Palau’s Solar+Storage+Diesel Microgrid Project

• Engie EPS to develop a 35 MW dispatchable solar PV project with 45 MWh of energy storage capacity, coupled with current diesel generation in Palau
• This microgrid project will be the world's 'largest' according to Engie as it will have a cumulative capacity of more than 100 MW
• Engie was chosen for the project by GridMarket that conceived the project for Palau
• The project is expected to enter construction by the end of 2018 and come online before the end of 2019

The microgrids and energy storage company from the French Engie Group, Engie EPS has signed a power purchase agreement (PPA) with the Republic of Palau for a microgrid project comprising 35 MW of dispatchable solar PV project and 45 MWh of energy storage capacity. Engie says the renewable energy produced by the solar component is likely to account for 45% of the country's total energy demand.

Palau aims to achieve 45% renewable energy share in its energy mix by 2025 and reduce energy sector emissions by 22% below 2005 levels. The project is important for Palau as it will help the country achieve its energy goals over 5 years ahead of schedule.

The project, named Armonia meaning harmony in Italian, will be coupled with the current diesel generation. Together all this capacity will add up to a total of 100 MW, which will be the 'largest microgrid in the world', and will strengthen Palau grid into a smart, integrated system, according to Engie.

Construction on the project is expected to begin by the end of 2018, and commissioning scheduled for sometime before the end of 2019.

Palau will buy power from this project for a period of 30 years at a competitive and predictable price, which hasn't been revealed. This will enable displacement of much of the current diesel generation, and also lead to savings on overall energy bills in the country, says Engie.

The project was conceived by a United States (US) based organization called GridMarket that deployed its machine-learning platform and predictive analytics capabilities basis Palau's energy environment. It chose Engie EPS through a competitive process.

"As we reduce our carbon footprint, so too should we reduce the vulnerabilities of our energy infrastructure in the face of rising seas and natural disasters. As we generate cleaner energy, it must also be reliable, accessible, and economical for those citizens of the world who live on the front-lines of climate change. Our partnership with ENGIE has accelerated Palau's transition toward a renewable and resilient future," said Palau President Tommy Remengesau.