Why Caribbean resorts are generating their own power
In the Caribbean, keeping the lights on has become as strategic as filling rooms and seats at the bar. Across the region, resorts are no longer treating electricity as a service that arrives from the grid, they are treating it as core infrastructure that they own and manage. Aging power plants, long fuel supply chains, and more intense storms have turned reliable energy into one of the biggest operational risks in tourism, so hotels are moving toward their own power plants, built on microgrids, solar installations, and high efficiency generators.
A recent Caribbean Journal Invest interview with E-Finity Distributed Generation captured the trend clearly. The company, which designs integrated microturbine and energy systems for resorts in the region, described how properties are installing on site generation that can run through blackouts, cut energy bills, and help meet climate targets, while guests remain unaware that anything is happening outside the property line. What once was a simple backup generator near the maintenance shed is evolving into a full microgrid, a mix of gas fueled turbines, solar panels, batteries, and smart controls that can operate with or without the public utility.
Why resorts are moving to their own power
Electricity has always been expensive in island economies because of imported fuel and small grid scale. For hotels, power is one of the top operating costs, especially for air conditioning, water heating, refrigeration, and laundry. The region has also seen repeated grid failures after hurricanes and tropical storms, from Puerto Rico and the Virgin Islands to the Eastern Caribbean.
When a grid goes down for hours or days, a resort without strong backup can lose food, cancel events, and in extreme cases evacuate guests. Caribbean Journal notes that more managers now see that risk as unacceptable. They are investing in systems that run every day, not just during an outage, and that are designed for efficiency rather than emergency only use.
E-Finity and similar providers typically design combined heat and power systems around gas microturbines. The turbines produce electricity, and the waste heat is captured for hot water or used to drive absorption chillers for cooling. When combined with solar and batteries, these systems can reduce overall energy use from traditional diesel set ups by an estimated 20 to 40 percent, according to manufacturers and project case studies. For resorts that are open all year, the companies involved say payback periods often fall in the range of three to six years, depending on local fuel prices and any available incentives.
Aruba, from solar rooftops to carbon negative ambitions
Aruba has become one of the clearest examples of how resort energy strategies and national policy can align. The island’s government has long stated a goal of transitioning away from heavy fuel oil and has supported projects that mix wind, solar, and microgrids. On the private sector side, several resorts are now well known for their clean energy projects:
Bucuti & Tara Beach Resort is certified carbon neutral and is working toward becoming carbon negative. The resort has installed a self sufficient microgrid for its administrative offices, part of a broader program that uses efficiency, renewables, and carbon offsetting to cut emissions. Manchebo Beach Resort and Spa launched a solar project in 2021 that supplies around 20 percent of its electricity demand from rooftop panels. Hyatt Regency Aruba Resort and Casino uses a large solar thermal system on the roof to provide hot water for showers, laundry, and kitchens, reducing dependence on fuel oil.
These projects do not replace the national grid entirely, but they represent a structural shift. Resorts are managing a larger share of their own demand, they are more resilient after storms, and they promote the energy story as part of their brand. Aruba’s experience shows how high energy prices, combined with a clear policy direction, can push hotels to invest in on site systems rather than only buying power from the utility.
Curaçao and the rise of solar powered beach resorts
Curaçao offers another concrete example of what resort level power generation looks like in practice. LionsDive Beach Resort, located near Mambo Beach, already gets about 70 percent of its daytime power from around 600 solar panels installed on rooftops. Management has publicly said the goal is to reach close to 100 percent daytime coverage by expanding the solar capacity further.
The resort has also worked with a local partner to produce drinking water from seawater and provides guests with refillable bottles so they draw chilled water from taps around the property instead of buying imported plastic bottles. That is a water story as much as an energy one, yet it shows how a focus on resources pushes resorts toward integrated infrastructure solutions where power and water security are treated together.
Similar, though smaller scale, solar projects can be found elsewhere on the island, often supported by local engineering firms and regional financing programs. These installations are not always described as microgrids, but they move properties in that direction by giving owners control over at least part of their generation.
Dominican Republic hotels push solar despite hurdles
The Dominican Republic has one of the largest hotel sectors in the Caribbean and rising energy demand to match. A 2025 report from Global Voices describes how resorts, especially in Punta Cana and other tourist zones, have begun to integrate large photovoltaic plants and electric vehicle charging stations on site. The Grand Sirenis Punta Cana Resort, for example, installed a sizable solar PV system and charging infrastructure as part of a shift toward more sustainable operations.
The same report and local commentary note that the path is not simple. Complex permitting rules, uncertainty around net metering, and grid interconnection standards can slow down resort projects or limit their size. The result is that some hotels move ahead with systems that primarily serve their own consumption behind the meter, without depending heavily on selling excess power back to the grid. Even with these constraints, more Dominican resorts are investing in solar, battery storage, and efficiency to control long term costs and strengthen their sustainability credentials.
Private islands, microgrids, and the off grid model
In the Bahamas and other archipelagos, the microgrid model is even more direct. Many private islands and remote resorts simply cannot rely on a central utility, so they either burn diesel in isolation or build hybrid systems from the start. Energy firms like Solaris Island Energy and E-Finity have documented projects where microgrids serve luxury resorts, marinas, and real estate developments. These systems combine solar PV, battery storage, and high efficiency generators, all coordinated by digital controllers that manage when each asset runs.
Puerto Rico is not primarily a resort driven case study, yet its experience after Hurricane Maria has influenced conversations across the region. In the wake of grid failures, communities, non profits, and businesses installed thousands of small solar and battery systems, including DC microgrids serving farms, food hubs, and local centers.
Some hotels and guesthouses are part of this movement, using rooftop solar and batteries to avoid repeated outages, especially in rural or coastal areas where grid restoration has been slow. While large integrated resort microgrids receive more attention in trade press, the Puerto Rico story shows that distributed systems at many scales can support tourism, from boutique inns to eco lodges.
The economics and policy case
The Caribbean Hotel and Tourism Association, in a 2025 policy paper on renewable energy, argues that easier access to clean energy and storage is now a competitiveness issue for the region’s tourism industry, not only an environmental preference. Electricity can account for 10 to 25 percent of hotel operating costs, depending on the property type and location, so reducing exposure to fuel price shocks improves profitability and helps keep room rates stable.
The paper calls for regulatory frameworks that allow hotels to install renewable systems, use storage, and in some cases sell excess electricity, while maintaining grid stability. It also notes that global travelers and corporate groups increasingly look at sustainability credentials, including carbon footprints and renewable energy use, when choosing destinations and venues.
Caribbean Journal’s interview with E-Finity adds the operational detail behind those policy arguments. Resorts with well designed microgrids see energy savings, but managers also highlight non financial benefits like guest comfort, reputation, and peace of mind. One Caribbean property that installed a 1.8 megawatt system roughly a decade ago was able to meet all its electricity demand and keep operations running through a series of local blackouts, while nearby properties went dark.
Barriers and what comes next
Despite high interest, not every Caribbean hotel can simply sign a contract and flip a switch to on site power. The region still faces overlapping regulatory regimes, complex interconnection standards, and uncertainty in some islands about how distributed generation will be treated over time. Financing is another challenge for smaller independent properties. E-Finity and other providers say they are responding with models like energy as a service, lease to own structures, and partnerships where repayment is tied to the savings that systems deliver.
Development banks and climate funds are also starting to support hotel sector projects, especially where they align with national renewable energy targets and climate resilience strategies. Looking ahead, most experts see a hybrid future. Utility grids will still play a role, especially in urban areas, but more resorts will generate a sizable share of their own power, relying on microgrids that integrate turbines, solar, storage, and perhaps wind or biogas where conditions allow.
𝘗𝘢𝘳𝘵𝘴 𝘰𝘧 𝘵𝘩𝘪𝘴 𝘢𝘳𝘵𝘪𝘤𝘭𝘦 𝘥𝘳𝘢𝘸 𝘰𝘯 𝘳𝘦𝘱𝘰𝘳𝘵𝘪𝘯𝘨 𝘢𝘯𝘥 𝘢𝘯𝘢𝘭𝘺𝘴𝘪𝘴 𝘧𝘪𝘳𝘴𝘵 𝘱𝘶𝘣𝘭𝘪𝘴𝘩𝘦𝘥 𝘣𝘺 𝘊𝘢𝘳𝘪𝘣𝘣𝘦𝘢𝘯 𝘑𝘰𝘶𝘳𝘯𝘢𝘭 𝘐𝘯𝘷𝘦𝘴𝘵 𝘪𝘯 “𝘞𝘩𝘺, 𝘢𝘯𝘥 𝘏𝘰𝘸, 𝘊𝘢𝘳𝘪𝘣𝘣𝘦𝘢𝘯 𝘙𝘦𝘴𝘰𝘳𝘵𝘴 𝘈𝘳𝘦 𝘎𝘦𝘯𝘦𝘳𝘢𝘵𝘪𝘯𝘨 𝘛𝘩𝘦𝘪𝘳 𝘖𝘸𝘯 𝘗𝘰𝘸𝘦𝘳,” 𝘢𝘴 𝘸𝘦𝘭𝘭 𝘢𝘴 𝘳𝘦𝘭𝘢𝘵𝘦𝘥 𝘤𝘰𝘷𝘦𝘳𝘢𝘨𝘦 𝘰𝘯 𝘤𝘭𝘦𝘢𝘯 𝘦𝘯𝘦𝘳𝘨𝘺 𝘢𝘯𝘥 𝘳𝘦𝘴𝘰𝘳𝘵 𝘮𝘪𝘤𝘳𝘰𝘨𝘳𝘪𝘥𝘴 𝘪𝘯 𝘵𝘩𝘦 𝘊𝘢𝘳𝘪𝘣𝘣𝘦𝘢𝘯.