FSM Launches $42M Solar Energy Project to Power Remote Islands and Boost Grid

Thousands of families in the Federated States of Micronesia (FSM) are set to benefit from a transformative investment in clean and resilient electricity infrastructure, following the launch of the US$42 million Access and Renewable Increase for Sustainable Energy (ARISE) Project. With funding and technical support from the World Bank, the project will significantly expand electricity access, modernize aging power infrastructure, and help FSM transition toward a renewable energy future.

The ARISE Project is expected to improve the quality of life for more than 3,500 people living on outer islands and bolster energy reliability across the FSM’s four states—Chuuk, Kosrae, Pohnpei, and Yap—where power outages and limited access continue to impact health, education, and livelihoods.

“This project is a critical step toward achieving our national energy goals and delivering real benefits to our communities,” said Elina Akinaga, Secretary of FSM’s Department of Resources and Development.

Tackling Energy Insecurity in Remote Communities

FSM has some of the lowest electricity access rates in the Pacific, particularly in Chuuk State, where two-thirds of households remain without power. ARISE directly addresses this by funding the construction of solar-powered mini grids and stand-alone solar home systems on four unelectrified islands: Moch, Onoun, Tol-Wonip, and Uman.

These installations will provide clean and stable energy to:

• Households

• Schools

• Health clinics

• Community centers

For communities that have long relied on kerosene, diesel, or had no electricity at all, the arrival of renewable energy promises transformative change.

“For communities without electricity, access means light for students to study at night, power for health facilities to refrigerate life-saving medicine, and energy for small businesses to grow,” said Omar Lyasse, World Bank Resident Representative in FSM.

Strengthening Aging Power Infrastructure and Resilience

In the main island centers of Pohnpei, Yap, and Kosrae, the project will address another persistent challenge: frequent power outages due to old infrastructure and vulnerability to tropical storms and typhoons. ARISE will:

• Replace aging and vulnerable grid components

• Install underground feeders in Yap to ensure continuous power to essential services like hospitals and airports even after severe weather

• Upgrade systems in Pohnpei and Kosrae to enhance grid stability and resilience

These improvements will provide more reliable electricity, enabling critical services and reducing economic disruptions during climate-related disasters.

Accelerating the Shift to Renewable Energy

Currently, over 85% of FSM’s electricity is generated using imported diesel, making the country heavily reliant on fossil fuels and vulnerable to price shocks. ARISE supports FSM’s target of achieving 70% renewable electricity by 2030 by:

• Installing grid-connected solar generation systems

• Adding battery storage to balance supply and demand

• Reducing greenhouse gas emissions and insulating the economy from fuel volatility

These initiatives align with FSM’s broader climate commitments and its Nationally Determined Contributions (NDCs) under the Paris Agreement.

Empowering the Energy Workforce—With a Focus on Women

Beyond hardware, the project places a strong emphasis on local capacity building, aiming to develop a skilled energy workforce capable of supporting the long-term sustainability of FSM’s energy transition.

• Apprenticeship programs will train local technicians, with a specific focus on female participation in a traditionally male-dominated sector.

• FSM’s utilities will receive support in designing long-term maintenance and financing plans to ensure infrastructure remains functional for years.

This approach will not only strengthen national energy security but also foster economic empowerment and gender inclusion.

A Regional Push for Sustainable Energy

The ARISE Project is part of the World Bank’s US$2.5 billion Accelerating Sustainable Energy Transition Program, which supports countries across East Asia and the Pacific in building renewable energy infrastructure and low-carbon economies.

Over its 10-year lifetime, this global program will:

• Add 2.5 gigawatts of renewable capacity (equal to 50 utility-scale 50MW solar farms)

• Provide clean energy access to over 20 million people

• Cut 60 million tons of CO₂ emissions

FSM’s project is a standout example of this strategy in action—tailored to the unique challenges and aspirations of small island developing states (SIDS).

Project Timeline and Implementation

The ARISE Project will be implemented over six years by the FSM Department of Resources and Development, in collaboration with state utilities and international partners. It is expected to deliver:

• Expanded energy access to remote communities

• Reliable and climate-resilient infrastructure for core public services

• Real progress toward FSM’s clean energy goals

“We are proud to be working with the World Bank to bring sustainable, resilient, and affordable energy to more of our people,” Secretary Akinaga said.

As implementation begins, communities across FSM can look forward to brighter, safer, and more connected futures powered by clean energy and inclusive development.