NZ Government to contribute more than $20 million to Niue for renewable energy project

New Zealand will contribute more than $20 million to a new renewable energy project in Niue.  

It’s meant to mark 50 years of Niue's self-governance, but it also comes as the island nation debates significant changes to its constitution.

Prime Minister Christopher Luxon went to Avatele Village, to meet the locals - who also happen to be New Zealanders - and to get right into the spirit.

Niue is a member of the Realm of New Zealand. It's self-governing, though New Zealand helps Niue with economic and foreign affairs support.

This year marks 50 years of that special relationship.

"It has its own challenges on the way, but I tell you what: That partnership… Niue is ever-so grateful for," said Dalton Tagelagi, Premier of Niue.

But despite its association with New Zealand, Niue also wants to emphasise its own identity on the world stage - so it's proposing several constitutional changes, like giving its Premier the new title of Prime Minister.

"It's more to align with other titles around the region," said Tagelagi.

"Ultimately that's a decision for the Premier and the people of Niue," said Luxon.

Niue MP O’Love Jacobsen, a former High Commissioner to New Zealand, told Newshub it may create confusion about Niue’s constitutional status  – and its relationship with Aotearoa.

"It could be saying to people out there that we are an independent country, when we're really not," she said.

Newshub spoke with locals in Avatele, who said they support the changes to bolster Niue’s standing, and believe the relationship with New Zealand is thriving.

And more support is on the way, with Luxon announcing New Zealand will invest nearly $21m in a large-scale energy project, to help Niue generate 80 percent of its electricity from renewable sources.  

"That will make a big difference, because as you know diesel is very expensive, it's good for the environment, it's good for [the] emissions profile for Niue, but importantly it's actually a cost of living measure as well," said Luxon.