Clean Energy Solution to Enhance Post-Harvest Processing

The Federated States of Micronesia (FSM) is a federation consisting of four semiautonomous states - Yap, Chuuk, Pohnpei, and Kosrae - located in the western Pacific Ocean.  With a population of around 72,000^[1] people spread across 607 islands, 74 of which are inhabited, FSM faces economic development and poverty reduction challenges.

 

One of the key challenges is the limited access to electricity.  FSM's overall electricity access rate is around 62% of households, but significant disparities exist between the states.  Even on the main islands with larger power generation capacities, electricity tariffs are relatively high compared to international standards, primarily due to the high fuel cost.  This issue is exacerbated in the smaller islands where electrification is provided by individual diesel or gasoline generators, solar home systems or solar mini-grid systems which is expensive and hinders economic activities.  The main agricultural products available in the FSM islands, including the main islands, are taro, breadfruit, bananas, and various types of yams, which are seasonal.  Coconut is also a common tree with multiple uses, from food to firewood and construction materials.

 

However, some traditional agricultural practices, such as taro farming, are being abandoned in favor of easier-to-process and cook options like rice and pre-packaged food items, which are becoming more readily available.  This presents an opportunity to revitalize the use of these traditional agricultural products, which are highly valued as healthy foods, by processing, value-adding, and potentially exporting them to nearby countries like Hawaii, Palau, Papua New Guinea, and Guam, where niche markets exist.

 

The main challenge in this regard is the lack of appropriate technologies to process, preserve, and value-add these agricultural products, particularly in the remote outer islands where many of the mini-grid projects are being implemented or planned by various donor partners.

 

A comprehensive survey was conducted in two outer islands Pingelap and Mwokilloa in Pohnpei state by the Department of Resources and Development (DoRD) with the assistance of Asian Development Bank (ADB), and the reveled high interest among the local communities initiate agriculture related businesses.

 

Figure 1: Survey result on Business potential in Pingelap and Mwokilloa islands

 

 

 

 

 

 

Rationale: The islands of FSM, particularly in the Pohnpei state, are rich in agricultural products such as taro, breadfruit, and coconut. However, the income potential from these products is not fully realized due to a lack of clean energy and appropriate technologies for post-harvest processing and export. This will lead to the employment of women and improved livelihood resilience for the island communities.

This initiative seeks to harness the power of innovative agricultural technologies including clean energy supply to enhance the development of Agri-based processes and business models in the Pingelap and Mwokilloa islands of Pohnpei state. By leveraging the Technology and Innovation Challenge (TIC) approach, the project aims to tap into a diverse pool of Agri-tech providers and foster creativity in addressing the specific needs of the island communities. 

The transparent and competitive nature of the TIC will encourage the emergence of cutting-edge technologies tailored to the local context. The recent comprehensive survey conducted by the Department of Resources and Development (DoRD) will be shared with selected EOI proposers when conducting detailed studies.

Through the Expression of Interest (EOI) process, the selected EOI proposers will be required to perform detailed technical designs and business plan feasibility studies. This will ensure that the chosen technology and business model are technically feasible and economically viable for implementation.

Implementing the selected technology through the TIC grant will set the stage for potential scalability and replicability to other islands. A phased approach is planned, with Stage 2 of the ADB surveys scheduled for early 2025 in 20 more FSM islands. This thorough testing, validation, and adaptation process will pave the way for wider adoption and replication of successful solutions across the region.

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^[1]  The 2023 census figure showed a decline in population from 105,000 people in 2018 to 72,000 people due to migration abroad, mainly the United States mainland.