The Energy Transition in the US Virgin Islands

The United States Virgin Islands (USVI) are advancing their energy transition with a focus on reducing fossil fuel dependence, enhancing grid resilience, and promoting renewable energy deployment in response to high energy costs and vulnerability to hurricanes. The territory’s energy mix remains dominated by imported petroleum, but strong policy commitments, particularly the Virgin Islands Energy Road Map and goals set by the Virgin Islands Energy Office (VIEO), target 30% renewable energy generation by 2025. Solar PV, including utility-scale and distributed rooftop systems, forms the backbone of renewable initiatives, supported by emerging battery storage projects and interest in microgrids to stabilise isolated grid systems on St. Thomas, St. John, and St. Croix. The Water and Power Authority (WAPA) oversees generation and distribution, with federal funding from the U.S. Department of Energy and FEMA playing a key role in infrastructure upgrades. The USVI does not produce critical minerals domestically, and it fully relies on imports for materials such as lithium, cobalt, nickel, and rare earth elements essential for renewable technologies and storage systems. Core challenges include hurricane vulnerability, ageing infrastructure, financing constraints, and regulatory complexity. However, the USVI benefits from access to U.S. federal resources, climate finance, and technical assistance, positioning the territory to accelerate its clean energy transition and improve long-term energy security and resilience.