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WASHINGTON, CMC – The World Bank Monday announced that it had approved a new project designed to improve energy efficiency and expand the use of renewable energy across three Caribbean countries, namely Grenada, Guyana and St. Lucia.
The Washington-based financial institution said the Organisation of Eastern Caribbean States (OECS) and the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) to address the region’s critical energy challenges and drive economic growth by reducing dependence on imported fossil fuels.
“This project aims to foster regional cooperation, allowing participating countries to benefit from shared platforms, resources and collaboration. By working together, St. Lucia, Grenada, and Guyana can address energy sector constraints and prepare for a sustainable, low-carbon future,” said Lilia Burunciuc, World Bank Director for the Caribbean.
“The Caribbean stands to gain significant economic benefits from this project, including the creation of green jobs, lower electricity bills for citizens, and enhanced energy resilience,” Burunciuc added.
The project is funded by a combination of donors and mechanisms. The World Bank’s International Development Association is providing concessional financing of US$40 million to Grenada, US$30 million to Guyana, and $30 million to St. Lucia.
Additionally, grants of US$3.3 million will be provided to the Organization of Eastern Caribbean States Commission to support pooled procurement at the regional level, and US$700,000 million to the CCREEE which will provide technical assistance.
The Global Environment Facility is contributing a US$1.791 million grant to St. Lucia and, Grenada will receive a loan of US$8.5 million from the Clean Technology Fund while a US$8.2 million loan and US$0.38 million grant are provided to Guyana from the Canada Clean Energy and Forest Climate Facility.
The World Bank said that the Caribbean is highly dependent on imported petroleum products for electricity generation and imports account for around 90 per cent of petroleum consumed, far exceeding the global average of 21 per cent.
It said the region’s ageing infrastructure, with 96 per cent of power generation relying on diesel-fired plants, further complicates matters, in addition to small, isolated grids being at risk from hurricanes, floods, and droughts.
In Grenada, many generating units will reach the end of their economic life in the next two to four years. Additionally, the cost of rebuilding infrastructure after natural disasters, such as the six per cent of the gross domestic product (GDP) spent to restore Grenada’s grid after Hurricane Ivan in 2004, highlights the economic burden of these challenges, the World Bank noted.
It said the new Caribbean Efficient and Green Energy Buildings Project will focus on two key goals, namely reducing energy consumption in public buildings and increasing the adoption of renewable energy systems.
It will retrofit buildings with energy-efficient technologies and integrate renewable energy systems such as rooftop solar panels into public infrastructure. Approximately 500 public buildings will be retrofitted to enhance energy efficiency, reducing energy consumption by at least 20 per cent, delivering both economic savings and environmental benefits.
These efforts will not only decrease reliance on imported fossil fuels but will also build resilience against power outages, which are common in the region due to extreme weather events like hurricanes and floods.
The project will also provide assistance for participating countries in developing and implementing regulatory frameworks that encourage green energy investments, including guidelines for energy performance standards, net billing for solar power, and policies to integrate electric vehicles and charging infrastructure.
Harmonising regulations across countries will allow for greater economies of scale and cost savings, as well as strengthen the region’s collective energy security. A key component of the project will em, according to the World Bank.
