SYDNEY, Aug. 25 (Xinhua) -- Pacific island countries could save hundreds of millions of dollars annually by replacing imported fossil fuels with renewable energy, according to a report released on Tuesday.
The report by Australia's University of New South Wales Institute for Climate Risk & Response found Pacific nations spend between 10 and 25 percent of gross domestic product (GDP) on fossil fuel imports.
As around 80 percent of the Pacific's energy supply comes from imported oil products, this year's Middle East conflict has driven Pacific diesel prices up by about 35 percent, intensifying pressure on economies heavily dependent on imported fuels, the report said.
The region spends about 1 billion U.S. dollars annually importing diesel for electricity generation, and replacing diesel power with solar energy, batteries and upgraded electricity grids could save around 700 million U.S. dollars a year, it said.
The report estimated that the Pacific needs about 2.2 gigawatts of new renewable generation and 8,800 megawatt-hours of battery storage to replace diesel power.
However, it said around 650 million U.S. dollars in international finance is needed annually to meet the region's renewable-energy targets, compared with about 216 million U.S. dollars received in 2024. ■