Islands and the energy transition: NESOI defines a European model to make projects bankable

More than 2,400 inhabited islands and around 15 million citizens: these territories play a significant role in Europe’s energy transition. Here, seasonal demand, network complexity and high supply costs make it difficult to turn energy strategies into bankable projects.

To address these challenges, the European Union has launched dedicated initiatives such as Clean Energy for EU Islands and the support of IRENA – International Renewable Energy Agency, with the aim of guiding island territories along the energy transition pathway and fostering the development of sustainable and replicable solutions.

In this context, R2M Solution, together with SINLOC and other European partners, has been working for several years on NESOI – New Energy Solutions Optimised for Islands and its continuation NESOI+, to facilitate the financing of energy interventions in island contexts.

The NESOI project

Funded by the Horizon 2020 programme, NESOI made available around €10 million over its three years of activity, including €3 million through cascade funding, with the objective of mobilising more than €100 million in investments. The supported projects aim to generate 440 GWh/year of energy savings and to avoid approximately 160,000 tonnes of CO₂ equivalent per year.

 

Technical assistance and results

Through two open calls, NESOI received 168 applications from 16 countries, selecting 54 projects from more than 60 islands, with an investment potential exceeding €500 million and an estimated reduction of 420,000 tCO₂e. Technical assistance represents the core element of the project and has enabled the development of energy plans, feasibility studies and tenders capable of activating long-term public and private investments.

 

Italian case studies

In Italy alone, NESOI supported ten projects across Mediterranean islands. Four of these were included in the project Guidebook as successful examples with a high replication potential.

  • In Catania, a technical, legal and financial study for the expansion of electric public transport

  • In Messina, support to the Strait Port Authority for energy efficiency measures and the integration of renewable energy in the ports of Messina, Milazzo and Tremestieri, with an estimated reduction of 30 GWh/year of primary energy and 24,373 tCO₂e/year

  • On the island of San Pietro, in Sardinia, NESOI supported a feasibility study for a small hydropower plant using excess photovoltaic energy for water storage

  • In three municipalities in Sicily, support for the replication of the Fondo Saccà Energy Community model

 

NESOI as a European Standard

During the project, the lack of a specific standard for financing energy transition projects in island contexts emerged—one capable of accounting for territorial size, interconnection levels, geographical characteristics and local economic activities.

For this reason, led by R2M Solution, NESOI launched a standardisation process with CEN-CENELEC, which resulted, in September of this year, in the publication of a European standard for the management of technical assistance and cascade funding mechanisms, based on the NESOI model.

 

Towards financing energy communities: NESOI+

Building on the results achieved, NESOI+ was launched in September 2025 and is funded by the LIFE Programme, coordinated by SINLOC. Its objective is to adapt the NESOI model and standard to Europe’s most remote islands—such as Martinique, the Azores and the Canary Islands—to promote the development of new energy communities and strengthen the energy independence of these territories.

To facilitate project implementation, NESOI+ is developing standard service packages that can be adapted to local contexts. R2M Solution, drawing on its expertise in market analysis and support for technology deployment, contributes in particular to the development of business models, taking into account economic and social aspects. In addition, through capacity building and peer-to-peer learning activities, the project enhances NESOI case studies by fostering knowledge exchange among the islands involved.

To learn more about the NESOI model and funding opportunities for energy transition projects in island contexts, contact us.

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