Sourcing secure affordable energy, increasing access to electricity and reducing reliance on costly fuel imports are top priorities for Pacific Island governments. Energy security in the Pacific is vital to economic growth and for small businesses.
In Solomon Islands, almost all electricity is generated from imported fuel. Electricity prices are among the highest in the world and are a crucial constraint to growth and development.
Australia is co-funding Solomon Islands first major renewables venture - the Tina River Hydropower project. A public private partnership attracting investment of US$240 million from a range of financiers, including the Green Climate Fund, Tina River Hydro will provide affordable, reliable clean energy and power the electricity needs of Honiara.
This large scale, transformative project will meet 100 percent of Solomon Islands international commitment for emissions reduction under the Paris Agreement. Even more importantly, it will build resilience in communities and businesses by catalysing growth and development of livelihoods and productive enterprises. The project will also have flow-on benefits for health and ecosystems by reducing the pollution from diesel generation.
Once up and running, Tina River Hydro will also demonstrate viability of large projects managed in a public private partnership and encourage further foreign investment at scale.
Australia provided $10.4 million to support the preparation phase of this project; playing a key role in facilitating the partnerships between Solomon Islands, the Korean Water Corporation and donors. Australia is also providing $18.4 million (2017-2024) to contribute to the access road to the dam site and to support the Tina River Project Office, bringing the total commitment to $28.8 million.
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