Often called “The Meridian Island,” El Hierro is the smallest of the Canary Islands. It’s a haven for diving enthusiasts, and it may soon become the first island powered entirely by renewable energy. At a first glance, this might not seem like a big deal. After all, El Hierro is only about 107 square miles large, and it has a population of around 10,700 people. In the grand scheme of sustainable energy, some might argue that these numbers are negligible.

However, El Hierro may become the blueprint for similar energy projects across the world. In fact, sustainable energy movements on islands have a better chance at success than their mainland counterparts. When it comes to islands, there’s a prominent, short-term economic factor at play: The cost of imported energy. In the video below, you’ll get a glimpse of a diesel plant that currently provides power to El Hierro. As you might correctly assume, this diesel isn’t a natural resource for the island — like other manufactured or refined goods, it must be imported. Due to El Hierro’s distance from… well… almost every other nation on the planet, these transportation costs can add up quickly.

While other islands may not be as isolated as El Hierro, many still rely on imported energy to power their communities. In an age where fossil fuels supplies look less and less reliable, island nations and communities have a strong incentive to find alternative energy sources. El Hierro is making the attempt with a combination of wind energy, hydroelectric power and a bit of solar power. Here’s how it works: Turbines on the island’s northeast coast will pump water into a dormant volcano crater, or caldera. When the wind isn’t powering the island, the islanders can release the pent-up crater water through four hydroelectric turbines into an artificial basin near the coast. Once the wind picks up again, it will power the water’s journey back up the ridge and into the crater.

Planners hope to complete the project by the end of this year. And, after that, they’re hoping to eventually replace the island’s traditional vehicles with electric models. I’m keeping an eye on this one to see how it pans out, and I can’t help but be optimistic. What do you think? Will El Hierro’s project succeed? Will this initiative provide any lessons for other islands?

Check out the video below to learn more.