This is considered possible because of the small size of the population of Tuvalu and its abundant solar energy resources due to its tropical location.
[9] The ADB project funding announced in November 2019 will increase production of electricity from renewable energy sources from 15% to 32% in Funafuti and from around 70% to over 90% in Tuvalu's outer islands.
The ABD funding will also strengthen the institutional capacity of Tuvalu Electricity Corporation (TEC) by training staff in renewable energy project development and implementation.
[11] In November the funding to implement the MPREEE was boosted by a grant of US$6 million from the ADB, with the Government of Tuvalu contributing US$480,000 to the project.
[3] On 27 November 2015 the Government of Tuvalu announced its intended nationally determined contributions (NDCs) in relation to the reduction of greenhouse gases (GHGs) under provisions of the United Nations Framework Convention on Climate Change (UNFCCC), which became effective on 21 March 1994: Tuvalu commits to reduction of emissions of green-house gases from the electricity generation (power) sector, by 100%, ie almost zero emissions by 2025.
[4]Tuvalu’s indicative quantified economy-wide target for a reduction in total emissions of GHGs from the entire energy sector to 60% below 2010 levels by 2025.
These were installed beginning in 1984 and, in the late 1990s, 34% of families in the outer islands had a PV system (which generally powered 1-3 lights and perhaps a few hours a day of radio use).
Followup on the installations showed no deterioration of the PV panels but switches and light fixtures had suffered damage or failed from the salt air.
A 46 kW solar installation with battery storage at the Motufoua Secondary School on Vaitupu island was brought online on 27 November 2009.
These PV panels are expected to generate 170 kW of electricity and are estimated to deliver 5 percent of the energy requirements for Funafuti and will reduce Tuvalu's dependence on diesel by up to 62,000 litres.
[22][23] In 2014 New Zealand and the European Union agreed to provide finance to the Government of Tuvalu to install battery-backed solar photovoltaic (PV) systems on the outer islands.
From January to March 2015 Powersmart, a New Zealand company, implemented German solar power technology to build the new Vaitupu powerhouse;[26][27] with the next solar-hybrid system being built on Nanumaga in September.
[29] The 2019 ABD funding for renewable energy development and implementation in intended to result in 35% of the electricity delivered to the people of Tuvalu during daylight hours being generated by solar photovoltaic (PV) systems.
[5] In January 2020, Infratec commissioned a 73.5 kW rooftop solar panel-battery storage project on the Tuvalu Fisheries Department building in Funafuti, funded by the New Zealand Ministry of Foreign Affairs and Trade.