WASHINGTON, June 30, 2025—The Republic of Seychelles is taking a major step toward a more sustainable and resilient energy future with the launch of the Seychelles Renewable Energy Acceleration Program (REAP), approved by the World Bank’s Board of Executive Directors on May 30, 2025.
Over the next seven years, the program will support Seychelles’ energy transition by scaling up renewable energy, reducing carbon intensity, and unlocking private sector investment through grid modernization, regulatory reforms and targeted technical assistance. Investments in grid infrastructure will enable the integration of variable renewable energy, while financial instruments will help remove barriers and mobilize private capital.
In parallel, the program will provide technical assistance to develop a pipeline of bankable renewable energy projects, improve the regulatory environment, de-risk projects, and build institutional capacity across sector agencies. REAP is also expected to generate sustainable jobs across the energy value chain—from infrastructure and grid management to energy services and planning.
REAP is aligned with Mission 300, an initiative led by the World Bank Group and African Development Bank, that aims to connect 300 million people in Sub-Saharan Africa to electricity by 2030. It comes at a crucial moment for Small Island Developing States like Seychelles, which are particularly vulnerable to climate change and external economic shocks.
“REAP reflects our government’s commitment to a cleaner, more resilient energy future,” said Mr. Flavien Joubert, Seychelles Minister for Agriculture, Climate Change and Energy. “It supports our national goals to modernize the grid, expand renewables, and reduce our dependence on imported fuels.”
Financed by $35 million in concessional and non-concessional resources, REAP marks the institution’s first-ever lending operation in the energy sector in Seychelles. The first phase includes $12.5 million in financing from the Green Climate Fund through the Sustainable Renewables Risk Mitigation Initiative Resilience (SRMI-Resilience) Facility via the Energy Sector Management Assistance Program (ESMAP), and $8 million in co-financing from the International Bank for Reconstruction and Development (IBRD).
“This program is a transformative step for Seychelles,” said Boubacar-Sid Barry, World Bank Resident Representative for Seychelles. “By investing in clean energy infrastructure, REAP will help reduce fiscal vulnerabilities and improve energy security for the people of Seychelles.”
“By drawing on the combined expertise, financial resources, and risk mitigation tools of the World Bank Group—including the International Finance Corporation and the Multilateral Investment Guarantee Agency—this initiative is helping to create a more attractive investment climate for the private sector,” said Lara Born, World Bank Senior Energy Specialist and Task Team Leader for the project. “At the same time, it strengthens local institutions and creates an enabling environment to support Seychelles’ transition to a more sustainable and resilient future.”
Seychelles’ energy system currently relies heavily on imported fossil fuels, which supply over 95% of the country’s electricity. This dependence contributes to high electricity costs and makes the country more vulnerable to global fuel price fluctuations. In 2023, renewable energy accounted for just 5% of total electricity generation. Acknowledging the need for a more stable and sustainable energy future, the Government of Seychelles has set a target to increase the share of renewables to 15% by 2030 through its National Energy Policy 2010-2030. Through a mix of policy reforms, investment incentives, and technical support, the country is laying the groundwork for a cleaner, more secure energy system.
Contacts:
In Mozambique: Leonor Costa Neves, lcostaneves@worldbank.org
In Washington: Daniella van Leggelo-Padilla, dvanleggelo@worldbank.org
