With no conventional energy resources of their own, the islands of Vanuatu seek to develop renewable energy resources to increase electricity access to their dispersed population and overcome dependency on imported diesel fuel.
Unclear land ownership, regulatory restrictions, high upfront capital costs, and constraints to equipment maintenance and fee collection at remote locations all present significant challenges to the development of renewable energy in Vanuatu. Its SREP investment plan for $14 million in grants and concessional financing is centered on interventions in rural electrification.
This will target 80% of the roughly 22,000 dispersed off-grid customers in Vanuatu, and is expected to increase access from roughly 27% to 90%. To meet growing energy demand on the islands of Malekula or Espiritu Santo, small hydropower projects are expected to initially meet 100% of base load demand and relieve reliance on imported diesel.
Ranked as the world’s most vulnerable country to climate change
|NAME||FUND||FUNDING (USD MILLION)||COFINANCING (USD MILLION)||MDB|
|Rural Electrification Project||FUNDForest Investment Program||COFINANCING (USD MILLION) 6.77||FUNDING (USD MILLION)||MDBIBRD|
|Small Hydropower Project||FUNDScaling Up Renewable Energy Program in Low Income Countries||COFINANCING (USD MILLION) 7||FUNDING (USD MILLION)||MDBADB|
The CIF programmatic approach to investment planning and implementation brings strategic value to CIF recipient countries. Working through a transparent, country-led process, the CIF fosters trust and collaboration among government ministries, civil society, indigenous peoples, private sector, and the MDBs that implement CIF funding. Together, they translate Nationally Determined Contributions and other national development and climate strategies into an actionable CIF investment plan. Rather than one-off projects, the plan comprises long-term, sequenced investments that mutually reinforce each other and link to other critical activities, such as policy and regulatory reform and capacity building. Under national government leadership, CIF stakeholders continue to work together to implement the plan, continually assessing progress and sharing lessons learned along the way.