Innovative renewable energy projects around the region got a much-needed funding boost recently as the UAE-Caribbean Renewable Energy Fund (UAE-CREF) unveiled its latest beneficiaries. The Fund, which is in its third cycle, is providing US$ 50mn to projects in 16 Caribbean nations to help them meet their renewable goals through bankable projects capable of delivering tangible results.
The main objectives of the initiatives are to increase the use of renewables in the region and develop greater technical expertise in the field. Senior Advisor Dane McQueen explains: “The Fund typically enables one of the first or largest renewable energy installations in the project locations, with a mix of utility-scale and off-grid solar, and is designed to help to kickstart or enhance the local industry while also enhancing the power system’s resilience to climate change.”
The Fund is a collaboration between the Caribbean and the UAE, in partnership with organisations such as the Rocky Mountain Institute and the CARICOM Development Fund. It arose following concerns over climbing energy costs in the region and against a backdrop of closer relations between the Caribbean and the Middle East.
“Renewable energy is now significantly cheaper than diesel in all 16 countries, but deployment has not kept pace with this economic shift, often due to lack of project development precedent,” says McQueen. “The UAE faced a similar situation in its own development of renewable energy, and found injections of public finance for hardware to be highly effective in quickly commercializing solar power technologies. The UAE and Caribbean governments therefore agreed to focus the Fund on generation assets that could immediately demonstrate renewable energy’s cost savings, technical feasibility and job creation potential, as a spur and example for future development.”
At present, three projects have been commissioned under the Fund, seven are under procurement and six are in the feasibility stage. Here STAR Businessweek provides an overview of the 16 initiatives supported by the Fund, and their current status.
(1) Antigua and Barbuda
One of the first projects supported by the Fund, plans for the construction of a new solar power plant in Barbuda had to be reassessed in the wake of Hurricane Irma. Realising that more funding was needed, the UAE-CREF secured a further US$ 1.5mn from the UAE, US$ 1mn from the CARICOM Development Fund and US$ 0.5mn from the New Zealand government. Procurement is now underway for the project.
(2) Bahamas
In March 2019 the Bahamas celebrated the opening of its first 925 kW solar PV carport and EV charger stations, located at the country’s National Sport Stadium, and courtesy of the Fund.
(3) Barbados
That same month, Barbados followed suit, opening its own 350 kW solar carport, EV chargers and 500 kW solar PV ground mount at the Barbados Water Authority. These initiatives are expected to save the country US$ 381,000 a year in diesel fuel costs.
(4) Dominica
Dominica’s plans to stabilize its grid in preparation for more renewable energy uptake were sadly waylaid by Hurricane Maria in 2017. The project includes battery storage capability and increased hydro and geothermal supply. At press time, a grid integration and battery concept study had been completed and procurement of a battery supplier is expected in the first quarter of this year.
(5) St Vincent and the Grenadines
Closing out the first cycle of the UAE-CREF funding was SVG with a 600 kW solar PV plant on Union Island. The plant was inaugurated in March 2019 and is currently producing 100 per cent of Union Island’s daytime energy needs, saving the SVG government US$ 368,000 a year.
(6) Belize
Belize was a recipient of the UAE-CREF’s second cycle, announced in 2018, and received funding for a US$ 2.7mn project to install 344 kW of solar PV and battery storage in rural villages without access to the national grid. The project is currently in procurement with a contract signing expected imminently.
(7) Dominican Republic
A funding agreement has been signed, and the feasibility study is complete on plans to construct rooftop solar panels at the Reynaldo Almanzar Hospital in Santo Domingo. Procurement is expected by the end of the second quarter of this year.
(8) Grenada
Grenada is also expecting to sign on the dotted line by mid-2020 for its solar PV and battery hybrid on the island of Carriacou.
(9) Guyana
A development and feasibility study has given the green light to Guyana’s own solar efforts as the government seeks to implement a PV solar and battery hybrid in Wakenaam.
(10) Haiti
Dondon in Haiti will also receive its own PV solar and battery hybrid energy generator with plans underway and procurement expected by the end of 2020.
(11) St Kitts and Nevis
There are two solar PV powered desalination work plants in the pipeline for this Caribbean nation – one for each island. The development and funding agreements have been signed and, at the time of writing, feasibility studies were ongoing.
(12) Saint Lucia
Saint Lucia received its grant in 2018, as part of the Fund’s second cycle. Since then, development and funding agreements have been inked on solar carports with EV charging stations at Hewanorra International Airport, as well as solar powered street lighting. The feasibility study has been completed and project organisers hope to proceed with procurement by mid-2020.
(13) Cuba
Entering the third cycle of funding, the UAE-CREF’s newest projects include a ground mounted solar installation at the University of Las Villas in Santa Clara, Cuba. At the moment, stakeholders are reviewing the development agreement before moving forward.
(14) Jamaica
Jamaica, already making strides in its solar generation thanks to its 51.5 MW Paradise Park plant, got a further investment from the UAE-CREF in its latest funding round. Under this project, both ground-mounted and rooftop solar PV will be installed at the Caribbean Maritime University in Kingston. Jamaica’s Ministry of Science, Energy and Technology is currently reviewing the project.
(15) Suriname
Suriname has moved from development agreement to feasibility assessment on its ground-mounted solar PV station and battery storage component at the Anton de Kom University in Paramaribo.
(16) Trinidad and Tobago
Port of Spain will welcome a new solar PV carport at the carnival grounds in Queen’s Park, according to an agreement signed with the UAE-CREF in the third cycle. Feasibility studies are currently ongoing for the project.
