Caribbean Struggles to Expand Renewable Energy Capacity
The region remains heavily dependent on fossil fuels despite significant solar investments between 2021 and 2024.
Updated on Oct. 25, 2026 in Energy
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Between 2021 and 2024, the Caribbean installed 2,280 megawatts of solar capacity to address its heavy reliance on imported fossil fuels. However, renewable energy accounted for only 9 percent of regional electricity generation in 2024.
Why it matters
Most Caribbean nations spend over 3.2 percent of their GDP on fuel imports and face high costs, making the region vulnerable to global price volatility. Policy barriers and grid connection processes currently hinder the transition to cleaner power sources.
The region installed 2,280 megawatts of solar capacity between 2021 and 2024, though official records only track 1,269 megawatts. The average regional electricity cost is approximately 25 cents USD per kilowatt-hour.
The players
Dominican Republic
This nation is an active participant in regional energy shifts and recently awarded contracts for renewable energy paired with battery storage.
Jamaica
This country is highlighted for its significant economic burden, spending approximately 9.5 percent of its GDP on fossil fuel imports.
Barbados
This island nation faces high energy costs and spends roughly 7.3 percent of its GDP on fossil fuel imports.
The details
Thirteen analyzed countries rely on imported fuel for electricity, with many spending significantly more than 3.2 percent of their GDP on these imports. In June 2026, the Dominican Republic awarded new renewable energy contracts paired with battery storage systems at prices lower than average generation costs.
Timeline
2008 and 2022 oil shocks caused inflation increases.
The region installed 2,280 MW of solar panels between 2021 and 2024.
Utility-scale renewable projects produced cheaper electricity globally in 2025.
The Dominican Republic awarded renewable energy contracts in June 2026.
The Big Picture
The transition follows a pattern set by the regional renewable energy targets for 2030, which aim to significantly reduce fossil fuel dependency. Achieving these targets could result in a 9 percent reduction in overall fossil fuel generation for the Caribbean.
A successful transition to renewable energy could lower the high regional average electricity cost of 25 cents USD per kilowatt-hour. This shift would also protect local economies from the price volatility associated with the heavy reliance on imported fossil fuels.
The takeaway
The Caribbean region is making progress in solar deployment, but infrastructure and regulatory hurdles remain major obstacles to energy independence. Reducing reliance on imported fuels is critical for both economic stability and lowering the high cost of electricity for residents.
Further reading
For a broader look at power generation shifts, visit the Energy section.
Source note: This article includes information reported by Caribbeannewsglobal.
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