Nabilah S
In a significant leap towards renewable energy, the Pacific island nation of Palau has announced the operation of its inaugural large-scale solar-plus-storage project. Solar Pacific Energy Corporation (SPEC), a subsidiary of the Philippines-based renewable energy firm Altenergy, developed the largest facility in the Western Pacific.
The hybrid system is set to supply approximately a quarter of Palau’s energy requirements, substantially contributing to the island nation’s energy portfolio. The plant combines a 15.28MWp (13.2MWac) solar PV facility with a 10.2MWac/12.9MWh battery energy storage system (BESS). The facility was officially launched on 2nd June and is located in Ngatpang, on Babeldoab, the largest island in the Palau archipelago.
SPEC has secured a long-term power purchase agreement (PPA) with the national utility provider, Palau Public Utilities Corporation (PPUC), to feed power into the Babeldoab grid network.
The project, costing around $29 million, was financed with aid from the Australian government’s Australian Infrastructure Financing Facility for the Pacific (AIFFP). AIFFP extended an $18 million loan to SPEC’s particular purpose vehicle, Solar Pacific Pristine Power (SPPP), over a 17-year term at a 4.75% interest rate and also provided an additional grant of $4 million.
Previously, the island’s energy demands were largely met by burning automotive diesel, contributing to nearly 96% of the country’s greenhouse gas emissions. This new project signifies a dramatic shift in Palau’s energy landscape. It represents a significant step towards achieving its Paris Accord commitments, including a 35% renewable energy target and a 22% reduction in energy sector emissions from 2005 levels by 2025.
Additionally, the project’s location and design were carefully chosen to minimize ecological impact, in line with Palau’s commitment to preserving Micronesia’s native forests, which harbor a significant diversity of species.
SPEC was guided by the independent expert group DNV throughout the project’s delivery. The group provided services ranging from design, pre-construction, and construction to the final stages of project completion. DNV also offered guidance on scheduling, tracking progress, and overseeing the project’s engineering, procurement, and construction (EPC) contract. Post-commissioning, DNV addressed any contract non-compliance issues and issued the Completion Certification.
“Considering the specific engineering codes and local requirements in the Republic of Palau, assembling a multi-disciplinary engineering team well-versed in international codes, standards, and best practices was essential,” noted Michael Niu, DNV energy systems project manager.
Notably, DNV recently supported another landmark project for the Asia-Pacific region—a 200MW BESS on Singapore’s Jurong Island, believed to be the largest in Southeast Asia. Despite a tight schedule, DNV helped complete the project within six months.
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