ENERGY Fiji Ltd (EFL) is seeking $US230 million (approx. $F508m) in financing through a proposed World Bank-supported project aimed at accelerating Fiji’s transition to renewable energy, according to newly released World Bank documents.
The documents reveal that the proposed Fiji Energy Transformation Project has an estimated total cost of $US230m and is expected to go before the World Bank’s Board in May 2027.
The project lists Fiji’s Ministry of Finance as the borrower, with the Ministry for Public Works, Meteorological Services and Transport and Energy Fiji Ltd as the implementing agencies.
According to the World Bank, the project’s objective is “to accelerate renewable energy development and energy transition in Fiji”.
The bank said the project would support EFL to invest in solar power generation, power grid infrastructure and technical assistance, while also advancing reforms to attract greater private sector investment into solar energy.
“The proposed project will support Energy Fiji Ltd (EFL), national utility in Fiji, to invest in solar power, power grid infrastructure, and technical assistance, as well as power sector reform to engage private sector in investing in solar power,” the document states.
The World Bank has classified both the project’s environmental and social risks as “substantial”, citing the ecological sensitivity of proposed project areas in Vanua Levu and Taveuni, where major transmission lines and renewable energy infrastructure are expected to be developed.
The report notes that much of the land required for transmission corridors and solar facilities is likely to be iTaukei customary land, meaning extensive consultation with landowners and compliance with international environmental and social safeguards will be required.
The documents also highlight concerns about potential impacts on biodiversity, including threatened bird species, forests, coral reefs and mangroves, as well as risks associated with battery energy storage systems, hazardous waste and Fiji’s exposure to cyclones and flooding.
On the social side, the World Bank said the project could involve land acquisition, economic displacement, labour influx into remote communities and gender-related risks that would require detailed mitigation measures.
“Social risks are rated substantial, driven by the complexity of customary land tenure on predominantly iTaukei land, the potential for involuntary resettlement and economic displacement of customary land users, labour influx into remote and underserved communities, and supply chain risks,” the review states.
Before the project can proceed, the World Bank said a range of environmental and social assessments, including stakeholder engagement plans, biodiversity studies, resettlement frameworks and Indigenous Peoples planning frameworks, must be completed before appraisal and construction began.
