Majuro, Marshall Islands – The Marshalls Energy Company (MEC) is thrilled to announce that $18,703,000 in funding from the United States has been officially approved for the acquisition and installation of three additional generators. This significant investment, provided through the Compact of Free Association (COFA) Annual Economic Assistance program, will substantially improve power generation capacity and reliability across the Marshall Islands.
The funding approval was confirmed by the Minister of Finance, with the grant officially issued by the U.S. Department of the Interior’s Office of Insular Affairs on October 30, 2025. A Memorandum of Agreement is currently being prepared for execution by the RMI Government, the Attorney General’s Office, and MEC to facilitate the issuance of funds. The project has a performance period through September 30, 2028.
“This is one of those priceless moments,” said Jack Chong-Gum, CEO of the MEC. “These three new generators will significantly enhance our power generation capacity, reduce outages, and provide more stable and reliable electricity to homes, businesses, schools, and health facilities on Majuro.”
Benefits to the Community
The addition of three new generators will deliver long-term benefits to residents and businesses, including:
- Enhanced Power Reliability: Dramatically reduced frequency and duration of power outages across all service areas.
- Increased Generation Capacity: Greater ability to meet growing energy demands and support expanding infrastructure.
- Improved Quality of Life: More consistent, reliable power for households, healthcare facilities, educational institutions, and essential services.
- Economic Development: Stable electricity infrastructure to support business growth, attract investment, and create employment opportunities.
- Infrastructure Resilience: Strengthened energy security and emergency preparedness for the nation.
- Cost Savings: Modern, fuel-efficient equipment that reduces operational expenses and eliminates costly generator rental fees.
Part of Historic $130+ Million Infrastructure Transformation
This generator project represents one component of MEC’s unprecedented infrastructure modernization program, totaling over $130 million in grant funding from international donors and the RMI Government. This represents the largest infrastructure investment in MEC’s history and includes:
United States Assistance:
- $18.7 million for three new generators (current announcement)
- COFA infrastructure funding supporting energy security and capacity building
Asian Development Bank (ADB) – $40.7 Million:
- Energy Security Project ($12.7M): Tank farm rehabilitation at MEC’s Delap facility with 6 tanks completed or near completion
- ESP-Additional Financing ($7M):
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- Supplemental Management & Operations (SMO) expert support that established MEC’s Compliance & Revenue Protection Unit, reducing energy losses at MEC from 26.5% to 13.4% in less than 2 years
- Advanced Metering Infrastructure (AMI) for improved billing accuracy and detection of energy losses
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- Energy Transition Project ($21M):
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- New substation to support renewable energy integration (currently under bid)
- SMO Phase 2 for grid management and renewable operations training
- Digital protection system for distribution for quick fault detection
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World Bank – $94 Million:
- Sustainable Energy Development Project – SEDeP ($34M – Closed):
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- 4 new generators installed on Ebeye – stabilizing the island’s power
- 2 new generators to be installed on Majuro – to support the increased penetration of solar energy to the grid
- 4MW solar PV system – increased clean renewable energy generation to reduce MEC dependency on fossil fuel for energy generation
- 2MWh Battery Energy Storage System (BESS) – grid stabilization and energy storage
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- REGAIN Project – Renewable Energy Generation and Access INcrease ($60M – Active):
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- Additional solar PV and BESS for Majuro and Ebeye
- Hybridization of MEC’s power plants in the outer islands (Jaluit, Wotje, Rongrong)
- Mini-grids for community-scale renewable energy in Arno and Ine, Arno Atoll
- Kili Island power system hybridization
- Heavy equipment procurement including crane trucks, backhoes, forklifts, and bucket trucks for MEC operations
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“We are deeply grateful to President Hilda Heine, Minister of Finance David Paul, Minister Thomas Heine (MEC Board Chairman), and the entire Board of Directors for their relentless support and visionary leadership,” said the CEO. “President Heine’s tireless advocacy has been instrumental in securing this critical funding from the United States. We also extend our sincere appreciation to our donor partners whose unwavering commitment to the Marshall Islands continues to transform our energy future.”
Commitment to Timely Implementation
MEC is committed to the swift and efficient implementation of this generator project and all ongoing infrastructure initiatives and will work diligently to ensure procurement, installation, and commissioning are completed as expeditiously as possible within the grant periods.
“This approval for the additional generators demonstrates the power of partnership and what we can achieve when we work together with shared vision and determination,” added the CEO. “With over $130 million in active projects spanning generation, renewable energy, grid modernization, and operational improvements, MEC is building a comprehensive energy future that combines reliable base-load generation with clean renewable energy. We pledge to work tirelessly to complete these critical projects and deliver the improved, reliable power services that our communities deserve.”
Combined with the WB’s REGAIN Project and ADB’s Energy Transition Project, these investments position MEC to achieve 8% renewable energy integration by 2026 and 20% by 2030, while simultaneously modernizing all operational infrastructure.
About Marshalls Energy Company
The Marshalls Energy Company (MEC) is the primary electricity provider for the Republic of the Marshall Islands, committed to delivering reliable, affordable, and sustainable power to communities across the nation. Through strategic partnerships and over $130 million in infrastructure investments, MEC is building a more resilient and sustainable energy future for all Marshallese people.