Profile AnalysisPrint Territory Energy Profile
(overview, data, & analysis)
Last Updated: April 17, 2025
Overview
The U.S. Virgin Islands imports petroleum products to meet nearly all of its energy needs.
The U.S. Virgin Islands (USVI), part of the Leeward Islands of the Lesser Antilles, became a U.S. territory in 1917 and is located in the Caribbean Sea, about 1,100 miles southeast of Miami, Florida.1,2 The USVI has no fossil energy reserves, but does have some renewable resources, particularly solar energy.3,4 The USVI imports petroleum products to meet nearly all of its energy needs, including the fuels to operate vehicles and boats, to generate electricity, and to run the ocean water desalination plants that produce its public water supply.5,6,7
The USVI consists of four main islands that have a total area of 133 square miles, about twice the size of Washington, DC. The islands are hilly and forested. With limited land suitable for farming, the territory imports most of its food.8 The largest island is St. Croix. It lies about 40 miles south of the territory's three other inhabited islands: St. John, St. Thomas, and Water Island. The highest peak in the USVI is Crown Mountain, at nearly 1,600 feet, on St. Thomas.9 The territory's population was estimated at about 85,000 in 2024.10 Most of the USVI's population is evenly divided between St. Thomas and St. Croix, with each home to about 48% of the territory's residents. St. John has about 4%, and less than 200 people live on Water Island.11,12
Located between the Commonwealth of Puerto Rico to the west and the British Virgin Islands to the east, the USVI has a subtropical climate with easterly trade winds and little seasonal variation in its warm temperatures. The Caribbean hurricane season, which runs from June to November, sometimes brings destructive storms.13 On average, a hurricane passes near the USVI every three years, and one directly hits the islands about every eight years. However, in September 2017, the USVI was struck by back-to-back storms, Hurricanes Irma and Maria, which were both category 5 hurricanes with sustained winds of more than 156 miles per hour. The hurricanes significantly damaged most of the USVI's electric distribution and transmission lines and also impacted several power generating facilities.14
Tourism, trade, and service industries account for about three-fifths of the USVI's GDP, and government spending accounts for about one-third of GDP. Manufacturing was second only to tourism in economic importance until the February 2012 closure of the Hovensa crude oil refinery on St. Croix. Tourism declined following the two destructive 2017 hurricanes and the COVID-19 pandemic. However, the USVI's tourism has fully recovered, with a record 2.7 million tourists visiting the territory in 2024. Manufacturing in the territory includes rum distilling, electronics, and pharmaceuticals.15,16,17 The USVI's per capita energy consumption is about two-fifths that of the 50 U.S. states.18,19
Petroleum
The USVI has no known crude oil reserves and does not produce crude oil, although a U.S. Geological Survey assessment in 2013 identified the potential for undiscovered crude oil resources in a subsea formation south of the islands.20,21,22 The Hovensa refinery on St. Croix, once one of the 10 largest crude oil refineries in the world, was a substantial part of the USVI's economy and provided most of the islands' petroleum products until it was shut down in 2012.23 The refinery reopened in February 2021 to produce marine fuel that meets new international low-sulfur requirements that took effect in 2020. When the refinery went back online, it was able to process about 210,000 barrels of crude oil per day, less than half the 500,000 barrels per day that were previously refined. However, regulators shut down the refinery a few months later after it polluted nearby homes and drinking water. The refinery was sold in the fall of 2021 to two new companies that plan to restart it. In November 2022, the U.S. Environmental Protection Agency (EPA) ordered the refinery's owners to obtain a new air pollution permit before the facility could resume operations.24,25,26 A federal appeals court ruled in July 2023 that EPA exceeded its authority and could not require the refinery's owners to obtain a new pollution permit before resuming operations.27 The refinery had not restarted as of December 2024 because the EPA ordered the removal of chemicals discovered at the facility.28,29,30,31
The U.S. Virgin Islands’ utility is shifting from fuel oil to propane to generate electricity and produce public drinking water.
Nearly all of the energy consumed in the USVI comes from imported petroleum products.32 Distillate fuel oil and residual fuel account for about 70% of all petroleum products consumed in the USVI, where they are used for electricity generation and in the desalination of drinking water supplies. Propane, jet fuel, and motor gasoline make up the remaining 30% of the island's petroleum consumption.33 The territory's Water and Power Authority (WAPA) utility is converting many of its fuel oil-powered generating units to propane, which reduces costs and helps the utility meet clean air quality requirements.34,35,36,37,38
Electricity
The USVI’s two separate island grids each maintain their own backup generation capacity.
The USVI has two separate electricity grids, one each on the two main islands, each with its own generating facilities. The generating units are managed by WAPA, an independent governmental agency. Generating capacity includes combustion and steam turbines powered with fuel oil or propane, as well as some solar-powered facilities owned by independent power producers and households and businesses with customer-sited rooftop solar panels. More than half of the USVI's petroleum-fueled generating units are more than 25 years old. WAPA is replacing some of its older generators with groups of smaller units for more efficient balancing with renewable energy sources. Seabed depth makes any potential electrical connection between the St. Thomas and St. Croix systems difficult. The St. Thomas electric system also supplies electricity by underwater cables to nearby St. John Island and Water Island. Separated from the St. Thomas system by 40 miles of ocean, the St. Croix electric system provides power to its island residents and businesses. The electric systems on both islands have lower power demand than their generating capacities, providing them with their own backup generating capacity and reserves.39,40,41
During the back-to-back hurricanes in September 2017, 80% to 90% of the USVI's transmission and distribution systems were damaged or destroyed.42 To mitigate future disruption of the islands' grids, WAPA added backup generating units that include battery energy storage.43,44,45 The territory is also building underground electrical lines and installing composite electrical poles that can survive winds up to 200 miles per hour. As of mid-2024, WAPA installed nearly 98% of the planned 8,600 composite poles across the territory. In its next phase, the utility plans to replace 2,200 additional poles by the end of 2026.46,47,48
Imported petroleum products fuel nearly all of the utility-scale electricity generation on the USVI. In 2024, fuel oil accounted for 51% of the territory's electricity from WAPA-owned or leased generating facilities, propane fueled 47%, and solar power supplied about 2%.49 The residential sector consumed about 41% of the USVI's total electricity, followed by the industrial sector at 36%, and the commercial sector at 23%.50 The USVI has some of the highest electricity rates in the world, in part because of petroleum fuel surcharges. The islands' residential average electricity price in 2023 was about 33 cents per kilowatthour, which included a fuel surcharge of 22 cents, about double the U.S. residential average electricity price of 16 cents.51,52,53
After petroleum prices increased in 2008, WAPA explored converting its generating facilities to operate on imported liquefied natural gas (LNG), but the utility opted for propane because it was less expensive to build the storage facilities and other infrastructure needed for propane compared with LNG.54,55 Converting existing generating facilities increased the fuel flexibility for WAPA's generators, allowing many of the generating facilities to use propane or fuel oil.56,57 WAPA says the increased propane use is expected to cut carbon dioxide emissions at generating plants by 35%, help the USVI meet clean air standards, and reduce fuel surcharges. However, the utility has come under criticism because fuel conversion projects have taken longer than expected to complete, costs have exceeded original estimates, and residential electricity prices remain high.58,59,60,61
Renewable energy
Solar power accounts for all of the USVI’s utility-scale renewable electricity.
About 3% of the USVI's utility-scale (1 megawatt or larger) electricity generating capacity is fueled by renewable resources, all of it solar power. However, the territory has more customer-installed, small-scale (less than 1 megawatt) solar power generating capacity.62,63 Customer-installed, small-scale solar photovoltaic electricity generating systems, such as rooftop solar panels, total about 31 megawatts in the territory. An additional 53 megawatts of generating capacity is available from backup battery energy storage connected to the small-scale solar generating systems.64 In 2009, the USVI's legislature approved a renewables portfolio target for renewable energy sources to fuel 30% of WAPA's peak demand generating capacity by 2025 and 50% by 2044.65,66
The USVI has three utility-scale solar farms with about 23 megawatts of combined solar power generating capacity.67 The territory's largest solar facility is the 13-megawatt Petronella solar farm with 30,000 solar panels on the east end of St. Croix that came online in December 2024.68,69 The second largest utility-scale solar farm is the Donoe solar farm on St. Thomas, which first came online in 2015 with 4.2 megawatts of generating capacity. Hurricane Irma destroyed much of the Donoe solar farm in September 2017. The solar farm was rebuilt in 2022 with 14,000 solar panels, a larger generating capacity of 6.4 megawatts, and the ability to withstand winds up to 180 mph. The solar panels have stronger clamps and bolts holding them to the reinforced mounting systems, which have support piles that were installed deeper into the ground.70,71 The Spanish Town solar farm, which opened on St. Croix in 2014 with 4 megawatts of generating capacity, was also damaged by Hurricane Irma. The facility was offline for slightly more than a year while it and the island's grid were repaired. The solar farm came back online in November 2018.72,73,74
Additional solar and new wind generating capacity, along with battery energy storage systems, are under construction or planned. The USVI has commercial wind energy potential, but no utility-scale (1 megawatt or larger) wind generating capacity has been installed yet, although two privately-owned wind farms are planned that will sell their power to the WAPA. The most promising locations for large wind projects are on the islands' high ridges and exposed capes.75 In 2023, WAPA approved purchase agreements for electricity from two wind power farms that would provide up to 35 megawatts of electricity on St. Croix and up to 20 megawatts on St. Thomas.76,77,78 The USVI is also looking into developing other renewable generation by using landfill garbage as fuel for waste-to-energy power projects.79,80
Because of concerns about grid stability with intermittent generation from renewables, the USVI's net metering law initially capped total net metered connections at 10 megawatts on the St. Thomas grid and 5 megawatts on the St. Croix grid. Those limits were reached in 2017, and the program closed to new customers. However, in 2019, the territory initiated a new net-metering program that allows more residents to participate, but requires new customers to receive less compensation for their excess power and pay higher grid-access fees.81,82,83,84 Since 2009, USVI's building code requires that solar water heaters provide at least 70% of a building's water heating needs in all new construction and major renovation projects.85
Natural gas
The USVI does not produce natural gas and has no known natural gas reserves. However, a 2013 U.S. Geological Survey assessment identified the potential for undiscovered natural gas resources in the same subsea formation south of the islands that may also contain crude oil resources.86,87 To reduce dependence on petroleum fuels, island officials considered ways to import liquefied natural gas (LNG). However, the islands' small energy demand makes building an LNG import terminal difficult to justify economically.88 The territory's electric utility considered converting its generators to burn LNG but opted for less costly propane.89,90,91
Coal
The USVI has no known coal reserves and does not produce or use coal.92
Endnotes
1 VI Now, General U.S. Virgin Islands, accessed March 18, 2025.
2 VI Now, Where is the Virgin Islands: Geography, accessed March 18, 2025.
3 U.S. Energy Information Administration (EIA), U.S. Virgin Islands Territory Energy Profile, Reserves, Supply, accessed March 18, 2025.
4 U.S. Department of Energy, National Renewable Energy Laboratory (NREL), USVI Energy Road Map, Charting the Course to a Clean Energy Future (2011), p. 8-10.
5 U.S. EIA, International Energy Statistics, U.S. Virgin Islands, Petroleum and other liquids, Consumption, Download Export CSV (table), 2019-23.
6 Observatory of Economic Complexity, U.S. Virgin Islands, Imports, accessed March 18, 2025.
7 U.S. EIA, International Energy Statistics, U.S. Virgin Islands, Primary energy, Consumption, Download Export CSV (table), 2019-23.
8 U.S. Central Intelligence Agency, The World Factbook, U.S. Virgin Islands, Geography and Economy, accessed March 18, 2025.
9 VI Now, Where is the Virgin Islands: Geography, accessed March 18, 2025.
10 U.S. EIA, International Energy Statistics, U.S. Virgin Islands, Population, 2020-24.
11 VIMovingCenter, Virgin Islands Demographics, accessed March 18, 2025.
12 VI Now, Water Island, accessed March 18, 2025.
13 VI Now, Weather in the Virgin Islands, accessed March 18, 2025.
14 Julio A. Rhymer Sr., Executive Director/CEO, Virgin Islands Water and Power Authority, Statement Before the Committee on Energy and Commerce Subcommittee on Energy, Congressional Testimony (November 2, 2017), p. 1-3.
15 U.S. Central Intelligence Agency, The World Factbook, U.S. Virgin Islands, Economy, accessed March 18, 2025.
16 U.S. Bureau of Economic Analysis, "Gross Domestic Product for the U.S. Virgin Islands, 2022," Press Release (June 17, 2024).
17 U.S. Virgin Islands Department of Tourism, "U.S. Virgin Islands Sets New Tourism Record in 2024, Welcoming Unprecedented Visitor Numbers," Press Release (January 8, 2025).
18 U.S. EIA, International Energy Statistics, U.S. Virgin Islands and United States, Primary energy, Total energy consumption, 2023.
19 U.S. EIA, International Energy Statistics, U.S. Virgin Islands and United States, Population, 2023.
20 U.S. EIA, U.S. Virgin Islands Territory Energy Profile, Reserves, Supply, accessed March 19, 2025.
21 U.S. EIA, International Energy Statistics, U.S. Virgin Islands, Primary energy, Production, Download Export CSV (table), 2019-23.
22 Schenk, Christopher J. and Ronald R. Charpentier, "Assessment of Undiscovered Technically Recoverable Oil and Gas Resources of Puerto Rico and the Puerto Rico-U.S. Virgin Islands Exclusive Economic Zone," U.S. Geological Survey, Fact Sheet 2013-3101 (November 2013).
23 "Hovensa Shutdown Leads to Significant Drop in US Virgin Islands' GDP," Caribbean Journal (August 19, 2013).
24 Sanicola, Laura, "Limetree Bay refinery to shut indefinitely after just a few months of operating," Reuters (June 21, 2021).
25 Sanicola, Laura, "Bankruptcy judge approves $62 million Limetree Bay sale to Jamaican company," Reuters (December 22, 2021).
26 Joselow, Maxine, "EPA orders troubled St. Croix refinery to obtain new permit," The Washington Post (November 17, 2022).
27 Mindock, Clark, "EPA can't force Virgin Islands refinery to obtain new permit, U.S. court says," Reuters (July 25, 2023).
28 Carlson, Suzanne, "Refinery, terminal remain at odds over shared services," The Virgin Islands Daily News (December 29, 2023).
29 "EPA Discovers Liquified Petroleum Not Previously Reported by STX Refinery," The St. Thomas Source (November 18, 2023).
30 U.S. Environmental Protection Agency, Chemical Removal Status at the Refinery on St. Croix, November 2023.
31 Pancham, Ananta, "Port Hamilton Confirms No Immediate Plans to Restart St. Croix Refinery," The St. Thomas Source (December 13, 2024).
32 U.S. EIA, International Energy Statistics, U.S. Virgin Islands, Primary Energy, Consumption, Download Export CSV (table), 2019-23.
33 U.S. EIA, International Energy Statistics, U.S. Virgin Islands, Petroleum and other liquids, Consumption, Download Export CSV (table), 2019-23.
34 Virgin Islands Water and Power Authority, Virgin Islands Water and Power Authority Strategic Transformation Plan (June 2020), p. 12, 16.
35 Simon, Janeka, "WAPA Extends Diesel Supply Contract While Transitioning to Propane Generators," The Virgin Islands Consortium (October 30, 2023).
36 "WAPA Announces Reliability Testing for New Dual-Fueled Engines at Randolph Harley Power Plant," The Virgin Islands Consortium (August 8, 2024).
37 Virgin Islands Water and Power Authority, "WAPA Celebrates Ribbon-Cutting Ceremony for Phase II Wärtsilä Project," Press Release (January 21, 2025).
38 USVI Hurricane Recovery and Resilience Task Force Report (2018), Individual Chapters: Energy, "Generation" section, p. 43.
39 Virgin Islands Water and Power Authority, VIWAPA Final IRP Report (July 12, 2020), Table 3.6, Unit Characteristics for VIWAPA and Leased Units on STT and STX, p. 49, Table 3-7, RE Projects for STT and STX, p. 50.
40 Julio A. Rhymer Sr., Executive Director/CEO, Virgin Islands Water and Power Authority, Statement Before the Committee on Energy and Commerce Subcommittee on Energy, Congressional Testimony (November 2, 2017), p. 2-4.
41 USVI Hurricane Recovery and Resilience Task Force Report (2018), Individual Chapters: Energy, "Challenges" section, p. 43, 48-49.
42 Julio A. Rhymer Sr., Executive Director/CEO, Virgin Islands Water and Power Authority, Statement Before the Committee on Energy and Commerce Subcommittee on Energy, Congressional Testimony (November 2, 2017), p. 4.
43 "WAPA Enters into Contract to Install Standby Generators on St. John," The St. John Source (August 22, 2019).
44 Virgin Islands Water and Power Authority, "WAPA Enters Into Contract for Installation of Standby Generators on St. John with Battery Storage," Press Release (August 21, 2019).
45 "WAPA Signs Contract for Four New Generators, Battery Storage System at Harley Plant," The St. John Source (July 22, 2020).
46 Virgin Islands Water and Power Authority, "WAPA Awards Federally Funded Composite Pole Installation Contracts for St. Thomas and St. John," Press Release (October 8, 2020).
47 Virgin Islands Water and Power Authority, Investments in Facilities, Systems, and People (September 12, 2023), p. 6.
48 Virgin Islands Water and Power Authority, "Phase I of the Composite Pole Installation 98% Complete and St. Croix Scheduled Outages," Press Release (July 9, 2024).
49 Virgin Islands Water and Power Authority, Megawatthours Production Report (December 2024).
50 U.S. EIA, Electric Power Annual (October 17, 2024), U.S. Territories, Table 12.8, Virgin Island Sales of Electricity to Ultimate Customers (megawatthours).
51 USVI Hurricane Recovery and Resilience Task Force Report (2018), Individual Chapters: Energy, "WAPA energy rates" section, p. 46-47.
52 Carlson, Suzanne, "Public Services Commission decides to keep LEAC rate level," The Virgin Islands Daily News (December 11, 2024).
53 U.S. EIA, Electric Power Annual (October 17, 2024), Electricity Sales, Table 2.4, Average Price of Electricity to Ultimate Customers by End-Use Sector and U.S. Territories, Table 12.8, Virgin Island Sales of Electricity to Ultimate Customers.
54 Duff & Phelps LLC, Highest and Best Use of the HOVENSA Refinery (August 3, 2012), p. 47, 56.
55 Overton, Thomas W., "Propane Power Is Grabbing Growing Share of Gas-Fired Market," Power Magazine (November 10, 2015).
56 Julio A. Rhymer Sr., Executive Director/CEO, Virgin Islands Water and Power Authority, Statement Before the Committee on Energy and Commerce Subcommittee on Energy, Congressional Testimony (November 2, 2017), p. 3.
57 "USVI Water and Power Authority," Business View Caribbean (January 19, 2016).
58 Virgin Islands Water and Power Authority, Virgin Islands Water and Power Authority Strategic Transformation Plan (June 2020) p. 4, 12, 16.
59 Buchanan, Don, "IG Finds Fault with WAPA Propane Project, Senator Wants Investigation," The St. Thomas Source (December 1, 2021).
60 "WAPA Board OKs Spot Purchases of Propane Amid Vitol Dispute," The St. Thomas Source (December 26, 2022).
61 Ellis, Susan, "WAPA, Part 3: The USVI Shops for Alternative Energy Sources," The St. Thomas Source (September 1, 2023).
62 U.S. EIA, International Energy Statistics, U.S. Virgin Islands, Electricity, Capacity, Download Export CSV (table), 2019-23.
63 Virgin Islands Water and Power Authority, Megawatthours Production Report (December 2024).
64 RMI, U.S. Virgin Islands Virtual Power Plant (VPP) Analysis and Recommendations Report (December 20, 2024), p. 10.
65 NC Clean Energy Technology Center, DSIRE, U.S. Virgin Islands-Renewables Portfolio Targets, updated January 3, 2025.
66 Virgin Islands Water and Power Authority, VIWAPA Final IRP Report (July 12, 2020), p. 42.
67 Virgin Islands Water and Power Authority, "WAPA Engages Students at Bertha C. Boschulte with Solar Energy Outreach Event," Press Release (January 27, 2025).
68 Simon, Janeka, "Petronella Solar Farm Commissioned, Delivering Clean Power and Fuel Savings for WAPA," The Virgin Islands Consortium (December 18, 2024).
69 MacAvoy, Kit, "Petronella Solar Farm Comes Online with Promises of Sustainability, Reliability," The St. Thomas Source (December 17, 2024).
70 BMR Energy LLC, BMR Energy St. Thomas Solar Project, accessed March 20, 2025.
71 Kirkpatrick, Sara, "BMR Energy reconstructs damaged solar plant in Donoe," The Virgin Islands Daily News (October 28, 2022).
72 NRG Energy, Inc., "NRG Energy Celebrates the Spanish Town Estate Solar Development in the U.S. Virgin Islands," Press Release (October 29, 2014).
73 Walton, Rod, "BMR Energy Acquiring, Fixing Maria-damaged Solar Farm in Virgin Islands," Power Engineering (August 8, 2018).
74 BMR Energy, BMR Energy's St. Croix Spanish Town Project, accessed March 20, 2025.
75 U.S. Department of Energy, Energy Efficiency and Renewable Energy, WINDExchange, Wind Energy in U.S. Virgin Islands, Maps & Data, accessed March 20, 2025.
76 Buchanan, Don, "WAPA Moves on Five Alternative Energy Projects," The St. Croix Source (March 30, 2023).
77 "USVI Wind Projects Enter Next Phase with Executed Lease," The Virgin Islands Consortium (April 24, 2024).
78 Barry, Joshua Crawford, "Legislature Pushes to Expand Renewable Energy Through Wind Power," The St. Thomas Source (October 7, 2024).
79 Buchanan, Don, "Company Proposes to Make Energy from Garbage," The St. Thomas Source (May 10, 2023).
80 "St. John Waste-to-Energy Project Awaits Agreements from WAPA, WMA to Move Forward," The Virgin Islands Consortium (March 13, 2025).
81 NC Clean Energy Technology Center, DSIRE, U.S. Virgin Islands-Net Metering, updated January 2, 2025.
82 U.S. Department of Energy, National Renewable Energy Laboratory, U.S. Virgin Islands 2023 Energy Baseline Report (May 2024), p. 18.
83 Virgin Islands Energy Office, Net Energy Billing Program, November 2021.
84 Buchanan, Don, "Net Metering Snags, Customer Complaints Dominate PSC Meeting," The St. Thomas Source (November 7, 2024).
85 NC Clean Energy Technology Center, DSIRE, U.S. Virgin Islands - Solar Water Heating Requirement for New Construction, updated March 5, 2024.
86 U.S. EIA, U.S. Virgin Islands Territory Energy Profile, Reserves, Supply, Consumption, accessed March 21, 2025.
87 Schenk, Christopher J. and Ronald R. Charpentier, "Assessment of Undiscovered Technically Recoverable Oil and Gas Resources of Puerto Rico and the Puerto Rico-U.S. Virgin Islands Exclusive Economic Zone," U.S. Geological Survey, Fact Sheet 2013-3101 (November 2013).
88 Duff & Phelps, LLC, Highest and Best Use of the HOVENSA Refinery (August 3, 2012), p. 45, 47.
89 USVI Hurricane Recovery and Resilience Task Force Report (2018), Individual Chapters: Energy, "Generation" section, p. 43.
90 Carlson, Suzanne, "V.I. government makes $45 million payment to Vitol for WAPA," The Virgin Islands Daily News (May 2, 2023).
91 "Bryan Announces Progress on WAPA Acquisition of Vitol Propane Terminal Facilities," The St. Thomas Source (December 23, 2023).
92 U.S. EIA, U.S. Virgin Islands Territory Energy Profile, Reserves, Supply, Consumption, accessed March 21, 2025.