The World Bank’s Board of Executive Directors has greenlit a major new energy initiative—the Caribbean Resilient Renewable Energy Infrastructure Investment Facility—targeting Grenada, Saint Lucia, and Saint Vincent and the Grenadines. Developed in collaboration with the Eastern Caribbean Central Bank and regional governments, the initiative aims to drive the transition to clean, reliable, and cost-effective energy systems. Other Caribbean nations will also have the option to join over time.
The Caribbean’s energy vulnerability stems from its heavy reliance on imported fossil fuels, which supply more than 90% of the region’s electricity. Between 2016 and 2021, Eastern Caribbean nations imported an average of $444 million worth of fossil fuels annually—making up over 15% of their total imports and significantly impacting trade balances. These islands also suffer from some of the world’s highest electricity prices.
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Despite growing global momentum for clean energy, the Caribbean’s shift to renewables has been sluggish. As of 2022, only 11.6% of the region’s power came from renewable sources. The slow progress is attributed to numerous challenges including small-scale projects, outdated infrastructure, fragmented regulations, limited institutional capacity, and exposure to natural disasters.
The newly approved US$110 million initiative takes a collaborative and cross-border approach to tackle these barriers. By aggregating renewable energy projects across multiple countries, the Facility aims to lower project costs, expand scale, and attract private sector participation.
At the national level, the Facility will finance key infrastructure upgrades, including modernizing electricity transmission and distribution networks, and installing battery storage systems to improve grid resilience and enable greater integration of renewables. To encourage further investment, it will also provide up to US$120 million in commercial credit via partial credit guarantees—unlocking new financing options for clean energy projects.
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“Across the Caribbean, residents are paying some of the highest electricity prices in the world, which places a strain on households and businesses,” said Lilia Burunciuc, World Bank Director for the Caribbean. “Through this project, we aim to reduce those costs and improve electricity reliability by investing in renewable energy and climate-resilient infrastructure.”
In addition to infrastructure investments, the initiative will offer technical support and training to streamline project preparation, navigate regulatory frameworks, and manage risks more effectively. A new insurance product will also be developed in partnership with the Caribbean Catastrophe Risk Insurance Facility, to safeguard renewable energy assets from extreme weather and other catastrophic events.
To build long-term capacity, the project includes education and workforce development components such as scholarships and apprenticeship programs to cultivate a skilled energy workforce.
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“We cannot transform our region without a transition to renewable energy,” stated Timothy Antoine, Governor of the Eastern Caribbean Central Bank. “This Facility is a vital step in building institutional strength, enhancing energy security, improving competitiveness, and reducing electricity costs for our people and businesses.”
The project is funded through the World Bank’s International Development Association (IDA), which supports low-income and small island nations through grants and low-interest loans. Additional backing comes from the Climate Investment Funds, the Energy Sector Management Assistance Program, and the Canada Clean Energy and Forests Climate Facility.
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