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© IRENA 2025 Unless otherwise stated, material in this publication may be freely used, shared, copied, reproduced, printed and/or stored, provided thatappropriate acknowledgement is given of IRENA as the source and copyright holder. Material in this publication that is attributed to thirdparties may be subject to separate terms of use and restrictions, and appropriate permissions from these third parties may need to besecured before any use of such material. ISBN: 978-92-9260-691-6 Citation: IRENA (2025),Powering resilient islands: Grid modernisation toolkit for SIDS, International Renewable Energy Agency, Abu Dhabi. About IRENA The International Renewable Energy Agency (IRENA) is an intergovernmental organisation that supports countries in their transition to asustainable energy future and serves as the principal platform for international co-operation, a centre of excellence, and a repository ofpolicy, technology, resource, and financial knowledge on renewable energy. IRENA promotes the widespread adoption and sustainable useof all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy, in the pursuit of sustainabledevelopment, energy access, energy security and low-carbon economic growth and prosperity.www.irena.org Acknowledgements The report was authored by Gayathri Nair, with contributions from Rebecca Bisangwa, under the supervision of Simon Benmarraze (IRENA)and the strategic guidance of Roland Roesch (ex-IRENA). The authors are grateful for the valuable contributions of Rafael Cossent, Ignacio Egido, Pablo Rodilla and Lukas Sigrist (UniversidadPontificia Comillas). The report benefited from the review and comments of internal experts Ellipse Rath, Paula Nardone, Nadia Mohammed, Danial Saleem(IRENA) and Arieta Gonelevu Rakai, and Omar Marzouk (ex-IRENA). The report also benefited from reviews by external experts, includingthe late Andrew Lewis (Global Green Growth Institute) and Pramod Kokil (Central Electricity Board, Mauritius); and insights from MikeLichtenfeld (Solar Pacific Energy Corporation), Sosefo Tofu (Ministry of Meteorology, Energy, Information, Disaster Management,Environment, Climate Change and Communications, Tonga), Eden R. Uchel (Palau Energy and Water Administration) and FaustinoYarofaisug (Department of Energy, Federated States of Micronesia). Editorial co-ordination was provided by Francis Field with the support of Stephanie Clarke. Technical review was provided by Paul Komor.The report was edited by Emily Youers with design by Strategic Agenda. IRENA is grateful to the Government of Norway for supporting this work. Disclaimer This publication and the material herein are provided “as is”. All reasonable precautions have been taken by IRENA to verify the reliabilityof the material in this publication. However, neither IRENA nor any of its officials, agents, data, or other third-party content providersprovides a warranty of any kind, either expressed or implied, and they accept no responsibility or liability for any consequence of use ofthe publication or material herein. The information contained herein does not necessarily represent the views of all Members of IRENA. The mention of specific companies orcertain projects or products does not imply that they are endorsed or recommended by IRENA in preference to others of a similar naturethat are not mentioned. The designation of countries employed, and the presentation of material herein do not imply the expression of anyopinion on the part of IRENA concerning the legal status of any region, country, territory, city, or area or of its authorities, or concerningthe delimitation of frontiers or boundaries. Contents Figures, tables and boxesAcronymsDefinitions 567 1Introduction: The SIDS energy imperative11 1. 1 The challenges and opportunities for SIDS111. 2 Objective and structure of the report13 2IRENA studies for island grid decarbonisation and modernisation: approachand scope14 2. 1 Adequacy assessment162. 1 Grid assessment182. 2 IRENA survey of stakeholders23 3Insights from IRENA grid studies25 3. 1 IRENA grid assessment studies263. 2 Challenges identified by IRENA studies273. 3 Recommendations from IRENA studies28 4Obstacles to and drivers of renewable integration and grid modernisationin SIDS 29 4. 1 Regulatory barriers304. 2 The stability challenge in island grids304. 3 Operational complexities314. 4 Market structure limitations and managing stakeholder interests in SIDS314. 5 Impact of extreme weather events31 5Technology and infrastructure toolkit for SIDS grid resilience33 5. 1 Targeted infrastructure upgrades335. 2 Power-to-X in SIDS: overview and opportunities435. 3 Unlocking island flexibility455. 4 Emerging stability markets: overview and opportunities485. 5 Grid-forming inverters enabling ancillary service participation in SIDS49 6Achieving grid stability with high renewable integration: Lessons andbest practices51 6. 1 Regulatory frameworks an