North-REP has the overall objective of improving the quality of life on the outer islands and reducing dependency on fossil fuels. Its purpose is to improve the overall efficiency of the energy sector through energy efficiency and grid-connected renewable energy and increase access of remote populations to reliable renewable electricity services.

The project involves the installation of 1500 solar home systems in 14 atolls of the RMI which will have more than 7000 people access basic electricity for the first time and enables RMI to meet its target of electrification of 95 per cent of its rural outer atoll households before the projected timeline of 2015. The installation of a total of 63kW of standalone solar PV systems in 10 schools, four health centres and charging stations for 3500 solar lanterns that provides approximately 7000 people with better lighting in Chuuk State (FSM).  In the state of Yap, some 900 people have been given access to reliable and affordable electricity with the installation of a total of 233kW of solar PV micro-grids (including 1 solar-diesel hybrid system).  North-REP has enabled the rehabilitation of the hydro power plant in Pohnpei State which will generate 725kW of electricity to the main grid.  The third country to benefit from the North-REP, Palau, is scheduled to install a 150kW solar PV grid connected system in Koror.

North-REP is funded by the European Union through the 10th European Development Fund and implemented by the SPC Economic Development Division. This brings the total North-REP funds to €15.49 million under the financing agreement between the three countries and the EU.