Transitioning to Renewable Energy in Small Island Developing States: Current Status, Opportunities, Challenges, and Policy Pathways for a Sustainable Future

Abstract

Small Island Developing States (SIDS) face disproportionately high energy costs due to heavy reliance on imported fossil fuels for energy and transportation. This dependency exacerbates economic instability, undermines environmental sustainability, and heightens vulnerability to climate change impacts. However, SIDS’ geographic isolation and abundant natural resources including solar, wind, and geothermal energy, position them to leverage renewables for energy security. This study conducts a systematic literature review to analyze opportunities, challenges, policy responses, and case studies related to renewable transitions in SIDS. Findings reveal that the gradual adoption of renewables has reduced fossil fuel dependency and stabilized energy costs by insulating SIDS from volatile global markets. Renewables also curb carbon emissions and enhance climate resilience, as demonstrated by solar microgrids in Tuvalu and wind-diesel hybrids in Cape Verde. However, transitions are hindered by high upfront costs, land scarcity, and fragmented grids. The study recommends aligning SIDS’ energy policies with global climate targets (e.g., the Paris Agreement), deploying decentralized systems tailored to island geographies, and strengthening international finance mechanisms to address equity gaps. Prioritizing localized energy audits, community engagement, and regional partnerships could further accelerate progress toward a sustainable energy future.