IDB Group Presents Pathways to Build a More Secure, Affordable Energy System in the Caribbean

WASHINGTON — Access to reliable, low-cost electricity is critical for driving growth and prosperity in the Caribbean. Declining energy costs now offer unprecedented opportunities to build more resilient economies and drive development, according to a new report by the Inter-American Development Bank Group (IDB Group).  

The Caribbean Economics Quarterly report, “The Price of Power: How the Caribbean Can Build a More Secure Energy System,” provides a comprehensive analysis of current capacity, consumption, costs, and prices of electricity across six IDB member countries of the Caribbean: The Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago. 

Caribbean countries stand at a pivotal moment in their energy transition. While these economies differ markedly in resource endowments, regulatory capacity, and economic structure, they share common vulnerabilities, including exposure to oil price volatility and difficulties providing electricity access to remote areas. The report also examines the potential economic impacts of global supply disruptions, such as those affected by conflicts in the Middle East. 

“Countries across the region can improve energy independence and security, while improving access, reliability, and affordability.  This is a known key to driving faster and more inclusive growth. This report highlights the vital economic role of energy and the urgent need to diversify the region’s energy mix,” said Anton Edmunds, IDB General Manager for the Caribbean. 

“In this regard, the IDB Group stands ready with technical and project preparation support, along with a range of financial instruments, to support countries and the private sector in addressing regulatory reforms needed as well as to catalyze investment in energy,” added Edmunds. 

By leveraging accelerating technology adoption, the Caribbean can overcome many of its historical energy challenges. The report emphasizes that strategic investments in the energy sector will not only reduce costs for consumers but also help to insulate businesses and households from future shocks, while improving sustainability. 

The report is part of the IDB Group's “Caribbean Economics Quarterly” publication series, which focuses on the economic performance of The Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago. With a commitment to fostering development, this report continues to be a trusted resource for policymakers, academia, and businesses. Previous editions are available here.