The World Bank today approved US$30 million for Guyana to enhance energy efficiency and expand the use of renewable energy in public buildings.
In a release, the bank stated that the funding is part of the Caribbean Efficient and Green Energy Buildings Project, a broader US$131.87 million Caribbean-based initiative aimed at addressing the region’s critical energy challenges and driving economic growth by reducing dependence on imported fossil fuels.
The release also noted that US$40 million has been approved for Grenada and US$30 million for St. Lucia. The project will partner with the Organisation of Eastern Caribbean States (OECS) and the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) to achieve its goals.
The initiative focuses on two key objectives: reducing energy consumption in public buildings and increasing the adoption of renewable energy systems.
It will retrofit buildings with energy-efficient technologies and integrate renewable energy systems, such as rooftop solar panels, into public infrastructure.
The Guyana Energy Agency (GEA) previously announced that Guyana was pursuing funding under this project and had already conducted energy audits on 13 public buildings to identify energy efficiency and renewable energy measures.
The project consists of three main components. The first component focuses on investments in energy efficiency (EE) and distributed renewable energy (DRE).
This will involve retrofitting public buildings with EE and DRE systems, including solar water heaters, battery storage, and improved building control systems. It will also provide technical assistance for identifying, designing, constructing, and operating these systems, along with ensuring the safe disposal of used equipment and materials.
Additionally, capacity-building initiatives will help integrate and manage DRE while developing modern energy management systems.
The second component aims to develop regulatory frameworks that support energy efficiency and renewable energy investments.
It will provide technical assistance for creating institutional and regulatory policies, facilitate market development, and enhance national and regional capacity to implement investments. Furthermore, this component is expected to promote women’s participation in the energy sector.
The third component focuses on project implementation support and capacity building. It will assist national and regional project implementation units (PIUs) in managing and executing project activities. Additionally, it will help develop investment pipelines for future projects and facilitate regional knowledge-sharing events and forums.
“By working together, Saint 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. She added, “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.”
This project is funded through various donors and mechanisms. The World Bank’s International Development Association (IDA) is providing US$40 million in concessional financing to Grenada, US$30 million to Guyana, and US$30 million to Saint Lucia.
In addition, US$3.3 million in grants will be provided to the OECS Commission to support pooled procurement at the regional level, while US$0.7 million will be allocated to the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) for technical assistance.
The Global Environment Facility is contributing US$1.791 million to Saint Lucia, and Grenada will receive an US$8.5 million loan from the Clean Technology Fund. Guyana will also receive an US8.2 million loan and a US$0.38 million grant from the Canada Clean Energy and Forest Climate Facility.
This initiative is expected to reduce energy costs, create economic opportunities, and strengthen the region’s energy security through sustainable solutions. By integrating energy-efficient technologies and promoting renewable energy, the project will play a significant role in advancing the Caribbean’s transition toward a more sustainable and resilient energy future.
