Skip to Main Navigation
PRESS RELEASE December 7, 2018

Greener, More Reliable Energy for Micronesia

New sustainable energy project to increase access to more renewable energy

WASHINGTON, December 7, 2018 – The World Bank’s Board of Executive Directors has approved US$30 million for the Federated States of Micronesia (FSM)’s Sustainable Energy Development and Access Project, which supports efforts to increase access to electricity, while improving quality of delivery and reducing the reliance on fossil fuels for generation.

The project is consistent with FSM’s National Energy Policy and Energy Master Plan and complements the World Bank-supported Energy Sector Development Project approved in 2014 both of which highlight the need for a more reliable and sustainable energy sector, promoting equitable access to energy across the country and  increasing the share of renewable generation.  The project will be implemented by the four state utility companies, the state governments and the FSM National government.

“We are pleased to deepen our partnership with the World Bank in our energy sector, through this project that will see more of our people get access to electricity, improve the quality of electricity supply, and help us achieve a greener electricity sector,” said Marion Henry, Secretary of Resources and Development. “We are also working to improve the management of our energy utilities through more efficient operation and maintenance, and sector regulation, while also exploring opportunities for the private sector in electricity generation and supply.”

The Federated States of Micronesia is made of up of 74 inhabited islands across the states of Pohnpei, Kosrae, Chuuk and Yap, with the population of more than 104,000 reliant mostly on fossil fuels such as diesel for electricity, making the nation highly vulnerable to petroleum price volatility and shocks. Approximately 76 percent of households in Micronesia have some form of electrification, however access rates vary widely among states; Kosrae and Pohnpei have a 95 percent electrification rate while only 27 percent of Chuuk’s population have access to electricity.

The project aims to:

  • Increase electricity access, in the state of Chuuk;
  • Scale-up renewable energy generation in the states of Chuuk, Kosrae and Yap;
  • Improve the performance of the Pohnpei Utility Corporation, including solutions for a thermal power plant and implementation of grid enhancement in the state of Pohnpei;
  • Deliver technical assistance to support improved governance, accountability and financial performance of the energy sector in FSM.

“The World Bank is committed to supporting the Federated States of Micronesia in its long-term goal of boosting access to reliable, clean energy, which is essential for economic growth that benefits all Micronesians,” said Victoria Kwakwa, the World Bank’s Vice President for East Asia and the Pacific, who has been in FSM this week for talks with national and state governments in Chuuk, Kosrae and Yap.

The project is funded through a US$30 million grant from the International Development Association (IDA), the World Bank’s fund for the most in-need countries.



+61 433 028 405
Washington DC
Marcela Sanchez-Bender
+1 (202) 473-5863