Caribbean Renewable Energy Financing Case Study

This case study outlines the establishment of the Caribbean Resilient Renewable Energy Infrastructure Investment Facility (RREIIF), which aims to mobilize private sector financing for renewable energy projects across Caribbean countries. The facility, structured by the World Bank Group in collaboration with the Eastern Caribbean Central Bank, has a financial objective to create a $30 million Risk Mitigation Fund that will leverage $120 million in commercial financing through partial credit guarantees. The case study details the challenges faced by Caribbean nations, including high dependency on imported fossil fuels and the stagnation of renewable energy development due to perceived risks and small project sizes. The RREIIF seeks to address these issues by pooling renewable energy projects to achieve economies of scale, thereby improving financial terms and reducing risks for banks. The document also discusses the governance and operational structure of the facility, including the roles of various stakeholders and the expected impacts on renewable energy resilience in the region.