NZ invests $20.5m in Niue energy sector

New Zealand will invest $20.5 million in a new, large-scale energy project, which will enable Niue to generate 80 per cent of its electricity from renewable sources.

The commitment was made in Niue today when Prime Minister Christopher Luxon met with Premier Dalton Tagelagi in the Pacific island nation's capital Alofi.

Luxon said New Zealand would also commit $2 million to Niue's Ocean Wide Trust (NOW), to help develop a resilient blue economy and ensure long-term ocean conservation and climate resilience.

Listen to Ala Vailala's update on Luxon's arrival in Niue on Tuesday.

He said the purpose of this funding was in recognition of the 50th anniversary of Niue’s self-government in association with Aotearoa.

Niueans will celebrate the milestone in October.

Niue is self-governing, but part of New Zealand's realm. Niueans are NZ citizens, and Aotearoa assists with aid when requested.

Luxon is on his first Pacific tour as prime minister and heads to Fiji later today where he will discuss security and economic development with the Fijian leader Sitiveni Rabuka in Suva.