Caribbean Energy : Macro-Related Challenges

High energy costs contribute to dampening Caribbean competitiveness and potential growth.
This paper overviews power sector challenges and takes stock of national and regional
strategies to address them. It presents recommendations to move the energy agenda forward
based on analyses of macro-aspects of energy reform. These include: i) quantitative
assessment of the impact of energy costs on growth and competitiveness; ii) evaluation of
gains from implementing announced renewable energy and energy efficiency targets; and
iii) analysis of the impact of energy investments on debt sustainability. The paper argues for
a bigger role for the private sector in energy reform and discusses prerequisites for good
public-private partnerships.

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