Electricity Sector in the Pacific

The electricity sector in the Pacific is defined by small-scale systems, geographic isolation, and a heavy reliance on imported fuels for power generation. Electricity networks are typically independent and unconnected, catering to dispersed populations across remote islands. Many Pacific Island countries are pursuing ambitious goals to increase renewable energy adoption, reduce dependency on fossil fuels, and enhance energy security.

The electricity markets are typically dominated by vertically integrated utilities operating within regulated frameworks, with limited competition in electricity generation. Renewable energy projects are often delivered through Independent Power Producers (IPPs) or Public-Private Partnership (PPP) arrangements.

Many Pacific Island countries have electrification rates ranging from 50% to near universal access. However, electricity costs in the Pacific are among the highest globally due to reliance on imported diesel. Renewable energy projects aim to reduce long-term energy costs by replacing diesel generation. IPPs are becoming more common, particularly for solar and wind projects, with countries like Fiji, Tonga, and Vanuatu engaging in public-private partnerships to develop renewable energy capacity.

Data Snapshot

The table below provides perspective on the electricity sectors across some of the Pacific Island countries, highlighting the diversity in electrification rates, energy sources, and renewable energy goals.

Notes:

Electrification Rate is the percentage of the population with access to electricity.
Primary Energy Source represents the dominant source of electricity generation.
Renewable Energy Target is the national goals for renewable energy integration.
Cost of Electricity is the estimated range. Actual costs may vary as some county’s electricity prices fluctuate multiple times a year to reflect changes in international diesel price.

Disclaimer:

Data on electricity markets in the Pacific is often limited and may not be updated regularly. Figures provided in the table above are based on the most recent publicly available information for the respective country (as at Oct 2024). It should be considered indicative rather than definitive. For the latest and most accurate data, refer to national energy authorities or reported data from regional and international development organisation supporting activities in the Pacific energy sector.