Grenada, a small island in the Eastern Caribbean, has a population of approximately 113,000, nearly half of whom are under 30. Despite a period of economic growth and some poverty reduction according to the World Bank, extreme poverty has worsened between 2015 and 2019, rising from 2.4% to 3.5%. It is particularly prevalent among the youth, who make up two-thirds of this statistic.

The nation is held back by its small, service-based economy, which is heavily reliant on tourism and agriculture—sectors vulnerable to recent shocks such as the COVID-19 pandemic and increasingly frequent climate-related disasters. These industries are also largely unskilled, offering limited income prospects that keep many Grenadians in unstable economic positions.

Energy Dependence and Its Effects

Adding to the problem is Grenada’s energy situation. More than 98% of the nation’s energy comes from imported fossil fuels. The lack of self-sufficiency and renewable energy in Grenada subjects the population to high, unstable living costs due to international market fluctuations and import taxes in a remote region. It also affects demand and availability through supply chain disruptions. This can exclude remote or impoverished groups from basic resources and create structural challenges for small and family businesses relied upon for survival—forming a vicious cycle of poverty. The dependency on fossil fuels also worsens climate-related challenges, creating a cycle of environmental devastation.

A Focus on Renewable Energy Opportunities

The United Nations (U.N.) outlines that a strategic focus in Grenada should be placed on stabilizing and diversifying the economy, becoming more self-sufficient, and creating jobs and opportunities to unlock the nation’s potential. All of this can be achieved through developing the renewable energy industry. While the current situation is troubling, Grenada is on the brink of opportunity. The nation has access to various international funds and climate finance mechanisms, such as the Green Climate Fund (GCF), that can accelerate and actualize the transition to renewable energy and energy efficiency.

The Grenadian government’s “Grenada Vision 2030” illuminates this potential. “Grenada’s National Energy Policy” proposes to establish a 100% renewable energy target by 2030. The vision statement behind the initiative outlines a desire to “build a competitive green economy that will be affordable and provide universal access to resources to improve the living standards for current and future generations.” This project focuses on developing renewable energy systems and enhancing energy efficiency infrastructure.

Benefits of Renewable Energy Development

The benefits of developing and investing in renewable energy sectors are wide-ranging and particularly beneficial for smaller, remote nations. Broadly, the industry creates sustainable, skilled jobs, as well as labor in installation and maintenance, improving income capacities and opportunities. Energy production also promotes self-sufficiency, eliminating import taxes and foreign dependency while stimulating and investing in the nation’s own economy.

More individually, cheaper and more available energy would boost disposable incomes, leaving more money to be spent on health care, food and education—vital for families at risk of resource deprivation. It would also lower costs for small businesses and local services, supporting communities and promoting local entrepreneurship. The nature of the industry and technological focus would also attract foreign investment and support from organizations involved in promoting renewable energy and sustainability.

The Caribbean Centre for Renewable Energy and Energy Efficiency

The Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) exemplifies the fundamental significance of this transition. As a nonprofit intergovernmental institution, CCREEE functions as a technical hub, advisory body and implementation partner for renewable energy and energy efficiency initiatives in the Caribbean. The organization’s core mission is to promote sustainability, reduce fossil fuel dependency and build public knowledge in clean energy and related technologies.

Examples of CCREEE’s work include training in professional renewable energy and efficiency jobs, supporting the creation of green-skill jobs, and advising the region’s governments on energy policies and strategies to help them meet targets such as “Grenada Vision 2030.”

A Tool for Sustainable Poverty Reduction

The initiatives of CCREEE demonstrate how renewable energy in Grenada is a fundamental tool to fight poverty, increase equity and mitigate climate-related shocks. The organization provides a case study for how collaboration, advocacy and research are just as vital in sustainably alleviating poverty as monetary donations. It is largely funded by Caribbean governments and regional bodies such as CARICOM, emphasizing the importance of supporting similar initiatives in nations that need them most.

– Mia Keen

Mia is based in London and focuses on Business and Politics for The Borgen Project.

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