Identification of mechanisms for financing of energy efficiency and renewable energy initiatives to increase investment in Saint Lucia

Abstract

Saint Lucia is highly dependent on imported fossil fuels for energy production, which makes the country vulnerable to price volatility and supply shortages. Also, it is well known that the initial cost of investing in renewable technologies can be prohibitive so there is a need to find ways to avert and/or reduce these costs to consumers. In addition, Saint Lucia has substantial natural energy resources with a high potential in geothermal as a reliable energy source, and a smaller scale with solar, wind and hydro power. However, renewable energy contributes less than 1 per cent to the country’s energy matrix. Therefore, the overall objective of this study is to examine financing opportunities which could provide greater incentives for the development of energy efficiency measures and deployment of renewable energy technologies.