$44.6mn Grant For Renewable Energy In Tonga

Asian Development Bank, Green Climate Fund & Government Of Australia Pool In $44.6 Million Grant To Support Renewable Energy Project In Tonga For Battery Energy Storage, Grid-Connected & RE Hybrid Systems & Mini-Grids
01:30 PM (Beijing Time) - 14. March 2019
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The Renewable Energy project in Tonga will be supported by the ADB with grants coming from the bank, GCF and Australia under Pacific Renewable Energy Investment Facility for 11 Pacific Island nations. Pictured is a solar power project in one of the Pacific Island nations, Cook Islands supported by the bank. (Photo Credit: Asian Development Bank/Flickr)

Key Takeaways

  • Asian Development Bank will provide $12.2 million as grant to support the Renewable Energy Project In Tonga
  • It will also administer grants of $29.9 million from the GCF and $2.5 million from Australian government
  • The project will see battery energy storage system installation in the country’s Tongatapu region
  • Grid-connected renewable energy generation on outer islands of ‘Eua and Vava’u, and establishment of a renewable-based hybrid systems and mini-grids on the outer islands of O’ua, Tungua, Kotu, Mo’unga’one and Niuafo’ou are also part of the project

The Asian Development Bank (ADB) will provide $12.2 million as grant for the Renewable Energy Project in Tonga to help improvement in development and implementation of renewable energy projects here. Along with ADB’s grant, the bank will also administer grants worth $29.9 million from the Green Climate Fund (GCF) and $2.5 million from the Government of Australia for the Tonga project.

Total grant of $44.6 million will see battery energy storage system (BESS) to be installed in Tongatapu, development of grid-connected renewable energy generation on the outer islands of ‘Eua and Vava’u, establishment of a renewable-based hybrid systems and mini-grids on the outer islands of O’ua, Tungua, Kotu, Mo’unga’one and Niuafo’ou. At the same time the grants will be used for capacity building of executing entities and communities, including women, to operate and maintain assets. At the same time, it will encourage more private sector investments in renewable energy.

Tonga aims to achieve 50% renewable energy share in the energy mix by 2020 and increase it to 70% by 2030, as currently about 90% of its energy is carbon intensive.

“The project will reduce the country’s dependency on imported fossil fuel for power generation,” said the Energy Division Director of ADB’s Pacific Department, Olly Norojono. “Providing Tonga’s population with better access to clean, resilient, and affordable electricity at a lower cost, particularly those in the outer islands where energy access is low and limited, will help the country achieve a more inclusive and sustainable future.”

ADB says grant for this project falls under its Pacific Renewable Energy Investment Facility through which it will support renewable energy projects in 11 Pacific Island nations to be developed for an estimated cost of $750 million. ADB is providing up to $200 million to this facility.

In April 2018, utility Tonga Power Ltd. issued request for proposals for 6 MW solar and battery installation (see Tonga Tender For 6 MW PV & Storage).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani