The International Finance Corporation (IFC), a member of the World Bank Group, says it’s helping reduce energy costs in the Caribbean by supporting regulatory reforms that promote clean energy and by helping local banks provide the finance needed to develop sustainable energy sources.
It is a programme supported by the Department of Foreign Affairs, Trade and Development of Canada, the IFC said.
As part of the venture, the organization co-hosted a Caribbean Tourism: The Energy Forum, the first regional event to focus on lowering the electricity bill for the Caribbean’s hospitality sector, last week in Punta Cana, Dominican Republic.
It included a gathering of global experts, who shared expertise in energy efficiency and renewable energy for the Caribbean’s tourism industry.
IFC officials noted that more than 97 per cent of electricity in the Caribbean is generated from fossil fuels. They said with rates averaging US$0.30 per kilowatt hour, electricity bills can soar two to three times higher than in other parts of Latin America.
“Reducing the reliance on fossil fuels and supporting cleaner, more efficient energy production is critical to helping island economies grow sustainably. There is potential for renewable energy, but many Caribbean countries lack the regulatory frameworks and know-how to support it. In addition, businesses face formidable hurdles in accessing credit to invest in clean energy,” the IFC said.
“IFC is helping energy service companies and equipment vendors understand how to structure projects for financing. IFC is also building the capacity of local financial institutions to identify sustainable energy projects and meet their financing needs. In the Dominican Republic, for example, Banco BHD has an active line of credit with IFC to finance sustainable energy projects and also received advisory services.”
Banco general manager Steven Puig said his company “has identified sustainable energy finance as a strategic business opportunity”.
“We have been very pleased that IFC’s know-how and long-term funding have facilitated our leadership in bringing cost-efficient and cleaner energy solutions to the Dominican Republic,” he said.
The IFC observed that several Caribbean countries “are taking steps toward a more sustainable energy matrix”, mentioning the fact that Barbados “is promoting solar energy while Jamaica has implemented energy audits for better efficiency in the hotel industry”.
It added that Grenada, St Lucia, and St Kitts and Nevis “are working on regulatory reforms to shield themselves from volatile oil markets”. (SCPR)