Saint Lucia is set to benefit from a multi-million dollar initiative aimed at enhancing energy efficiency and expanding the use of renewable energy.
The World Bank’s Board of Executive Directors has approved the Caribbean Efficient and Green Energy Buildings Project, a US$131.87 million investment that will also benefit Grenada and Guyana and is designed to reduce the region’s reliance on imported fossil fuels and modernise energy infrastructure.
The project, which is being executed in partnership with the Organisation of Eastern Caribbean States (OECS) and the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE), will focus on reducing energy consumption in public buildings and increasing the adoption of renewable energy systems.
Under the project, public buildings will be retrofitted with energy-efficient technologies, and renewable energy systems such as rooftop solar panels will be integrated into public infrastructure.
“Approximately 500 public buildings will be retrofitted to enhance energy efficiency, reducing energy consumption by at least 20 per cent, delivering both economic savings and environmental benefits,” the World Bank said. “These efforts will not only decrease reliance on imported fossil fuels but will also build resilience against power outages, which are common in the region due to extreme weather events like hurricanes and floods.”
The project will also provide assistance for participating countries in developing and implementing regulatory frameworks that encourage green energy investments, including guidelines for energy performance standards, net billing for solar power, and policies to integrate electric vehicles and charging infrastructure. A key component of the project will emphasise capacity-building, including increasing female participation in the energy sector.
Saint Lucia will receive US$30 million in concessional financing from the World Bank’s International Development Association (IDA), along with an additional US$1.791 million grant from the Global Environment Facility (GEF).
Additionally, grants of US$3.3 million will be provided to the OECS Commission to support pooled procurement at the regional level, and $0.7 million to CCREEE which will provide technical assistance.
Grenada is getting $40 million in concessional financing from the IDA, and a loan of US$8.5 million from the Clean Technology Fund; while Guyana receives concessional funding of US$30 million from the IDA, and a US$8.2 million loan and US$0.38 million grant from the Canada Clean Energy and Forest Climate Facility.
According to Lilia Burunciuc, World Bank Director for the Caribbean, “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.”
The region is highly dependent on imported petroleum products for electricity generation, and imports account for around 90 per cent of petroleum consumed, far exceeding the global average of 21 per cent. The region’s aging infrastructure, with 96 per cent of power generation relying on diesel-fired plants, further complicates matters, in addition to small, isolated grids being at risk from hurricanes, floods, and droughts, the World Bank said.
