Nowadays, an attractive legislative and financing framework has been established in Greece for the development of renewable energy sources. This has resulted in a strong increase of investors' interest, especially in the islands, mainly due to their high renewable energy potential all year round. However, the typical characteristics of the small Greek island, which constitute sensitive ecosystems with unique attributes of a natural and cultural heritage, impose a limitation on the development of energy generation plants using renewables. In order to adopt the principles of sustainable development of these island regions, the application of the proportionality principle in relation to other general principles of environmental law is proposed as a suitable legislative tool for resolution of the foreseeable conflicts. (C) 2003 Elsevier Ltd. All rights reserved.