In a bid to rid itself of diesel dependence, the Republic of Nauru has signed a memorandum of understanding with Sydney-based renewables company Smart Commercial Energy (SCE) to develop an 18 MW solar and 40 MWh battery solution for the country.
The 21 square kilometre South Pacific Ocean island nation is located approximately 3,300 kilometres northeast of Australia (ex-Brisbane), and 42 kilometres south of the equator.
The deal was signed during the Smart Energy Conference and Exhibition 2026 in Sydney.
SCE Managing Director and Chief Executive Officer Huon Hoogesteger said signing an MoU with an entire country is not something you do every day.
“The Pacific faces some unique energy challenges, particularly around diesel reliance and energy security,” Hoogesteger said. “We’re proud to be working alongside Nauru and grateful to the Smart Energy Council for helping bring this opportunity together.”
A SCE statement says Nauru currently operates on an energy load of approximately 40 GWh per year, with a standing load of around 2 MW and peak demand reaching 4.5 MW.
It remains heavily dependent on imported diesel for electricity generation, consuming an estimated 7–8 million liters annually, however SCE’s solution would improve energy security, stabilise electricity supply and reduce power costs for the people of Nauru.
The project is being explored as a commercial power purchase agreement (PPA), to allow the system to be funded, built and operated by SCE, with the option for the government and people of Nauru to eventually buy out and own infrastructure themselves.
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