The Asian Development Bank (ADB) and Solomon Islands Electricity Authority (SIEA) have signed a transaction advisory services agreement to develop the country’s first large-scale solar PV project.
The agreement, signed by SIEA CEO Delia Homelo and ADB country director Anthony Gill, will support the development of a grid-connected solar PV power plant in Honiara through private sector investment.
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ADB’s Office of Markets Development and Public-Private Partnership will act as the transaction advisor, conducting project preparation and tendering, and supporting SIEA in awarding the electricity supply contract.
Technical assessments will also evaluate the need for a battery energy storage system (BESS).
According to the SIEA, diesel currently accounts for 98% of total power generation in the Honiara grid, exposing it to fuel supply disruptions and international price volatility, which has been exacerbated by the current instability in the Middle East.
According to figures published by the International Renewable Energy Agency (IRENA), the Solomon Islands had 8MW of cumulative solar capacity at the end of 2025, up from 6MW at the end of 2024.
“ADB helps bring in private investors for important projects such as this grid-connected solar PV project in Solomon Islands,” said Gill.
“This project will unlock investment through public-private partnerships and reduce risks so that businesses feel confident to invest, at the same time reducing the country’s reliance on imported diesel and reducing greenhouse gas emissions.”
The transaction advisory agreement forms part of the Solomon Islands government’s efforts to attract investment in renewable energy generation. The country is working toward 100% renewable energy by 2030 under its Renewable Energy Roadmap.
Building on earlier ADB commitments
The latest agreement builds on ADB’s existing involvement in the Solomon Islands energy sector.
In September 2024, the Solomon Islands secured finance for new solar PV projects through a group of investment firms led by ADB, which provided a US$10 million concessional loan and a US$5 million grant for the Solomon Islands Renewable Energy Development Project.
That initiative, which also received US$10 million each from the Saudi Fund for Development and state-owned Solomon Power, plus US$7 million from the Solomon Islands government, is financing solar PV power plants in Guadalcanal and Malaita provinces, along with a utility-scale grid-connected energy storage system in Honiara.
Australia has also had an invested interest in supporting the Pacific region in turning to renewable energy. In November 2024, PV Tech reported that the country had agreed to allocate an AU$125 million (US$80 million) investment package to support the rollout of renewable energy technologies across the Pacific region.
The fund package comprised an AU$75 million investment through the REnew Pacific programme, as well as AU$50 million via the Australia-Pacific Partnership for Energy Transition (APPET) initiative.
Australia’s REnew Pacific scheme focuses on delivering off-grid and community-scale renewable energy in remote and rural parts of the Pacific. Due to its low installation costs and ability to deploy relatively quickly, solar PV is likely to play an integral role in the Pacific’s energy transition.
