Last week, the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) and the Caribbean Develop-ment Fund (CDF) jointly launched the Project Preparation Facility (PPF) and the Credit Risk Abatement Facility (CRAF).
The aim of both these timely facilities is to address the myriad of issues faced by many CARICOM member states, which are striving to achieve the goal of energy transformation. Minister of Small Business and Entrepreneurship, Kerrie Symmonds, offered remarks during the launch at the Lloyd Erskine Sandiford Centre, saying that though many sources of international funding were available to finance the transition to more sustainable energy sources, the Caribbean region remains hindered and restricted in its ability to adequately access such financing.
“The creation today of the CCREEE project preparation facility as well as the credit risk abatement facility, at the regional level, will now allow us, as regional project developers, to have a safe place where the necessary assistance can be provided to ensure that no one is left behind in our quest for self-sufficiency and independence in the supply and generation of energy,” said Symmonds.
The minister highlighted the challenges across the region including project preparation, technical assistance, project execution, and the ability to properly monitor and evaluate the success of projects.
“And of course, the access to the right types of financing to suit specific and unique needs, and the access to financing that is flexible enough to consider the potential devastating burden of natural disasters such as hurricanes which, as we all know, may visit us at any time during the period June to November annually and can wreak havoc on our economies and greatly retard our pace of development,” outlined Symmonds.
The minister then referenced the aim of Barbados, to move from being fossil fuel dependent to becoming powered by 100% renewable sources by 2030. He stated that the ambitious target with its 11-year planning horizon, had been described as heroic and had brought on a restructuring of the ministry responsible for energy. Symmonds explained that projects, both in terms of their execution, their monitoring and their co-ordination, have now been prioritised alongside other standard, policy-based, sectoral responsibilities.
“What began as a simple project execution unit in the Division of Energy, staffed with a handful of technical project staff, is now therefore a much more adequately staffed project monitoring and co-ordination unit, headed by a permanent secretary with specific responsibility for project management, monitoring and evaluation, procurement, administrative support, technical support, financial management, public education and communication,” explained the minister.
Symmonds pointed out that the establishment of the strategic unit had made the management of renewable energy projects more practicable. It has also allowed for a deeper focus on the implementation activities tied to the 2030 target.
“I am certain that all Member States will recognise that this necessary process of transformation is one which will transcend mere cosmetic adjustments. It will require fundamentally reconstructive approaches in terms of organisational structures, and in modernising the way we conduct business generally. An entire restructuring of this sector is therefore inevitable and unavoidable as we forge into a new and uncharted realm of energy generation,” said Symmonds.
The minister continued, saying that in the current, difficult global economic environment, it was also crucial for there to be more borrowing and financial flexibility opportunities available to assist small and medium-sized enterprises (SMEs) in their quest to fund renewable and energy efficiency projects. He stated that he was pleased that CRAF would now be available to provide much-needed credit risk guarantees to financiers and also targeted technical assistance to build capacity among SMEs, financiers and other stakeholders within CARICOM Member States.