A renewable energy project to upgrade existing power distribution grid in Vava’u and 'Eua, to be completed by the end 2019, will get an additional USD$5 million from the Asian Development Bank.

It is the second round of additional financing agreed for the project.

The Outer Island Renewable Energy Project approved in 2013 was implemented to reduce Tonga's dependence on fossil fuel while giving consumers greater access to electricity from solar power at a reduced rate.

ADB provided the first additional financing worth USD$5.76 million in October last year to scale up the project and expand its management support services.

Half of this second additional financing is from ADB’s concessional financing window will be in the form of a loan, while the remaining USD$2.5 million will be provided as a grant.

Woo Yul Lee, Energy Specialist at ADB Pacific Regional Department, said the grid rehabilitation will promote greater efficiency and reduce electricity distribution losses. 

"The improvements will make Tonga's power distribution network more resilient to climate change and rehabilitate electricity network in remote parts of the country."

Tonga is heavily reliant on fossil fuels like diesel for energy, consuming an estimated 13 million litres annually to generate electricity for over 103,000 of its residents.

Tonga Power Ltd, the implementing agency of the grid rehabilitation, is also contributing USD$600,000 to the grid expansion project.