Access to electricity in Small Island Developing States of the Pacific: Issues and challenges

This paper argues that traditional approaches to rural electrification which prioritise grid extension are not suited to the Pacific islands region. Increased funding should be directed by both governments and development partners towards rural electrification, especially in off-grid areas where isolated systems are more appropriate. Institutional reform is also important. Regulatory reform is needed for power utilities to extend electricity grids into rural areas. Institutional arrangements that facilitate the sustainable operation and maintenance of off-grid systems also need to be established. Past donor and government-funded off-grid rural electrification projects have rarely been sustainable. Alternative approaches involving payment of output-based subsidies to energy service companies are worth exploring, although will only succeed where sound regulatory arrangements are in place.