Vanuatu secures renewable energy boost from NZ and France

August 21, 2025 9:28 pm | Posted in Business News | Share now TwitterFacebook

By Ezra Toara.

The Governments of New Zealand and Vanuatu have signed a Partnership Arrangement to advance the Renewable Energy Solar and Storage on Efate and Tanna (RESSET) Project, a major initiative aimed at strengthening Vanuatu’s energy and climate resilience.

The RESSET project is designed to increase solar generation and battery storage, with construction standards capable of withstanding climate risks. It is expected to reduce emissions, provide cleaner and more efficient energy use, and support economic growth by increasing energy affordability.

Yesterday’s signing follows New Zealand’s April announcement of VT1.25 billion (NZD 17.7 million) in funding for the project. France has also committed to co-finance the initiative, with the Head of Agence Française de Développement (AFD) Vanuatu, Bénédicte Alsac, present at the signing ceremony.

According to the project design, RESSET could deliver up to a 5% tariff reduction on Efate and a 25% reduction on Tanna, while cutting annual fuel import costs by VT177 million (NZD 2.25 million). The shift away from diesel generation is anticipated to prevent 98,800 tonnes of CO₂emissions over the project’s minimum lifespan.

“New Zealand is pleased to support the Ministry of Climate Change’s top priority energy project,” said High Commissioner Nicola Simmonds during the signing alongside Climate Change Minister Ralph Regenvanu.

Minister Regenvanu described the signing as a major milestone in Vanuatu’s pursuit of its national sustainable development goals. “This is a key step toward achieving our target of 100% electrification from renewable resources by 2030. Efate and Tanna were critical missing elements and major challenges in this roadmap. As one of the most climate-vulnerable countries, we must demonstrate our commitment to transition away from fossil fuels to renewable energy sources,” he said.

The Minister further thanked the Government of New Zealand for its leadership and support. “We are grateful to New Zealand for stepping up and taking on such a significant project. Vanuatu is always seeking co-financing opportunities, and through this partnership, with the support of AFD and the people of New Zealand, we are moving closer to our vision,” he added.

High Commissioner Simmonds reaffirmed New Zealand’s commitment, noting the importance of partnership with Vanuatu. She thanked Minister Regenvanu for his invitation to support the initiative, highlighting the strong collaboration that has led to this point. With procurement already underway, construction is expected to begin in February 2026.