Island Nations: Breaking Free from Fossil Fuel Dependency

by | May 12, 2025

Overview

Small island nations and territories, long reliant on imported fossil fuels like diesel for electricity generation, are now at the forefront of global energy transitions. Due to their isolated geographies, islands have historically depended on expensive and polluting fuel shipments. However, climate vulnerability, rising fuel costs, and technological advancements are pushing many islands, particularly those tied to major European powers and the USA, to move towards renewable energy solutions like solar, wind, and ocean energy.

 

This Haush article explores how island dependencies of Portugal, the Netherlands, the UK, France, Spain, and the USA are shifting away from diesel-based electricity generation, quantifies their historical fuel use, and highlights their renewable ambitions.

The Scale of Diesel Dependence

Historically, islands have been disproportionately dependent on diesel generation:

  • Caribbean islands typically sourced 80–95% of their electricity from diesel (source: Caribbean Development Bank).
  • Pacific islands (e.g., American Samoa, Guam) often rely on diesel for over 90% of electricity generation (source: IRENA).
  • Fuel imports often cost islands 15–30% of GDP (source: UNDP).

Specific examples:

Island Group

Fossil Fuel Use (%)

Annual Diesel Imports (Estimate)

Bermuda (UK) 95% (2015) 90 million litres
Guadeloupe (France) 85% (2010) 400,000 tonnes oil equivalent
Azores (Portugal) 70% (2013) 100 million litres
Curaçao (Netherlands) 85% (2015) 1.5 million barrels
Puerto Rico (USA) 47% diesel and oil (2016, pre-hurricanes) 18 million barrels of petroleum products/year

Shifting Tides: Islands Turning to Renewable Energy

  • 1. Portugal’s Islands (Azores, Madeira)

    • Azores: Targeting 60% renewable by 2030. Pico Alto geothermal plant and several wind farms are operating.
    • Madeira: Already generating 30% of electricity from hydro and wind.
    • Major shift to ocean thermal energy is being tested.
  • 2. Netherlands’ Caribbean Territories (Bonaire, Curaçao, Sint Eustatius)

    • Bonaire: Achieved 40–50% renewables with wind and battery storage; aiming for 100% renewable goal by 2030.
    • Sint Eustatius: Solar parks with battery storage now cover 46% of energy needs (peak midday times).
  • 3. UK Overseas Territories (Bermuda, Cayman Islands, Montserrat, etc.)

    • Bermuda: Moving towards a goal of 85% renewable energy by 2035, with significant investments in solar.
    • Montserrat: After the 1995 volcano eruption, rebuilding with geothermal energy as a major pillar (20% project underway).
    • Falkland Islands: Already generate 40% of electricity from wind (5 turbines at Sand Bay).
  • 4. French Overseas Territories (Guadeloupe, Réunion, New Caledonia)

    • Guadeloupe: 23% of energy now comes from renewables (mainly geothermal and biomass); the goal is 50% by 2030.
    • Réunion: Already exceeds 35% renewable electricity (hydropower, solar, wind, and bagasse biomass from sugarcane).
    • Martinique: Biomass plants and solar expansion underway, targeting a 70% fossil-free grid by 2030.
  • 5. Spain’s Canary Islands

    • El Hierro: World-famous for being the first island to operate almost entirely on renewables (hydro-wind hybrid system, often exceeding 100% of local demand temporarily).
    • La Gomera: Committed to 100% renewables by 2030.
    • Across the Canaries, dependence on imported diesel has dropped from over 90% to 60% between 2010 and 2023.
  • 6. United States’ Territories (Puerto Rico, Guam, U.S. Virgin Islands)

    • Puerto Rico: Set a legal mandate for 100% renewables by 2050. As of 2023, renewables make up about 5–7%after major grid damage post-Hurricane Maria.
    • Guam: Diesel-dependent (70%), but a new 198 MW solar project is under construction.
    • U.S. Virgin Islands: Aiming for 60% renewables by 2025 (solar and wind); battery storage added after major hurricanes.

Challenges

  • Grid Stability: Diesel engines are flexible and dispatchable; renewables need batteries or storage to stabilise grids.
  • Financing: Initial costs for renewables are high, despite long-term savings.
  • Land Use: Solar and wind farms require land, which is limited on small islands.
  • Climate Risk: Renewable infrastructure (solar farms, turbines) must be hurricane and cyclone resilient.

Leaders in Transition

Island territories, once highly dependent on fossil fuels, are increasingly seen as laboratories for clean energy innovation. Their transitions could serve as models for larger nations struggling with similar issues on a grander scale. Notably, the dependencies of Portugal, the Netherlands, the UK, France, Spain, and the USA are all accelerating renewables deployments, buoyed by technological advancements and urgent needs for resilience.

While challenges remain, the trajectory is clear: islands are not just vulnerable to climate change, they are becoming leaders in the fight against it.

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