Fiji-The Asian Development Bank (ADB) has taken a significant step in advancing Fiji’s renewable energy ambitions by being appointed as the transaction advisor to Energy Fiji Limited (EFL). This partnership aligns with Fiji’s National Energy Policy 2023–2030, which is centered on facilitating investments that enhance access to affordable, climate-resilient, and sustainable energy. Fiji’s policy sets ambitious targets for transitioning its energy sector to greener solutions while boosting energy security and reducing reliance on fossil fuels.
Currently, Fiji relies heavily on hydropower for its electricity generation, with renewable energy contributing approximately 50% of the total supply. However, due to hydropower’s seasonal and variable nature, fossil fuels still account for a significant share of the country’s energy production. ADB’s involvement aims to shift this balance by supporting the development of alternative renewable energy sources, such as solar and wind, and fostering a more diversified energy mix for the island nation.
ADB’s recently unveiled Fiji Country Partnership Strategy for 2024–2028 emphasizes building resilience against economic and climate-related challenges. Aaron Batten, ADB’s Regional Director of the Pacific Subregional Office, expressed the bank’s commitment to assisting EFL in expanding its renewable energy capacity through public-private partnerships (PPP). The approach focuses on enabling independent power producers (IPPs) to enter the market, which is expected to stimulate competition and lower electricity costs for consumers.
The upgraded energy supply will be distributed through a network of enhanced transmission lines supported by de-risking instruments. These efforts are financed under the Climate Investment Funds Renewable Energy Integration program, unlocking access to a pool of highly concessional funds dedicated to renewable energy development. The initiative marks a strategic investment in Fiji’s sustainable energy infrastructure, with projections indicating an increase in renewable energy’s share of electricity generation to over 70% by 2030.
Siddhartha Shah, ADB’s Director of the Office of Markets Development and Public-Private Partnership, noted that ADB will work closely with EFL to design and procure renewable energy projects that encourage market competition. This collaboration is expected to lead to more affordable power prices, ultimately benefiting Fijian households and businesses.
