The Aegean islands are characterized by a significant potential mainly of wind and water providing huge opportunities for innovative technological solutions in the energy sector. They can serve as ideal testbeds for the use of renewable energies, thus contributing to economic development by creating new jobs � both temporarily during the construction phase, as well as permanently for operation and maintenance. The study analyses the status quo of energy production on the Aegean islands and highlights best practice examples. It also specifies key parameters which need to be addressed within a long-term strategy design for Renewable Energy Systems.