The conventional, large-scale, fossil fuel based grid system cannot be sustainable especially in small island countries (SIDS). Despite high costs and volatility of fossil fuels, SIDS continue to power 90% of economic and social activities with imported fossil fuels. The Maldives is one of the most vulnerable countries to climate change impacts as a small island country and their low height above sea level. This study provides a concrete example of ‘leap-frogging’ strategies, suggesting application of new climate technologies and implementation of an adaptation and GHG mitigation integrated project for off-grid areas. The objective was to evaluate whether a hybrid system combining diesel and renewable energy power generation with ESS (Energy Storage System) is economically viable as a sustainable energy system. An economic analysis using cost-benefit indicators and a sensitivity analysis showed that a hybrid solar PV-diesel-ESS energy system is more economical for users as well as the provider, the Maldives government.