Caribbean Economics Quarterly: Volume 16, Issue 1: The Price of Power: How the Caribbean Can Build a More Secure Energy System

For countries around the world, regardless of size or income level, access to reliable, low-cost electricity is among the most important drivers of growth and prosperity. This edition of the Caribbean Economics Quarterly provides a detailed overview of current capacity, consumption, costs, and prices of electricity, as well as analysis of the vital economic role of energy across the six countries that constitute the IDBs Caribbean Country Department: The Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago. These economies stand at a pivotal moment in their energy transition. Although they differ markedly in resource endowments, regulatory capacity, and economic structure, they share common challenges: high dependence on refined fossil fuels, vulnerability to oil price volatility, aging infrastructure, and, in some cases, difficulty providing electricity access to remote areas. At the same time, rapidly declining global renewable energy costs and accelerating technology adoption offer unprecedented opportunities for the region to achieve cleaner, more reliable, and more affordable power systems. The report also examines the possible impact of the of disruptions to the Strait of Hormuz on the regions economies.