SWIFT POLICY ACTION IS NECESSARY TO ADDRESS CRITICAL BARRIERS AND OPPORTUNITIES FOR ENERGY TRANSITION.
“This year’s Earth Day theme—Our Power, Our People, Our Planet—resonates deeply with the Caribbean,” shared 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, resilient future.”
The Caribbean’s tourism industry has made great strides in energy efficiency and renewable energy over the last two decades, with many governments enacting policies to support this transition. However, challenges remain in reducing energy costs—especially in scaling up renewable energy adoption in line with global climate goals.
A recent report prepared by CHTA and CAST, “Empowering the Caribbean Tourism Industry through Renewable Energy: A Call for Policy Action,” presents key findings from 17 jurisdictions and recommends practical steps to move forward.
Among the key barriers described in this report are:
- Red Tape and Unclear Guidelines - Most jurisdictions allow renewable energy installations—but red tape and unclear guidelines are slowing adoption.
- Confusion over Permitting Requirements - Nearly 40 percent cite confusion over permitting requirements for renewable energy systems.
- Skills Shortages - Lack of skilled labor to install and maintain systems is a challenge in 31 percent of countries.
- Financing – Overwhelmingly, access to affordable financing for renewable investments remains limited.
- Incentives - Investment incentives are weak or non-existent in many places.
- Stimulating Self-Generation with Buy-Back Programs - No buy-back programs exist in nearly half of the jurisdictions—and where they do, credits are often undervalued.
Drawing upon its research, CHTA and CAST recommend the following actions:
- Remove Arbitrary Size Limits for self-generation capacity. Allow renewable systems to be sized based on energy needs and site feasibility—not outdated kW caps.
- Streamline Permitting Processes - Simplify and clarify approval procedures to accelerate investment in renewable projects.
- Redefine the Role of Electric Utilities – As energy production changes, so too must the roles of utilities. They should be redefined to encourage competition and allow private-sector participation in energy generation.
- End Unfair Utility Fees - Eliminate discriminatory charges on self-generators and ensure fair interconnection rules.
- Offer Stronger Financial Incentives - Introduce or expand tax breaks, grants, and low-interest loans to support renewable adoption.
- Create and Improve Fair Buy-Back Programs - Implement net billing or feed-in tariffs that fairly compensate private renewable producers.
“The Caribbean stands at a pivotal moment,” stated CAST Acting Chairperson Karolin Troubetzkoy. “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. The time to act is now.”