World Bank

Solomon Islands Sustainable Energy Project (SISEP)

SISEP was implemented over the period 2009-2019 (expiry 31 March 2019) with total disbursed funding (grant and loan) of USD 11.71m and contribution from SIEA (Solomon Islands Electricity Authority trading as Solomon Power) of USD8.2m.

The objective of SISEP was to improve operational efficiency, system reliability and financial sustainability of Solomon Power through improved financial and operational management, reduction of losses, improved generator and distribution system reliability and improved revenue collection.

The outcome indicators mapped to each of the objectives were as follows:

Improved operational efficiency of Solomon Power- reduction of system losses, reduction of average number of debtor days, number of days between due date of tariff and if not paid notice of arrears and quarterly financial reports and rolling projections for Solomon Power performance within 14 days at the end of each quarter.

Improved system reliability of Solomon Power- Improvement in System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI)

Improvement in financial sustainability of Solomon Power- revenue per kWh and profitability)

The project was implemented in three components; Strengthening management, Financial Operations and Technical Operations.

Under the project Solomon Power successfully implemented a number of projects to improve the technical operations. These projects include; replacement of the 11 kV switchboard at Honiara Power Station, relocation of 11 kV feeder 12 from Lungga Power Station to East Honiara Substation, design and construction of a new substation at East Kola’a Ridge, replacement of the existing 33 kV underground cable from Lungga Power Station to Ranadi Substation, procurement of the third 11/33kV 12.5/15 MVA transformer at Lungga Power Station and Upgrade of the 33/11 kV substation at Ranadi. Additionally Solomon Power successfully implemented a loss reduction study; design, specification, standard for a Supervisory Control and Data Acquisition system; Cost of Service and Tariff Review and hydrological feasibility studies for the Tina River Hydropower Project.

The Project came to an end on 31 March 2019. Please refer to the Implementation Completion and Results Report.

Global Partnership on Output Based Aid (GPOBA) Program- Solomon Islands Electricity Access Expansion Project

The objective of this program is to increase access to electricity to low income households.

The total funding from GPOBA for the implementation of this program is USD2.5m under which in total 2488 customer premises have been provided with electricity connection.

The program provides a subsidy for house wiring and service connections. In Honiara the subsidy per household is USD794 and at the Outstations it is USD994 per household. The balance amount is funded by Solomon Power.The scheme provides three LED lights, three switches and two GPOs per connection. All the customers are cash power customers. At Honiara each customer pays at the outset SBD400 for the meter and at the Outstations the amount is SBD200. The balance of SBD400 for Honiara and SBD600 at the Outstations is recovered from the customer during the first year through their cash power top up transactions.

The connections to customers has been made in Honiara, Auki, Munda, Noro, Seghe and Taro. Solomon Power has already achieved the target of 2488 connections.

This project commenced in July 2016 and will end on 31 March 2020. However, the program will continue under component 2 (Solomon Islands Electricity Access and Renewable Energy Expansion Project for 1500 connections funded by the World Bank) and through funding from MFAT, Government of New Zealand for 1000 connections spread over new Outstations at Hauhui, Sasamunga, Namugha and Vonunu.

Solomon Islands Electricity Access and Renewable Energy Expansion Project (SIEAREEP)

The project development objective is – to increase access to grid-supplied electricity and increase renewable energy generation in Solomon Islands.  The total project cost is USD 19.95 million and the funding will be used towards (i) the installation of hybrid mini grids at the Provinces, (ii) electricity connections in low income areas, (iii) installation of grid connected solar facilities in Honiara and (iv) technical assistance and capacity building for Solomon Power and the Ministry of Mines Energy and Rural Electrification.

The total funding from World Bank is USD19.95 million of which USD14.40 million is pure grant and the balance USD5.55 million is on loan. The Project has 4 components. Component 1 is for 5 hybrids (totaling USD10m), Component 2 is for USD1.5million for subsidized house wiring, service connections and meter to about 1500 low income potential customers; Component 3 of USD 5 million is for grid connect solar at Henderson (2MW) and 220kW solar on the roof top of our Ranadi office and Component 4 totaling USD3.45m is for enabling environment, 4.1 of USD 2.9 million for Solomon Power for project management, 4.2 of USD 0.55 m for MMERE for review of the electricity act and others.

In component 1 the 5 hybrid locations are Tingoa (Renbell Province), Visale (Guadalcanal Province), Baolo (Isabel Province), Bina Harbour and Dala (both in Malaita Province).

For component 3 the grid connect solar installations are based in Henderson (2 MW) and on the roof top of Solomon Power’s head office at Ranadi (220kW).

SIEAREEP was approved on 5 July 2018 and its closing date is 31 May 2023.

Asian Development Bank

Solar Power Development Project

The Solar Power Development Project was approved by the ADB Board on 21 November 2016, grant agreements in an amount of US$8.44 million were signed on 19 January 2017 and declared effective on 5 April 2017. Counterpart financing of Solomon Power amounts to US$6.76 million. MMERE is the executing agency, and Solomon Power is the implementation agency for the facility.

The Project will construct approximately 2 MW of grid-connected solar power generation, including battery storage, at five provincial grids (Munda, Tulagi, Malu’u, Kirakira and Lata). The ADB project outcome is increased supply of reliable and cleaner electricity. The project has the following outputs that should be all achieved by December 2020: (i) Solomon Power installs 2 megawatts of solar power; (ii) Solomon Power generates 3.1 gigawatt-hours a year of solar power; (iii) Implement training program for 10 Solomon Power staff in solar power plant operation, including on-the-job training during construction and operation as well as course work accreditation.

The project is progressing well with imminent commissioning of the 1 MW solar installation at Munda and associated battery storage at Noro in May 2020. The other 4 solar installations totaling another 1 MW will progressively be commissioned by December 2020.

Japan International Cooperation Agency (JICA)

Renewable Energy Roadmap (RERM) for the Honiara grid

JICA is funding this project. The objective of the project is to develop a road map for 100% renewable energy in the electricity sector in Honiara by 2030. The roadmap is expected to be completed by December 2020.

Ministry of Foreign Affairs and Trade (MFAT), New Zealand Government

Solomon Islands Renewable Energy: Hybrid electricity system construction and new connections

MFAT is providing approximately NZD 7.1 million to Solomon Power for us to implement the Solomon Islands Renewable Energy Project (Activity) under the New Zealand Aid Programme. The objective of the Activity is to expand access to affordable, reliable and clean energy in rural Solomon Islands.

The project is being implemented by Solomon Power to install solar hybrid systems at Hauhui, Sasamunga, Namugha and Vonunu and it will also provide subsidized house wiring, service connections and meters to about 1000 customers at these four locations in the Provinces.