Building Resilient Energy Systems in the Caribbean
The Caribbean region faces a critical energy challenge, with a heavy reliance on imported fossil fuel for power generation. This vulnerability poses a significant fiscal threat to the region, with imported fuels costing the Eastern Caribbean countries an average of $444 million annually. •

• High dependence on imported fossil fuel (90% of power generation)
• High electricity tariffs globally (Grenada, Saint Lucia, and Saint Vincent and the Grenadines among the most expensive)
• Slow progress toward renewable energy (only 11.6% of electricity generation comes from renewable sources)
• Major obstacles to increasing renewable energy adoption (small project sizes, underprepared grids, fragmented regulations, weak institutional capacity, and high vulnerability)

The World Bank has launched a new facility, the Caribbean Resilient Renewable Energy Infrastructure Investment Facility, to address these challenges. The $110 million initiative will support the development of renewable energy systems, modernize electricity transmission and distribution infrastructure, and strengthen resilience.

Facility Overview

The Caribbean Resilient Renewable Energy Infrastructure Investment Facility is a regional initiative that brings together stakeholders from the energy and financial sectors to provide solutions to the region’s energy challenges. The facility will:

1. Aggregate renewable energy projects across countries to reduce costs, increase scale, and attract private sector developers
2. Finance the modernization and reinforcement of electricity transmission and distribution systems, including the installation of battery energy storage systems to support the integration of renewable energy and strengthen resilience
3. Mobilize commercial credit up to $120 million to attract private investment and improve access to finance for renewable energy projects
4. Deliver comprehensive technical assistance and training to national and regional stakeholders to streamline project preparation, regulatory compliance, and risk mitigation
5. Support the design and launch of a new insurance product to protect renewable energy infrastructure against damage from catastrophic events
6. Create short and long-term employment opportunities in the energy sector through tailored scholarship and apprenticeship programs

The World Bank’s International Development Association (IDA) is financing the facility, and additional support is provided by the Climate Investment Fund, the Energy Sector Management Assistance Program, and the Canada Clean Energy and Forests Climate Facility.

Regional Impact

The Caribbean Resilient Renewable Energy Infrastructure Investment Facility has the potential to transform the region’s energy landscape. By:
•

• Reducing dependence on imported fossil fuel and lowering electricity tariffs
• Increasing the adoption of renewable energy and promoting energy security
• Creating employment opportunities and boosting competitiveness

The region’s residents will benefit from a more secure and affordable energy future. The initiative will also contribute to the United Nations’ Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation and Infrastructure).

“The Caribbean region needs a strong energy transition to achieve sustainable development and mitigate climate change,” said Lilia Burunciuc, World Bank Division Director for the Caribbean. “This facility is a crucial step towards that goal.”

Key Partners

The Caribbean Resilient Renewable Energy Infrastructure Investment Facility has the support of the Eastern Caribbean Central Bank, the Climate Investment Fund, the Energy Sector Management Assistance Program, and the Canada Clean Energy and Forests Climate Facility.

The Caribbean Resilient Renewable Energy Infrastructure Investment Facility is a significant step towards a more sustainable and resilient energy future for the Caribbean region.