Vanuatu’s energy mix is dominated by imported fossil fuels, which account for over 80% of its electricity generation. While biomass remains the primary source for rural cooking, the nation is actively working toward a goal of 100% renewable electricity by 2030 through the expansion of solar, wind, and hydro power.

Vanuatu is in the early stages of exploring green hydrogen as a key pillar for its long-term energy transition and decarbonization strategy. The nation aims to leverage its abundant renewable resources to replace expensive imported fossil fuels, which currently supply about 75% of its electricity.

In October 2024, Stellae Energy announced a geothermal power project in Vanuatu. The plan involves producing green hydrogen in areas where local grids are insufficient, using it as a transportable energy carrier for remote communities and the marine sector.