This research focuses on achieving energy independence in a medium-sized settlement, namely Nisyros Island, aiming to reduce reliance on conventional, environmentally harmful electricity generation. The study compares and evaluates four renewable energy scenarios for Nisyros: full photovoltaic system coverage, exclusive wind turbine reliance, and two hybrid solutions. An economic analysis comparing these scenarios with conventional electricity procurement costs is also included in the study, to identify the most cost-effective and environmentally friendly option. By advocating for local resource utilization, the study supports EU climate objectives and promotes sustainable energy integration in regional development. It highlights Nisyros’ potential for energy autonomy through renewable systems and aligns with EU climate goals, emphasizing the significance of sustainable energy integration for environmental preservation and cost efficiency.