FSM Clean Energy Projects Will Get a $5 Million Grant from ADB

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by KnowESG

The Asian Development Bank (ADB) has agreed to give the Federated States of Micronesia (FSM) a $5 million grant to help plan sustainable energy projects.

The grant will fund assessments, planning, and building up people's skills so that energy efficiency can be improved and clean energy projects, like solar and hydro, can be put into action. The Asian Development Bank (ADB) is giving a grant of $5 million from its Asian Development Fund (ADF), and the government of the FSM is giving $500,000. ADF provides funding to the ADB member countries that are the poorest and most vulnerable.

"The project readiness financing (PRF) will make it possible for new technology solutions and business models to be used in clean energy projects. This will help resolve medium-term challenges, such as reliable access to affordable electricity, while also accelerating the FSM's clean energy transition," said Len George, ADB's Pacific Principal Energy Specialist.

Each FSM state has a state-owned utility that generates, distributes, and supplies power. Some utilities also provide water, sewerage, and telecommunications services. The decentralised structure imposes cost and service delivery limits on standardised design, procurement, and personnel training.

The PRF will speed up the development of clean energy projects that have benefits in more than one sector, like access to drinking water. It will do this by helping with feasibility studies, engineering designs, and advance purchasing; small-scale pilot testing of relevant commercially deployable clean energy technologies; coordination for national clean energy investments; and strengthening the capacity of utilities and key energy sector agencies.

The PRF projects will contribute to the FSM's Strategic Development Plan, 2004–2023, and will align with the FSM's aims of 100% electricity access and a transition toward renewable energy sources.

For more environmental news

Source: ADB


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