The Caribbean Resilient Renewable Energy Infrastructure Investment Facility (RREIIF) is a regional initiative designed to accelerate the transition to clean, reliable, and affordable energy across participating Caribbean countries by mobilizing private-sector investment in utility-scale renewable energy.

 

 

Project Objective

RREIIF aims to increase the share of utility-scale renewable energy generation through enhanced private-sector participation, while strengthening electricity grids to safely and efficiently integrate variable renewable energy such as solar and wind.

 

 

Why RREIIF Matters

Caribbean countries face high electricity costs and fiscal vulnerability due to heavy reliance on imported fossil fuels and exposure to global oil price volatility. At the same time, renewable energy development is constrained by small market size, limited concessional financing, grid constraints, climate risks, and weak implementation capacity. RREIIF addresses these challenges through a coordinated regional approach that lowers costs, mitigates risks, and improves investment readiness.

 

 

Key Components

1.Regional Renewable Energy Coordination Unit and Institutional Strengthening

Establishes a regional technical entity to lead renewable energy project development, aggregation, and procurement. This component also provides technical assistance and capacity building to participating countries, improving policies, regulations, and institutional readiness.

2. Risk Mitigation Facility

Deploys innovative financial instruments through a dedicated facility to mitigate key government-related and project risks. This helps crowd in private equity and debt, improves financing terms, and catalyzes large-scale renewable energy investments.

3. Renewable Energy Integration and Infrastructure Modernization

Finances grid strengthening and modernization at the national level, including transmission and distribution upgrades and battery energy storage systems. These investments enable electricity networks to accommodate higher levels of variable renewable energy.

4. Contingent Emergency Response Component

Provides flexibility to rapidly reallocate resources in the event of an eligible emergency or natural disaster.

5. Financing and Scale

The total project cost for the Grenada components is approximately US35.1 million, supported by a blend of concessional loans and grants from the World Bank (IDA), the Climate Investment Funds, ESMAP, and other partners. This structure is designed to leverage significant additional public and private financing, with the potential to mobilize private capital at multiples of concessional resources.

 

Expected Impact

RREIIF will reduce electricity costs and fiscal exposure to fuel price shocks, increase the supply of clean energy, strengthen climate resilience, and create a more attractive environment for private renewable energy investment. By addressing common barriers through a regional platform, the project supports economies of scale and accelerates the Caribbean’s energy transition.

 

Project Documents:

Caribbean Resilient Renewable Energy Infrastructure Investment Facility (P180831)

Caribbean Efficient and Green-Energy Buildings Project (P179519)