Sustainable Energy Development Project

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The development objective of the Sustainable Energy Development Project for Marshall Islands is to increase the share of renewable energy generation in the Recipient’s territory,and enhance the reliability of electricity supply and improve energy efficiency in the Project Areas. The project has three component. First component, renewable energy investments. This component will include the following two sub-components: (a) Renewable Energy Development in Majuro will finance the design, supply, installation, and operational support for solar power generation, battery energy storage, and grid management equipment in Majuro. The activities to be supported include (i) conducting a detailed survey, preliminary design, cost analysis, preparation of bidding documents, and supervision of engineering, procurement, and construction (EPC) contractor; (ii) installation of an estimated three MW of solar power-generation, inverters, battery storage, grid-connection, and other ancillary equipment needed to support the contribution of renewable energy in RMI’s generation system and reduce diesel generation; and (iii) provision of assistance on operations and maintenance and capacity building activities to enhance knowledge transfer and sustainability of the technology supplied and installed. (b) Supply and Installation of Gensets for Majuro and Ebeye will finance gensets (low/medium or high-speed depending on studies) for MEC’s and KAJUR´s power plants in Majuro and Ebeye to help accommodate the planned grid solar capacity, and to improve fuel efficiency and system reliability; Second component, Promotion of energy efficiency and loss reduction program will provide technical and operational assistance and will complement Component 1 by reducing energy demand through improving the efficiency for both use and supply of electricity from MEC and KAJUR. It will include the following three sub-components: (a) Loss Reduction Program in Ebeye will support design and implementation of a loss reduction program for KAJUR to address issues related to supply-sidemanagement; (b) Demand side energy efficiency; Third component, technical assistance, capacity building and project management enhance the capacity of the Ministry of Finance, Banking and Postal Services (MFBPS), MEC, EPD, KAJUR, and MWSC to support efficient energy sector operation, including: (i) carrying out training and workshops on energy sector policies, regulatory framework, management, and planning; (ii) conducting studies and provision of technical assistance to enhance EPD’s role in the sector; (iii) provision of technical assistance to establish an O&M fund to ensure sufficient funds for the operation and maintenance of the renewable energy investments supplied and installed under Component 1 of the project; and (iv) mainstreaming of gender dimensions into the project.