Josefa Sigavolavola 
[Photo: File]
Private investment in renewable energy remains limited across the Pacific, despite renewable power becoming cheaper than diesel generation.
A new Asian Development Bank study states that stronger policies and better planning are needed to attract investors and help Pacific countries meet their renewable energy targets.
The study looked at Fiji, Palau, Papua New Guinea, Samoa and Tonga, comparing their experience with Hawaii’s faster shift to renewable energy.
It found the five Pacific countries commissioned only eight new renewable energy plants through independent power producers over the past decade.
Many Pacific countries are targeting 70 to 100 per cent renewable electricity by the early 2030s.
The study says rising diesel costs are adding pressure to make that transition.
In July this year, solar generation with battery storage cost less than half the marginal cost of diesel generation in the Pacific.
PSDI State-Owned Enterprise Reform Expert and study co-author Laure Darcy says the cost of fuel is making renewable investment a growing commercial priority for Pacific utilities.
She says investors need to be able to assess and price risks with confidence if countries want to attract more private investment.
The study identifies clear government commitments, better sector planning, stronger utilities and competitive procurement as key conditions for investment.
It also calls for reliable grids, bankable contracts and project sites to be secured before tenders are issued.
The study says when these conditions are in place, renewable energy tenders can attract international investors and deliver competitive electricity prices.
