Caribbean tourism leaders push for renewable energy policy reform

“This year’s Earth Day theme—Our Power, Our People, Our Planet—resonates deeply in the Caribbean,” said CHTA President Sanovnik Destang. “It is a powerful reminder that, by working together—governments, the tourism industry, and our communities—we can harness our collective strength to drive meaningful progress toward a more sustainable and resilient future.”

The Caribbean tourism industry has made great strides in energy efficiency and renewable energy over the past two decades, and many governments have implemented policies to support this transition. However, challenges remain in reducing energy costs, especially in expanding the adoption of renewable energy in line with global climate goals.

A recent report prepared by CHTA and CAST, “Empowering the Caribbean Tourism Industry through Renewable Energy: A Call to Policy Action,” presents key findings from 17 jurisdictions and recommends practical steps forward.

Among the main barriers described in this report are:

Bureaucracy and unclear guidelines: Most jurisdictions allow renewable energy installations, but bureaucracy and unclear guidelines are slowing adoption.

Confusion over permitting requirements: Nearly 40 percent cite confusion over permitting requirements for renewable energy systems.

Skilled labor shortage: A lack of skilled labor to install and maintain systems is a challenge in 31 percent of countries.

Financing – Access to affordable financing for renewable energy investments remains largely limited.

Incentives - Investment incentives are weak or non-existent in many locations.

Stimulating self-generation with buyback programs - Buyback programs don't exist in almost half of the jurisdictions, and where they do, loans are often undervalued.

Based on their research, CHTA and CAST recommend the following actions:

Eliminate arbitrary size limits for self-generation capacity. Allow renewable systems to be sized based on energy needs and site viability, rather than the outdated kW limits.

Streamline permitting processes: Simplify and clarify approval procedures to accelerate investment in renewable projects.

Redefining the role of electric utilities: As energy production changes, so must the role of electric utilities. It needs to be redefined to foster competition and allow for private sector participation in energy generation.

End unfair utility rates: Eliminate discriminatory charges for self-generators and ensure fair interconnection rules.

Offer stronger financial incentives: introduce or expand tax breaks, grants, and low-interest loans to support the adoption of renewable energy.

Create and improve fair buyback programs: Implement net billing or feed-in tariffs that fairly compensate private renewable energy producers.

“The Caribbean is at a pivotal moment,” said Karolin Troubetzkoy, CAST Interim President. “With the right policies and partnerships, we can accelerate the region’s transition to renewable energy and position our industry as a global leader in sustainable development. It’s time to act.”

Source: Caribbean Hotel and Tourism Association (CHTA).