Subsidy Funding | Activity Status: Closed

Improved Electricity Access in Vanuatu

GPRBA Vanuatu "World Bank"
Photo: Tom Perry / World Bank


In Vanuatu, having access to electricity is a challenge for low-income communities and households living in on-grid and off-grid areas. GPOBA support provided subsidization of connection charges in grid covered areas and purchase of stand-alone equipment in off-grid areas. For the on-grid component, the scheme targets consumers within reach of the existing electricity grid networks on the islands of Efate, Espiritu Santo, Tanna and Malekula. It assists consumers to overcome the financial barrier represented by high connection costs through a combination of one-off subsidies and extended period financing cost subsidies. The off-grid component helps to improve the affordability of solar home systems (SHS) for rural households with a subsidy towards the initial purchase cost and to improve the prospects of long-term sustainability of SHS with an incentive scheme to encourage households to save for maintenance, repair and replacement needs.