The Asian Development Bank says energy projects in the Marshall Islands will make the country less reliant on imported fuel.
The ADB and the Marshall Islands signed a deal for a combination of loans and grants to boost electricity services.
An ADB energy specialist Anthony Maxwell says the Marshall Islands are an interesting case for sustainable power projects.
"Compared to the Pacific Islands they're very reliant on imported fuel and they've got a high exposure to international price fluctuation. Over 50 percent of the fuel brought into the Marshall Islands is used for power generation, and they have a very high average household electricity consumption, so some of these projects will help them with these issues."