Overview:
Palau Public Utilities Corporation says it is aiming to slash annual power outages from 1,200 minutes to just 200 while reducing costly solar energy curtailment by 95% through new battery storage technology. Officials say the upgrades could improve reliability, maximize renewable energy use and lower long-term electricity costs.
Battery storage systems expected to cut solar curtailment costs by 95% and reduce diesel dependence
By: L.N. Reklai
KOROR, Palau (May 27, 2026) — The Palau Public Utilities Corporation is targeting a major improvement in power reliability by reducing annual outage times from about 1,200 minutes to 200 minutes while advancing renewable energy management through new battery energy storage systems.
PPUC officials outlined the goals during the Palau Economic Development Symposium under the theme “Power, Water & Our Future: Your Voice is Needed.”
With support from the Japanese government through the Japan International Cooperation Agency, PPUC has upgraded portions of Palau’s power infrastructure by replacing older powerlines with insulated lines designed to reduce outages.
PPUC also established power loops in southern Babeldaob on both the east and west coasts to create grid redundancy, allowing outages in one area to be isolated without affecting larger sections of the island’s power network.
As part of its long-term infrastructure strategy, PPUC plans to add a northern Babeldaob loop within its 10-year development plan to further strengthen reliability and reduce outages in northern communities.
“Our current objective is to reach a total of 200 minutes of outages out of the entire year,” PPUC officials stated during the symposium.
Energy management and fuel costs also remain a major focus for the utility as diesel prices continue to rise.
Lawmakers and consumers raised concerns about solar energy curtailment costs — charges associated with unused solar generation capacity that PPUC is contractually obligated to pay for.
PPUC Chairman Randy Belechel explained that the solar independent power producer project was originally designed before the COVID-19 pandemic, when economic growth projections indicated Palau would require up to 17 megawatts of electricity demand.
“This year, based on those projections, Palau was supposed to need 17 megawatts, but the reality today is 14 megawatts,” Belechel said.
Because actual demand is lower than projected, some solar generation capacity cannot be used during periods of low demand, resulting in curtailment costs paid by PPUC.
To address the issue, PPUC is moving forward with battery energy storage systems funded through an Australian government grant.
The battery system will provide 12.9 megawatt-hours of storage capacity. Combined with the solar facility’s maximum output of 15.28 megawatt-hours, the system could provide up to 23 megawatt-hours of energy capacity — significantly more than Palau’s current demand levels.
Belechel said the battery storage project is expected to reduce curtailment by 95%, allowing PPUC to store excess solar energy instead of wasting unused generation capacity.
He added that discussions are underway with the Asian Development Bank for additional grant funding to install two more battery storage systems to support Palau’s rooftop solar energy program.
According to Belechel, the additional storage capacity would improve the efficiency of solar energy use, reduce dependence on diesel-generated electricity and help lower overall energy costs for consumers.
During the symposium, Sen. Topps Sugino questioned whether customers without rooftop solar systems were subsidizing those who participate in rooftop solar programs.
Belechel said the issue relates to the Net Metering Act, which currently prevents PPUC from charging rooftop solar customers for certain utility services associated with maintaining grid access and system support.
He said those service-related costs are currently not borne by rooftop solar customers under the existing law.
