Challenges and economic effects of introducing renewable energy in a remote island: A case study of Tsushima Island, Japan

Abstract

Given the increasing climate change concerns and the importance of renewable energy in mitigating climate change and realizing sustainable development, it is essential to promote renewable energy electricity in remote islands where thermal power generation is the primary energy source. This study examines current renewable energy development, the barriers to its penetration, and the potential economic effects of promoting renewable energy electricity on the remote island of Tsushima, Japan. To this end, semi-structured interviews were conducted to clarify the renewable-energy development and barriers to penetration, and an input-output analysis was used to quantify the spillover effects of renewable energy promotion in Tsushima. It was found that the main barriers to renewable energy promotion were insufficient investment and a lack of technical personnel. The input-output analysis detected some economic spillover effects of introducing photovoltaics and wind power generation, including employment. Although the spillover effects inside Tsushima were not significant, there were also impacts outside the island. These results suggest that increasing renewable energy electricity in remote islands in Japan has economic merit. However, because of large spillover effects outside the island, it is necessary to reduce leakages, such as by attracting related industries/companies. Furthermore, considering that remote islands without grid connections with the mainland need to generate and control electricity inside the island, investments in energy storage systems are essential to strengthen variable renewable energy capacity.