As global temperatures rise and demand for cooling intensifies, seawater air-conditioning (SWAC) is emerging as a promising solution in the push for renewables — particularly in the Caribbean where many countries are striving to have cleaner, more energy-efficient futures.

Speaking at a recent World Bank forum Neha Mukhi, senior energy and climate change specialist at the Washington-based institution, noted that the entity — having invested over US$500 million in recent years — continues to explore emerging technologies to drive the next wave of development and innovation in the region’s energy sector.

“The Caribbean is an innovative hub for developments in the energy space. Concerning SWAC, this has been an area in which the World Bank has been doing a lot of work,” Mukhi said.

SWAC systems work by drawing cold seawater from deep in the ocean to cool buildings, replacing conventional air conditioning systems that rely heavily on fossil fuels and chemical refrigerants. These systems can reduce energy consumption for cooling by up to 90 per cent, offering significant economic and environmental benefits.

In the Caribbean, where air conditioning can account for up to 60 per cent of electricity use and where 85 per cent of electricity is still generated from imported fossil fuels, SWAC presents a meaningful opportunity. Cooling demand is projected to triple by 2050, and with easy access to deep ocean currents, experts believe the region is uniquely positioned to benefit from this technology.

Despite having access to a wealth of renewable resources — including solar, wind, geothermal, and hydropower — progress in the Caribbean has been hindered by infrastructure gaps, regulatory challenges, and limited investment. Emerging technologies like SWAC, combined with measures such as energy-efficient building codes and modern cooling systems, may help overcome these barriers.

Mukhi said with Caribbean people currently paying three to four times more for electricity when compared to other parts of the world, the integration of new technologies such as SWAC and electric mobility options could play a transformative role in reducing costs while stimulating growth in the energy sector.

“The region has immense renewable energy potential — whether it is geothermal, solar or hydro power — and countries need to figure out how to harness this potential to make more affordable, clean and reliable electricity available to the people. We are now looking at newer areas of engagement such as SWAC, given the need for cooling electricity demands. By tapping into this potential countries can really bring down the cost for people as it also reduces investment needs on the larger generation side,” she said.

Beyond pricing challenges, Mukhi called for substantial investment, supported by private sector partnerships, as essential to enabling the needed energy transition. Such investments are oftentimes several folds the national gross domestic product (GDP) of countries.

Locally, governments — backed by the private sector — have been actively working to integrate more renewables into the national energy plan. The goal is to generate 50 per cent of electricity from renewable sources by 2030, up from the current 12.5 per cent, with solar and wind being the primary contributors. Attaining this goal will, however, require not just financial investment but also policy reform and infrastructure development.

“The countries have been very ambitious in scaling up renewable energy — and their targets and commitment reflect that,” Mukhi however said while lauding countries for the efforts made so far.

The World Bank, in positioning SWAC as a transformative tool that can help to seriously reduce electricity demand, said it will also optimise energy usage across key residential, commercial, and tourism sectors. Its potential is already being explored through a number of initiatives being piloted across the Caribbean, with some of the most promising projects including The Pedernales tourism development project in Cabo Rojo, Dominican Republic, as well as infrastructure cooling initiatives in Grenada, and the Sandals Resorts International Runaway Bay Project in Jamaica.

The local project being undertaken at the former Jewels Property, which requires over 800 tons of cooling, is expected to reduce electricity usage at that site by about 92 per cent, cutting back on the use of approximately 7300 barrels of fuel while saving 25.4 per cent on air conditioning costs annually. The total capital expenditure for the SWAC system to be designed is estimated at US$16.5 million.

As part of its broader energy strategy the World Bank is also supporting Caribbean governments with technical assistance to assess the feasibility, governance, environmental considerations, and funding models for SWAC deployment. The next phase of the programme involves refining project designs, identifying appropriate business frameworks, and ensuring environmental sustainability.

“These SWAC facilities could provide an innovative solution to address the region’s energy needs while advancing sustainable development and climate resilience,” the World Bank noted. “They also represent an opportunity to attract investment, reduce costs, and position the Caribbean as a global leader in sustainable tourism and renewable energy innovation.”

Describing SWAC as more than just a novel cooling method, Mukhi further said that it represents a strategic step toward a low-carbon, energy-secure, and resilient future for the Caribbean.

“With the right partnerships and policies SWAC could lead the charge in redefining how the region meets its cooling needs — cleanly and efficiently,” a report by the bank also said.