For the Caribbean and other regions in the Global South, transitioning to renewable energy is often hindered by regulatory uncertainty, access to capital, outdated grid infrastructure, fossil fuel dependency and political inertia. Still, a steadily growing number are finding ways to make to happen and sharing what they learned with others hoping to do the same.
The Caribbean’s energy landscape varies, with utilities structured as government-owned, privately-owned, or public-private partnerships, said James Fletcher, former energy minister for Saint Lucia. Many still operate under long-term monopolies not designed for competition or renewable energy integration, which limits opportunities for independent power producers, or organizations that generate and sell electricity but are not utilities.
But transitioning to renewable energy is essential for climate-vulnerable countries, Fletcher said. Renewables can reduce costs and support economic diversification. They also offer energy security, price stability, the ability to extend power to underserved areas, and increased resilience to disasters through systems like solar microgrids and battery storage.
“What’s truly at stake here is the foundation of human life. We’re talking about agriculture, energy security, transportation and much more,” Rana Adib, executive director of the Renewable Energy Policy Network for the 21st Century (REN21), told TriplePundit. “Take the example of blackouts in Europe, it became clear how dependent modern society is on the energy system. When energy fails, everything else grinds to a halt. The same applies, even more acutely, in developing countries.”
Transitioning to systems that welcome decentralized and independent power producers requires major reforms in policy, regulation and governance, Fletcher said. These decentralized systems operate independently, often using renewable energy sources to generate power near where it will be used, which can increase reliability, efficiency and energy independence. Countries like Grenada and Saint Lucia are reforming their laws and creating independent regulators to open the market and improve tariff-setting and grid standards.
In Barbados, deregulation has led to 85 percent of installed renewable capacity coming from decentralized, small-scale systems, Fletcher said. In Dominica, a 10-megawatt geothermal plant set to come online later this year will, alongside hydropower, allow the country to achieve 100 percent renewable electricity for its peak demand.
Fletcher emphasized that strong political leadership was critical in both cases. Barbados set a vision for widespread rooftop solar and electric vehicles by 2030, building on the country’s earlier success with solar water heaters. The government backed this vision with incentives and enabling policies.
In Dominica, the energy ministry led the development of the country’s geothermal resources, supported consistently by the government. This stability allowed for steady progress, Fletcher said.
Despite progress, small market sizes on Caribbean islands, with peak electricity demand between 15 to 60 megawatts, make it hard to attract affordable private investment, particularly for costly geothermal projects. For comparison, electricity demand in the United States peaked at over 758,000 megawatts last month, according to the U.S. Energy Information Administration.
Additionally, outdated grid infrastructure limits the use of renewables in the Caribbean. In Barbados, for example, rapid solar expansion has exceeded grid capacity, leading to a temporary halt in new installations.
“These issues reflect common challenges across the Global South: fiscal constraints, limited institutional capacity, and a shortage of technical expertise,” Fletcher said. “With populations ranging from a few hundred thousand to a couple of million, many of these countries struggle to build the needed in-house capacity.”
To accelerate renewable energy adoption, energy, industry, trade, and social policies need to be integrated and adopted while developing the infrastructure to support them, Adib of REN21 said. Governments should phase out fossil fuel subsidies, implement carbon pricing, and set binding renewable energy targets across energy-intensive sectors like agriculture, construction, manufacturing and transportation.Any regulations adopted should also support local economic development through job creation and domestic manufacturing, she said.
The South American country Uruguay, for example, now generates 98 percent of its electricity from renewable energy thanks to long-term political commitment, diverse energy sources and innovative market design, she said. Transparent auctions and power purchase agreements attracted private investment and kept tariffs affordable, while public–private partnerships helped scale up capacity.
“We need the right regulatory frameworks and strong political leadership,” Adib said. “At the same time, we have to recognize that governments are facing real difficulties in moving from ambition to actual implementation.”
To address some of the issues countries still face, REN21 recently launched the Renewable Energy Champions Initiative. Champions are former government officials from the Global South who will work directly with current ministers and high-ranking officials in energy, finance, and economic development to identify challenges and provide guidance based on their personal experience, Adib said.
“Government officials who have faced and overcome similar challenges in their own countries bring a deep understanding of the issues,” Adib said.
Champions connect officials with relevant partners and follow up to ensure continued support for renewable energy transitions. They will also help counter widespread misinformation and misconceptions about renewable energy that further complicate matters. The peer-to-peer element is designed to build trust and accelerate implementation, Adib said.
The first two champions are Fletcher and Ramón Méndez Galain, former energy secretary of Uruguay, who helped lead its renewable transformation.
