Last month at COP29 in Baku, Australia’s Minister for Climate Change and Energy Chris Bowen announced REnew Pacific, the government’s new AU$75 million five-year program for off-grid renewable energy in remote and rural communities of the Pacific and Timor Leste, of which Palladium will be an implementing partner.

REnew Pacific will focus on locally-led, inclusive, and sustainable solutions that build resilience and increase access to clean energy. Through this, communities will have reliable access to lighting – sometimes for the first time – which will enable higher quality education and health services, improve access to water, enhance agriculture productivity, and strengthen communications connectivity. This will help reduce costs, increase incomes, and enhance overall community resilience.

It will also support the Pacific and Timor-Leste’s energy transition by reducing their dependency on imported fossil fuels which will help them meet their climate goals and improve energy security.

Off-grid Partnerships Build Climate Resilience

With rising sea levels, higher average temperatures and shifts in storm patterns, Pacific countries are among the most exposed to climate change hazards. Climate is one of the region’s key security concerns, with climate induced weather events having far reaching consequences for Pacific communities, infrastructure, security and safety. Women, children and people with disability, are among the most vulnerable. At the same time, many Pacific communities lack adequate access to electricity and rely on expensive and polluting forms of energy for cooking, lighting and electricity generation.

Rates vary, but in Papua New Guinea for example, only 13% of the population have access to the power grid.

Through REnew Pacific, Palladium will support some of the most isolated and climate change exposed communities in the world to access clean and sustainable energy to support community development and build resilience.

Palladium will work with NGOs, the private sector, government agencies, and other donors and investors to deliver locally-led, inclusive and sustainable solutions ranging from solar homes systems (SHS), community Solar PV systems and mini-grids.

REnew Pacific is part of the Australian Government’s Pacific Climate Infrastructure Financing Partnership (PCIFP), an AU$350million initiative for climate infrastructure in the region, delivered by the Australian Infrastructure Financing Facility for the Pacific.

Palladium will build on experience and lessons gained from experience, including through the Business Partnership Platform (BPP), which has already been working with the PCIFP to deliver a pilot program featuring 13 off-grid renewable energy partnerships. These pilot projects are already delivering innovative off-grid renewable energy solutions, including electricity to schools and hospitals, safety lighting to remote streets, and batteries to communities which have never had access to continuous electricity supply.

“We’re incredibly proud to deliver REnew Pacific alongside the Australian Government and with our strategically selected technical renewable energy, community engagement and impact monitoring delivery partners,” says Palladium’s APAC Managing Director Jack Adams.

“Access to clean, affordable and sustainable energy sources has never been more important; a crucial stepping stone to building long-lasting climate resilience. An investment like this will help build new Australia-Pacific relationships and catalyse off-grid models that deliver impact at scale.”

Greater Scale, Greater Impact

With AU$75 million in grant funding, and a keen focus on leveraging co-financing, REnew will allow for a significant scaling up and lead to greater impact.

“Access to renewable energy solutions can transform life for remote communities,” says Matt Spannagle, Palladium’s APAC Director of Climate and Nature. “The BPP pilot delivered several innovative off-grid solutions, including improved energy infrastructure in Papua New Guinea, clean solar energy for medical clinics in Timor-Leste, solar e-waste solutions in Vanuatu, access to clean water in Kiribati and so much more. REnew Pacific will take these pilot lessons, along with best practice and cooperation with Pacific stakeholders, to deliver scaled-up impact across the region.”

Sally Falls, a Director from Palladium’s APAC Infrastructure team adds that Palladium currently delivers more than AU$180 million in infrastructure projects across the Pacific, including police headquarters in Port Vila as part of the Vanuatu Australia Police and Justice Program and airport infrastructure in Timor-Leste and Nauru.

“We know what it takes to create sustainable renewable scale in the Pacific, including the value of high-quality and well-coordinated local partnerships,” Falls notes. “We can’t wait to get started.”

To learn more, contact info@renewpacific.com.au or visit the website: renewpacific.com.au.