The Republic of Palau has signed a power purchase agreement (PPA) with Engie Electro Power Systems (EPS) for a 100MW microgrid project.
The project, called Armonia, is reportedly the largest microgrid in the world to access affordable and reliable clean energy.
Armonia will feature a dispatchable solar PV project with 35MW of renewable energy and 45MWh of energy storage.
It will be combined with the existing diesel generation to transform the Palau grid into a smart, integrated system.
The clean energy generated by the solar component is expected to represent more than 45% of Palau’s total demand.
Republic of Palau President Tommy Remengesau said: “In the midst of the global energy transition, it is imperative that we address climate mitigation and climate adaption, at the same time.
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“As we reduce our carbon footprint, so too should we reduce the vulnerabilities of our energy infrastructure in the face of rising seas and natural disasters.
“As we generate cleaner energy, it must also be reliable, accessible, and economical for those citizens of the world who live on the front-lines of climate change. Our partnership with Engie has accelerated Palau’s transition toward a renewable and resilient future.”
By 2025, Palau aims to achieve 45% renewable energy target, as well as a 22% reduction in its energy sector emissions below 2005 levels.
The Armonia project was originally developed by US-based organisation GridMarket, which then selected Engie EPS as a partner to implement the microgrid in Palau.
Construction is expected to begin by the end of this year, with commissioning to happen before the end of 2019.