The executive director of the Commonwealth Utilities Corporation in the Northern Marianas, says the agency will not be able to generate any of its power from a renewable source by the end of this year, as it is legally required to do.
The territory's assembly had passed legislation in which renewable energy must comprise 10 percent of the power CUC generates by the end of 2008.
The renewable component is then meant to double every two years until it reaches 80 percent of power needs by 2014.
The CUC's executive director, Antonio Muna, says the territory has to be realistic.
The CUC has been battling financial problems and Mr Muna says it is not in a position to develop renewable energy.
Governor Benigno Fitial is interested in developing geothermal energy, while the US Department of the Interior has offered the Northern Marianas a 220,000 US dollars grant to study its feasibility.