The Niue Government hopes that aid from the European Union will eventually mean its electricity grid can be powered entirely by renewable energy.
Officials from the EU have been on the island in the past two weeks assessing projects following Niue's acceptance into the African Caribbean Pacific group of nations last year.
The Premier Young Vivian says the EU has agreed to provide a substantial investment for the islands renewable energy project.
"Hopefully we will have wind power, part of the island for a start, and then hopefully, at some time in the future, we'll have the whole island with energy without fossil fuels."
Young Vivian says the EU has also promised to assist the private sector and civil societies.