An iconic 100 MW microgrid will couple renewables and energy storage to transform Palau into a resilient, low carbon energy country, and further establish the island nation as an exemplary leader in the global transition towards clean, distributed energy.

The Republic of Palau announced today the signing of a Power Purchase Agreement with ENGIE Eps, the worldwide technology pioneer in microgrids and energy storage (EPS:PA). This announcement marks a crucial milestone in support of Palau’s achievement of its climate mitigation and adaptation goals.

Following the Paris Agreement, Palau committed to a 45% renewable energy target by 2025 as well as a 22% reduction in its energy sector emissions below 2005 levels. The partnership with ENGIE Eps through this iconic project will allow the Republic of Palau to achieve its energy goals more than five years ahead of schedule.

ARMONIA?, “harmony” in Italian coupled with the hibiscus symbol, has been chosen as name of this iconic project to reaffirm Palau’s sustainability and preservation drive, being at the same time evocative of ENGIE’s commitment to harmonious progress (#ENGIEHarmonyProject).

ARMONIA? will consist of a dispatchable solar PV project: with 35 MW of renewable energy and 45 MWh of energy storage, it will be coupled with the current diesel generation to transform the Palau grid into a smart, integrated system with an overall installed power of over 100 MW, representing the largest microgrid in the world and a global reference for the state-of-the-art technology. Renewable energy produced by the solar component is expected to represent in excess of 45% of Palau’s total demand.

In the midst of the global energy transition, it is imperative that we address climate mitigation and climate adaption – at the same time” said President Tommy Remengesau. “As we reduce our carbon footprint, so too should we reduce the vulnerabilities of our energy infrastructure in the face of rising seas and natural disasters. As we generate cleaner energy, it must also be reliable, accessible, and economical for those citizens of the world who live on the front-lines of climate change. Our partnership with ENGIE has accelerated Palau’s transition toward a renewable and resilient future.

By signing this Power Purchase Agreement, the Republic of Palau will secure 30 years of clean energy at a competitive and predictable price enabling the displacement of much of the current diesel generation. The project will dramatically reduce the nation’s carbon emissions and generate substantial expected savings on its overall energy bill, providing Palau access to reliable and affordable renewable energy.

This 100 MW microgrid would not be just one of the largest storage-enabled solar projects in world, but a pioneering showcase for the whole global energy sector” said Carlalberto Guglielminotti, CEO and General Manager of ENGIE Eps. “Universal, affordable and reliable access to clean energy will be a reality in Palau in few months, and we have the ambition and the commitment to replicate this model all over the world thanks to the ENGIE global reach”.

This project has been developed by Grid Market within the context of its public-private partnership with the Government of Palau, and the final sizing, geotechnical assessment, and project execution plan will be completed by ENGIE Eps; construction is expected to begin by the end of 2018 and the commissioning is predicted to take place before the end of 2019.

The partnership with ENGIE Eps will be responsible for Palau experiencing the fastest national transition to renewable energy ever to occur, further demonstrating the impact that the model in Palau can have on the global energy economy. (PR)