Pacific’s $6 billion fuel problem takes centre stage in Moresby

Pacific officials urge urgent shift from costly fuel dependence to renewable energy. Image: SERA TIKOTIKOVATU-SEFETI

THE Pacific’s dependence on imported fuel is costing the region more than money.

It is driving up food prices, straining health systems, disrupting transport, and leaving island nations dangerously exposed when disaster strikes.

That was one of the clear messages from Day 2 of senior officials’ discussions ahead of the Sixth Pacific Regional Energy and Transport Ministers’ Meeting in Port Moresby.

Senior energy officials, development partners and energy experts confronted what many described as an unavoidable reality: the Pacific’s transition away from fossil fuels can no longer wait.

Pacific Island countries collectively spend around $USD6 billion every year on fossil fuel imports, counting to around five to 25 per cent of the GDP in many island economies.

But with global fuel prices surging by as much as 70 to 100 per cent in recent months, the pressure is intensifying.

A senior representative from United Nations Development Programme (UNDP) Irina Lazzerini, Principal Specialist, Clean Energy at SEforAll—as part of the International Relations and Special Projects and the UN Energy teams—warns that the fuel crisis is no longer just an energy issue.

“It affects development, food delivery, transport, healthcare, and the economy. It pushes inflation and affects everyday life.”

The Pacific Green Transformation Project implemented by UNDP agency used the meeting to showcase its Pacific Green Transformation Programme, a $USD38 million initiative backed by Japan, focused on accelerating renewable energy across four countries.

In Papua New Guinea, that includes a one-megawatt solar farm in Bougainville expected to benefit 30,000 people and cut household electricity costs by half.

In Samoa, the shift is already visible.

Electric vehicles are being introduced into the transport sector, including emergency vehicles for police, fire and ambulance services, while electric boats are beginning inter-island routes.

In Vanuatu, renewable mini-grids and pico-hydro systems are reaching remote communities, while in Timor-Leste, solarisation of health facilities and schools is strengthening critical public services.

But speakers stressed technology alone is not enough.

Without strong regulatory frameworks, investor confidence remains fragile.

That issue is now a major focus in Papua New Guinea, where UNDP is working with the government to finalise off-grid power regulations designed to give private investors greater certainty around tariffs, land access and licensing.

The overlapping crises have sharpened the focus on investment.

At the Pacific Energy Investment Forum, regional partners pushed for a new Pacific Renewable Energy Investment Prospectus, a Pacific-led package of renewable energy priorities designed to attract investors ahead of key regional meetings and global climate talks, including COP31.

Energy experts also floated a pooled procurement system, allowing Pacific nations to combine their renewable energy purchases to lower costs and improve supply chain access.

For small island economies, where market size often limits bargaining power, the proposal could be transformative.

Across the day, one message remained constant: Pacific countries know where they want to go.

The challenge now is how to pay for it, build it, and protect it.