ADB to Deliver Finance worth $12.2 Million for RE Projects in Africa’s Tonga

The Asian Development Bank has announced that it will deliver a $12.2 million financing for renewable energy projects under the Pacific Renewable Energy Investment Facility.

This facility was sanctioned in 2017 and is an enterprise to develop renewable energy projects in 11 Pacific islands’ developing member countries at an overall projected cost of $750 million, and the ADB will be providing up to $200 million.

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

The financing is estimated to help develop renewable energy projects in Tonga, to improve energy security and reducing carbon emissions in the country. ADB is also anticipated to deliver grants amounting to $29.9 million from the Green Climate Fund (GCF) and $2.5 million provided by the Government of Australia for the project.

ADB, Green Climate Fund, and the Australian government’s conglomerate will also provide technical solutions, such as battery energy storage and capacity building efforts to promote more private sector investments in renewable energy. The goal is to aid Tonga meet its striving 50 percent renewable energy target by 2020 and 70% by 2030.

The sponsoring will be used for the ensuing:

• Installation of battery energy storage system in Tongatapu
• Development of grid-connected renewable energy generation on the outer islands of ‘Eua and Vava’u
• Establishment of renewable-based hybrid systems and mini-grids on the outer islands of O’ua, Tungua, Kotu, Mo’unga’one, and Niuafo’ou
• The building of capacity of executing entities and communities, including women, to operate and maintain assets

The ADB is using a three-tiered approach that is projected to help the Pacific region meet its a renewable energy requirement. According to the ADB, its method encourages energy efficiency, renewable energy; maximizes access to energy for all; and endorses energy sector reform, capacity building, and effective governance.