The World Bank's Board of Executive Directors has approved a new project aimed at enhancing energy efficiency and promoting renewable energy in Grenada, Guyana, and Saint Lucia. This $131.87 million initiative will collaborate with the Organization of Eastern Caribbean States and the Caribbean Centre for Renewable Energy and Energy Efficiency to tackle the region's energy challenges by reducing reliance on imported fossil fuels.
Currently, the Caribbean relies heavily on imported petroleum products for electricity generation, with imports accounting for about 90% of petroleum consumption. The region's aging infrastructure, predominantly diesel-fired plants, along with small grids vulnerable to natural disasters like hurricanes and floods, exacerbate these challenges. In Grenada, many power units are nearing the end of their operational life within two to four years. The economic impact is significant; for instance, Grenada spent 6% of its GDP to restore its grid after Hurricane Ivan in 2004.
The Caribbean Efficient and Green Energy Buildings Project will target two main objectives: decreasing energy use in public buildings and boosting renewable energy adoption. Plans include retrofitting approximately 500 public buildings with energy-efficient technologies and integrating systems like rooftop solar panels into public infrastructure. These efforts aim to cut energy consumption by at least 20%, offering both economic savings and environmental benefits while enhancing resilience against frequent power outages due to extreme weather.
Additionally, the project will support participating countries in developing regulatory frameworks that promote green energy investments. This includes guidelines for energy performance standards, net billing for solar power, and policies for electric vehicles and charging infrastructure integration. Harmonizing regulations across countries is expected to yield economies of scale, cost savings, and strengthened regional energy security. A focus on capacity-building will also increase female participation in the energy sector.
“This project is structured to foster regional cooperation, allowing participating countries to benefit from shared resources and collaboration. By working together, Saint 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.”
Funding comes from various donors and mechanisms. The World Bank’s International Development Association provides concessional financing: $40 million to Grenada, $30 million each to Guyana and Saint Lucia. Additionally, grants totaling $3.3 million go to the Organization of Eastern Caribbean States Commission for regional procurement support; $0.7 million goes to the Caribbean Centre for Renewable Energy and Energy Efficiency for technical assistance. The Global Environment Facility contributes a $1.791 million grant to Saint Lucia; Grenada receives an $8.5 million loan from the Clean Technology Fund; Guyana gets an $8.2 million loan plus a $0.38 million grant from Canada Clean Energy and Forest Climate Facility.
For more information about this initiative:
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