The Chatham Islands Enterprise Trust says a $20 million grant to rebuild some infrastructure on the islands will help reduce the cost of living.
The money will be spent on a wind farm, repairs to two wharves and a new breakwater to help shelter ships bringing in supplies.
Trust chairman Garry Cameron expects the wind farm to cut power costs by up to a quarter.
But he says he had hoped for twice as much money to also set up a hydro electric project on the main island.