Ashurst Perkins Coie Advises On Expansion Of Palau’s Major Solar And Battery Storage Project

Global law firm Ashurst Perkins Coie has advised Solar Pacific Pristine Power on the expansion and financing of a major solar and battery energy storage project in Palau. Solar Pacific is a subsidiary of Philippine renewable energy company Alternergy. The expanded project is now one of the largest combined solar and battery energy storage installations in the Pacific island nation, supporting Palau’s transition toward cleaner and more reliable energy.

Before the project, Palau depended heavily on imported diesel fuel for electricity generation, with more than 99% of its power produced using automotive diesel. The expansion is expected to significantly reduce the country’s reliance on fossil fuels, strengthen energy security, and increase the share of renewable energy in its power mix.

The project includes the addition of 4.8 MW of alternating current (AC) solar generation capacity and a 19.8 MWh battery energy storage system (BESS). These new facilities complement the existing infrastructure, which consists of a 15.28 MWp solar power plant along with a 10.2 MW AC and 12.9 MWh battery storage system.

Ashurst Perkins Coie provided legal and transactional support throughout the expansion. The firm assisted Solar Pacific in negotiating amendments to its existing Power Purchase Agreement (PPA) and Grid Connection Agreement with the Palau Public Utilities Corporation. It also advised on battery supply and long-term service agreements with French battery manufacturer Saft, which is supplying the energy storage technology.

In addition, the law firm supported Solar Pacific in securing and modifying financing arrangements with project lenders. The expansion received financial backing from the Australian Infrastructure Financing Facility for the Pacific (AIFFP), administered by Export Finance Australia and the Australian Department of Foreign Affairs and Trade. The funding reflects Australia’s continued commitment to supporting sustainable infrastructure and renewable energy development across the Pacific region.

The legal team was led by partner Mike Webb and consultant David Mason, with support from Douglas Fung, Rachel McNally, and Sunny Shan. According to Webb, the successful expansion represents another important step in helping Palau reduce its dependence on imported diesel while improving long-term energy reliability through renewable power.