The island of Barbados is 99%, dependent on fossil fuel imports to satisfy its energy needs, which is unsustainable. This study proposes a 10 MW distributed wind energy scheme using micro wind turbines (WT) of horizontal (HAWT) and vertical axis (VAWT) configurations. These units are rated less than 500 W, and the scheme is hereafter referred to as mWT10. mWT10 is compared to the proposed 10 MW medium WT farm by the Barbados Light & Power Company (BL&P). The economic bottom line is the levelized cost of electricity (LCOE). The results highlight the BL&P proposal as the best economic option at BDS$0.19 per kWh, while that of both mWT10 configurations exceeds the conventional cost of BDS$0.25 by two to nine times. This is attributed to significantly higher relative installation and operational costs. However, the financial gap between mWT10 LCOE and the retail price of electricity is much smaller due to a large fuel surcharge passed on to each customer. Annual additional benefits of using wind energy include: greenhouse gas emissions savings of 6-23 kt of carbon dioxide; and anavoided fuel costs of BDS$1.5-5.3 million. The distributed mWT 10 using HAWTs competes directly with the BL&P farm, however, it provides these benefits without the visual or ecological impacts of the larger machines. Conversely, VAWTs have features that favour a visually discrete and widely repeatable scheme but suffer relatively high costs. Therefore, this study illustrates the great potential of small wind turbines to be competitive with conventional wind farms, thus challenging the small wind industry to meet its potential by producing reliable and robust machines at lower cost. (C) 2007 Elsevier Ltd. All rights reserved.