The economy of Montserrat was severely disrupted by volcanic activity which began in July 1995. Prior to this date, Montserrat is an open and dependent micro-economy with limited economic activity which is the biggest threat to sustainable energy development. Above all, Montserrat dependency on the fossil fuel is the biggest obstacle for the long term economic growth. The combination of these challenges gives impetus for Montserrat to diversify its economy via a green economy that will pave a way for the long term economic stability while addressing environmental and social concerns in the country. Montserrat has adapted long-term plans for a transition to green economy. A major strategy is to replace fossil fuels with renewable energy (RE) sources as the fundamental energy source. Montserrat has substantial RE resources for the provision of energy services and production, yet these resources remain untapped. It is therefore crucial that the use of these abundant resources should be heightened. This paper examines and discusses the potential and current RE utilization and development in Montserrat from the perspective of sustainable development. The status of the different RE resources and their application/utilization, including details of existing projects in the country, are carefully explored and discussed. The possible impetuses for a huge advancement of RE applications and development in Montserrat are also discussed before explaining the major hurdles and challenges faced by the energy sector as regards RE. Measures and policies required to facilitate the utilization of RE in Montserrat are proposed. These evidence-based policies could guide the delivery of affordable and sustainable energy solutions for all by 2030 in Montserrat.