This paper describes how small islands in the Philippines can modernize outdated power- generation systems that currently rely on imported diesel fuel and how solar- and wind- powered grids on these islands can supply affordable, reliable, more efficient, more secure, and cleaner power. Many Philippine small island grids served today by diesel generators suffer from frequent blackouts and unplanned power outages. The problem is far from intractable, however. Our research suggests that a reasonably swift transition to renewable energy is feasible across these islands and that it can be driven largely by market forces that support modernization and savings through advances in renewable energy and storage . The core policy question posed here is how the national government can speed this transition through the adoption of appropriate forward-looking policy and oversight.