The Energy Transition in Aruba

Aruba’s energy transition reflects its strategic ambition to achieve significant renewable energy integration and reduce reliance on imported petroleum products. The island has set ambitious targets for a sustainable energy future through policies such as the National Energy Policy of Aruba and participation in the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE). Key projects include the Vader Piet Wind Farm and widespread deployment of solar PV, supported by grid modernisation and emerging energy storage solutions to strengthen system resilience. Aruba has no domestic production of critical minerals, relying entirely on imports for materials essential to renewable technologies, including lithium, cobalt, nickel, and rare earth elements. The government has encouraged private sector investment and public-private partnerships, with support from international donors, including the Netherlands and the EU, as part of its overseas kingdom structure. While Aruba’s Exclusive Economic Zone (EEZ) presents potential for offshore wind and ocean energy, there is no current activity related to seabed mineral resource development. Core challenges include energy price volatility, hurricane exposure, financing constraints, and supply chain vulnerabilities, while opportunities lie in climate resilience, innovation in green technologies, and regional leadership in clean energy transition. Aruba’s strong policy ambition and early renewable energy investments position the island as a leader among small island economies. Continued focus on innovation, offshore potential, workforce development, and regional engagement will be central to realising its clean energy vision and navigating critical mineral dependencies.