Guyana is among three CARICOM countries that will benefit from a US$131.87 million energy sustainability project from the World Bank.
The International Financial Agency in a press statement on Monday said its board of directors approved the new project aimed at improving energy efficiency and expanding the use of renewable energy within Guyana, Grenada, and St. Lucia.
Guyana will receive US$30 million; Grenada US$40 million and St. Lucia US$30 million. Additionally, the explained that the Organization of Eastern Caribbean States Commission to support pooled procurement at the regional level, and $0.7 million to the Caribbean Centre for Renewable Energy and Energy Efficiency which will provide technical assistance. The Global Environment Facility is contributing a US$1.791 million grant to Saint Lucia and, Grenada will receive a loan of US$8.5 million from the Clean Technology Fund while a US$8.2 million loan and US $0.38 million grant are provided to Guyana from the Canada Clean Energy and Forest Climate Facility
The project, a collaboration between the Organisation of Eastern Caribbean States (OECS) and the Caribbean Centre for Renewable Energy and Energy Efficiency will address the region’s critical energy challenges and drive economic growth by reducing dependence on imported fossil fuels.
According to the World Bank the Caribbean region is highly dependent on imported petroleum products for electricity generation and imports account for around 90% of petroleum consumed, which far exceeds the global average of 21%.
The bank said the region’s aging infrastructure with 96% of power generation relying on diesel-fired plants, further complicates matters. Further small, isolated grids being at risk from hurricanes, floods, and droughts.
This news project the international financial agency said will focus on two key goals: reducing energy consumption in public buildings and increasing the adoption of renewable energy systems. It will also retrofit buildings with energy-efficient technologies and integrate renewable energy systems such as rooftop solar panels into public infrastructure.
Participating countries will also be assisted with implementing regulatory frameworks that encourage green energy investments which include guidelines for energy performance standards, net billing for solar power and policies to integrate electric vehicles and charging infrastructure. Lilia Burunciuc, World Bank Director for the Caribbean said, “This project aims to foster regional cooperation, allowing participating countries to benefit from shared platforms, resources and collaboration. By working together, Saint Lucia, Grenada, and Guyana can address energy sector constraints and prepare for a sustainable, low-carbon future”.
She added that the Caribbean stands to gain significant economic benefits form the project including the creation of green jobs, lower electricity bills for citizens and enhanced energy resilience.