The Energy Transition in Curaçao

Curaçao’s energy transition reflects the island’s strategic push to reduce its historical dependence on imported fossil fuels and foster a more diversified, resilient energy system. The current energy mix remains dominated by petroleum, largely tied to the now-idle Isla Refinery, though renewable energy development, particularly wind and solar PV has gained traction. The Integrated Resource Plan (IRP) and the activities of Aqualectra, the government-owned utility, provide the framework for scaling renewable deployment and improving grid stability. Curaçao operates two major wind farms, Tera Kora and Playa Kanoa, which contribute significantly to local power generation, supplemented by growing solar initiatives. There is no domestic production of critical minerals on the island, with full reliance on imports for key materials such as lithium, cobalt, nickel, and rare earth elements vital for renewable energy technologies and storage solutions. Core challenges include ageing infrastructure, hurricane vulnerability, and financing gaps, while opportunities exist in expanding offshore wind potential, enhancing storage capabilities, and leveraging EU and Dutch Kingdom partnerships for climate resilience and clean energy investment. Curaçao’s policy focus on energy diversification and renewables positions the island to strengthen its energy independence and support economic development.