Palau

The Republic of Palau has signed a power purchase agreement with ENGIE for the development of a microgrid and supply of clean energy over a period of 30 years.

The two have unveiled project ARMONIA to develop a 100MW integrated microgrid system.

The microgrid will comprise 35MW of renewable energy generation and 45MWh of energy storage.

The new solar and battery storage system will be combined with an existing diesel generator.

Renewable energy produced by the solar component is expected to represent in excess of 45% of Palau’s total demand.

The aim is to reduce carbon emissions, provide affordable energy and ensure energy supply security.

Palau committed to a 45% renewable energy target by 2025, as well as a 22% reduction in its energy sector emissions below 2005 levels.

The project will allow the Republic of Palau to achieve its energy goals more than five years ahead of schedule.

President Tommy Remengesau: “As we reduce our carbon footprint, so too should we reduce the vulnerabilities of our energy infrastructure in the face of rising seas and natural disasters. As we generate cleaner energy, it must also be reliable, accessible, and economical for those citizens of the world who live on the front-lines of climate change. Our partnership with ENGIE has accelerated Palau’s transition toward a renewable and resilient future.”

The project was originally developed by GridMarket within the context of its public-private partnership with the Government of Palau.

Construction is expected to begin by the end of 2018 and the commissioning is predicted to take place before the end of 2019.