This report was prepared by Herbert Wade, Philippe McCracken and Peter Johnston. Palau is the westernmost Micronesian country, 800 km east of the southern Philippines. Eighty percent of its approximately 21,000 inhabitants live in or around the largest urban center, Koror. Nearly all households and businesses in Palau are connected to the public electricity grid, resulting in an electrification rate that is close to 100%. Palau Public Utilities Corporation (PPUC) operates and maintains a national electricity grid that covers all islands except for the distant Southwest Islands that have photovoltaic (PV) power. The current national rate for electricity is US$0.24 – $0.26/kWh for government and business customers, the unit rate increases for high levels of monthly energy use.