News Americas, New York, NY, April 24, 2025: In a landmark step toward transforming the Caribbean’s energy landscape, the World Bank has approved a major new initiative designed to boost renewable energy across the region. The Caribbean Resilient Renewable Energy Infrastructure Investment Facility, officially announced on April 17, 2025, will provide US$110 million to strengthen clean energy systems in Grenada, Saint Lucia, and Saint Vincent and the Grenadines, with additional countries eligible to join over time.
Developed in collaboration with the Eastern Caribbean Central Bank and regional governments, the initiative aims to reduce the Caribbean’s dependence on expensive imported fossil fuels, which currently power over 90% of the region’s electricity.
“Across the Caribbean, residents are paying some of the highest electricity prices in the world,” said Lilia Burunciuc, World Bank Division Director for the Caribbean. “This project is about lowering costs, improving reliability, and investing in a more affordable and secure energy future for Caribbean communities.”
A Bold Shift Toward Energy Resilience
Between 2016 and 2021, fossil fuel imports in the Eastern Caribbean cost an average of $444 million per year, accounting for more than 15% of total imports. Despite growing demand for greener energy, renewable sources made up just 11.6% of the region’s electricity generation by 2022. The barriers have been considerable: small-scale projects, weak regulatory frameworks, under-resourced grids, and high vulnerability to natural disasters.
This new facility seeks to address those issues head-on. It will:
- Aggregate projects across countries to reduce costs and attract private sector developers.
- Modernize transmission and distribution infrastructure, including battery energy storage systems.
- Mobilize up to $120 million in commercial credit using partial credit guarantees.
- Launch a new insurance product to protect renewable energy infrastructure from natural disasters.
Training, Jobs, and Long-Term Impact
Beyond infrastructure, the initiative will invest in skills training, technical assistance, and educational scholarships to support a new generation of energy professionals in the Caribbean. This includes apprenticeship programs and regulatory support to streamline project development.
“This Facility is a game-changer,” said Timothy Antoine, Governor of the Eastern Caribbean Central Bank. “It helps us strengthen capacity, enhance energy security, and lower electricity costs. We’re building the foundation for a cleaner, more competitive regional economy.”
The project is supported through the World Bank’s International Development Association (IDA), along with funding from the Climate Investment Fund, the Energy Sector Management Assistance Program, and the Canada Clean Energy and Forests Climate Facility.
As climate resilience becomes a global priority, the Caribbean is positioning itself as a leader in sustainable energy transition—turning today’s challenges into tomorrow’s opportunities.