Montserrat Edges Closer to Energy Resilience with 44% Renewable Penetration and Rising EV Use

Montserrat made significant strides in its renewable energy transition over the past fiscal year, with the island now achieving 44% renewable energy penetration during peak demand conditions, according to the Ministry of BUILT’s 2024–25 Annual Report.

This milestone, driven largely by solar power and energy-efficient retrofits, marks a turning point in Montserrat’s goal of reducing reliance on imported fossil fuels and improving energy affordability.

Solar Power, Battery Storage and Public Building Upgrades
A key driver behind the shift was the continued rollout of the 750kW Solar PV and Battery Storage Project, which builds on the 1MW solar farm previously commissioned. Together, these systems supplied 8.21% of Montserrat’s total electricity generation for the year, and up to 44% of peak daily demand under optimal conditions, the report revealed.

While battery issues delayed the full realisation of these benefits, repairs to the Battery Energy Storage System (BESS) are ongoing. These include critical fixes to inverter and controller components, which are vital for grid stability, load balancing, and unlocking full solar capacity.

The Ministry also reported major efficiency gains through the RESEMBID-funded public building retrofit programme, which saw:

• 15 government buildings retrofitted with LED lighting and inverter-type air conditioning units
• Over 7,000 LED bulbs distributed to 821 households island-wide
• A public campaign on safe lighting disposal and sustainable energy use

These efforts were funded under two RESEMBID projects with a combined budget of EC$1.28 million, of which over EC$711,000 was spent in 2024/25.

EV Adoption Nearly Doubles
The report also highlights strong growth in electric vehicle (EV) adoption. As of March 2025, 117 EVs were registered in Montserrat, which is up from just 59 the year before. This surge follows duty concessions introduced in 2023, alongside growing consumer interest in cleaner, lower-cost transport options.

EVs now represent 3.9% of Montserrat’s registered vehicle fleet, signalling a small but meaningful shift toward decarbonising road transport.

What’s Next: 2MW Expansion and Geothermal Ambitions
Looking ahead, the Ministry of BUILT plans to expand solar generation by a further 2MW, a move that would more than double the island’s current solar capacity. Preparatory work is also underway to resume exploratory geothermal drilling, and preventative maintenance on existing wellheads has begun. This includes sandblasting and preservation work to ensure the geothermal assets remain viable for future development.

The Ministry’s long-term goal is a diversified energy mix that combines solar, geothermal, and battery storage to create a resilient, reliable power grid.

MUL Still Struggling Under Financial Pressure
Despite these advances, Montserrat’s core utility provider, Montserrat Utilities Ltd. (MUL), continues to face structural and financial challenges. The report outlines several key concerns:

• A projected EC$450,000 deficit for 2024/25
• Tariff structures unchanged for over 20 years, limiting cost recovery
• Aging infrastructure and growing maintenance needs
• Limited technical capacity, despite some recent staff development efforts

The Ministry is working with MUL to finalise a tariff adjustment proposal, and the two entities have submitted joint applications for spring rehabilitation and water monitoring upgrades through the UK’s GO Programme.

A functioning independent energy regulator, long delayed, is also deemed essential for investor confidence and sector sustainability.

Progress with Caveats
The Ministry of BUILT’s report confirms that Montserrat is making real progress on energy reform, but acknowledges that resilience is still a work in progress. Battery stability, financial restructuring at MUL, and long-overdue upgrades to water and power systems are now at the forefront of the government’s 2025–26 priorities.

If the island can continue to align its energy strategy with smart policy, regional partnerships, and consistent funding, it may finally be on track to meet its clean energy goals and ease the long-standing burden of high utility costs for residents.