WASHINGTON, July 24 (UPI) -- The United States and New Zealand committed to a plant that helps develop clean energy on island nations and territories, a U.S. official said Thursday.

The two nations signed terms of reference for the International Partnership for Energy Development in Island Nations, a program to encourage development of energy-efficient and renewable energy technologies on island nations and territories, the U.S. Department of Energy said in a news release.

Besides enhancing global energy security, the project-based the program also addresses climate change by promoting clean, renewable and sustainable energy technologies, said Alexander Karsner, the assistant Energy Department secretary who signed the agreement with Roy Ferguson, New Zealand's ambassador to the United States.

"Islands are often hit hardest by price volatility and dependency on oil," Karsner said. "This international collaboration will help island economies develop and deploy clean and efficient technologies that take advantage of abundant renewable resources ... while addressing the serious challenges of climate change and energy security."