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An AIFFP loan and grant package is supporting Solar Pacific Pristine Power to build Palau’s first solar and battery energy storage facility, key to its transition to renewable energy.

Building Palau’s first utility-scale solar power plant Solar panels at the plant, opened in June 2023

Building Palau’s first utility-scale solar power plant

Babeldaob, Palau

Approved

Type:
Energy
Investment:
AUD31.4 million

Delivery partners

Solar Pacific Pristine Power Inc
Palau Public Utilities Corporation

We’re proud to support the establishment of Palau’s first utility-scale solar power plant at Ngatpang on Babeldaob.

Construction of the plant, which comprises a 15.28-megawatt peak capacity solar photovoltaic facility and a 12.9-megawatt battery
energy storage system, is being undertaken by Solar Pacific Pristine Power, a privately owned company.

15.28-megawatt

peak capacity solar photovoltaic facility

12.9-megawatt

battery energy storage system

The plant will provide approximately 20 per cent of Palau’s power needs, delivering up to 23,000 megawatt hours per year to the grid network, reducing Palau’s reliance on expensive diesel generators.

The team has worked closely with specialists to mitigate environmental impact as well as exposure to modern slavery through the project’s supply chain.  

Solar panels at the plant, opened in June 2023

Solar panels at the plant, opened in June 2023

The project also demonstrates how Australian financing can leverage and encourage private sector investment to deliver critical, climate resilient infrastructure in the Pacific.

Our financing package includes a loan of AUD25.7 million and a grant of AUD5.7 million to Solar Pacific Pristine Power Inc. to develop the project.

20 per cent

of Palau’s energy needs

23,000 megawatt

hours per year to Palau’s grid network

Minister for Foreign Affairs Senator the Hon Penny Wong (fourth from left) and Australia’s Ambassador to Palau Richelle Turner (far right) visit the project site at Ngatpang with stakeholders, December 2023

Minister for Foreign Affairs Senator the Hon Penny Wong (fourth from left) and Australia’s Ambassador to Palau Richelle Turner (far right) visit the project site at Ngatpang with stakeholders, December 2023

Project stakeholders officially open the new solar plant, June 2023

Project stakeholders officially open the new solar plant, June 2023

Minister for International Development and the Pacific the Hon Pat Conroy (second from left) and Australia’s Ambassador to Palau Richelle Turner (second from right) visit the project site at Ngatpang with stakeholders, June 2023

Minister for International Development and the Pacific the Hon Pat Conroy (second from left) and Australia’s Ambassador to Palau Richelle Turner (second from right) visit the project site at Ngatpang with stakeholders, June 2023

Minister for Foreign Affairs Senator the Hon Penny Wong and Australia’s Ambassador to Palau Richelle Turner (third and fourth from left) visit the project site at Ngatpang with stakeholders, December 2023

Minister for Foreign Affairs Senator the Hon Penny Wong and Australia’s Ambassador to Palau Richelle Turner (third and fourth from left) visit the project site at Ngatpang with stakeholders, December 2023

150 local jobs

during peak construction

AIFFP contribution

AUD31.4 million

  Amount (AUD million) Amount (USD million) Fixed interest rate Tenor
Loan $25.7 $18.0 4.75% 17 years
Grant  $5.7 $4.0 n/a n/a

*Exchange rate: AUD/0.70USD

Impact

The project will help to reduce Palau’s dependency on imported diesel for power generation and move towards greater energy self-sufficiency through renewable sources.

The project is expected to support up to 150 local jobs during peak construction phase, providing a much-needed boost to Palau’s economic recovery.

Latest updates:

  • The project has reached 98 percent completion with testing and commissioning ongoing.

Read more: Palau Solar Investment Case Study