UK gives £10 million to Grenada for green energy transition

In a major contribution to help Grenada to become climate resilient and have a sustainable electricity-generation capacity, the UK has committed £10 million to the Caribbean island-nation. Through the fundings, Grenada will aim to decrease its reliance on imported fossil fuels and reduce energy costs for both businesses and citizens. 

The latest funding has added onto the UK’s investment worth more than £19 million in renewable energy initiatives in six countries in the Caribbean region, including Grenada, to strive towards environment-friendly and affordable solutions in the energy sector.

Baroness Chapman, the UK’s parliamentary under-secretary of state for Latin America and the Caribbean, announced about £10-million funding during a meeting with Grenadian Prime Minister Dickon Mitchell in St George’s in the island-state on Wednesday, December 11.  

Grenada government sources said the funding will generate evidence for the viability of geothermal resources in Grenada, enabling it to utilize the renewable energy source to generate electricity.

“I am thrilled to announce £10m in new funding, which is supporting Grenada’s efforts to reduce its resilience on fossil fuels and transition to a more sustainable, locally sourced energy future,” Baroness Chapman said.

The investment in geothermal energy will not only help to lower energy costs for households and businesses, but will also lead to lower carbon emissions, an essential step in tackling the climate crisis we all face.

“This is an important part of the UK government’s commitment to supporting the Caribbean region in its journey towards green energy adoption and climate resilience”.

Expressing gratitude, Prime Minister Mitchell said the money will allow Grenada to assess its geothermal potential and take steps towards setting up a clean, sustainable and more affordable energy system.

“We are excited about the possibilities that this project holds for our country’s future,” he added.

Reliance on fossil fuel import makes Caribbean nations vulnerable

While the investment is a welcome development in the Caribbean region where consumers pay hefty amounts for their energy needs because of the countries’ heavy dependence on imported fossil fuels which hinders their economic growth and puts them at the mercy of external shocks like fluctuations in global oil price, it also marks a solid step forward for them to fight challenges such as natural disasters.

Grenada is highly vulnerable to climate change and has a relatively low technical and financial capacity to resist it. The devastating hurricane in July, Beryl, took a heavy toll on the country’s infrastructure and food security, along with many other Caribbean nations. 

The hurricane pounded Grenada’s electricity infrastructure, putting its economy under more burden. The funding from the UK will enable the country to move towards a more sustainable, cost-effective energy solution sourced locally.

As a small-island developing state, Grenada needs to improve its renewable energy access so that its finances are not overburdened by the costs of importing fossil fuel. The country faces challenges such as a lack of a strategic framework to shift to a low-emission economy by harnessing indigenous sources such as geothermal, solar and wind.

Grenada needs to integrate innovative policies to back technologies for low-emission development, such as electric vehicles. It also needs institutional arrangements and coordination mechanisms to implement the transition to a greener and low-emission economy.

Although geothermal energy has a vast untapped potential, the high cost of exploring and testing for geothermal resources has been a challenge to get private investment, necessitating public investments to kickstart such initiatives.

The UK’s £10 million investment will support key areas of the geothermal resource testing, said the Grenadian government source, including drilling rotary exploratory wells that can heighten the possibilities of successful exploration which could pave the way for private sector investment in a geothermal power plant.

A geothermal plant can displace more than half of Grenada’s diesel-based electricity generation, improving its energy security and giving relief to its citizens.