As Islands Grapple with Spiking Fuel Costs, Renewables Offer a More Secure and Affordable Option

Excerpt and Photo from rmi.org

According to the EIA's latest Energy Outlook, island fuel oil costs spiked roughly 33% in just one year, with 2050 cost projections of light fuel oil-based power rising from $0.29 to $0.45/kWh. For a single 50 MW island power system, that translates to roughly $34 million in additional annual fuel costs. In the same period, solar plus battery storage projections declined about 46% to $0.07/kWh, wind plus storage by 40% to $0.06/kWh, and geothermal sits at $0.09/kWh.

The ongoing conflict in the Middle East has constrained a significant share of global oil and gas flows, sending ripple effects through fuel and electricity markets worldwide. The energy vulnerability that imported fuels create is a shared system challenge across islands, and cost-effective solutions including peak demand reduction, virtual power plants and new approaches to energy storage offer proven ways to grow with less risk and less capital.