A $3 million grant administered by the Asian Development Bank (ADB) will be used to help low-income households install solar-powered energy generators in Palau, says the National Development Bank of Palau (NDBP).
According to Claire Harvey, President of the NDBP, the funding will be used for projects such as solar water heating and the installation of solar panels for residential homes.
The grant is provided by the Japan Fund for Poverty Reduction, a trust fund established by the Government of Japan to support countries with high levels of poverty, and will be distributed by the NDBP as financial intermediary. It is expected to help bring renewable energy to around 900 low-income homes in Palau.
“Although we’re still communicating with the ADB to discuss many of the details as to how and where this funding will be distributed, we know that these generators will only be given to residential homes,” said Ms. Harvey.
The ADB stated that it wishes to bring clean energy to those communities which are most at risk of experiencing natural disaster, and those which can least afford it. It has also stated that women beneficiaries will be prioritized in distribution of the funding.
The ADB has previously pledged $1 billion in energy projects in Pacific countries between 2019 and 2021.
Palau has committed to generating 45% of its energy from renewable sources by 2025, under the Paris Agreement. Various grants from foreign beneficiaries have historically helped with the installation of renewable energy programs in Palau. In the past two years, funding from New Zealand and the European Union have helped Kayangel State to boast a solar plant which provides renewable energy to the whole island for most of the day, switching to diesel for several hours at night once the battery runs out.
$3m ADB grant to finance solar projects for residents
