Smart energy regions are defined as regions that offer maximal quality of living to their inhabitants with a minimal consumption of energy by intelligently joining of infrastructure (energy, mobility, transport, communication, etc.) on different hierarchical levels (building, district, city). The development of insular energy systems into smart energy regions, due to their special character, is presented with some challenges. The focus of this article is on presenting the potential of insular energy systems transforming into smart energy regions. Insular energy systems are defined based on data retrieved from Energy Information Administration (EIA) and classified according to their size and the nature of their isolation. In terms of this study, two novel indexes are introduced: the necessity index, which quantifies the need, and the ability index, which represents the capability of an insular energy system to develop into a smart one. These indexes are defined for those insular systems that are considered potentially upgradable. The analysis revealed that the main prerequisites to achieve the development of insular energy systems into smart ones are the reduction of GHG emissions, the introduction of political obligation toward promoting environmentally friendly policies, and the increase of RES utilization for energy production.
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Fokaides et al. (2014) studied this question.
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