The study focuses on the possible positive impacts derived from implementing innovative energy solutions to the Åland energy system by 2030. Four scenarios are formulated in order to determine feasible solutions in economic and technological terms. At the present most of the energy supply relies on the power exchange with mainland by subsea interconnections. The archipelago’s main challenge is to reduce the high dependence from the main importer (Sweden) by increasing the use of local renewable energy sources. Wind power results to be the most favorable form of variable renewable energy (VRE) available. “Behind the meter” photovoltaic (PV) rooftop solar panels, biomass combined heat and power (CHP) generation and a Li-ion battery system are considered as supportive solutions to wind power. The simulations made with RetScreen and EnergyPLAN confirm that solar power and a battery system can only have a modest role compared to wind power. A final economic analysis assesses the revenue projections for the new technologies implemented. The results indicate a very positive investment potential for the new wind farms, coupled with a proper Li-ion battery solution. Additionally, the thesis investigates the best options for solving frequency and voltage imbalances, appearing after the implementation of intermittent energy sources. A flywheel technology has been included in the scenarios in order to enhance the primary frequency control of the whole system.