The Federated States of Micronesia are situated in the western Pacific Ocean and consist of many volcanic islands and coral atolls scattered over some 3 million km² of ocean. Despite economic activities, such as fisheries, retail and the provision of government services, they are heavily dependent on external funding. Their remoteness affects their ability to compete in global markets. The outer islands have particularly poor health indicators.
Like many other Pacific island states, Micronesia are extremely vulnerable to natural disasters such as cyclones. An increased supply of energy from renewable sources is the main target of EU assistance.
The Country Strategy Paper for Micronesia (2008-13) and a multi-annual indicative programme set out the priorities for €9 million of funding under the 10thEuropean Development Fund (EDF) for 2008-13. The country is heavily dependent on imported fossil fuels which place a strain on the economy. The shortage of energy supply in rural areas – and the outer islands – is an obstacle to development.
EU assistance under the 10th EDF focusses on the energy sector, in particular on increasing the supply of renewable energy, to help the government develop a sufficient and secure energy supply.