Many island power systems are powered by diesel generators or long underwater cables, which result in greater operating costs or losses than stand-alone systems. It is therefore desirable to integrate renewable energy (RE) sources into these mini grids. The main objective of the paper is to describe, analyse and present a more unified approach for assessing the technical feasibility/potential of different energy scenarios for the islands of Malta. in this study, three different scenarios are analysed. Integrating RE sources (RES) in energy systems reduces losses, cuts fossil fuel consumption whilst maintaining system stability and increasing job opportunities. Hydrogen conversion and storage methods are also analysed as a method for greenhouse gas (GHG) reduction in the transport sector and as a way to reduce excess electricity produced from RE. (C) 2008 International Association for Hydrogen Energy. Published by Elsevier Ltd. All rights reserved.