WILLEMSTAD – The Netherlands has allocated €23 million to expand Curaçao's battery energy storage capacity and strengthen the island's electricity grid, an investment intended to improve the reliability of electricity supplies and support the transition toward renewable energy.
The Dutch Ministry of Economic Affairs and Climate announced the funding on Friday, November 6, following a working visit by Minister Heleen Herbert to the Dutch Caribbean islands.
Aqualectra's battery plant
The investment will allow utility company Aqualectra to more than double the storage capacity of its existing Battery Energy Storage System (BESS) at Hòfi Mooi, increasing it from 45 megawatt-hours (MWh) to 95 MWh.
The expansion comes at a critical time for Curaçao, where repeated electricity shortages have resulted in temporary power interruptions in several neighborhoods.
During recent months, Aqualectra has struggled with insufficient electricity generation capacity caused by technical problems at production facilities and periods of lower-than-expected wind energy production.
These circumstances have forced the utility company to temporarily disconnect certain neighborhoods from the electricity grid to maintain the stability of the overall system.
The additional battery storage capacity is expected to help Aqualectra manage fluctuations in renewable energy production and reduce pressure on the electricity network.
The existing battery installation at Hòfi Mooi became operational in September 2025. It currently has a power rating of 25 megawatts (MW) and a storage capacity of 45 MWh.
The system stores excess electricity generated by wind turbines and releases that energy back into the grid when wind production decreases or electricity demand rises.
By increasing storage capacity to 95 MWh, Aqualectra will be able to retain considerably more renewable electricity for use when needed.
However, additional battery storage does not automatically eliminate the risk of power outages.
Battery systems do not generate electricity themselves. They store energy produced by other sources and eventually require recharging.
Consequently, Curaçao will still need sufficient operational electricity generation capacity to guarantee a reliable power supply, particularly during extended periods of low wind production or when conventional generators experience technical problems.
The €23 million contribution is part of a larger financial commitment previously made by the Netherlands to support the energy transition in Curaçao, Aruba, and Sint Maarten.
In May 2025, then-Dutch Climate Minister Sophie Hermans announced a €150 million investment program for the three Caribbean countries.
Approximately €63 million was earmarked for Curaçao, nearly €54 million for Aruba, and more than €33 million for Sint Maarten.
The funding is intended to support investments in battery storage, electricity network improvements, and infrastructure necessary to accommodate a greater share of renewable energy.
The newly announced €23 million allocation for Curaçao therefore represents a specific implementation of that earlier commitment rather than an entirely new financial package.
The Dutch ministry has not specified how much of the €23 million will be used to purchase additional batteries and how much will be directed toward strengthening Curaçao's electricity grid.
The announcement also did not establish a completion date for the expansion at Hòfi Mooi.
Meanwhile, Aruba will receive €26 million from the Netherlands to develop a new battery storage facility.
The project will have a power rating of 35 MW and a storage capacity of 70 MWh.
Aruban utility company WEB Aruba has signed an agreement with Finnish technology company Wärtsilä for the development of the installation.
Final delivery of the battery facility is scheduled for the second quarter of 2028.
According to the Dutch ministry, the new battery system could help Aruba maintain electricity supplies during outages.
However, the technical capacity of the installation means that it cannot independently power the entire island for two hours.
The battery can deliver 35 MW for approximately two hours at its rated output, while Aruba's average electricity demand in 2026 is approximately 121 MW, with peak demand reaching 172 MW.
The installation will therefore primarily serve as an additional source of electricity and a mechanism for improving grid stability rather than a complete replacement for conventional electricity generation.
For Curaçao, the expansion of battery storage represents another step toward increasing the contribution of renewable energy to the island's electricity supply.
Wind energy already plays an important role in Curaçao's energy system, but its variable production creates operational challenges when electricity demand remains high.
Larger storage facilities can help reduce these fluctuations by making previously generated renewable electricity available when production temporarily declines.
Nevertheless, the effectiveness of the investment will depend on the broader condition of Aqualectra's electricity generation facilities, the reliability of its distribution network, and the successful integration of additional storage capacity.
The Dutch contribution is expected to support Curaçao's long-term energy transition while addressing some of the technical challenges that have contributed to recent electricity disruptions.
For residents and businesses affected by recurring outages, the central question will be how quickly the planned improvements can be implemented and whether they will translate into a more stable and dependable electricity supply.