For most people around the globe, the Caribbean evokes visions of idyllic postcard-perfect scenery: golden, sun-drenched beaches, crystal-clear turquoise waters, rolling lush mountain ranges, and gentle trade winds that cut through tropical heat. What few recognize is that these very natural features – sun, wind, water, and underground geothermal heat – add up to one of the world’s most underutilized clean energy powerhouses, sitting in plain sight.
The United Kingdom has emerged as a key strategic partner determined to help Caribbean nations unlock this potential, forging deep collaborative partnerships to convert these abundant natural assets into low-cost, reliable energy that drives inclusive, clean, and climate-resilient sustainable growth across the region. Experts estimate the Caribbean holds enough renewable capacity to power not only its own communities but also deliver surplus clean energy to neighboring countries, with many small island nations capable of shifting to 100% renewable power generation. Several regional economies could even go a step further, converting excess renewable electricity into exportable zero-carbon fuels including green hydrogen, ammonia, and methanol to generate new streams of national revenue.
Despite this enormous natural potential, the region remains heavily reliant on polluting fossil fuels. Current data shows roughly 87% of the energy mix used by CARICOM (the Caribbean Community) member states still comes from fossil fuels, a dependence that has sent household energy prices skyrocketing. Many Caribbean families pay between two and three times more for electricity than households in other parts of the world, while the constant exposure to volatile global fossil fuel markets has locked nations into cycles of economic vulnerability, growing national debt, and persistent energy insecurity.
Since 2015, the UK has committed $39 million in targeted funding to advance the Caribbean’s clean energy transition. Support from the UK has already covered a wide range of critical initiatives: geothermal resource exploration and development, large-scale solar photovoltaic installation, energy efficiency retrofits for public sector buildings, technical training programs to build local renewable energy capacity across the Eastern Caribbean, and foundational planning to develop a regional offshore wind energy market.
One of the most prominent success stories of this partnership is the UK-supported geothermal development project in Dominica. UK funding helped de-risk the high upfront costs of exploratory drilling, giving private sector investors the confidence to commit to the project. As a result, Dominica is on track to commission the first utility-scale geothermal power plant in the English-speaking Caribbean in April 2026 – a project that experts say will deliver transformative economic and energy benefits for the island nation. The milestone, which required years of sustained government leadership, coordinated collaboration between multiple development partners, and flexible long-term planning, is now serving as a blueprint for ongoing geothermal projects in Grenada and St. Lucia, where the UK is aiming to replicate this success.
In St. Vincent and the Grenadines, UK support has delivered already tangible results: funding for energy-efficient street lighting upgrades and a 500kW solar PV plant at Argyle International Airport has helped the nation save millions of dollars in energy costs and cut hundreds of tonnes of carbon dioxide emissions annually. Even the early-stage work to map offshore wind potential across the region, while still in its infancy, is projected to unlock enormous long-term development opportunities.
While the potential for a full renewable transition is clear, progress toward CARICOM’s ambitious clean energy goals has lagged. In 2013, CARICOM set a target of reaching 47% renewable electricity generation by 2027, but as of 2023, the region had only hit roughly 13% renewable generation. To hit the 2027 target, the pace of development will need to accelerate dramatically. Progress has also been deeply uneven across the region: a small number of nations have made major gains scaling solar, wind, and geothermal power, while many others have yet to meaningfully advance their transition.
Like most Small Island Developing States (SIDS), the Caribbean faces unique structural barriers to scaling renewable energy. Small regional grid sizes, prohibitive upfront capital costs, limited local technical capacity, and fragmented national markets that prevent economies of scale have all slowed development. Many nations also lack modernized grid infrastructure and updated energy regulatory frameworks, two critical components needed to integrate variable renewable resources like solar and wind into the energy mix.
Despite these challenges, actionable solutions already exist to overcome these barriers. Regional pooled procurement for renewable energy equipment and aggregated project development can drive down costs and attract large-scale global institutional investors. Modernizing aging grid infrastructure and updating outdated energy regulations can open the market to greater private sector participation, while blended finance and concessional lending can help governments cover the prohibitive upfront costs that have stalled many projects. Finally, investing in training for local engineering and technical workforces will ensure projects deliver long-term sustainable benefits for local communities.
Regional leaders and international partners stress that all the tools needed to deliver a full clean energy transition are already within the region’s reach – and there is no time to delay action. With bold coordinated leadership across CARICOM and strategic partnerships with global actors, the Caribbean can turn its abundant natural clean energy resources into sustained energy security, lower household energy bills, and a more climate-resilient future for all regional residents.
The UK has reaffirmed its long-term commitment to partnering with the Caribbean on this transition. Through the Global Clean Power Alliance, the UK and regional partners have agreed to a concrete three-year action plan for 2026–2028, which will deliver on-demand access to UK private sector expertise and technical support to address key market barriers and attract the billions in investment needed to scale the region’s clean energy transition. The resources are already in place, and leaders say the moment for decisive action is now.
This commentary was written by Ingrid Lavine, Climate and Renewable Energy Adviser for the Caribbean Development Team at the UK Foreign, Commonwealth & Development Office.
