lighting and device charging systems to 115 households and five community centres in the Lawital community, as well as setting up streetlights in 10 public spaces. A monthly PayGo payment system will be implemented for the users to gain ownership of the systems over approximately three years to ensure project sustainability, with payments being reinvested into maintaining the systems, purchasing future renewable systems and improving livelihoods in the community. 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. The facilities currently rely on diesel generators for lighting and powering equipment, which can be unreliable, impacting the ability for doctors, nurses and healthcare professionals to deliver their essential work, such as maternity and pediatric services to approximately 10,000 people living in these communities and surrounds.

The partnership will improve energy security and reliability by introducing off-grid renewable energy solutions at the Mapua and Puas Health Facilities. It aims to limit the healthcare facilities’ dependence on diesel generators, ensuring consistent energy supply and enabling better climate outcomes through renewable energy. Both the health facilities in Mapua and Puas also serve as training facilities for health care workers and by improving energy access, this partnership will also improve the quality of the learning experience, which in turn will improve outcomes for future healthcare professionals. 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. This will be achieved by providing clean, affordable, and reliable energy, including two medical clinics and two water pumping sites, which will benefit from new solar energy systems and excess power supply to support community owned commercial revenue generation activities. The partnership also aims to provide excess power to support community-owned commercial revenue generation activities, emphasising the importance of sustainable energy solutions for healthcare and water access in the region. There will be a focus on improving the quality of healthcare in remote rural locations, improving access to clean water, addressing the gender biases affecting women and girls, and creating economic opportunities. 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. The rapid growth of small-scale off-grid solar markets in the Pacific region, particularly in Vanuatu, has led to the widespread adoption of solar products as the primary source of lighting, especially in rural areas. However, lack of regulation and quality control have resulted in a significant accumulation of solar e-waste, posing environmental and health risks. While recycling is available, it isn’t enough to adequately address the problem. 

The partnership aims to tackle solar e-waste in Vanuatu. It will do this by first exploring the best options based on global evidence and local market conditions. It will then look for opportunities to strengthen local repair capabilities and develop off-grid solar repair enterprises, together with sustainable business models that generate revenue for local businesses and create new employment opportunities, particularly for women and people with disabilities. The partnership will focus on Tanna Island, Aneityum and Pentecost Island to develop repair business models that address each island’s needs. Read more.

This 18-month 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.

It will do this by establishing a scalable local community model, developing a Solar Loan Solution to make it easier and more affordable for consumers, and providing education and awareness programs to improve local communities’ financial literacy. It is projected to benefit up to 4,000 households and up to 28,000 individuals, including up to 12,000 women, outside Alotau and Kimbe. These communities currently have no grid-connected electricity. 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.