Latest update March 4th, 2025 9:28 AM
Guyana to get over US$30M for energy project
…as World Bank approves US$131.87M for regional energy sustainability
Kaieteur News- Guyana will benefit from concessional financing of US$30M from the International Development Association for the World Bank. On Monday, the World Bank announced that it has approved a US$131.87M project to aid in regional sustainability across three Caribbean countries, namely Grenada, Guyana and Saint Lucia.
Lilia Burunciuc, World Bank Director for the Caribbean.
Grenada will receive US$40M and St. Lucia, US$30M.
Further, Guyana will receive a US$8.2M loan and a US$0.38million grant from the Canada Clean Energy and Forest Climate Facility. 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.
Additionally, grants of US$3.3 million will be provided to the Organization of Eastern Caribbean States Commission to support pooled procurement at the regional level, and US$0.7 million to the Caribbean Centre for Renewable Energy and Energy Efficiency which will provide technical assistance.
The World Bank said that it will be partnering with the Organization of Eastern Caribbean States (OECS) and the Caribbean Centre for Renewable Energy and Energy Efficiency, to look at the critical energy challenges in the region and to also foster economic growth by reducing the dependence on imported fossil fuels.
“The Caribbean is highly dependent on imported petroleum products for electricity generation and imports account for around 90% of petroleum consumed, far exceeding the global average of 21%. The region’s aging infrastructure, with 96% 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.
According to the Bank, Grenada has several power generation units that will be reaching the end of their life cycle within the next two to four years. The island is prone to natural disasters and the cost of rebuilding the infrastructure after a disaster struck is expensive. For example, 6% of GDP was spent to restore the country’s grid after Hurricane Ivan (2004), highlighting the economic burden of these challenges.
This new project has two main goals; to reduce the consumption of energy in public buildings and increasing adoption of renewable energy systems. This can be done by retrofitting the buildings with energy-efficient technologies and integrating renewable energy systems such as rooftop solar panels into public infrastructure.
On average around 500 public buildings will be retrofitted to enhance energy efficiency, reducing energy consumption by at least 20%, which is set to deliver both economic savings and environmental benefits. These efforts not only decrease reliance on imported fossil fuels but will also aid in building resilience against power outages, which are common in the region due to extreme weather events like hurricanes and floods.
This project will also be providing the assistance for participating countries to develop and implement regulatory frameworks that will encourage green energy investments. These include guidelines for energy performance standards, net billing for solar power, and policies to integrate electric vehicles and charging infrastructure.
Harmonizing regulations across countries will allow for greater economies of scale and cost savings, as well as strengthening the region’s collective energy security. A very important aspect of the project will highlight capacity-building, including increasing the participation of females within the sector.
“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,” said Lilia Burunciuc, World Bank Director for the Caribbean.
She added, “The Caribbean stands to gain significant economic benefits from this project, including the creation of green jobs, lower electricity bills for citizens, and enhanced energy resilience.”
(Guyana to get over US$30M for energy project)
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