It is the second of three solar projects resulting from a renewable energy partnership signed between Samoa and New Zealand last year with an investment of $7.5 million from New Zealand. For Samoa, it represents a step toward reducing exorbitant fuel bills and addressing climate change through the use of cleaner energy.
EPC general manager Tologata Tile Leia Tuimalealiifano said the three New Zealand-funded projects "will power some 4800 domestic households and go some way to saving 1.1 million litres of diesel or 3.4 million tala ($1.7 million) annually".
Fuel comprises approximately 17.6 per cent of Samoa's total imports and is used for 70 per cent of Samoa's electricity needs, with hydropower 30 per cent.
Across the Pacific Islands region, 80 per cent of energy is derived from fossil fuels and less than 10 per cent from renewable sources. Fuel importation amounts to 10 per cent of the region's GDP.
The solar energy projects in Samoa are supported by the EU-NZ Energy Access Partnership, a joint initiative by the European Union, New Zealand and the Asian Development Bank (ADB) and an outcome of the Pacific Energy Summit held in Auckland in March last year.
Following the summit, the New Zealand Government committed more than $80 million for 25 renewable energy projects in the Cook Islands, Tuvalu, Kiribati, Samoa, Papua New Guinea, Tonga and Vanuatu.
According to the ADB, approximately 30 per cent of the region's population of 10 million have access to electricity. Many Pacific Island states lack nationwide power grids due to the prohibitive costs of expanding infrastructure to reach small island-based communities scattered across vast distances.
"Many small island developing states have renewable resources in abundance, but lack the capital needed to invest in the initial infrastructure," McCully said.
"New Zealand has significant expertise in developing renewable energy generation. It therefore made sense for us to focus our development effort on renewable energy."
Renewable energy is seen as a sustainable and affordable means to provide lighting, refrigeration, clean cooking, education and health services and improve human development outcomes across the Pacific region.