Tuvalu’s environment is under pressure: sea-water rise contaminating the soil with salt, direct impact on waste and sewage systems from rising human density contributing to further damage. The 1987 UN Brundlandt report has definitely shown the existing link between environment/ecology and development /economy. Tomorrow’s economy stems from today’s environment. Investing in the quality of soil, avoiding water pollution, protecting natural resources especially energy sources as well as fighting against climate change will largely determine the success of Tuvalu’s development for this new century. The current study concerning renewable energy potential and implementation in Tuvalu is at the crossroad of 2 issues, each with major strategic implications: climate change threats and worldwide oil crises. Given this context, what can renewable energy contribute to Tuvalu’s benefit? Analysis of Tuvalu’s energy consumption reveals the following characteristics: • Tuvalu’s economy is almost totally dependant on oil. Only around 18% comes from local biomass resources, which is not accounted for in official statistics and is not the object of any active policy. • Consumption for transportation: primarily sea transport and recently, road transport, account for over 50% of total current energy consumption. • Prime importance of electricity production: courtesy of a Japanese aid program, an initiative to reinforce production with new diesel generators is slated to be implemented on Funafuti in 2006 continuing Tuvalu’s dependence on imported oil. • The 3rd highest energy consumption, thermal use (cooking, boiling water for drinking, sanitary hot water), is mainly provided by biomass.