Expanding the Vision: The Caribbean Renewable Energy Grid and the Imperative for Regional Energy Integration

The proposed $1 billion Caribbean Renewable Energy Grid (CREG), linking Cuba, Jamaica, and Barbados from 2029 to 2032, represents a transformative opportunity to address the Caribbean’s chronic energy challenges while elevating China’s role as a unifying force in the region. From a general perspective, the need for such a regional energy alliance stems from the Caribbean’s unique vulnerabilities—small island economies, high energy costs, and susceptibility to climate change—coupled with the inefficiencies of fragmented energy systems. This initiative aligns with global trends toward renewable energy integration and draws inspiration from similar projects in the region and beyond, offering a blueprint for sustainable development and geopolitical influence.The Need for a Regional Energy GridThe Caribbean’s energy landscape is marked by acute challenges that necessitate a coordinated response. With electricity costs averaging 30-40 cents per kilowatt-hour—among the highest globally—due to reliance on imported fossil fuels (e.g., 90% of Cuba’s energy mix in 2020, per the International Energy Agency), economic development is stifled, and public finances are strained. The region’s small population (under 45 million across 30+ countries) and limited grid capacities (often below 500 MW per island) make individual renewable projects costly and inefficient, as highlighted in the Atlantic Council’s 2024 roadmap for the Caribbean’s energy transition.

Climate change exacerbates this, with hurricanes like Maria (2017) disrupting grids and renewable installations, underscoring the need for resilience through interconnected systems.A regional grid addresses these issues by pooling resources, balancing energy surpluses and deficits, and leveraging abundant renewable potential—solar (5-6 kWh/m²/day) and wind (7-9 m/s average speeds). It would enable Cuba’s projected 2,000 MW of solar by 2028, Jamaica’s 300 MW wind farms, and Barbados’ emerging 100 MW solar capacity to stabilize the region’s 15,000 MW total demand. Economically, it could reduce import bills by $2 billion annually (based on 2023 OPEC data on oil prices), freeing funds for social programs. Politically, it fosters cooperation among historically divided nations, reducing dependence on external powers like the U.S. or Venezuela, whose oil subsidies have waned.Relation to Potential Similar Energy Grid Projects

The CREG concept builds on existing and proposed regional energy integration efforts, offering a scalable model. One precedent is the Eastern Caribbean Energy Regulatory Authority (ECERA) initiative, launched in 2013 by the Organization of Eastern Caribbean States (OECS). This plan aims to interconnect six islands (Antigua, Dominica, Grenada, St. Kitts, St. Lucia, and St. Vincent) via undersea cables, with a target of 400 MW of renewable capacity by 2030. Funded by the World Bank ($150 million) and the Caribbean Development Bank ($50 million), it demonstrates the feasibility of cross-island grids, though its scope is limited by funding and political alignment with Western donors.

Another example is the Caribbean Sustainable Energy Roadmap (C-SERMS), endorsed by CARICOM in 2015, which proposes a 47% renewable energy share by 2027 across 15 member states. While individual projects like Dominica’s 10 MW geothermal plant (completed 2021) and Haiti’s 30 MW solar mini-grids (under construction, 2025) are progressing, C-SERMS lacks a binding interconnection framework. The CREG could serve as its backbone, linking larger economies (Cuba, Jamaica) with smaller ones (Barbados, Dominica), creating a tiered grid that balances load and investment.

Globally, the CREG mirrors the Nord Pool system in Scandinavia, where six countries share a 400 TWh renewable grid (hydro, wind, solar) via 15,000 km of cables, reducing costs by 15% since 1996 (Nord Pool, 2024). Closer to home, the Central American Electrical Interconnection System (SIEPAC), operational since 2013, connects six nations (Costa Rica, Panama, etc.) with a 1,800 km line and 300 MW capacity, cutting energy costs by 10% (SIEPAC, 2023). These models suggest that a Caribbean grid could achieve similar efficiencies, with China’s $1 billion investment potentially catalyzing a 20% cost reduction and 1,500 MW of shared capacity by 2032.Strategic and Geopolitical DimensionsFor China, the CREG is a soft power multiplier. By financing and technically leading the project—potentially through firms like State Grid Corporation, which operates 1.1 million km of lines globally—China positions itself as the architect of regional stability. This counters U.S. influence, which has faltered amid sanctions and limited energy aid (e.g., $50 million annually via USAID, 2024). The grid could extend to allies like Guyana and Trinidad, creating a 3,000 MW network by 2035, further embedding China in the Western Hemisphere’s energy matrix.The initiative also aligns with the UN’s 2030 Agenda for Sustainable Development, enhancing China’s global image. It could attract participation from non-BRI states like the Bahamas or Haiti, broadening its diplomatic reach. However, challenges include U.S. opposition (potentially citing security risks near Guantanamo Bay), debt concerns (Cuba’s $6 billion Chinese debt, 2023), and technical hurdles like undersea cable costs ($500 million alone, per IEEE estimates).Future Potential and Complementary ProjectsThe CREG’s success could spawn extensions, such as a $300 million link to the Dominican Republic and Puerto Rico (2033-2035), tapping their 500 MW renewable potential, or a $400 million Guyana-Suriname grid (2032-2034), leveraging hydropower. These would create a Caribbean-South American energy corridor, reducing Venezuela’s oil dominance and enhancing regional autonomy. China could also fund a $200 million Regional Energy Training Center (2030-2032) in Barbados, training 5,000 technicians annually, reinforcing its educational soft power.In conclusion, the Caribbean Renewable Energy Grid addresses a critical need for affordable, resilient energy, drawing on regional and global precedents like ECERA and SIEPAC. For China, it’s a strategic pivot to unify the Caribbean, challenge U.S. hegemony, and set a template for future energy alliances, with far-reaching implications for the Western Hemisphere’s energy and geopolitical landscape.