Gilbert + Tobin and Ashurst Perkins Coie have guided parties on Solar Pacific Pristine Power’s augmentation and financing of the Palau solar and battery energy storage system (BESS) project for an undisclosed amount.
Solar Pacific, headquartered in Manila, is a subsidiary of Philippines renewable energy company Alternergy.
Ashurst Perkins Coie said the augmented facility was among the largest solar-plus-BESS projects in Palau, and was being financed by the Australian Infrastructure Financing Facility for the Pacific (AIFFP) through Export Finance Australia (EFA) and the Department of Foreign Affairs and Trade (DFAT).
Gilbert + Tobin advised the AIFFP, with Sydney-based partner Jamie Guthrie leading the team.
“From a structural perspective, hybrid solar-plus-storage projects remain a relatively nascent asset class globally, and augmentations of existing hybrid facilities introduce additional layers of complexity. Unlike a greenfield development, an augmentation must be integrated with an existing operational facility, which requires careful co-ordination across existing contractual frameworks, financing arrangements and technical configurations,” Guthrie told Asia Business Law Journal.
“The challenge is not simply adding capacity but ensuring that the expanded facility operates as an integrated system commercially, operationally and from a financing perspective. These complexities are particularly acute in Pacific Island contexts, where grid infrastructure is smaller, supply chains are more constrained, and the projects themselves play a critical role in national energy security.
“Getting the structure right matters enormously for the communities these projects serve and highlights the role of innovative infrastructure finance in delivering reliable, lower-emissions energy outcomes in the Pacific.”
He said a key highlight of the project was its potential to cut Palau’s reliance on diesel.
“We are proud to have supported AIFFP and EFA on this augmentation, which will help strengthen Palau’s grid, support renewable energy integration and reduce diesel dependence across the nation,” he said.
Ashurst Perkins Coie provided end-to-end transactional support, including negotiating amendments to the existing power purchase agreement and grid connection agreement with Palau Public Utilities Corporation. The firm also handled the battery services agreement and long-term services agreement with Saft, the BESS facility’s French battery supplier.
Ashurst Perkins Coie also acted for Solar Pacific in dealing with the project’s financiers, which included negotiating amendments to the existing grant and debt funding agreements with the AIFFP, administered by EFA and DFAT.
The global law firm said that before the project was commissioned, more than 99% of Palau’s electricity came from burning automotive diesel.
