More than 70 renewable energy projects, with a combined value of $2.2 billion, are currently in progress across 14 independent Pacific Island nations. Research compiled for the new “Pacific 100% Renewable Energy Investment Prospectus (PREIP)” report finds that around $14 billion would be needed over the next decade to build 2.2 GW of renewable energy capacity and 8.9 GWh of energy storage, and meet current electricity demand, not including electrification of transport or other potential sources of new demand.

Most electricity in the Pacific today is generated from diesel, making it expensive and prices increasingly volatile. Nick Howlett, managing director of Island Minds and one of the authors of the prospectus, said that the average consumer electricity price in the Pacific is $0.47/kWh, almost triple the global average of $0.17/kWh. PREIP also notes that Fiji’s bill for refined fossil fuel imports could reach $670 million in 2026, a 115% increase over the previous year.

Replacing diesel with renewables, primarily solar plus storage, could add up to savings of more than $6 billion per year across the Pacific. But both technical and financial challenges remain in the way. Many of these arise from the region’s inherently small market sizes, remote locations, and limited infrastructure development, combined with high perceptions of risk and limited data on the region’s energy consumption and needs. These often make financing renewable energy projects an especially high hurdle.

“Above all, we need the long-term commitment of our regional and international partners to translate the 100% Renewable Blue Pacific vision through tangible models for finance and investment in critical energy infrastructure projects,” wrote Surangel S.

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