Survey of Energy Resources 2007
OTEC Country Notes
In a plan to obviate a future need for diesel-generated electricity, Palau could utilise its ocean thermal resource to provide electricity supply.
In Spring 2001 the Government of Palau, Japan's Saga University and Xenesys Inc. (a Japanese private company) entered into an agreement that resulted in research and feasibility studies being undertaken for the identification of suitable sites for OTEC installations. Seven such sites were located on the biggest island in Palau (Babeldaob). It was stated that a pilot project would have a capacity of 3 000 kW that could ultimately reach 30 000 kW, an increase in excess of 50% from the current diesel-generated supply.
In addition to the production of power, the by-products of salt and fresh water could be used for organic farming.
It was reported that under the ACP-EU Partnership Agreement, the European Commission and the Government of Palau had drawn up a Country Strategy Paper and an Indicative Programme for the period 2002-2007. The EU was to provide financial assistance to Palau in order to expand the utilisation of renewable energy sources. However, to date no development has taken place.