World Bank to Bring Clean Power to Micronesia

POHNPEI, May 28 2025 - Thousands of families across the Federated States of Micronesia (FSM) will benefit from better, more reliable electricity under a new project to be implemented by the Government of FSM with financing and technical support from the World Bank.

The US$42 million Access and Renewable Increase for Sustainable Energy (ARISE) Project will increase access to electricity for over 3,500 people in remote outer islands, while improving the reliability of existing power supply and supporting the increase in renewable energy across FSM's four states: Chuuk, Kosrae, Pohnpei and Yap.

FSM currently has some of the lowest electricity access rates in the Pacific, particularly in Chuuk State, where two-thirds of households lack power. The ARISE Project will directly address this, funding the construction of solar-powered mini grids and stand-alone solar home systems across four unelectrified islands in Chuuk - Moch, Onoun, Tol-Wonip, and Uman -providing clean energy to households, schools, health clinics, and community facilities.

"This project is a critical step toward achieving our national energy goals and delivering real benefits to our communities," said Elina Akinaga, Secretary of the FSM Department of Resources and Development. "We are proud to be working with the World Bank to bring sustainable, resilient, and affordable energy to more of our people."

In the main islands, aging infrastructure and vulnerability to typhoons and storms mean that even those with electricity face frequent outages. The ARISE Project will strengthen grid resilience in Pohnpei, Yap and Kosrae, replacing vulnerable infrastructure and upgrading systems to reduce outages. In Yap, the project will install underground feeders to ensure power to critical services like hospitals, the airport and government buildings can continue even after severe weather.

"For communities without electricity, access means light for students to study at night, power for health facilities to refrigerate life-saving medicine, and energy for small businesses to grow," said Omar Lyasse, World Bank Resident Representative in FSM. "This project is about ensuring people in remote parts of FSM can access the services, opportunities and protections that modern, reliable energy provides."

The project also boosts FSM's ambition to increase renewable energy and reduce reliance on imported diesel, which accounts for over 85 percent of electricity generation today. New grid-connected solar generation and battery storage systems in Chuuk and Pohnpei will help FSM meet its goal of 70 percent renewable electricity by 2030, while cutting greenhouse gas emissions and insulating communities from volatile fuel prices.

Beyond infrastructure, the project also focuses on building capacity in FSM's energy workforce - including for women. It will support the training and certification of local technicians through an apprenticeship program, with specific targets for women's participation, and help utilities design long-term maintenance funds to ensure systems remain operational for years to come.

The project is part of a World Bank regional program that helps developing countries across East Asia and the Pacific increase renewable energy, helping them achieve their development goals while lowering carbon intensity. The $2.5 billion Accelerating Sustainable Energy Transition Program is part of the Bank's global effort to accelerate low-carbon energy transition and combat climate change. Over its 10 year lifetime, it will contribute to reducing greenhouse gas emissions by 60 million tons, add 2.5 gigawatts of renewable energy capacity (equivalent to 50 utility-scale 50MW solar farms or more than 1,000 2.5MW wind turbines), while providing over 20 million people with new or improved access to clean electricity.

The ARISE Project is expected to be implemented over six years by the FSM Department of Resources and Development, with support from state utilities and development partners.

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