The Renewable Energy Industry in CARIFORUM Countries

EXECUTIVE SUMMARY

As emphasized in most studies, creating that enabling environment remains a priority for all countries. Working together as a region is key as well and should continue to be promoted by the regional institutions in the sustainable energy space so that appropriate solutions may be developed and shared.

In seeking to execute energy plans, countries tend to access the same capital and insurance markets given the common banks and insurance companies that exist there. The region needs to mobilize an estimated US$6 billion annually but the national requirements will depend on the energy road map established for each country. Those focused on large independent power producer (IPP) utility scale implementations will depend heavily on financing frommultilaterals and international funding agencies along with direct investment from local and foreign investors and less on local financial institutions. Those focused on all-scale generation will depend less on financing from multilaterals and international funding agencies and more on direct investment with a greater focus on local financial institutions. Financing agencies and institutions provide financial assistance in the form of grants, low interest loans, equity financing, blended financing and other variations. While many are multilateral institutions, there are also regional and local development banks which also operate. The demand for RE and EE products and services are significant in all the countries in this study. Given the fluidity of the market status which depends on the regulatory frameworks, it is difficult to quantify the real opportunity beyond what is mathematically required. However, RECs in some territories have seized the opportunities to export their RE and EE products and services while other territories simply have no capacity to pursue external opportunities. Nationally capacity building and awareness campaigning is paramount, alongside regional technical capacity and cooperation. Sectoral development and execution among sectors with strong economic linkages with the RE Industry is also recommended; the main one being tourism but depending on the dominant local economic activity in each country.

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The Renewable Energy Industry in CARIFORUM Countries