ADB & Samoa Sign Landmark Agreement for Solar Power Projects

MANILA, PHILIPPINES – 11 December 2024 — The Asian Development Bank (ADB) has signed a transaction advisory services agreement with Samoa’s Electric Power Corporation (EPC) to support the development of a solar photovoltaic and battery energy storage systems with installations planned for the country’s two largest islands, Upolu and Savai’i.

The project is expected to represent a capacity of up to 40 megawatts of solar and 40 megawatt-hours of batteries and will be cornerstone of Samoa’s efforts to achieve 70% renewable energy in its electricity mix by 2031.

Head of ADB’s Office of Markets Development and Public–Private Partnerships Cleo Kawawaki represented ADB. Acting Chief Engineer Christopher Fruean and Manager Legal Tofilau Alex Stanley represented EPC at the virtual signing ceremony on 6 December.

“ADB is committed to supporting small island developing states like Samoa in transitioning to cleaner energy systems,” said Ms. Kawawaki. “This initiative will not only help Samoa achieve its renewable energy goals but also serve as a model for other Pacific nations aiming to build more sustainable energy systems.”

Through the Solar Power Projects in Upolu and Savai’i initiative, ADB will provide comprehensive transaction advisory services to EPC, including project preparation, structuring, and procurement. The advisory will ensure the project adheres to international best practices in transparency, technical standards, and financial structuring, maximizing private sector engagement.

The mandate also includes addressing critical environmental, social, and gender considerations to ensure the project’s sustainability and inclusiveness.

Samoa currently relies on imported fossil fuels for approximately 69% of its electricity generation, leaving the country vulnerable to volatile oil prices.

By shifting to renewable energy, the initiative will reduce dependency on fuel imports, stabilize energy costs, and enhance the resilience of the electricity grid through advanced battery storage.

Incorporating cutting-edge battery energy storage systems, the project will significantly improve grid reliability by mitigating intermittencies associated with renewable energy sources. The facilities will smooth electricity generation, balance supply and demand, and allow for energy storage during off-peak periods.

The project has the potential to attract a diverse pool of international investors. The success of it will highlight the possibilities of public-private partnerships in delivering large-scale renewable energy solutions in small island economies.

This milestone aligns with ADB’s Strategy 2030 priorities and the Pacific Approach 2021–2025, emphasizing sustainability, climate resilience, and regional collaboration.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the Pacific region.