CDB to support St Vincent and the Grenadines solar energy efforts
In an effort to support St Vincent and the Grenadines’ push to expand and increase its range of renewable energy options through a planned solar energy project, the Caribbean Development Bank (CDB) has approved financing of US$8.6 million to St Vincent Electricity Services Limited (VINLEC).
The funding will cover the cost of the supply and installation of solar photovoltaic (PV) systems at buildings owned by VINLEC in the vicinity of the Argyle International Airport, as well as the establishment of a battery energy storage system (BESS) to be installed at the Cane Hall substation.
The solar PV systems will displace some of the diesel fuel used for electricity generation. The BESS is expected to optimise the operation of the solar systems and also improve the energy efficiency of VINLEC’s system by providing spinning reserve, thereby reducing the diesel fuel used by the generators for this purpose.
The total cost of the project is estimated at US$10.2 million. US$5.45 million of the financing will be a loan, of which US$2.03 million will be drawn from resources provided by the European Investment Bank under the Second Climate Action Line of Credit.
Meanwhile, US$3.16 million will be a grant funding under the Sustainable Energy for the Eastern Caribbean Programme, comprised of US$1.96 million from resources provided by the European Union Caribbean Investment Facility and US$1.2 million from resources provided by the Government of the UK.
The Government of St Vincent and the Grenadines is contributing the remaining US$ 1.5 million.
According to the bank, the project is in line with the National Energy Policy of the Government, which speaks to increasing use of renewable energy technologies and has set a target of 60 per cent of electricity generated from renewable energy sources.
This is aligned with CDB’s own strategic objective of promoting renewable energy (RE) and energy efficiency (EE) in its borrowing member countries as priority areas of support for the bank. It’s also linked to the bank’s cross-cutting focus on energy security and these factors.
“CDB is committed to supporting the sustainable energy transition in the Caribbean,” a CDB release quotes its head of the renewable energy and energy efficiency unit Joseph Williams. “For us it is essential to the region’s future, which is why the bank has been actively seeking to provide the appropriate financing to stimulate investment in RE and EE projects in our borrowing member countries.”
