ADB to Provide $12.2 Million Financing for Renewable Projects in Africa’s Tonga

ADB has partnered with Green Climate Fund and the Australian government to help Tonga reduce carbon emissions and meet energy security needs


The Asian Development Bank has announced that it will provide a $12.2 million financing for renewable energy projects under the Pacific Renewable Energy Investment Facility.

This facility was approved by the in 2017 and is an initiative to develop renewable energy projects in 11 Pacific islands’ developing member countries at an overall estimated cost of $750 million, and the ADB will be providing up to $200 million.

“The project will reduce the country’s dependency on imported fossil fuel for power generation,” said the energy division director of ADB’s Pacific Department Olly Norojono. “Providing Tonga’s population with better access to clean, resilient, and affordable electricity at a lower cost, particularly those in the outer islands where energy access is low and limited, will help the country achieve a more inclusive and sustainable future,” Norojono added.

The financing is expected to help develop renewable energy projects in Tonga, to enhance energy security and reducing carbon emissions in the country. ADB is also expected to provide grants amounting to $29.9 million from the Green Climate Fund (GCF) and $2.5 million provided by the Government of Australia for the project.

ADB, Green Climate Fund, and the Australian government’s partnership will also provide technical solutions, such as battery energy storage and capacity building efforts to promote more private sector investments in renewable energy. The goal is to help Tonga meet its ambitious 50 percent renewable energy target by 2020 and 70% by 2030.

The financing will be used for the following:

  • Installation of battery energy storage system in Tongatapu
  • Development of grid-connected renewable energy generation on the outer islands of ‘Eua and Vava’u
  • Establishment of renewable-based hybrid systems and mini-grids on the outer islands of O’ua, Tungua, Kotu, Mo’unga’one, and Niuafo’ou
  • The building of capacity of executing entities and communities, including women, to operate and maintain assets

The ADB is using a three-tiered approach that is expected to help the Pacific region meet its a renewable energy requirement. According to the ADB, its approach promotes energy efficiency, renewable energy; maximizes access to energy for all; and promotes energy sector reform, capacity building, and effective governance.

The Asian Development Bank (ADB) recently announced that it would invest $50 million in Indian renewable energy independent power producer Avaada Energy Private Limited. ADB aims to help Avaada Energy to expand its solar energy portfolio in India and increase the installed renewable energy capacity as envisaged by the Indian government.

The GCF also recently announced the approval of approximately $299.2 million to finance programs for electrification, combating climate change and economic development through renewable energy across Africa.

Shaurya is a staff reporter at with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.