BACKGROUND
The Caribbean Renewable Energy Infrastructure Investment Facility (REIIF) Project is a regional Series of Projects to create an enabling environment for renewable energy and attract major companies and investors into smaller island-countries.
A regional approach will create interests and momentum in project countries, to put in place the right policy and enabling infrastructure to take full advantage of regional developments. The Project’s approach of aggregating capacity needs across countries will provide a large enough demand for leading private players to be interested in deploying solar in these countries. The first set of activities in the Project will be implemented at the regional level through a Regional Entity within the Eastern Caribbean Central Bank and at the national level in Grenada, Saint Lucia, and Saint Vincent and the Grenadines.
The Project Development Objective is to increase the share of utility-scale renewable energy generation and private sector participation in renewable energy development in the participating Caribbean countries.
The project consists of five components that aim to address common regional barriers to Renewable Energy development in the Caribbean countries. Across all components, measures to strengthen resilience have been integrated given the vulnerability of these countries to climate and natural disaster risks.
Component 1: Regional RE Coordination Unit Aggregation Mechanism, Institutional Strengthening, and Implementation Support (Estimated US$ 5.00 million). Designed to streamline and enhance the development of renewable energy (RE) projects across the countries by leveraging economies of scale and facilitating regional cooperation. This component will be implemented through three key subcomponents: a) Regional Coordination Unit (RCU), b) Regional Aggregation for RE development, and c) Technical Assistance. The overarching goal is to address the unique challenges faced by individual Caribbean countries in their energy transition by pooling resources and expertise at the regional level.
Component 2: Risk Mitigation Mechanism (Estimated Cost: USD30.00 million). This component will finance a risk mitigation facility, which will enable private investment for RE projects, mitigate key risks perceived by the private sector to develop utility scale RE projects, and improve the financing terms for projects.
Component 3: Renewable Energy Integration and Infrastructure modernization, Institutional Strengthening, and National Implementation Support (Estimated Cost: US 67 million). Modernizing the electricity grid is crucial for integrating renewable energy sources and improving the reliability and resilience of the energy infrastructure. This component will provide financing for optimization and strengthening of transmission and distribution networks of participating countries. This financing will prepare the grid infrastructure to be ready to integrate more RE generation, including battery storage. This component will finance the works associated with increasing the wheeling capacity of the existing transmission lines, upgrading the capacity of the existing primary sub-stations, or creating new primary substations in each country. Activities under this component will increase the integration of renewable energy-based electricity in each grid by upgrading existing control centres or creating new main or back up control centres and new intelligent devices of the utilities. The participating Caribbean countries have renewable energy targets, and most are preparing Integrated Resource and Resilience Plans, providing roadmaps for the future retirement of future fossil fuel plants and reducing Greenhouse Gas emissions. These investments will increase the part of low-carbon electricity in the energy mix of each country and subsequently reduce the share of high-carbon electricity. The design and construction of the grid infrastructure (Transmission & Distribution, substations, control centers etc.), to integrate renewables will integrate climate resilient design, to strengthen infrastructure resilience to climate hazards and risks.
Component 4: Results-Based Incentive Mechanism for the Public Sector (Estimated Cost: USD 4.5 million). This component will provide resources through the Performance-based Conditions mechanism. It will finance a direct incentive to participating client countries for RE policy and regulatory reforms that help RE project implementation. The disbursement is linked to the achievement of the mechanism for each country. The use of these incentive payments is restricted to sustainability-related public spending, which will be defined in the project-level agreements among the World Bank and the implementing country. The milestones are to be defined to reflect the effective support of the countries to enable the materialization of the projects.
As part of the implementation of this project, the development of a Stakeholder Engagement Plan is of paramount importance.
The public is therefore invited to review and provide comments on this draft document by 11:59PM on THURSDAY 31, OCTOBER 2024.
Please provide comments electronically via any of the following emails:
This email address is being protected from spambots. You need JavaScript enabled to view it.
This email address is being protected from spambots. You need JavaScript enabled to view it.