A major new initiative aimed at transforming the Caribbean's energy sector has been launched, with the approval of the Caribbean Resilient Renewable Energy Infrastructure Investment Facility by the World Bank. The $110 million facility will support clean energy development in Grenada, Saint Lucia, and Saint Vincent and the Grenadines, with scope for more nations to join.

Developed in partnership with the Eastern Caribbean Central Bank and national governments, the program seeks to reduce the region's dependency on imported fossil fuels, which currently account for over 90% of electricity generation.

According to Lilia Burunciuc, World Bank Division Director for the Caribbean, the project aims to lower energy costs and enhance system reliability across the region.

Between 2016 and 2021, fossil fuel imports in the Eastern Caribbean averaged $444 million annually. Despite rising interest in green energy, renewables made up only 11.6% of regional electricity generation by 2022. The new facility addresses existing obstacles like fragmented projects, limited grid capacity, and high disaster risks.

Key components of the initiative include:

• Aggregating regional projects to attract private investment

• Modernizing grid infrastructure with battery storage

• Mobilizing an additional $120 million via partial credit guarantees

• Launching insurance solutions for disaster resilience

It also emphasizes workforce development through technical training, apprenticeships, and regulatory support.

Timothy Antoine, Governor of the Eastern Caribbean Central Bank, called the project "a game-changer" for building a cleaner and more competitive regional economy.

The facility is backed by the International Development Association (IDA), the Climate Investment Fund, the Energy Sector Management Assistance Program, and the Canada Clean Energy and Forests Climate Facility.