At present, Pacific region countries like Vanuatu spend a disproportionately high amount of their GDP (in the region of 30%) importing expensive and polluting diesel to power their national grids and the electricity they do produce is the most expensive in the world.
The renewable energy solutions that they need are most obviously, and efficiently, literally beneath their feet . They offer de risked world class economics in proven, cost effective, and reliable technology already deployed in locations such as Scandinavia, California, Japan and Indonesia to name but a few - with returns in excess of 30%, whilst
still dramatically reducing the cost of energy in country. These assets, after an anticipated fifteen-year investment cycle, would be handed back to the nations for their benefit and security in perpetuity.
Moving away from a reliance on diesel power would be transformational for the countries’ finances, economies, energy security, education and health, etc. The geothermal energy potential across the region for exceeds current demand; allowing for growth and innovation, for instance: in the production of Hydrogen to meet renewable global shipping requirements, refrigeration allowing the unlocking of export fisheries, data centres with immediate access to the trans-Pacific telecommunications cables, etc, transforming the development and opportunity of the region.
The CPCF has identified a significant cornerstone investment opportunity in the region: the $1 Billion development opportunity of three geothermal power projects in Vanuatu, the Solomon Islands and Bougainville as commercially viable energy transition projects with regional impact.
Our development Partner, the UK based Stellae Energy, has signed detailed MOUs with these three Governments, but this is the just the beginning - with the Governments of several other regional countries in active discussions, e.g. Fiji and Papua New Guinea.
Stellae Energy is a UK energy transition company which creates end to end green and clean energy solutions and whose management team has decades of experience in exploring, appraising, and developing energy sources globally and successfully funding and financing them. Most of their team is based in the United Kingdom and utilises Global Britain’s unrivalled lead in subsurface and energy technology to create long term sustainable energy solutions for the planet to achieve Net Zero goals.
The Western Tropical Pacific is a region of great economic and geopolitical significance – it is a major trading route and a region of geostrategic competition. The main economic challenges faced by the region include its dependence on imported fossil fuels and food which results in reduced opportunities for industrial development and employment.
The region’s average Electricity price of US$0.65++ per KWh is the highest in the world. Indigenous Geothermal Energy is available in many nations and development of this indigenous energy would lower energy costs, increase access to electricity, create thousands of jobs, training, new business for local companies, and reduce the burden of foreign exchange. MOUs have already been signed with the Governments of Vanuatu, the Solomon Islands and Bougainville with the Governments of several other regional countries in active discussions, e.g. Fiji and Papua New Guinea.
WORLD CLASS ECONOMICS
• ~US$ 1 billion NPV10 (derisked) first Portfolio (of three of a possible 80 identified sites across the region).
• Estimated CAPEX + OPEX (undiscounted) < 10 USD cents / kWh.
• Expected Portfolio Capital Cost ~USD$ 8 million/MW.
• Potential up to 1200 MW Electricity in current portfolio - Financial model assumes 3 locations with 138 MW total for initial project phases (Vanuatu, The Solomon Islands and Bougainville).
• Planned 5-year Exit for early equity investors.
THE Commonwealth Pacific Climate Fund
Copyright © 2025 Commonwealth Pacific Climate Fund - All Rights Reserved.