The Asian Development Bank (ADB) has approved a $US6 million grant to Tuvalu to help fund expanded access to modern energy services.
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The bank said the grant would improve the quality and climate resilience of the energy sector and reduce the country's heavy reliance on fossil fuels.
The Increasing Access to Renewable Energy Project aims to reduce diesel generation and increase renewable energy contribution from 15 to 32 percent in Funafuti and from around 70 to over 90 percent in Tuvalu's outer islands.
The initiative was the first ADB-supported energy sector project in Tuvalu, the bank said.
"It will increase the utilisation of renewable energy in the country and reduce greenhouse gas emissions in the country's power subsector," said the Director of ADB's Pacific Energy Division, Olly Norojono, in a statement.
The grant will fund the installation of rooftop solar photovoltaic and battery energy storage systems as well as the implementation of climate resilient, ground-mounted, solar systems in the outer islands.
The systems will allow short, regular periods of energy being generated from renewable sources.
The ADB is a regional development organisation dedicated to reducing poverty in Asia and the Pacific.