Guyana among three CARICOM states earmarked for World Bank renewable energy project

Guyana is among three CARICOM states set to benefit from a US$131.8 Million World Bank approved project that seeks to address the region’s critical energy challenges and drive economic growth by reducing dependence on imported fossil fuels.

The other two beneficiaries are Grenada and St. Lucia.

In a statement on Monday, the World Bank said the Caribbean is highly dependent on imported petroleum products for electricity generation, and imports account for around 90% of petroleum consumed, far exceeding the global average of 21%.

It noted that the region’s aging infrastructure, with 96% of power generation relying on diesel-fired plants, further complicates matters, in addition to small, isolated grids being at risk from hurricanes, floods, and droughts.

The new project will focus on two key goals: reducing energy consumption in public buildings and increasing the adoption of renewable energy systems.

It will retrofit buildings with energy-efficient technologies and integrate renewable energy systems such as rooftop solar panels into public infrastructure.

Approximately 500 public buildings will be retrofitted to enhance energy efficiency, reducing energy consumption by at least 20%, delivering both economic savings and environmental benefits. These efforts will not only decrease reliance on imported fossil fuels but will also build resilience against power outages, which are common in the region due to extreme weather events like hurricanes and floods.

The project will also provide assistance for participating countries in developing and implementing regulatory frameworks that encourage green energy investments, including guidelines for energy performance standards, net billing for solar power, and policies to integrate electric vehicles and charging infrastructure. Harmonizing regulations across countries will allow for greater economies of scale and cost savings, as well as strengthen the region’s collective energy security. A key component of the project will emphasize capacity-building, including increasing female participation in the energy sector.

“This project aims to foster regional cooperation, allowing participating countries to benefit from shared platforms, resources and collaboration. By working together, Saint Lucia, Grenada, and Guyana can address energy sector constraints and prepare for a sustainable, low-carbon future,” said Lilia Burunciuc, World Bank Director for the Caribbean. “The Caribbean stands to gain significant economic benefits from this project, including the creation of green jobs, lower electricity bills for citizens, and enhanced energy resilience.”

The project is funded by a combination of donors and mechanisms.

The World Bank’s International Development Association is providing concessional financing of $40 million to Grenada, $30 million to Guyana, and $30 million to Saint Lucia. Additionally, grants of $3.3 million will be provided to the Organization of Eastern Caribbean States Commission to support pooled procurement at the regional level, and $0.7 million to the Caribbean Centre for Renewable Energy and Energy Efficiency which will provide technical assistance. The Global Environment Facility is contributing a US$1.791 million grant to Saint Lucia and, Grenada will receive a loan of US$8.5 million from the Clean Technology Fund while a US$8.2 million loan and US $0.38 million grant are provided to Guyana from the Canada Clean Energy and Forest Climate Facility.

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