The government power utility in the Marshall Islands and Taiwan's International Cooperation and Development Fund are discussing a grant for installing a solar power system for the capital, Marjuro.
The one-megawatt system will be the largest urban solar project for the Marshall Islands.
Taiwan is to install a solar panel array over the airport water reservoir pools and feed the power generated into the Majuro electricity grid.
The Marshalls Energy Company General Manager David Paul says the aim of the project is to save money by cutting the use of diesel and covering the reservoir to reduce evaporation.
Japan is mid-way through installing large solar panels on the roof of a portion of Majuro Hospital that when completed will provide about 300 kilowatts of power directly into the power grid.