A Mount Maunganui solar power company will begin construction on projects to provide renewable energy to the Pacific Islands worth more than $30 million.

Foreign Minister Murray McCully today announced that construction is starting on renewable energy projects in the Cook Islands and Tuvalu.

Mike Bassett-Smith from PowerSmart Solar.

Mount-based company PowerSmart has been awarded the construction contracts for both projects that the Minister says will result in solar energy covering 95 per cent of the electricity demands both sets of islands.

'New Zealand is committed to working with Pacific countries to increase access to clean, efficient and affordable energy, and reducing the regions' reliance on imported diesel,” says the Minister.

The Cook Islands project is worth $20.5m and includes the construction of eight solar generation systems for the six outer islands of Rakahanga, Pukapuka, Nassau, Penrhyn, Manihiki and Palmerston.

In Tuvalu four mini-grid solar/hybrid systems on the Islands of Niutao, Nanumanga, Nanumea and Vaitupu will be developed at a total cost of $13.9 million.

'PowerSmart has a strong track record of working with New Zealand and Pacific Governments on renewable energy projects.

'PowerSmart delivered the recently completed Tokelau Renewable Energy Project which saw a win for Tokelau at the 2014 EECA Renewable Energy Awards.

'As a result of this project Tokelau is saving $900,000 in diesel costs every year and they have reduced their CO2 emissions by more than 1300 tonnes. These are exactly the sort of results we want to replicate across the Pacific through our support for renewable energy initiatives,” says Mr McCully.