Strengthening Islands: Overcoming Energy Challenges Through Clean Innovation – IEA

Small and remote islands face significant challenges in meeting their energy needs. Often isolated from mainland power grids, these islands struggle to balance energy supply and demand. Many rely heavily on imported fossil fuels, leading to high costs and energy security risks. Despite contributing minimally to global emissions, they bear a disproportionate burden from the effects of climate change, such as extreme weather events.

The cost of generating electricity on islands can be prohibitive, up to ten times higher than on mainland territories. In 2021, island nations had some of the highest electricity costs in the world. For example, the Solomon Islands paid almost seven times more for electricity than the United States, while Caribbean nations paid more than twice the U.S. average. These high costs hinder socioeconomic development, with fuel imports sometimes accounting for a significant portion of GDP.

In addition, the islands’ aging power infrastructure is often ill-prepared for rising temperatures and more frequent natural disasters due to climate change. Events like Hurricane Maria in 2017 left islands like Dominica without power for months. As demand grows, many systems struggle with reliability and are prone to blackouts.

Despite these challenges, islands have the potential to lead in clean energy innovation. Renewable energy sources such as solar offer a sustainable alternative. Over the past decade, small island developing states (SIDS) have more than doubled their installed renewable energy capacity. Caribbean SIDS alone have the potential to develop photovoltaic capacity equal to the entire current capacity of Latin America.

Distributed energy resources, such as rooftop solar panels, can increase resilience and affordability by reducing reliance on centralized grids. However, integrating these resources requires advanced technologies, such as battery energy storage systems (BESS). These systems help stabilize grids and manage fluctuations in renewable energy supply, which is crucial for islands with limited grid infrastructure.

Microgrids and virtual power plants (VPPs) further optimize energy distribution by decentralizing energy generation and storage. Projects like the community microgrid in Adjuntas, Puerto Rico, show how such systems can support local economies and provide reliable electricity during disasters.

Energy efficiency measures also play a significant role. Measures such as Minimum Energy Performance Standards and Labels (MEPSL) for appliances have already saved significant amounts of electricity in countries like Fiji. Digitalization offers further opportunities, enabling better management of energy systems using data-driven insights and AI applications for forecasting and conservation of renewable energy.

Despite this progress, implementing clean energy solutions on islands requires significant investment. Many island nations have set ambitious climate goals, but funding and international cooperation are essential to achieving these goals. Initiatives such as the Regulatory Energy Transition Accelerator (RETA) aim to support small island regulators in overcoming these challenges and accelerating the clean energy transition.

While small and remote islands face enormous energy challenges, they also present opportunities to pioneer sustainable solutions. By embracing renewable energy, increasing energy efficiency and harnessing digital technologies, islands can build resilient and affordable energy systems that benefit both their communities and the environment. International cooperation and financial support are key to realizing this potential and achieving a cleaner, more sustainable energy future for island nations around the world.

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