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The enhancement of economic sustainability and the reduction of GHG emissions in most of the small isolated regions strongly depends on reducing their use of imported fossil fuels. To evaluate the effectiveness of interconnecting small islands in promoting renewable penetration levels increase and cost reductions, this work proposes a multiyear expansion-planning optimization model for the Azores archipelago that considers: 1) the interconnection between the different islands using DC submarine power cables; and 2) the addition of new in-land renewable power plants. The main goal of these expansion plans is to minimize the power system's investment and operational costs. Obtained results showed that interconnections between small isolated power systems (even if not with mainland grids) strongly contribute to a to a more sustainable performance of these regions from both the economic and environmental perspectives. [ABSTRACT FROM AUTHOR]