The Pacific region faces a unique set of energy challenges. Its limited supply of fossil fuels has led to a historical dependence on imported diesel for power generation and a corresponding vulnerability to fluctuating energy prices. At the same time, outdated power infrastructure, geographical dispersion, small economies of scale, and limited generation capacity lead to high costs of power, transmission and distribution losses, and low electrification rates. Crucially, the Pacific island countries are among the most exposed nations, globally, to the effects of climate change—yet many lack the resources and capacity to respond to external shocks.

The work of the Asian Development Bank (ADB) in Pacific energy sectors is helping countries prepare for and respond to these pressing issues. Energy sector operations in ADB’s Pacific developing member countries (DMCs) focus on building energy security, climate change resilience, mitigation and adaptation, and identifying new solutions to drive systemic and lasting change.1 Projects and technical assistance (TA) are financing new renewable power generation, supply-side energy efficiency, grid upgrades, and battery energy storage systems (BESS) to help absorb renewable energy from intermittent sources of power.

In addition, ADB is supporting domestic and regional stakeholders to improve sector governance, sustainability, regulation, and management. It is also helping the Pacific DMCs engage meaningfully with the private sector.

To date, ADB and the Pacific DMCs have made considerable progress in improving the quantity and quality of energy services, while also reducing greenhouse gas emissions. The transition to cleaner, more efficient power is reducing dependency on imported fuels, increasing access to affordable and reliable electricity, and supporting climate change mitigation by reducing carbon dioxide (CO2) emissions. Governments and utilities across the region have strengthened energy sector management and built more efficient and resilient infrastructure, and communities are benefiting from greater access to clean power. However, further progress needs to be achieved.

This report discusses how ADB’s partnership with the Pacific DMCs is overhauling energy systems in support of resilient, low-carbon economic growth. The Regional section discusses approaches that ADB is implementing across the Pacific to support deeper collaboration among countries, development partners, and the private sector. The Countries section takes a detailed look at individual initiatives in each of the Pacific DMCs, including both investing and TA activities. Overall, the Pacific Energy Update series is intended to support knowledge sharing and deeper collaboration between ADB, its Pacific DMCs, development partners, and private sector stakeholders engaged in the energy transformation across the region.