ADB, Sun Pacific Energy Ltd Sign $2.8M Deal To Boost Solar Power In Samoa

The Asian Development Bank (ADB) and Sun Pacific Energy Ltd (SPEL) have signed a $2.8M (approximately AU$4.3M) loan to help increase renewable energy generation in Samoa.

The loan will be used to upgrade and expand SPEL’s existing Upolu Solar Farm, which was partly funded by ADB in 2017, by installing higher-efficiency solar panels. The new expansion is expected to generate 9.6 gigawatt-hours of clean energy per year and reduce an additional 1,944 tons of carbon dioxide emissions annually. SPEL is Samoa's first independent power producer (IPP) and has a 20-year power purchase agreement with Electric Power Corporation, a government-owned national utility.

Since 2023, the Government of Samoa has struggled to meet peak energy demand. In March this year, it declared a 30-day state of emergency because of widespread and prolonged power outages caused by generator failures, storm damage, and rising electricity demand.

“This is the second expansion of SPEL’s solar farm,” said the Regional Director of ADB’s Pacific Subregional Office Aaron Batten. “The generated power will support the delivery of a reliable and sustainable power supply, which will spur economic activity, benefitting commercial, industrial, and residential consumers.”

The deal will also contribute to climate mitigation and support Samoa’s target of a 26% reduction in greenhouse gas emissions by 2030, while using at least 70% renewable energy for electricity generation by 2031.

“ADB enabled us to create a financing package that is not available in the market due to limited financial players,” said SPEL’s Chief Executive Officer Jamie Harrison. “This project is deeply rooted in our mission of providing accessible, clean energy to the people of Samoa.”

The project will also benefit from a $225,000 technical assistance from the Australian Climate Finance Partnership (ACFP) Fund, a concessional financing facility funded by the Australian Department of Foreign Affairs and Trade to support private sector projects related to climate adaptation and mitigation in select countries in the Pacific and Southeast Asia. ACFP is administered by ADB.