Renewable Energy: Powering a Sustainable Caribbean Future

Executive Summary

Renewable Energy by the Numbers

The World Bank notes that many Caribbean countries continue to face among the highest electricity costs in the Latin America and Caribbean region, largely due to dependence on imported petroleum products.

Through the Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS), CARICOM established a long-term vision of increasing renewable energy's share of electricity generation to approximately 47% by 2027. While implementation varies among member states, the strategy reflects a broader regional commitment to reducing dependence on imported fossil fuels, strengthening energy security, and accelerating the transition to a sustainable energy future.

Original C-SERMS renewable electricity generation targets (as stated in source):

Looking ahead, CARICOM may wish to develop a new regional target for 2040 or 2050 aligned with global climate commitments and the growing economic competitiveness of renewable technologies.

C-SERMS target figures left as in source; verify against current CARICOM / CCREEE publications.

Regional Renewable Resources

The Caribbean possesses significant renewable energy resources, including:

• Solar energy throughout the region.
• Wind energy in Jamaica, Aruba, Curaçao, Barbados, and other islands.
• Geothermal resources in Dominica, Saint Kitts and Nevis, Saint Lucia, and several Eastern Caribbean states.
• Hydropower potential in Guyana, Suriname, Belize, and Jamaica.
• Emerging opportunities in ocean and marine energy technologies.

Despite this potential, renewable energy deployment varies considerably among Caribbean states.

The Challenge

Dependence on imported fossil fuels. Many Caribbean nations import the majority of their fuel requirements, creating high electricity costs, foreign exchange pressures, energy security risks, and exposure to global price fluctuations.

Climate change. The Caribbean contributes little to global greenhouse gas emissions but experiences disproportionate impacts from climate change, including hurricanes, sea-level rise, droughts, and coastal erosion.

Ageing infrastructure. Many electricity grids were designed around conventional energy generation and require significant upgrades to support renewable technologies.

Limited investment capital. Renewable energy projects often require substantial upfront investment, which may challenge smaller economies.

Why It Matters

Affordable and reliable energy underpins every aspect of economic development. Renewable energy can lower household electricity bills, improve business competitiveness, reduce fuel import dependence, support climate resilience, create new industries and jobs, improve energy security, and attract sustainable investment. For tourism-dependent economies, clean energy can also strengthen the region's reputation as a sustainable destination.

Case Study: Jamaica

Jamaica has emerged as a regional leader in renewable energy development through investments in utility-scale solar projects, wind energy facilities, energy diversification initiatives, and regulatory reforms encouraging private sector participation. The country's renewable energy expansion demonstrates that Caribbean nations can successfully reduce dependence on imported fuels while improving energy security.

The Opportunity for the Caribbean

The Caribbean's greatest renewable energy resource may be its geography. Many islands receive abundant sunshine throughout the year, while others possess world-class geothermal and wind resources. The transition to renewable energy presents an opportunity for the region to transform a long-standing vulnerability—energy dependence—into a strategic advantage. The same natural conditions that attract millions of tourists each year can also help power the Caribbean's future.

Potential Benefits

Implementation of these policies could:

• Reduce electricity prices
• Improve energy security
• Lower greenhouse gas emissions
• Create high-quality jobs
• Attract green investment
• Support climate resilience
• Strengthen economic competitiveness
• Reduce dependence on imported fuel

Conclusion

Renewable energy is not simply an environmental policy; it is an economic development strategy, an energy security strategy, and a climate resilience strategy. By investing in clean energy technologies today, Caribbean nations can build more sustainable, competitive, and prosperous economies tomorrow.

The shift from imported fossil fuels to locally generated renewable energy represents one of the most important opportunities for Caribbean development in the twenty-first century.

Policy Recommendations

1. Establish Ambitious Renewable Energy Targets: Adopt legally supported national targets for renewable energy generation and develop transparent implementation plans.
2. Expand Utility-Scale Solar and Wind Projects: Public–private partnerships should accelerate investment in large-scale renewable facilities capable of reducing fossil fuel dependence.
3. Promote Household and Community Solar Energy: Introduce incentives such as tax credits, duty concessions, low-interest financing, and net-metering programmes.
4. Modernise Electricity Grids: Invest in smart grid technologies, battery storage systems, grid resilience upgrades, and distributed generation capabilities.
5. Accelerate Geothermal Development: Eastern Caribbean countries with geothermal resources should prioritise exploration and development, supported by regional and international partners.
6. Develop Regional Renewable Energy Partnerships: CARICOM should facilitate cooperation on energy research, technology transfer, regulatory frameworks, and workforce development.
7. Create Green Energy Training and Employment Pathways: Establish programmes preparing young people for careers in solar installation, wind turbine maintenance, electrical engineering, energy auditing, battery storage, smart grid management, and green construction—with emphasis on unemployed youth and workers transitioning from traditional industries.
8. Encourage Renewable Energy in Tourism and Hospitality: Hotels, resorts, and tourism operators should adopt solar power, energy efficiency technologies, water conservation measures, and electric vehicle infrastructure.

Discussion Questions

1. Should CARICOM adopt a regional renewable energy target for 2040?
2. How can Caribbean governments attract greater private investment in renewable energy?
3. Should renewable energy technologies be exempt from import duties across the region?
4. Can renewable energy help lower the cost of living in Caribbean countries?
5. What role should young people play in leading the Caribbean's energy transition?

These questions are a starting point. Join the discussion below.

Sources

• World Bank. The Caribbean Regional Overview. worldbank.org
• UNDP Climate Promise (2022). Building Resilient Futures in the Caribbean. climatepromise.undp.org
• Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE).
• Caribbean Community Climate Change Centre (CCCCC).
• Inter-American Development Bank (IDB). https://www.iadb.org
• CARICOM / C-SERMS renewable energy strategy materials. caricom.org