Bhutan is endowed with abundant natural and renewable energy resources. However, its mountainous terrain and the resulting difficulties in extending the grid have prevented a large percentage of the rural population from accessing clean energy.
Yap state, with a population of 11,400 during project preparation, is one of the four states of the Federated States of Micronesia. In 2013, it was 100% dependent on imported diesel for power generation on the main island. Due to high diesel costs, power tariffs were high, and the Yap economy was vulnerable to fuel price shocks.