That utilities provider GEBE has asked for land to develop its first solar project (see Tuesday newspaper) is good news. It indicates that despite having to resolve last year’s electricity crisis and stabilise the grid, the government-owned company is making efforts to meet renewable energy targets as part of its concession.
According to Prime Minister Luc Mercelina, the request is under review by the Ministry of Public Housing, Spatial Planning, Environment and Infrastructure VROMI. He referenced a Trust Fund-financed study in December 2024 prepared by Energynautics from which particularly solar panels emerged as a more attractive and predictable long-term investment option than Liquefied Natural Gas (LNG), offering lower and consistent production cost.
It followed a report by the Netherlands Organisation for Applied Scientific Research TNO 3.5 months earlier, which focused on energy transition strategies for Aruba, Curaçao and St. Maarten. In 2021, the previous government led by Prime Minister Silveria Jacobs also commissioned New York-based consultancy firm Gridmarket to create a roadmap for energy transition in St. Maarten.
TNO dismissed the offshore wind energy production proposed by Gridmarket, highlighting several challenges. “The island regularly faces hurricanes, posing a challenge for wind turbines. Low wind speeds and limited space are additional obstacles.”
Energynautics and TNO reached similar conclusions regarding the viability of solar photovoltaic (PV) installations as the best renewable energy option for St. Maarten. Both reports strongly advocate for the rapid scaling-up of solar PV projects as a cost-effective and sustainable solution.
However, one critical aspect remains unaddressed: the absence of a buyback scheme for electricity produced by decentralised solar energy systems. Currently, under the Electricity Concessions Ordinance, decentralised sustainable energy systems for personal use are allowed up to a capacity of 500 kVA (approximately 450 kW). Any system exceeding 500 kVA must receive approval from GEBE.
Without a formal buyback scheme in place, households and businesses that produce excess electricity through solar panels have no means to sell surplus energy back to the grid. This omission could hinder the growth of decentralised renewable energy generation and limit the benefits of solar energy expansion.
Several alternative energy opportunities have already been missed. Then VROMI Minister Christophe Emannuel in 2017 said GEBE should not expect government to transfer any land to the company for its plan to install solar panels over the parking lot along Walter Nisbeth Road also known as Pondfill Road.
“Why should government transfer land if they are requesting to put down a solar park? It’s just a matter of GEBE and government coming to some kind of agreement allowing them to use a parking lot,” he argued.
That train has long left the station, but one would hope government is more receptive and cooperative this time around.
