Presentation delivered by CDB's Sustainable Energy Specialist, Mr. Christopher Straughn at the seminar, 'What Do the Global Sustainable Development and Net-Zero Agendas Mean for Caribbean Energy Transition' on June 3, as part of CDB's 52nd Annual Meeting.

2. Caribbean
Energy Situation
A Synopsis
Christopher Straughn,
Sustainable Energy Specialist
Sustainable Energy Unit, CDB
June 3, 2022

3. Objectives
of Presentation
• Key energy sector challenges for CDB BMCs
• Where the Region is in its energy transition
• What is required to achieve regional targets
To discuss briefly::

4. What are the main
energy sector
challenges?

5. Main issues with BMCs’ Energy Sectors
Over-dependent
Most BMCs are
heavily reliant on
one main source of
energy
Volatile
Subject to
market vagaries,
geo-politics
Fossil fuel-based
CLIMATE CHANGE
Imported
Depends on
marine transport
and uses foreign
exchange
ENERGY INSECURITY
(Manifested: supply risk, high cost,
unaffordability, price instability)
Low resilience

6. Energy Insecurity
(leads to risks & adverse economic impacts)
BMCs’ Fuel import bill -2019 ~ US$8 billion (128 m BOE)
Greater than Food import bill of ~ US$5 billion
Greater than combined 2019 GDP of ~ 8 BMCs
For Jan-May 2022, fuel price spike cost
BMCs an additional ~ US$1.8 billion

7. Perils of not transitioning
to renewables
Not moving to replace the
fossil-based energy
represents …
Less climate resilience, higher carbon footprint (all BMCs)
Major risks to poverty reduction efforts and achievement the SDGs
(most BMCs)
Fiscal risks – undermining of economic resilience efforts (most BMCs)
Risks of uncompetitiveness/ missing green-trade opportunities (all
BMCs)

8. Opportunities for BMCs - Global Net-Zero 2050 and SDG 2030
Agendas
Addresses overarching energy security challenges
Increased financing flows
Green products and services – enhanced economic
diversification

9. Transitioning to renewables is a key
climate imperative!
However, the energy and economic
security objectives remain a very
compelling case for all BMCs.
“
“

10. Where are we
as a Region with
this transition?

11. State of the Caribbean’s energy transition
The share of RE capacity installed is 12%
Compared to target of 47% by 2030
At end of 2021 share should be at 32%

12. What will it take
to achieve targets
or come close?

13. What will it take?
By 2030, BMCS need to install
approximately 2600 MW of renewable
energy capacity, i.e. 320 MW/year
This is a 1400% increase over the
current rate
Requires a 16-fold increase in investments
to well over US$1.25 billion annually

14. The Caribbean isn’t short on energy resources…
Solar Wind Hydro-power Geothermal

15. CDB’s Proposal
ASERT-2030
Acclerated
Sustainable
Energy &
Resilient
Transition
2030
From ‘Business As
Usual’ to ‘Urgency &
Boldness’

16. As part of ASERT-2030
…CDB will engage with BMCS
and partners
Robust dialogues to agree on transformative
initiatives and strategise on how to move
quickly but inclusively
Building on current efforts
Building strong partnerships for coordination
and resource mobilisation

17. Indicative Transformative Initiatives (ASERTives)
Leap-frogging Regulatory Reforms for expedited private
investments
A Resilient Roof Initiative
Wide-scale Greening of Public Sector Initiative
Revving up E-mobility Initiative

18. Transformative Initiatives (ASERTives)
Connecting and expediting - Green Hydrogen Initiative
Rapid de-risking of offshore wind - initiatives
Expanded GeoSmart for geothermal Initiative
Jump-starting Battery energy storage Initiative

19. THANK
YOU
Conclusion:
It is considered a no-regret strategy for all
CDB’s BMCs to rapidly transition their energy
sectors to renewables.