Renewable Energy Supplies for Rural Solomon Islanders

Contact:

In Sydney – Aleta Moriarty

amoriarty@worldbank.org

Tel: +61 (02) 2 9235 6545

In Washington DC – Mohamad Al-Arief

Tel: (1 202) 458-5964

malarief@worldbank.org

Honiara, 4 July 2008: The Central Bank of the Solomon Islands and the World Bank today launched the Sustainable Energy Financing Project, which marks the effective roll out of solar PV equipment and confirms the availability of support financing of renewable energy electricity supplies for rural communities in the Solomon Islands.

In rural areas of the Solomon Islands, access to electricity is low. Power generation is heavily dependent on diesel and most lighting is provided by kerosene lamps. With the cost of diesel and kerosene soaring in the past two years many rural households are spending 25% or more of their income on fuel.

Drawing on the good renewable energy endowments found in the Solomon Islands, such as Solar PV (Solar Photo Voltaic), Pico-Hydro and Biofuels, (coconut oil), the Grant Agreement will provide support to individual households and small enterprises to buy, install and maintain these renewable energy products.  The grant will among others support the development of an approved product catalogue. This will ensure that quality solar PV kits, pico-hydro pumps and coconut oil tanks can be provided reliably. Individuals or businesses which purchase products offered in the catalogue will be eligible for low cost, long term finance, which makes it possible to buy SolarPV equipment for the cost families now spend on kerosene for lighting.

The Grant Agreement will also support training for the installation of SolarPV and Pico hydro equipment, as well as for switching diesel generators for use of coconut oil. 

“The launch of the project today is another milestone in the project implementation after the Grant Agreement was signed in early July 2007. This is an important step towards rural Solomon Islanders gaining access to reliable and environmentally sound power supplies” said Mr Rick Hou, Governor of the Central Bank of the Solomon Islands. “With the support of the World Bank Group, it is encouraging sustainable development through the private sector and is helping to break down some of the common barriers to obtaining finance in small and remote communities.”

The Grant Agreement is part of the World Bank’s Sustainable Energy Financing project, a $USD 9.5 million project funded by the Global Environment Facility and approved by the World Bank Board of Executive Directors on 12 June 2007. The project will fund renewable energy supplies for rural communities in the Solomon Islands, Papua New Guinea, Vanuatu, Fiji and the Republic of the Marshall Islands and will run over 10 years.