South Pacific's Biggest Solar Plant to Help Tonga Meet Renewable Energy Target

Tonga Power Limited (TPL) have signed a power purchase agreement with Sunergise New Zealand Limited, which will finance, build, and operate a 6 MW solar farm on Tongatapu and sell the electricity generated to TPL for 25 years. Spread over three sites, the solar plant will be the second biggest in the Pacific and the second that TPL has established with an independent power producer.

PSDI, a technical assistance program undertaken in partnership with the governments of Australia and New Zealand, and ADB, works with ADB's 14 Pacific developing member countries to improve the enabling environment for business and support inclusive, private sector-led economic growth.

The new solar farm is expected to begin operations by April 2020. To achieve its goal of 50% renewable energy by 2020 and 70% by 2030, Tonga is also developing wind and biomass generation sources, and will integrate these with multiple units of battery energy storage. ADB is supporting this transition to a cleaner and more sustainable energy mix through a $12.2 million grant to the Tonga Renewable Energy Project. It is also administering grants to the project worth $29.9 million from the Green Climate Fund and $2.5 million from the Government of Australia.

PSDI is providing transaction advisory support to the Government of Tonga on another PPP for port stevedoring services, which is expected to be completed by the end of the year.