World Bank stresses urgency for investments in renewable energy

…notes need for Caribbean to be able to access financing

The importance of Caribbean countries investing in renewable energy and increasing their climate resilience, which Guyana is currently focusing its attention on, was on Tuesday emphasised by the World Bank.
The World Bank held an online panel discussion that focused on the world economic prospects of Caribbean countries, including Guyana. During the session, World Bank Country Director for the Caribbean Lila Burunciuc stressed the importance of Caribbean countries focusing on renewable energy.
“Switching to renewable energy, we heard about the impact of increased hydrocarbon prices. And the need to really invest in renewable energy, which is abundant in the Region, and lower costs and increase affordability for people and for businesses, so that they can become more competitive. With the current level of energy prices, it’s very difficult to compete,” she said.
Her advice comes even as Guyana is making a concerted effort to increase its renewable energy output. Efforts are also being made to commission various forms of renewable energy, including the Amaila Falls Hydropower Project and the gas-to-energy project, as a transitional energy source.
Burunciuc also spoke of the importance of building climate resilience. She noted the devastating economic setbacks of natural disasters. Among her recommendations were for countries to focus on planting mangroves and getting catastrophic insurance. And the World Bank official also acknowledged the need for Caribbean countries to have access to financing.
“Climate is an important issue… every year the Caribbean countries lose, on average, six per cent of their GDP [Gross Domestic Product] to natural disasters. I don’t know if there are economies in the world, no matter how strong they are, that can actually cope with this.
“This is huge. So doing everything that is possible to strengthen the resilience of the countries to natural disasters is important. And building more resilient infrastructure. There will be a need for access to financing. That is why there is a need to create more fiscal space,” she also said.
Guyana’s President Dr Irfaan Ali, at various international forums, has argued that the only known available financing to achieve the Region’s renewable energy target is the Caribbean Development Bank (CDB), which has a loan portfolio of US$1.4 billion. But according to President Ali, a minimum of US$11 billion is needed to achieve just the fundamentals of the target.
Renewables have been touted to break the hefty carbon footprint, but Ali had shared during a conference earlier this year that to secure the energy requirement, the reality is that the Caribbean will need oil and gas resources. The estimated renewable capacity of the Region is 1574 megawatts with a capital requirement of US$11 billion to achieve fundamental targets.
The Caribbean Sustainable Energy Roadmap and Strategy, approved to support the energy policy of the Region, sets regional targets for renewable energy contribution to total electricity generation in Caricom, at 28 per cent by 2022 and 47 per cent by 2027. The reality is that as of 2020, only 11.5 per cent renewable energy was achieved.
“We can safely say that in this Region, fossil fuel and natural gas has a long future ahead of us. It is not a big scientific analysis. It is based on what is before us. The conversation is how do we take this reality in the context of building a global system and world that move towards net zero? How do we reduce our carbon footprint? How do we catalyse the revenue to open up new sectors, greener technology,” the President stated.
President Ali had underscored that going ‘green’ was not a simple task without significant investments, which the Region does not have. As such, he urged countries with natural gas resources to aggressively pursue natural gas to subdue the energy insecurity within the Caribbean, while working towards greener technologies.
“For the energy need security of this Region, I once again reinforce the call that every single country in the Region with potential in natural gas should be allowed to explore that potential to its fullest, aggressively to ensure the energy security of this Region,” Ali positioned. (G3)