PROJECTS

Fund Financing Energy Efficiency and Small-scale Renewable Generation, Barbados

The problem

The cost of electricity in Barbados was too high, with nearly 90 percent of energy consumed coming from imported oil. The fuel import bill was nearly 6 percent of GDP. Distributed solar generation and energy-efficiency technologies could reduce electricity costs and fuel imports, but lack of financing options made these unaffordable for most households and businesses.

How we helped

Castalia designed the Energy Smart Fund to help households and businesses invest in energy efficiency measure, solar water heaters, and small solar PV systems. We assessed the barriers to adoption of commercially and economically viable technologies and found that financing was a major barrier. We designed the Fund as a financing facility to overcome this barrier by working in partnership with a network of accredited installers and retailers. We developed the operating manual for the fund and assisted it in becoming fully operational.

Impact

The Energy Smart Fund has helped private businesses and households implement renewable energy and energy efficiency solutions since 2011. So far, the Fund has disbursed US$10.6 million through a combination of financial instruments and technical assistance, financing 1.9MW of renewable energy installed and an estimated 4GWh of energy saved annually, a cost savings of US$1.4 million. The Inter-American Development Bank and the Government are replenishing the Fund, planning to make energy services companies eligible to take up loans directly on behalf of their client homes and businesses.