Barbados took a significant step forward in its clean energy ambitions this month with the signing of a Memorandum of Understanding (MoU) between the Barbados Investment & Development Corporation (BIDC) and climate tech firm Global OTEC.
The agreement was finalized on the sidelines of the UN Ocean Conference (UNOC3), held in Nice, France, and marks a major advancement for marine renewable energy development in the region.
Through its Bloom Clean Technology and Climate Tech Center of Excellence, BIDC is partnering with Global OTEC to explore the deployment of Ocean Thermal Energy Conversion (OTEC) technology. This renewable energy solution uses the temperature difference between warm surface water and cold deep water to generate continuous electricity — a promising fit for Small Island Developing States (SIDS) like Barbados.
The partnership supports Barbados’ push to diversify its energy mix, reduce dependence on imported fossil fuels, and transform “energy” into a viable export commodity. The MoU outlines collaboration on technical assessments, stakeholder engagement, and site evaluations for the implementation of OTEC systems at BIDC’s Industrial Estates. With electricity for over 282,000 Barbadians currently supplied by diesel generators, OTEC could play a transformative role in greening industrial operations and strengthening energy security.
“Small Island Developing States need to innovate in their industrial development thinking and their approach with regards to their energy security and sovereignty,” said BIDC CEO Mark Hill. “Greening our industrial estates through innovative technology will remain a key strategic objective at the Corporation.”
The move is in line with Barbados’ goal of becoming carbon neutral by 2030. According to Global OTEC’s Founder and CEO Dan Grech, “Barbados continues to lead by example in the global blue economy. This MoU builds on our longstanding engagement with the country and signals our commitment to making Barbados the launchpad for a Caribbean cluster of ocean thermal projects.”
OTEC offers 24/7 clean baseload power and can integrate with island grids, providing critical energy redundancy in the wake of tropical storms. It also holds potential to support Barbados’ green hydrogen production targets. Global OTEC is currently leading an EU-funded project called PLOTEC, which is developing a floating, storm-resistant OTEC platform tailored to weather-prone regions like the Caribbean.
As interest in ocean-based climate solutions grows among SIDS, Barbados is positioning itself as a regional pioneer. With high electricity costs — averaging around $0.25 per kWh, and even exceeding $0.40 in some Caribbean nations — OTEC is seen as a cost-effective alternative that could cut diesel expenses by up to 50% while improving reliability and reducing poverty-inducing energy burdens.
By leveraging its ocean resources through partnerships like this one, Barbados is not only advancing its clean energy transition but also setting the pace for other island nations facing similar challenges.
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