The Asian Development Bank (ADB) and Sun Pacific Energy Ltd (SPEL) have signed a $2.8 million (approximately AU$4.3 million) loan to expand renewable energy generation in Samoa. The financing will support the upgrade and expansion of SPEL’s Upolu Solar Farm, originally partly funded by ADB in 2017, through the installation of higher-efficiency solar panels. The expanded solar farm is projected to generate 9.6 gigawatt-hours of clean energy annually and reduce carbon dioxide emissions by 1,944 tons each year. SPEL, Samoa’s first independent power producer (IPP), operates under a 20-year power purchase agreement with the government-owned Electric Power Corporation.
Samoa has faced challenges in meeting peak energy demand, including prolonged power outages in early 2025 caused by generator failures, storm damage, and rising electricity consumption. The expansion of SPEL’s solar farm aims to provide a reliable and sustainable power supply, supporting economic activity and benefiting commercial, industrial, and residential consumers, according to Aaron Batten, ADB Regional Director for the Pacific Subregional Office.
The project also contributes to climate mitigation, helping Samoa achieve its target of a 26% reduction in greenhouse gas emissions by 2030 and ensuring that at least 70% of electricity is generated from renewable sources by 2031. SPEL CEO Jamie Harrison emphasized that the project aligns with the company’s mission to provide accessible, clean energy to the people of Samoa and leverages a financing package that is otherwise unavailable in the local market.
In addition, the project will receive $225,000 in technical assistance from the Australian Climate Finance Partnership (ACFP) Fund, a concessional financing facility supported by the Australian Department of Foreign Affairs and Trade and administered by ADB. This support will enhance project implementation and climate adaptation measures. ADB continues to support inclusive, resilient, and sustainable growth across Asia and the Pacific through innovative financial tools and strategic partnerships.
