Small Island States like Curaçao, Aruba, and St. Martin rely heavily on imported fossil fuels for energy. This dependence makes them vulnerable to global price fluctuations and supply disruptions. Expanding renewable energy—especially solar and wind—offers a way to reduce this vulnerability. By generating clean energy locally, these islands improve energy security, reduce greenhouse gas emissions, and will become more resilient to climate change impacts.
Solar and wind energy have the most potential as renewable energy sources on Curacao, Aruba and St. Martin. Apart from placing solar parks and new wind turbines other measures are needed as well. Investment and research is needed into new technologies and grid updates so that intermittent renewable energy can be stored more efficiently. Energy infrastructure should be well protected against extreme weather events.
Feasibility & Local Applicability
Solar and wind energy are especially promising in the Caribbean due to abundant sunshine and steady trade winds. Aruba and Curaçao have already made progress in integrating renewables into their energy mix, including solar parks and wind farms. St. Martin faces more challenges.
In order to further the energy transition and to adapt the current network infrastructure to accommodate the intermittent supply of renewable energy, investments are needed into the energy grid and storage capacities.
Co-benefits
Renewable energy expansion not only supports climate adaptation but also brings economic and environmental benefits. It can lower electricity costs over time, reduce air pollution, and attract eco-conscious tourists. Energy self-sufficiency strengthens local economies and supports critical services like water desalination and healthcare.
Equity & Vulnerability Considerations
Ensuring that all residents—especially low-income households—benefit from renewable energy is essential. Programs that offer subsidized solar installations or reduced rates from solar parks can help address energy poverty. Decentralized energy generation empowers communities and reduces reliance on centralized systems that may be less accessible or more expensive for vulnerable groups.
Costs
High | Transitioning to renewable energy requires upfront investment in infrastructure, technology, and training. However, long-term savings and climate resilience make it a worthwhile strategy. The Dutch government has committed €150 million to support the energy transition in the Caribbean Netherlands, which can help fund renewable projects and grid modernization in Aruba, Curaçao, and St. Martin.
Case-studies & Examples
- 150 million investment in energy transition Caribbean Netherlands
- CARICOM Renewable Energy Outlook
- IDB Energy Storage in the Caribbean
Literature
- Hampl, N. (2022). Equitable energy transition in Latin America and the Caribbean: Reducing inequity by building capacity. Renewable and Sustainable Energy Transition, 2, 100035
- Havea, P. H., Su, B., Liu, C., Kundzewicz, Z. W., Wang, Y., Wang, G., ... & Jiang, T. (2024). Wind and solar energy in Small Island Developing States for mitigating global climate change. iScience, 27(10)
- Kersey, J., Blechinger, P., & Shirley, R. (2021). A panel data analysis of policy effectiveness for renewable energy expansion on Caribbean islands. Energy Policy, 155, 112340.
- Leal Filho, W., Balogun, A.-L., Surroop, D., Salvia, A. L., Narula, K., Li, C., Hunt, J. D., Gatto, A., Sharifi, A., Feng, H., Tsani, S., & Azadi, H. (2022). Realising the Potential of Renewable Energy as a Tool for Energy Security in Small Island Developing States. Sustainability, 14(9), 4965.
- TNO. (2024). De energy transitite in Aruba, Curacao en Sint Maarten.