Promoting renewable energy in the Caribbean

Context

Despite possessing significant renewable energy potential, the countries of the Caribbean Community (CARICOM) are heavily dependent on fossil fuels. This leads to high energy import costs and economic pressures. At the same time, these countries are particularly susceptible to extreme weather events such as cyclones, which damage energy infrastructure and pose a risk to the electricity supply.

Although climate-resilient electricity plans (Integrated Resource and Resilience Plans, IRRPs) are being developed in Saint Lucia and Grenada, many countries in the region lack a clear framework for scaling up renewable energy. Pro-innovation regulation is pivotal in promoting new technologies, adapting market structures and developing long-term business models. Demonstration projects can help to test feasibility and advance the energy transition in the region.

Objective

The regulatory and financial conditions for a climate-resilient and climate-neutral energy supply in selected Caribbean countries are improved.

Approach

The project promotes a climate-resilient and climate-neutral energy supply in the Caribbean.

To achieve this, it supports Saint Lucia and Grenada in developing a regulatory framework for renewable energy. Public dialogues help raise awareness of a climate-resilient power supply and facilitate the transition to appropriate market structures.

Grouping smaller projects together makes investment in renewable energy projects more attractive to development banks. The project supports this approach with financing models and feasibility studies in order to mobilise private investment.

Successful climate-friendly electricity strategies are shared among CARICOM energy suppliers. Training and pilot projects make it easier to implement long-term business models, and promote the dissemination of innovative technologies.

Last update: March 2025