The document presents preliminary results from a pilot study assessing grid stability on the island of Palau with increasing levels of solar PV penetration. At current PV levels (5% penetration), simulations show the frequency remains stable within limits after a load disturbance. Higher penetrations of 30% and 70% were also modeled. Additional reserves are needed to accommodate PV output fluctuations. Further data is required to fully validate the dynamic model and assess other stability aspects like voltage stability. Recommendations will be provided in the final report.