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Abstract: The capacity expansion planning is a crucial process taking into account multiple aspects and various parameters of the examined power sector in order to optimally satisfy the future electricity demand. In the case of Greece, the long-term energy planning of the electricity supply sector faces a lot of challenges deriving from the peculiarities and geomorphology of the country mainly referring to the large number of islands. This paper explores the feasibility and the consequences of interconnecting Greek islands to the mainland grid by establishing two alternative scenarios of least cost electricity planning for the period 2009–2020. Namely, the reference scenario assumes isolated electric systems of islands and is compared against the alternative option of their interconnection to the mainland. The main purpose of the present study is to illustrate the great importance of islands’ interconnection on the development of renewable energy sources (RES) to generate electricity while pointing out the consequent economic and environmental benefits. [Copyright &y& Elsevier]