Chapter 13. Energy Diversification: Macro-Related Challenges


The cost of electricity in the Caribbean has been persistently high over the past two decades, and has eroded competitiveness. This situation is largely due to serious inefficiencies in the power sector and dependence on expensive imported petroleum products, reflecting limited energy diversification. In turn, these problems have contributed to the region’s high cost of doing business and increased external sector vulnerabilities, and have undercut growth in many Caribbean economies.