Recently, on Facebook, my friend Achim Henriquez posted a comparison of electricity prices across the ABC islands. He asked a simple but important question: Why is electricity so much cheaper in Aruba than in Curaçao?
I followed the thread and saw many reactions – some humorous, others well-meaning – but few that truly addressed the issue. Because this question is too important for guesswork, I want to lay out the main factors that explain the differences between our islands. Only by understanding them can we have a rational discussion about solutions.
Demographics and urbanization
Curaçao covers 444 km² with around 185,500 residents, while Aruba is smaller – 180 km² – but has a population of 108,500, resulting in much higher population density. Aruba’s development is heavily concentrated in specific areas, particularly hotels and tourism zones. Curaçao’s infrastructure, by contrast, is spread widely across the island.
This matters because a smaller, denser grid is cheaper to maintain and expand. Aruba simply needs less extensive distribution networks for both water and electricity.
Demand levels
Aruba’s average household and commercial electricity use is far higher – 22,500 kWh annually, compared to Curaçao’s 8,391 kWh. Water consumption tells a similar story. Aruba’s economy, driven by hotels and tourism, requires much more power and water, creating economies of scale that lower per-unit costs.
Curaçao, with more modest demand, must still cover many of the same fixed production costs. Fewer kilowatt-hours sold means those costs are divided among fewer customers, pushing up tariffs.
Geography and distribution
Curaçao’s water network stretches over 2,744 kilometers, with 21 pumping stations and 11 storage tanks. Aruba’s system, by comparison, covers just 1,052 kilometers, with 5 pumping stations and 7 tanks. Maintaining Curaçao’s larger, more complex network drives costs higher.
On the electricity side, Curaçao’s grid is about 1,700 kilometers, while Aruba’s is only 1,200 kilometers. Once again, Aruba’s compact geography works in its favor.
Production costs
The peak electricity demand on both islands is similar – 164 MW in Curaçao and 170 MW in Aruba. This means Curaçao must maintain nearly the same production capacity as Aruba, but with lower total annual consumption. In practice, that translates to higher costs per megawatt-hour.
The way forward
So, what can Curaçao do?
Grow the economy responsibly – More demand spreads fixed costs across a larger base, but usage must also remain efficient.
Invest in renewable energy – Collective and individual solar investments reduce fuel dependency, ease pressure on the grid, and indirectly affect water prices.
Population growth tied to economic growth – In many cases, population growth follows economic expansion within 1-2 years.
Upgrade efficiency – Continued investment in more efficient production and distribution systems is essential to reduce long-term costs.
We should be cautious with political promises about “lower tariffs.” Too many factors are outside our control, from geography to economies of scale. The best we can do is balance these realities with smarter policies, strategic investments, and a commitment to sustainable energy.
Aruba’s cheaper water and electricity are not simply the result of better management – it’s a structural difference shaped by density, demand, and distribution. Curaçao must recognize these differences if we want to move toward a more affordable and sustainable future.
Anthon Casperson,
former CEO of utility company Aqualectra
