In a landmark move to cut energy costs and enhance climate resilience, the World Bank approved the Caribbean Resilient Renewable Energy Infrastructure Investment Facility, aimed at accelerating clean energy adoption in Grenada, Saint Lucia, and Saint Vincent and the Grenadines.
Developed in collaboration with the Eastern Caribbean Central Bank (ECCB) and participating Eastern Caribbean nations, the initiative lays the groundwork for a more affordable and sustainable energy future across the region.
The $110 million investment targets some of the biggest hurdles in the region’s energy sector: heavy dependence on imported fossil fuels, high electricity costs, and slow progress toward renewables. Despite a clear need for change, as of 2022 only 11.6% of electricity in the region came from renewable sources. Meanwhile, electricity tariffs in the three beneficiary countries rank among the highest globally.
“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 Division Director for the Caribbean. “Through this project, we want to help lower costs and improve reliability by investing in renewable energy and resilient infrastructure.”
The initiative takes a multi-layered approach:
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Regionally, the Facility will pool renewable energy projects across borders to lower costs, scale investments, and attract private developers.
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Nationally, it will fund upgrades to electricity grids, install battery storage systems, and reinforce transmission and distribution systems to better integrate renewables and withstand extreme weather.
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Financially, it will mobilize up to US$120 million in commercial credit using partial credit guarantees to improve access to funding.
Additionally, the program includes technical assistance, training, and the creation of a new insurance product—in partnership with the Caribbean Catastrophe Risk Insurance Facility—to protect energy infrastructure from natural disasters. Tailored scholarship and apprenticeship programs will help build the region’s energy workforce.
“We cannot transform our region without a transition to renewable energy,” said ECCB Governor Timothy Antoine. “This Facility is an important vehicle for our journey to build institutional and generating capacity, enhance energy security, boost competitiveness and lower electricity prices.”
The project is financed through the World Bank’s International Development Association (IDA), with additional support from the Climate Investment Fund, the Energy Sector Management Assistance Program, and Canada’s Clean Energy and Forests Climate Facility.
As Grenada, Saint Lucia, and Saint Vincent and the Grenadines lead the charge, other Caribbean nations are expected to join the Facility in time, signaling a significant regional shift toward renewable energy and long-term energy independence.
