The Caribbean renewable energy sector continues to grow as offtakers take advantage of declining prices, the region’s abundance of renewable resources, and ambitious governmental policies that seek to promote the uptake of renewable energy and the phase out of fossil fuel usage.
Data for completed utility-scale solar and wind projects in the Caribbean display a sharp decline in prices since 2012. The average price for completed utility-scale solar projects has fallen by 33% since 2012, going from US$0.30 per kWh in 2012 to US$0.20 per kWh in 2016.
The average price for completed utility-scale wind projects has fallen by 27%, from US$0.15 per kWh in 2012 to US$0.11 per kWh in 2016. The highest price recorded in 2016 for a wind project was US$0.11 per kWh, while the highest price recorded in 2016 for a solar project was US$0.23 per kWh.
This means intermittent renewables in the Caribbean are now price competitive with cost of generation of diesel-fired thermal.
Prices for tenders issued in 2017 and projects scheduled for commercial operation in 2018 suggest that the trend of falling prices will continue. The average price for planned utility-scale solar projects is US$0.13 per kWh, while the average price for planned utility-scale wind projects is US$0.11 per kWh.
Thus, it is expected that intermittent renewables in the Caribbean will continue to be price competitive with the cost of generation of diesel-fired thermal.