This paper identifies problems which are limiting the development of renewable energy in the South Pacific, The discussion is based on information from case studies that were carried out in five countries in early 1995. In discussing the role of international assistance in encouraging the use of renewable energy in the South Pacific, an emphasis is placed on examination of the Australian international aid policy and practices, Shortages of skilled human resources, inappropriate institutions and scarcity of capital resources are major issues impeding the development of renewable energy systems in the South Pacific region, In the future, international aid should give priority to renewable energy; support human resource and institutional development related to energy matters; and also, provide sufficient initial capital for renewable energy.