The disparate nations of the Pacific are facing a huge challenge in the years ahead. A few million people are spread across a region that spans 15 per cent of the earth’s surface. With fragile economies and limited resources, Pacific islanders must find a way to produce and distribute energy that is renewable, affordable and does not contribute to the climate change that is threatening their very existence.

Many Pacific island governments face strained public resources that cannot finance the development of modern renewable energy plants and facilities. As is often the case when public financing is lacking, there is an opportunity for the private sector to step in and fill the gap. This is being done to spur energy investments in many countries around Asia. However, in the Pacific, there are substantial obstacles to this approach.

Power utilities in the Pacific have traditionally been government-owned and have relied on public financing. — blog.adb.org/blogs