On Saturday 14 December 2024, Cyclone Chido swept over the Indian Ocean archipelago of Mayotte, killing 35 people, destroying tens of thousands of homes and causing widespread destruction, including to electricity infrastructure. Scientists concluded that climate change intensified the storm – the most damaging in 90 years – and made it 40% more likely to occur. The event highlights the escalating risks of global warming and the vulnerability of small islands.

Small island nations are home to some 600 million people, most of whom live in coastal areas. Rising sea levels, more frequent and damaging extreme weather events, and other global warming-induced difficulties such as ocean acidification and coral bleaching present enormous threats. These countries also face unique challenges in their energy transitions due to their diminutive size, undiversified economies and remote locations. Many still use diesel-based mini-grids, leaving them dependent on expensive fossil fuel imports. It also makes them vulnerable to extreme price fluctuations. Consequently, small island states pay some of the highest energy bills in the world, according to a research paper on developing aid for energy in small island developing states.

But many of these remote communities also have significant renewable energy potential in the form of solar, wind and ocean power. Many small islands are actually leading in renewable energy generation. Small island developing states saw a 150% growth in renewable energy deployment from 3.4 GW in 2014 to 8.7 GW in 2023, according to the IRENA report on Small Island Developing States Lighthouses Initiative.

Here we explore some of the ways these countries can overcome barriers and are advancing their energy transitions.

Transport on small islands
Transportation is often the largest source of emissions for small island nations. For example, 55% of Samoa’s CO₂ emissions in 2021, equivalent to 146,565 tonnes, came from transportation. Likewise, transportation was responsible for 48% of Sri Lanka’s 18.3mn tonnes of CO₂ produced by burning fuel in 2022.

A similar situation exists across the 7,641 islands of the Philippines where transport is the most emissions-intensive sector, accounting for more than a third of the total, according to Climate Tracker. Due to their limited financial resources, many islands lack low-emissions public transport infrastructure and are struggling to clean up this vital sector.

Nevertheless, some small island nations serve as electric transportation role models. The Caribbean island of Bermuda, population 64,000, decided to begin electrifying its fleet of public buses in 2018 as its existing fleet of diesel-powered buses was ageing and in poor condition, causing service disruption and necessitating expensive repairs and replacements. Comparing the total life-time operating expenditure of electric versus internal combustion engine buses, including reduced fuel and maintenance costs for the former, incentivised the Bermuda government to invest in the major charging infrastructure and site upgrades necessary for a fully electric fleet. As of last year, Bermuda had successfully deployed 70 electric transit buses (e-buses) leading to nearly 100% electric daily operations. It is on track to fully electrify its public bus fleet by 2030, states RMI’s latest report.

Bermuda’s public transit overhaul has already reduced annual CO₂ emissions by 1,089 tonnes. In addition, it avoids 350 kg of NO_x and 4 kg of PM2.5 tailpipe emissions per year – pollution linked to respiratory diseases affecting residents. The 70 e-buses also save over $400,000/y in fuel costs. This is equivalent to funding the purchase of two more e-buses each year. The e-buses have a useful lifespan of 10–15 years but the infrastructure will last much longer. Besides saving money, reducing its dependency on fossil fuels also improves Bermuda’s energy security.  

Besides slashing emissions and reducing expenditure, policymakers must carefully consider the social impacts of their decarbonisation strategies. For instance, the Philippines government implemented its Jeepney +NAMA (Nationally Appropriate Mitigation Actions) plan to cut transport emissions. Jeepneys are backyard-customised former army Jeeps, commonly converted for use as cheap public transport. They account for around 40% of all vehicle trips, making them the biggest contributor to greenhouse gas emissions in the Philippines’ transport sector. Jeepney +NAMA has banned jeepneys over 15-years old from operating, aiming to replace them with Euro-4 compliant, LPG-powered or electric vehicles.

However, these measures were considered unaffordable for most jeepney owners. Subsequently, jeepney drivers, owners and operators went on strike against Jeepney +NAMA. They felt the policy unfairly targeted low-income and small-time operators, who comprise the vast majority of jeepney owners. They also argued that newer more expensive jeepneys would result in higher fares, with low-income Philippinos who use the jeepneys bearing the costs.

The planners behind the Bermuda project conducted an in-depth analysis before initiating their venture. In particular, they scrutinised the cost repercussions of the shift to e-buses. The funding came from central government and they opted for a large-scale purchase of new e-buses instead of a small-scale pilot project because this was more cost-efficient over the long term.

In contrast, the Jeepney +NAMA project failed to consider the implications for the majority of vehicle owners or the commuters who rely on them. The cost burden was placed on jeepney owners, 98.5% of whom around metropolitan Manila (Philippines’ capital city of 1.8 million) are single vehicle owners, not corporates or collectives. Jeepney +NAMA therefore had unrealistic expectations around modernising the jeepney fleet, provoking substantial public backlash.

Small island nations face unique challenges in their energy transitions due to their diminutive size, undiversified economies and remote locations.

Cleaning up energy systems in small island nations
As mentioned, many small island nations have abundant renewable power potential. The difficulty is converting from fossil fuel dependence to clean energy generation due to costs and difficulties in obtaining the technology and adapting existing infrastructure. It can also be difficult to procure the necessary expertise to plan, install and maintain new clean grid technologies.

Imported petroleum products were powering about 90% of the Marshall Islands’ energy needs in 2008. The Pacific Island nation of 42,000 people was forced to declare an economic emergency when oil prices hit a record high in July of that year. This motivated the government to review its energy strategy under the National Energy Policy and Energy Action Plan 2009. Following national consultations in 2014, ambitious net zero measures were implemented. By 2015, solar was powering practically all lighting, street lamps and water pumps on the outer islands and solar was contributing to the main urban islands’ grid, Reuters reported.  

In 2016, a new national energy policy was published by the Energy Planning Division of the Ministry of Resources and Development for the Marshall Islands. It aims to reduce reliance on imported fossil fuels, ensure equitable access to modern energy, promote efficient energy use, and provide reliable, sustainable and affordable energy through 2025. Central to this is increasing renewable energy generation. Under this policy, the Renewable Energy Programme (REP-5) installed 420 solar home systems (SHSs) of 200 Wp (peak) and six stand-alone PV systems with system ranges from 6–13 kWp. Meanwhile, the EU/SPC Northern Pacific Regional Energy Project (North-REP) installed 1,500 stand-alone SHSs of 300 kWp. Marshalls Energy Company (MEC), the major provider of electrical energy in the Marshall Islands, has responsibility for maintenance and collection of the subsidised maintenance fee of $5/month.

The Marshall Islands has also devised an Electricity Roadmap to decarbonise its energy sector and reduce reliance on costly fossil fuel imports. On the main islands of Majuro and Ebeye, the strategy includes rapidly developing centrally controlled utility-scale systems using wind, solar, battery storage and some diesel. The focus is to reduce power plant and distribution losses, improve energy efficiency in air conditioning and refrigeration, and remove subsidies that promote wasteful energy use. On the outer islands, existing diesel mini-grids are transitioning to high-renewable (~90%) hybrid systems, with improved maintenance of SHSs and expanded electricity services for community facilities like schools. Grants, tariffs, diesel savings and government subsidies are funding the roadmap. The plan also emphasises building local skills capacity.

Besides increasing renewable energy generation, the 2015–2025 plan also aims for a 20% reduction in fuel imports for transportation relative to 2009. This involves cutting travel energy intensity by improving average vehicle fuel efficiency in miles/gallon and slashing journeys by raising average passenger or weight in miles/gallon. In combination with other steps, these measures are anticipated to replace more than one-third of fossil fuels for electricity and transport by 2030, helping meet emissions reduction goals of 32% by 2025 and 45% by 2030, says a Reuters report. In total, the Marshall Islands is aiming for a 50% reduction of diesel use by 2025. This further complements energy security goals by diminishing dependency on expensive fossil fuel imports that are prone to spikes due to geopolitical events elsewhere in the world.

Key takeaways
The most successful decarbonisation plans for small island nations emphasise improving energy efficiency through better management of existing technologies or infrastructure. This helps to reduce fossil fuel consumption rapidly and cheaply. Nevertheless, transitioning to renewable energies requires new hardware and this means spending money. To minimise costs and justify purchase decisions, successful small island policies must apply long-term project economics.

For example, purchasing 70 new electric buses in Bermuda was a substantial expense, but the total cost of ownership analysis enabled the government to evaluate options using vehicle lifetime instead of just the up-front cost.

Ensuring strong public support for projects and ensuring the public benefits from the energy transition is also crucial. The Marshall Islands’ decarbonisation measures rode on a wave of discontent following a major energy price spike that exposed the energy security risks of relying on fossil fuel imports. Bermuda’s public transport electrification was driven principally by replacing and updating the fleet to improve public experience and transit operations. Both projects also involved training and upskilling local people. Other nations, small island or otherwise, can learn from these examples whilst implementing their own energy transition strategies.

• Further reading: ‘Financing green power projects in the tropics’. Small island developments in the Indian Ocean and Pacific typically faced an uphill struggle to raise finance for green energy projects. But prospects are improving.
• Find more about the Caribbean islands seeking to harness plentiful solar power in ambitious projects aimed at cutting electricity costs and boosting energy independence.