Publications
Powering the Pacific: The Cost Implications of Renewable Energy
As Pacific island countries increasingly invest in renewable energy, the impact of these investments on the overall cost of generation—and the end price for consumers—is a key concern for policymakers.
This paper examines the impact of transitioning from fossil fuels to renewable energy sources on power generation costs and consumer tariffs, focusing on six Pacific developing member countries of the Asian Development Bank. The paper finds that renewable energy investment can reduce the levelized cost of electricity in Pacific countries, particularly when renewable energy investments are incorporated within a least-cost generation plan with adequate investments made in system reliability and an alignment of sector policy, regulation and stakeholder oversight that allows utilities to operate commercially.