The Renewable Energy Industry in CARIFORUM Countries

INTRODUCTION | DESCRIPTION | LITERATURE REVIEW

1.3 | DESCRIPTION The project seeks to execute a critical piece of research which is very necessary for the region to execute its energy transformation plans. While the territories in CARIFORUM understand the importance of implementing RE technologies, they lack the resources to transition their energy sources in a short timeframe. Unfortunately, some also lack the technical know-how but have proceeded anyway to put their best effort forward. All responses are admirable but vary in their effectiveness given their unique local circumstances. The net result is a fragmented RE sector and limited returns for invested resources. Even with available resources from institutions like the Inter-American Development Bank (IDB) and the Green Climate Fund (GCF), it is difficult to focus the required efforts and intervention in the correct areas due to the industry’s fragmentation and general lack of a clear understanding of the state of the industry. 1.4 | LITERATURE REVIEW In order to establish the context of the study commissioned by Caribbean Export, an examination of the relevant existing literature was carried out. A key overarching document is the CARICOM Energy Policy (CEP) which took a decade to be realised, finally being approved in 2013 (CARICOM, 2013). During this process the policy sought to examine several critical areas in the energy sector including: - • CARICOM energy trends • A survey of energy generation in the region • The existing regulatory frameworks • The impacts of fossil fuel imports on the region’s economies • Member State concerns

The document presents the trends, energy generation profiles and the inadequacies in the regulatory frameworks across the region. It further recognized the dependence on imported fossil fuels within the region and the significant macro- economic impact this has had on the economies of the fuel importing countries (all except Trinidad and Tobago). The energy imports bill compared to total imports reflected an increase from previous years and this was deemed harmful to the macroeconomic sustainability of these economies. For Jamaica and Guyana with a larger industrial base, these imports represented between 40% and 60% of their total export earnings while for tourism and services- Not only will the study highlight what is required and where, it will also create an opportunity for sharing and cross-pollination of strategies within the CARIFORUM region. Hopefully this will lead to the growth of an indigenous RE industry, better energy security, lower energy rates, a positive emissions impact and an ease in foreign exchange pressures. Ultimately, we hope for more competitive and productive businesses in CARIFORUM. This study will provide a clearer picture of the state of the RE Industry and allow the mobilized resources to be effectively deployed in the priority areas. Responses are expected to vary by country given their different stages of implementation. E.g. countries like Trinidad and Tobago which have an abundance of petroleum products and cheap energy, Suriname and Belize which have a significant percentage of RE but still suffer from high energy rates.

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The Renewable Energy Industry in CARIFORUM Countries