Dutch government calls permit issuance on Bonaire biggest obstacle to energy transition
KRALENDIJK - The inadequate permit issuance by the Public Entity Bonaire is, according to the Ministry of Climate and Green Growth, the biggest challenge for an ambitious sustainability plan for the island’s electricity supply. The ministry states that ContourGlobal Bonaire is on the verge of making an investment decision that would raise the share of renewable electricity from approximately 20 to 70 percent.
This emerges from an internal policy memo from the ministry published as an annex to a parliamentary letter dated 1 July. In that letter, the cabinet announces its intention to dissolve Bonaire Bon Transition (BBT) and deploy the remaining funds in a different way to support the sustainability and affordability of electricity on Bonaire.
The internal memo makes clear that permit issuance on Bonaire plays a significant role in the implementation of these plans. The ministry writes that ContourGlobal is on the verge of making an investment decision for a far-reaching greening of electricity production. Immediately after, permit issuance is identified as the primary obstacle.
The biggest challenge here is the inadequate permit issuance by the Public Entity Bonaire, the memo states. According to the ministry, this is partly why there is still no detailed timeline for the dissolution of BBT and the provision of the subsidy to ContourGlobal.
From 20 to 70 percent renewable electricity
ContourGlobal has plans to increase the share of renewable electricity on Bonaire from approximately 20 to 70 percent. According to the parliamentary letter, this is to be achieved through wind turbines, solar panels and battery storage. The cabinet sees opportunities to support these investments with funds that remain after the dissolution of BBT.
The internal memo elaborates further on this. The winding down of BBT is already being prepared. The ministry intends to transfer half of the solar panels in which BBT holds an interest to ContourGlobal. In addition, the remaining funds after BBT’s dissolution are to be provided as a subsidy to the electricity producer.
The ministry emphasises that ContourGlobal is subject to tariff regulation by the Authority for Consumers and Markets (ACM). This is intended to ensure that the subsidy benefits sustainability and the affordability of electricity, rather than ending up as excess profit for the company.
BBT to be dissolved
BBT had already lost a significant part of its original function. In March 2025, it was agreed with the island’s administration that the company would no longer play a role in fuel supply on Bonaire. After that, sustainability of the energy supply remained as its sole objective.
Following an evaluation, BBT and the cabinet concluded that a state participation is not the most suitable instrument for that purpose either. The cabinet believes it can support the energy transition more efficiently through subsidies and therefore intends to dissolve BBT. The funds remaining after the dissolution will first flow back to the ministry’s budget and can then be redeployed for the benefit of Bonaire.
According to the ministry, a contributing factor is that Bonaire’s electricity system is relatively small. The internal memo describes it as an independent microgrid of 23 megawatts. Due to this scale, the ministry does not consider it worthwhile to have more than one electricity producer on the island. The memo also notes that BBT has limited expertise in electricity production and would add little beyond financing compared to the licensed producer ContourGlobal.
When BBT will actually be dissolved and when the funds will become available for ContourGlobal remains unclear. It is precisely the permit issuance on Bonaire - described by the ministry as inadequate - that means no concrete timeline has yet been established.
