The Renewable Energy Industry in CARIFORUM Countries

INTRODUCTION | BACKGROUND

1.1 | BACKGROUND T he CARIFORUM region is faced with several threats stemming from the high cost of electricity, in many cases the importation of foreign sources of energy and the impacts of climate change. This has led to an increased cost of doing business and reduced competitiveness amongst many small and medium- sized businesses in the CARIFORUM region. As a result, some interventions are necessary to cope and advance the countries’ Sustainable Development Goals (SDG) as set by the United Nations General Assembly in 2015 for the year 2030 (UN, 2015) and incorporated into the national development strategies of CARIFORUM countries. The SDGs are part of Resolution 70/1 of the United Nations General Assembly, the 2030 Agenda. A significant investment of financial and other resources is requiredto fundthework that isnecessary to transform the energy sector. Unfortunately, the Caribbean Community (CARICOM) Member States

already struggle with their individual economic challenges which are often exacerbated by energy challenges. The deployment of the less expensive energy efficiency (EE) measures requires additional support from the utilization of indigenous renewable energy (RE) sources which may further lower the cost of doing business in this region. Their utilization of indigenous sources of energy removes the international logistics involved in traditional supply, the requirement for foreign exchange and the volatility of fuel prices. It creates a more cost-controlled local environment in which energy generators operate. Whilst mitigating the macro-economic challenges relating to energy dependency, the utilization of indigenous energy sources also provides opportunities for employment and additional value chain activity related to production, delivery and generation. This would therefore contribute positively to economic growth.

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The Renewable Energy Industry in CARIFORUM Countries