A new report by global energy think tank Ember has indicated that, while the Caribbean has been installing solar panels at a much faster pace than official statistics — policy and regulatory bottlenecks are slowing the region’s transition away from costly imported fossil fuels.
The report, which examined electricity sector data across 13 Caribbean countries, estimates that 2280 megawatts (MW) of solar capacity was installed across the region between 2021 and 2024 — almost twice the 1269 MW captured in official statistics. Despite the faster pace of solar deployment across the region, renewables accounted for just about 9.1 per cent of the 64 terawatt-hours (TWh) of electricity generated across countries in 2024 — compared with 32 per cent globally.I
In light of these findings, the report points to policy, rather than the cost of renewable technology, as a major setback on the pace of deployment.
“Policies, not costs, are the main barrier to renewable deployment in the Caribbean,” said Latin American analyst
Wilmar Suárez in his review of the data.
“The Caribbean remains highly exposed to fossil fuel imports, and every price rise feeds through to the cost of living for households or to the public accounts,” Suárez further noted.The findings having particular implications for Jamaica showed the country featuring prominently among the Caribbean countries most exposed to imported fuel.
Based on the report, 11 of the 13 countries analysed, including Jamaica, imported all of the fuel used to generate electricity.
In Jamaica, fossil fuel imports for all uses amounted to the equivalent of 9.5 per cent of gross domestic product (GDP) in 2023 — almost three times the global average of 3.2 per cent and the highest among the Caribbean countries for which the data could be measured. Barbados also had a high level of exposure, with fuel imports equivalent to 7.3 per cent of GDP, while the Dominican Republic’s figure stood at 4.4 per cent.
This level of dependence leaves Caribbean economies vulnerable to international oil and gas price swings, with higher fuel costs feeding into electricity prices, household expenses, and, in some cases, government subsidies.
