Energy sector policies that promote transparency, efficiency and effectiveness will create the right investment climate to attract foreign investment in renewable energy, according to a top U.S. energy official who, while pledging her country's support for the region's clean energy efforts, urged Caribbean governments to make a real commitment to the sector.
The U.S.'s Overseas Private Investment Corporation (OPIC) yesterday announced that it will establish a team dedicated to facilitating growth in the Caribbean's renewable energy technologies markets by targeting deals for clean energy technology deployment throughout the region.
Robin Dunnigan, deputy assistant secretary for energy diplomacy in the U.S. Department of State, welcomed the initiative, stating that the U.S. is prepared to become a "very active partner" in regional reform, but noting that Caribbean governments must make a "real commitment" to developing transparent and efficient energy sectors if they are to fully capitalize on the region's unique opportunity to introduce the framework for lasting and sorely needed reform.
"As a first step, governments in the Caribbean need to make a real commitment to getting the right policies in place to make the rules in the energy sector transparent, efficient and effective, so that they create the right investment climate to attract foreign investment," she said.
The announcement came during the Caribbean Energy Security Summit (CESS) in Washington, D.C., which gathered delegates from 16 Caribbean countries to explore methods of reducing the cost of energy in the region. Dunnigan said the summit was perfectly timed to bring matters of energy reform to the forefront of Caribbean policymaking, given the increasing competitiveness of renewables.
Collaboration with the newly-formed OPIC team, along with The Bahamas' partnerships with a growing number of renewables organizations, including the Carbon War Room (CWR) and the International Renewable Energy Agency (IRENA), present the country with strong opportunities for reducing the exorbitant cost of electricity. With continued high energy costs and silence surrounding the reform of Bahamas Electricity Corporation (BEC), energy reform has quickly become one of the private sector's top priorities for 2015.
"The timing is perfect given what's happening in the world today, with oil at less than $50 a barrel. It gives governments a little bit of breathing room in terms of purchases. Renewable energy technology is more competitive than it's ever been in the history of renewable energy. For countries that are willing to take steps to deploy more solar, wind and geothermal technologies, the time is now.
"There seems to be a real moment of opportunity to make progress in these areas," said Dunnigan, noting that natural gas offered opportunities to the region in addition to renewable sources such as wind and solar.
Dunnigan said the U.S. is working on several programs through the U.S. Department of State and the U.S. Department of Energy to provide technical assistance according to the specific needs of Caribbean islands, adding that the U.S. hopes to use its memorandum of understanding with Grenada and the resulting renewables pilot project as a template for similar Caribbean initiatives.
OPIC announced yesterday that it will disburse the first tranche of approximately $43 million in financing for Blue Mountain Renewables' 34-megawatt wind project in Jamaica. The project is projected to generate nearly $90 million of investment in Jamaica's economy while also lessening the country's dependence on fossil fuels.
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