Identifying local energy sources and devising a circular economy could improve self-sufficiency in many Pacific Islands. On the islands with significant agriculture, the residue from the cultivation of plants has promising energy potential. The waste stream is another potential source of energy that otherwise should undergo proper treatment. Additionally, cold-storage capacity improves the preservation of crops and increases the agricultural exports of these islands. This study proposes a combined cooling and power (CCP) system driven by biomass from agriculture residue and waste streams as fuel for different districts in Tonga. The units supply a fraction of the districts’ electricity demand and provide sufficient cold-storage capacity to preserve the prospective yield of a fraction of fallow lands. The technical and economic performance of the CCP units was analysed for different fractions of electricity demand and fallow land exploitation in each district during a year of operation. The results show that the optimum combination of the CCP units supplies 38% of the total electricity demand of Tonga and prevents the annual consumption of 7.4 million litres of diesel and emission of 20 kilotonnes of CO2. In addition, it provides 3700 m2 of cold-storage area, which is sufficient for preserving the prospective yield of the exploitation of 27% of the total fallow land of Tonga. Annual export revenue of about AU$10 million is expected from such a cold-storage capacity for Tongan farmers. Furthermore, the units consume 10,000 tonnes of annual waste, significantly reducing waste management costs. This study presents an example of a comprehensive circular-economy solution for a remote island state that improves its socioeconomic and environmental condition by supplying the community’s local needs from its available and abundant resources under a viable business model. The solution presented in this study can be adapted to many island communities with significant agriculture in the economy and crucial energy and cooling needs.