- The Pacific developing member countries (DMCs) have limited borrowing and debt servicing capacity, forcing reliance on grant funding for capital intensive energy projects.
- The energy sector in the Pacific DMCs remains heavily controlled by state-owned utilities with inherent operational inefficiencies, chronic liquidity deficits, and limited capital resources for renewable energy and energy efficiency projects.
- Existing grant funding has not leveraged private sector participation in renewable energy development.
- High upfront capital costs and institutional inertia limit competition and private capital mobilization.
Navigating the New Normal in a Fragile Pacific
As the Pacific developing member countries (DMCs) battle multiple development challenges, progress is hampered by a significant obstruction – access to clean, reliable and affordable energy. In the Pacific region, where electricity supply remains dominated by diesel-based generation, all nations are struggling to meet their own energy security objectives, as well as their Paris Agreement commitments and Nationally Determined Contributions.
Despite the availability of cost-competitive renewable energy and the rationale for massively scaling this up, multiple systemic challenges are obstructing progress: