$1 billion Chinese investment in Nauru includes renewable energy projects

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The government of the Republic of Nauru, located in Micronesia, northeast of Australia, has signed a $1 billion (USD 640 million), investment project proposal with the China Rural Revitalisation and Development Corporation (CRRDC).

The phase 1 investment project proposal includes developing renewable energy and green transport sector projects, as well as the phosphate industry, marine fisheries and sea infrastructure, water resource and environmental system, modern agriculture systems, eco-tourism, health and cultural exchange platforms.

The Australia-Pacific Islands Business Council reports that in 2025, Nauru is already rolling out a $22 miilion renewable energy project aimed at reducing its reliance on imported diesel, which includes a 6 MW solar farm with a 5 MW / 2.5 MWh battery energy storage system (BESS),  and is expected to lift renewable energy’s share of electricity generation from 3% to 47%.

A 6 MW solar farm being built in Nauru will increase renewable energy electricity generation into the nation’s grid from 3% to 47%.For the recent agreement, the Nauru Minister for Foreign Affairs and Trade Lionel Aingimea  and CRRDC Chairman Zhang Yong signed the phase 1 investment project proposal in Beijing on 5 August 2025.

The phase 1 project proposal is the first of a 3-phase step with each phase focusing on developing key sectors in Nauru – renewable energy, the phosphate industry, marine fisheries and sea infrastructure, water resource and environmental system, modern agriculture systems, eco-tourism, green transport system, health and cultural exchange platforms.

A scoping team from CRRDC is scheduled to arrive in Nauru in October, to engage with key local ministries and stakeholders for the development of a successful road-map guideline.

The Australian government is investigating if Nauru has breached a security treaty between the two countries signed in December 2024, under which, Nauru is said to seek Australia’s consent before signing bilateral agreements on maritime security, defence, and policing, and consult if agreements are related to ports, airports, or banking sectors. In exchange, Nauru receives $64 million in funding annually to support the government’s budget, and police force.

Nauru has a population of 12,300 residents and is one of the most vulnerable countries in the world to effects of climate change.

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