With the abundance of clean energy resources in the Caribbean—sun, wind, water, and geothermal—it’s a natural environment for more renewable energy generation. So why isn’t there more renewable energy produced in the Caribbean energy sector, and why aren’t there more renewable energy projects in the pipeline?
Having worked in the region for more than three decades developing renewable energy resources and operating electric utilities, WRB Energy can address some of the challenges that hinder increased renewable energy generation in the Caribbean.
Contain costs
Most small Caribbean island nations lack economies of scale to absorb the high costs and complexities of developing relatively small renewable installations as compared to those in larger, more developed countries. With relatively smaller populations, economies, and electricity demand, there are fewer kilowatt-hours produced to amortize the up-front investment expenses cost-effectively. However, as the prices for renewable energy equipment continue to decrease and technologies advance, solar, wind, and geothermal are increasingly more viable, least-cost options for diversified energy portfolios.
Flatten the learning curve
Government leaders with a stable long-term vision and implementation plans for increased renewable energy attract the best opportunities for project development. By working collaboratively and transparently, Caribbean utilities, government, and regulators can help level the learning curve for initial projects. As energy providers, regulatory bodies and ministries get up to speed on the process and requirements, more renewable energy will be incorporated to meet the aggressive renewable energy targets set by many Caribbean nations.
Understand that land is precious
Securing appropriate land for project siting poses significant challenges. There is tremendous pride in land ownership, with small parcels of land being passed on from generation to generation. Also, there is a history of informal and murky land dealings, which leads to clouded property titles. Consequently, these issues can create local owner resistance to land transactions and long-term lease agreements.
Simplify permitting
Site selection and permitting overlaps many functions of ministries and parishes, including departments of energy, utilities, environment, and labor. Coordinating with multiple government and regulatory offices adds more time, administration, and expense to the projects. Streamlining procedures would help improve efficiency immensely.
Clarify investment requirements
Banks, investors, and multilateral organizations have universally-required mandates, terms, securities and covenants that can be misunderstood in negotiations with governments, utilities and regulators. Policies and processes need to be clearly defined and as transparent as possible to avoid misinterpretation of project terms which can cause delays in development.
Harness a sustainable future
Developing and integrating more renewable systems reliably and affordably requires due diligence and prudence to avoid electricity rate increases. It’s a long-term strategy requiring cooperation between stable government policies, flexible utilities, competent regulatory bodies, responsible investors, and credible development partners to design, develop and deliver renewable energy projects as promised. Read the full article here.
About WRB Energy
WRB Energy develops renewable energy projects to help stabilize electricity prices and reduce dependence on imported fuels to drive economic growth and sustainability in Latin America and the Caribbean. WRB Energy manages the entire project lifecycle including site selection, design, permitting, financing, construction and operation. WRB Energy’s parent company, WRB Enterprises, has more than a half-century of operational experience in the energy, utilities and financial sectors. For more information about WRB Energy, please visitwww.wrbenergy.com.
