Dutch Caribbean energy transition must be tailored, not copy-paste Dutch subsidies

THE HAGUE--Roban van Herk, consultant at TNO and co-author of a report on the energy transition in Aruba, Curaçao and St. Maarten, told IPKO that the Dutch SDE++ subsidy model cannot simply be applied to the Caribbean countries and that tailored support is needed, particularly for electricity infrastructure, batteries and backup capacity.

Van Herk delivered his remarks during the IPKO panel discussion on Saturday on cooperation within IPKO and within the Kingdom. The panel formed part of the broader Interparliamentary Kingdom Consultation, where delegations from St. Maarten, Aruba, Curaçao and the Netherlands discussed how cooperation within the Kingdom can be improved and made more practical.

Speaking on the findings of the study published in May 2024, Van Herk said the research was carried out on behalf of the Dutch Ministry of Economic Affairs and Climate Policy, EZK. The study examined whether the SDE++ subsidy scheme used in the Netherlands could be applied in Aruba, Curaçao and St. Maarten.

The SDE++ scheme, he explained, is used in the Netherlands to help cover the unprofitable portion of investments in sustainable energy production and climate transition projects, including technologies such as wind energy and solar panels.

Van Herk said the research looked at how the energy transition is progressing in Aruba, Curaçao and St. Maarten, and what type of subsidy or investment support from within the Kingdom could be useful. He said the research team experienced positive cooperation and was able to speak with the main stakeholders in the three countries.

According to Van Herk, the countries are not all in the same position when it comes to the energy transition. Aruba and Curaçao are actively working on the transition and have comparable natural conditions, including strong wind and sun, making both wind and solar energy serious options.

In St. Maarten, Van Herk said the research also found strong potential for energy transition, especially through solar PV. He noted that many businesses and private households in St. Maarten are already installing solar PV systems, showing that there is local interest and practical movement toward renewable energy.

However, Van Herk said the central conclusion of the report was twofold. First, the SDE++ approach used in the Netherlands is not directly applicable to Aruba, Curaçao and St. Maarten. The countries require a customized approach that reflects their smaller scale, local energy systems and specific investment needs.

Second, he said the report recommended that any subsidy or investment support should focus less on subsidizing renewable energy sources themselves and more on strengthening the electricity infrastructure needed to support the transition.

That recommendation closely matches an announcement made in May 2025, when Dutch Minister of Climate and Green Growth Sophie Hermans confirmed during the Caribbean Climate and Energy Conference in Curaçao that the Netherlands would make 150 million euros available to help make the energy systems in Curaçao, Aruba and St. Maarten more sustainable. The funding comes from the Dutch SDE++ program and is intended for the preconditions of the energy transition, not primarily for wind farms or large solar projects, where commercial interest already exists. According to the minister’s explanation at the time, the money is aimed at the foundation needed to make the transition work: a stronger electricity grid, clear rules, sufficient knowledge and administrative decisiveness.

For St. Maarten, however, public information on how the country is positioning itself to access or apply this support remains limited. Van Herk’s remarks therefore raise an important question for St. Maarten’s energy transition: whether the country is moving quickly enough to prepare the grid, regulatory framework, technical planning and administrative capacity needed to benefit from available Kingdom-level support.

Van Herk explained that electricity infrastructure includes the cables that move electricity from where it is generated to where it is used, but also batteries and controllable power capacity that can manage peaks and drops in supply.

He said this is especially important because solar and wind energy are not constant. The sun does not always shine and the wind does not always blow, which means islands need backup capacity and systems that can balance supply and demand.

According to Van Herk, the financing of that infrastructure is more difficult to arrange in Aruba, Curaçao and St. Maarten. For that reason, he said, cooperation within the Kingdom and support from the Netherlands would be especially useful if directed toward electricity infrastructure, batteries and backup systems.

He said this infrastructure is the backbone that makes the energy transition possible. Without it, countries cannot properly integrate renewable energy into their energy systems or reliably deliver that energy to businesses, hotels and households.

Van Herk also pointed out that renewable energy sources such as wind and solar are already relatively cost-competitive in the countries. Because most of the islands still rely heavily on fossil fuels, including heavy fuel oil in many places, wind and solar can already compete financially with imported fuel-based electricity generation.

This, he said, is one of the reasons the report recommends focusing support on the infrastructure that allows renewable energy to be absorbed and distributed, rather than only on the renewable energy sources themselves.

The report also included recommendations on energy policy in Aruba, Curaçao and St. Maarten. Van Herk said further policy steps and implementation are still needed, although the islands are already working on the issue.

He pointed specifically to energy tariffs as one area where adjustments are needed in order to move the energy transition forward. Proper tariff structures, he indicated, are important for encouraging investment, managing costs and ensuring that electricity systems can adapt to a cleaner energy future.

Van Herk also emphasized the broader social and economic impact of the energy transition. He said the transition represents an opportunity for the earning capacity of the countries, including by reducing the need to import fossil fuels.

Reducing fossil fuel imports, he explained, could help keep more money within the local economies and make the countries less vulnerable to external fuel prices. The energy transition, therefore, is not only an environmental issue, but also an economic and strategic issue for the Caribbean countries.

His message to IPKO was that Kingdom cooperation on energy should be practical and targeted. Rather than attempting to copy the Dutch subsidy system into a different island reality, Van Herk said support should be adapted to the needs of each country and directed toward the infrastructure that will allow renewable energy to function reliably.

‍