Page 32 - “GREENING” THE CONTENT IN CXC® SYLLABUSES

E-LEARNING MODULES AND LEARNING GUIDE FOR TEACHERS

Objective 8: Discuss the role and importance of sustainable energy
in the Caribbean.

Read to Learn!

Several issues/factors affect energy use in the Caribbean.
• The Caribbean’s oil dependence leaves it

vulnerable to shifts in oil prices. Oil price shocks

contribute to an average of seven percent of

real GDP growth variation in the region, with

Dominica affected the most at 15 percent.
• The Caribbean faces supply deficits and

inefficiencies that affect the power market’s ability to supply electricity to consumers.

Although Caribbean countries average 90 percent electrification rates, much of this
number comes from off-grid self-generation due to frequent power outages and low

reliability. Sectoral concerns including limited generation capacity, outdated systems, and

a lack of technical expertise have driven domestic tariffs above 30 cents per kilowatt-hour

(kWh) for most countries, more than double those of the United States.

• Lack of diversification and vertical integration of electric firms leaves consumers without
access to energy because of the inability to finance generation capacity and national grids,

while the absence of national regulatory agencies leaves a legislative gap in the sector.

• Natural capital endowment: Larger islands with high mountains have the potential for

hydro-electric power generation, and geothermal power is possible on the region’s
volcanic islands, which include Grenada, St. Vincent, or Dominica. Additionally, biomass

(organic matter used as fuel) can be used on islands with large agricultural sectors.

• ‘High initial investments’ is often cited as the most critical barrier to RE development in

the Region. See Caribbean Nations Turn to Renewable Energy – COHA.
• Oil imports, in general, cost Caribbean states up to ten percent of their GDPs. Energy

imports are, therefore, a massive cost factor – not only for the governments, but,

30