Funding to support battery storage system for 15MW solar farm
By: Eoghan Olkeriil Ngirudelsang
(edited: 7/14/2025)
KOROR, Palau (July 10, 2025) — Australia has pledged $16.4 million to support the next phase of Palau’s transition to renewable energy, with funds designated to secure a battery energy storage system for the nation’s 15-megawatt solar farm, one of the largest in the Pacific region.
The announcement was made by Australian Minister for Climate Change and Energy Chris Bowen during a reception hosted by the Australian Embassy in Palau. Bowen is currently visiting several Pacific nations to advance Australia’s bid to co-host COP31 and to strengthen climate partnerships in the region.
“The Australian government will be supporting, to the tune of $15 million, the next stage of work to make that solar farm work for the people,” Bowen said. “We’ll also be taking the next steps towards the partnership, in which Australia is working with key friends in the Pacific to further our mutually desired transition to a cleaner economy — which is the number one, two, and three issue in the Pacific.”
Palau President Surangel Whipps Jr. welcomed the announcement and expressed gratitude for Australia’s continued commitment to renewable energy in the region.
“We face some of the highest energy costs in the world,” Whipps said, highlighting Palau’s reliance on imported diesel. He emphasized the importance of transitioning to renewables not only for environmental sustainability but also for long-term economic benefits.
Whipps also acknowledged ongoing technical challenges in scaling solar energy, including the need for improved transmission infrastructure and energy storage capacity. He thanked the Australian government for providing expert consultants to help address these issues.
The solar farm, inaugurated in 2023, plays a key role in Palau’s energy strategy and broader regional efforts to reduce carbon emissions. Australia’s new funding aims to ensure the system’s reliability and long-term impact by addressing storage constraints.
Bowen’s visit to Palau follows similar high-level meetings in Tuvalu, Samoa, and the Republic of the Marshall Islands. This is his first overseas tour since the Australian government’s re-election, and a key part of Australia’s effort to demonstrate climate leadership and deepen engagement with Pacific partners.