Islands mostly are depended on diesel generators for their electricity requirements which is considerably costlier than the normal coal,hydro,gas and nuclear forms of energy.Unless you are Saudi Arabia and can get oil at $4/barrel,the price of electricity from oil based energy sources is one of the costliest.Hawaii in USA pays around 30c/KwH for electricity because of the high cost of transporting and buying fossil fuels for its power plants.These islands have a huge incentive in moving towards renewable energy because it not only reduces costs,carbon emissions but also helps in energy security.Hawaii has installed a large number of wind farms,is building a big energy storage facility and promoting other alternative energy forms like solar as well.Hawaii Feed in Tariff has been implemented despite opposition by the utilities.

The same policy is shaping other islands as well with the US Virgin Islands forced to pay an astounding 54c/Kwh for electricity during 2008.It makes great economic sense if not environment sense for these islands to aggressively boost renewable energy.With prices of solar energy falling by 8-10% every year it has already reached grid parity in high electricity costs and sunny places like Italy.Solar Energy is already equal or lower than the retail electricity prices in these islands.