Amid rising energy prices, economic volatility and climate vulnerability, a new report from RMI lays out a bold, achievable path for Caribbean nations to secure energy independence and resilience — powered by the region’s most abundant resources: the sun, wind, and geothermal heat.

The report, “A Caribbean Regional Transition Scenario,” presents a practical roadmap for governments, utilities, and communities across the region to transition to renewable energy in a way that is cost-effective, reliable, and just.

“In Antigua & Barbuda, owning your own energy is no longer a luxury — it is a necessity,” said David Gumbs, Director of RMI’s Islands Energy Program and former CEO of ANGLEC, Anguilla’s Electricity Utility. “Every country, including Antigua & Barbuda, in this region has the potential to own its energy future — but we must act now.”

The Challenge — and the Opportunity

Electricity prices in the Caribbean remain among the highest in the world, straining households and limiting job creation and economic growth. Many nations still rely heavily on imported fossil fuels, leaving them vulnerable to external price shocks and supply disruptions in this increasingly volatile world.

The report finds that modern solar and battery systems can now outperform fossil fuels economically in most contexts, offering both immediate savings and long-term stability. It demonstrates that a phased transition — beginning with a 50% renewable share by 2030 and 100% by 2035 — is both achievable and cost-effective.

In Antigua & Barbuda, the transition to renewables offers a pathway to lower bills, improved resilience, and new job opportunities — from solar installation to energy systems designed to support the new jobs that low-cost energy will create in the economy.

“The Caribbean offers a unique convergence of high renewable energy potential, some of the world’s highest electricity prices due to imported fossil fuels, and strong political commitment to climate leadership and resilience—making it one of the most attractive emerging markets for renewable energy investment today,” noted Laetitia De Marez, Senior Director of the RMI Islands Energy and Catalytic Finance Programs.

A Path Forward – For the Entire Caribbean

This publication was informed by deep regional consultation and collaboration, as well as by decades of work and partnership across more than 20 Caribbean nations. It serves as an actionable toolkit for countries to leverage in their transition plans, laying out the opportunities and challenges inherent in the region’s transition, and includes specific recommendations for:

• Tailored Energy Pathways: Caribbean nations are advancing diverse energy transition models — from decentralized solar to utility-scale renewables and geothermal — based on their unique national contexts.
• Renewables Outperform Fossil Fuels: Solar PV with battery storage and other renewables offer better long-term economic value and energy security than diesel or natural gas, and a pathway to 100% renewable energy for the region is both economically and technically viable by 2035.
• Government Leadership Is Crucial: Strong policy direction, regulatory reform, and utility modernization are needed to enable private investment, create domestic energy markets, and accelerate the transition.
• Regional Cooperation Is Key: A unified Caribbean approach with shared targets and harmonized policies is essential to attract the estimated US$11 billion needed by 2030 and ensure equitable benefits.
• A Just Transition with Economic Benefits: The shift to renewable energy offers opportunities for local job creation, workforce development, and more inclusive economic growth across Caribbean communities.

Importantly, the transition must be inclusive. That means ensuring benefits reach rural households, small businesses, and vulnerable communities — not just large-scale investors.

“Energy reform must not leave people behind,” said Gumbs. “It’s about putting people at the center — empowering communities, creating jobs, and building lasting resilience.”

Read the Full Report

The full RMI report, “A Caribbean Regional Transition Scenario,” is available here: https://rmi.org/insight/a-caribbean-regional-transition-scenario/

Now is the time. As Caribbean parties prepare to update their Nationally Determined Contributions and policy statements ahead of COP30, this report provides analysis and solutions that can help the region usher in a new era of clean, reliable, and locally produced energy.