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We estimated system-wise levelized cost of electricity (LCOE) for a power grid with a high level of renewable energy using our grid optimization model. The estimation results of the system-wise LCOE are discussed in terms of the nexus of energy, environment, and economic growth for Small Island Developing States (SIDS) economies. While 100% renewable energy is technologically possible with the usage of electricity storage, the estimated LCOE is as high as 397 $/MWh which is substantially higher than electricity prices for residential consumers in the US and Japan. The susceptibility analyses imply that the estimated LCOE increase of 223% with a 100% renewable power grid corresponds to an as high as 11% decrease in economic growth. This decrease in economic growth would have a significant negative impact on SIDS economies. However, hydrogen production via the electrolysis of water using the excess energy supply from solar photovoltaics would reduce the LCOE, and therefore, higher economic growth would be attained with less $${\mathrm{CO}}_2$$ CO 2 emission.

Power grid with 100% renewable energy for small island developing states