Mobilizing Finance for Green Energy Projects in Vanuatu

Vanuatu is a Small Island Developing State, consisting of more than 80 remote islands and highly vulnerable to climate change. Its remoteness, small market size and limited institutional capacity remain key barriers to green growth. Over 2015-2016, in collaboration with the World Bank, GGGI provided technical assistance to the Department of Energy for the revision of the National Energy Road Map (NERM). The revised NERM has identified five strategic areas for policy intervention in the energy sector: accessible energy, affordable energy, secure and reliable energy, sustainable energy and green growth. In addition, a financing gap of at least USD 20 million was identified to achieve national energy access targets. 73% of Vanuatu’s population does not have access to electricity. The Project aims to implement the objectives of the NERM to achieve 100% rural electrification, while also supporting the 100% renewable energy target also set out in the NERM. It will do so by helping to mobilize financial resources to help fill the USD 20 million financing gap for Vanuatu. The NGEF was included in the NERM as one of the tools for its implementation. The Program also aims to provide green employment opportunities in rural areas through use of renewable energies.