Guyana gets more World Bank funding for green energy projects

The World Bank’s Board of Executive Directors has approved a transformative US$131.87 million initiative aimed at boosting energy efficiency and expanding renewable energy use across Grenada, Guyana, and St Lucia.
The Caribbean Efficient and Green Energy Buildings Project will address the region’s growing energy challenges by modernising infrastructure, reducing reliance on fossil fuels, and strengthening resilience against climate-induced power disruptions. Specifically, the newly approved project will focus on two key areas: reducing energy consumption in public buildings and increasing the adoption of renewable energy solutions.
According to the World Bank, approximately 500 public buildings across the three nations will be retrofitted with energy-efficient technologies, with the goal of reducing energy consumption by at least 20 per cent. In addition, solar panel systems will be installed on public infrastructure, cutting costs and improving sustainability. These upgrades will not only deliver economic savings but also enhance energy security by decreasing dependence on imported fossil fuels.
Further, to support long-term sustainability, the project will also help countries develop regulatory frameworks that encourage green energy investments. These regulations will include energy performance standards, net billing for solar power, and policies to integrate electric vehicles and charging stations. Standardising these policies across the participating countries is expected to drive economies of scale, leading to cost efficiencies and improved regional energy security.
The project is financed through multiple sources. The World Bank’s International Development Association is providing concessional financing of US$40 million to Grenada, US$30 million to Guyana, and US$30 million to Saint Lucia. Additional grants include US$3.3 million to the Organisation of Eastern Caribbean States (OECS) for regional procurement efforts and US$0.7 million to the Caribbean. Centre for Renewable Energy and Energy Efficiency for technical support.
The Centre for Renewable Energy and Energy Efficiency (CREEE) will receive technical support. The Global Environment Facility (GEF) is contributing a US$1.791 million grant to Saint Lucia, while Grenada will receive an US$8.5 million loan from the Clean Technology Fund (CTF). Guyana is set to receive an $8.2 million loan and a $0.38 million grant from the Canada Clean Energy and Forest Climate Facility (CEFC)

Strengthening
The Caribbean region is highly dependent on imported petroleum, with imports accounting for 90 per cent of petroleum consumption—far exceeding the global average of 21 per cent. This reliance makes energy costs volatile and burdens economic growth. Compounding the issue, approximately 96 per cent of power generation in the region still relies on diesel-fired plants, many of which are aging. Moreover, natural disasters pose an ongoing risk, as demonstrated by the 6 per cent of Gross Domestic Product (GDP) Grenada spent to restore its grid after Hurricane Ivan in 2004.
A vital aspect of the initiative is its emphasis on regional collaboration. The OECS and the Caribbean’s CREEE facilitate pooled procurement and provide technical assistance. This was disclosed by the World Bank Director for the Caribbean Lilia Burunciuc.
“This project aims to foster regional cooperation, allowing participating countries to benefit from shared platforms, resources and collaboration. By working together, St 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. “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.”