Renewable Energy Projects on Isolated Islands in Europe: A Policy Review

Abstract

Island territories that are not connected to the mainland grid have some peculiarities derived from their high level of isolation. For this reason, they are the subject of specific regulation in various European countries under the EU, national and local regulation. In order to deal with the high cost of energy on their territories, the lack of grid stability and the lack of autonomy, many initiatives that promote the introduction of energy self-sufficiency in isolated insular locations have emerged. The present paper is a policy review regarding islands non-interconnected with the mainland grid. The focus is on the key policy issues for the promotion of renewable energy as well as the outcomes of these policies in Greece, Portugal, Spain and France. A discussion  of the unified price system, the creation of local markets and the special regulation for energy storage and the demand side management systems are some of the policy proposals cocluded from the present review. In order to overcome all the discussed barriers an approach that reaches across different governance levels with a special focus on the peculiarities of the island systems is needed.Keywords: Isolated electricity systems, Energy policies, Regulatory barriers, Islands, Southern Europe, ReviewJEL Classifications: Q4, Q42, O13DOI: https://doi.org/10.32479/ijeep.9683