The World Bank has approved a $131.87 million project aimed at advancing energy efficiency and expanding renewable energy use in Grenada, Guyana, and Saint Lucia.
The initiative, a collaboration with the Organization of Eastern Caribbean States (OECS) and the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE), seeks to reduce the region’s reliance on imported fossil fuels and drive economic growth.
The Caribbean’s energy landscape faces significant challenges, with around 90% of its petroleum being imported—far above the global average of 21%. Aging infrastructure and a heavy dependence on diesel-fired power plants (96%) have made the region’s electricity grids particularly vulnerable to hurricanes, floods, and droughts. In Grenada, several power-generating units are set to reach the end of their economic life within the next two to four years, further underscoring the urgency of energy reforms. The economic impact of natural disasters is also severe; for instance, Grenada spent 6% of its GDP rebuilding its grid after Hurricane Ivan in 2004.
The newly approved Caribbean Efficient and Green Energy Buildings Project focuses on retrofitting approximately 500 public buildings with energy-efficient technologies and integrating renewable energy systems like rooftop solar panels. The goal is to reduce energy consumption by at least 20%, delivering both environmental benefits and economic savings. By modernizing energy infrastructure, the project aims to bolster resilience against frequent power outages caused by extreme weather events.
In addition to infrastructure upgrades, the project will assist participating nations in developing regulatory frameworks to encourage green energy investments. This includes guidelines for energy performance standards, policies for integrating electric vehicles and charging stations, and net billing for solar power. A harmonized regulatory approach is expected to reduce costs, enhance energy security, and create green jobs across the region. A significant component of the initiative will also focus on capacity-building to boost female participation in the energy sector.
“This project aims to foster regional cooperation, allowing participating countries to benefit from shared platforms, resources, and collaboration,” said Lilia Burunciuc, World Bank Director for the Caribbean. “By working together, Saint Lucia, Grenada, and Guyana can address energy sector constraints and prepare for a sustainable, low-carbon future.”
Funding for the project comes from multiple sources. The World Bank’s International Development Association (IDA) is providing $40 million to Grenada, $30 million to Guyana, and $30 million to Saint Lucia. Additionally, grants totaling $3.3 million will support regional procurement efforts through the OECS Commission, and the CCREEE will receive $0.7 million for technical assistance. The Global Environment Facility is contributing $1.791 million to Saint Lucia, while Grenada will receive an $8.5 million loan from the Clean Technology Fund. Guyana will benefit from an $8.2 million loan and a $0.38 million grant from the Canada Clean Energy and Forest Climate Facility.
The project is seen as a significant step toward achieving energy sustainability in the Caribbean, promising lower electricity costs, enhanced energy security, and a cleaner, more resilient power grid for the future.
