ADB Backs $2.8M Loan to Expand Samoa’s Solar Power Amid Energy Challenges

The Asian Development Bank (ADB) has signed a $2.8 million (approximately AU$4.3 million) loan with Sun Pacific Energy Ltd (SPEL) to help boost renewable energy generation in Samoa. The financing will fund the expansion and upgrade of SPEL’s Upolu Solar Farm, supporting the Pacific island nation’s urgent need for cleaner, more reliable electricity.

Expanding Samoa’s First Independent Power Producer

SPEL, established as Samoa’s first independent power producer (IPP), has played a pioneering role in diversifying the country’s energy supply. The company operates under a 20-year power purchase agreement with the Electric Power Corporation (EPC), Samoa’s state-owned national utility.

The latest loan builds on ADB’s earlier support, which helped establish the Upolu Solar Farm in 2017. This second expansion phase will install higher-efficiency solar panels, increasing total generation capacity and energy reliability. Once completed, the project is expected to generate 9.6 gigawatt-hours (GWh) of clean electricity annually—enough to power thousands of households—while reducing 1,944 tons of carbon dioxide emissions per year.

Responding to Samoa’s Energy Crisis

The investment comes at a critical time. Since 2023, Samoa has faced difficulties in meeting peak electricity demand. Aging generators, storm damage, and rising consumption have all contributed to severe supply constraints.

In March 2025, the government declared a 30-day state of emergency after widespread and prolonged blackouts disrupted businesses, schools, and households. The situation highlighted Samoa’s reliance on diesel generators and the urgent need for renewable energy investments to strengthen resilience.

“This is the second expansion of SPEL’s solar farm,” said Aaron Batten, Regional Director of ADB’s Pacific Subregional Office. “The generated power will support the delivery of a reliable and sustainable power supply, which will spur economic activity, benefitting commercial, industrial, and residential consumers.”

Supporting Samoa’s Climate and Energy Goals

The solar farm expansion is closely aligned with Samoa’s climate commitments. The country has pledged to reduce greenhouse gas emissions by 26% by 2030, while targeting 70% renewable energy generation by 2031.

ADB noted that clean energy investments such as the Upolu Solar Farm are crucial for meeting both targets, particularly as climate risks increase across the Pacific. Rising sea levels, extreme weather events, and energy insecurity all present serious threats to Samoa’s economy and social wellbeing.

Blended Financing with Regional Support

The financing package also includes concessional support through the Australian Climate Finance Partnership (ACFP) Fund, which will provide $225,000 in technical assistance. Funded by the Australian Department of Foreign Affairs and Trade (DFAT) and administered by ADB, the ACFP supports private-sector projects advancing climate mitigation and adaptation in the Pacific and Southeast Asia.

SPEL Chief Executive Officer Jamie Harrison welcomed the partnership, stressing the importance of ADB’s involvement in unlocking affordable financing.

“ADB enabled us to create a financing package that is not available in the market due to limited financial players,” Harrison said. “This project is deeply rooted in our mission of providing accessible, clean energy to the people of Samoa.”

A Step Toward Energy Security and Resilience

The expansion of the Upolu Solar Farm represents more than just additional capacity—it is a cornerstone project for Samoa’s long-term energy resilience. By reducing dependence on imported fossil fuels and increasing reliance on renewable sources, Samoa can enhance energy security, stabilize electricity costs, and make meaningful contributions to the global fight against climate change.

With construction set to begin shortly, the project is expected to be operational within the next year, offering a vital boost to Samoa’s grid and strengthening its pathway toward a sustainable energy future.