Renewable energy is power derived from natural sources – such as sunlight, wind, rain, tides, and geothermal heat that replenish themselves faster than they are consumed. Unlike non-renewable energy such as fossil fuels (oil, gas, coal), these sources are largely inexhaustible.
As of March/April 2026, the ongoing conflict involving the USA, Israel, and Iran has disrupted the Strait of Hormuz – a chokepoint through which 20% of global oil flows – triggering what the International Energy Agency (IEA) describes as one of the worst oil crises in history.
The high cost of oil and gas due to the war is prompting governments to reevaluate their reliance on unstable regions and accelerate the adoption of domestic or renewable energy.
New analyses have highlighted that the conflict is not only an energy crisis but a “climate disaster,” with attacks on infrastructure causing significant toxic pollution.
Unlike oil and gas, which are concentrated in conflict zones and depend on vulnerable supply lines, renewable sources (sun, wind, water) are domestic and available to every country.
“There are no price spikes for sunlight and no embargoes on the wind,” as stated by UN Secretary-General António Guterres. Technologies like wind and solar have zero fuel costs once built, providing stable, long-term energy prices.
The following Caribbean countries are facing the most severe pressure because they currently lack sufficient renewable energy infrastructure to buffer against war-driven oil price spikes:
(a) Barbados & Jamaica: Despite being regional leaders in solar and wind, these nations remain exposed. Barbados, for instance, has faced backlogs in solar interconnections, preventing it from fully insulating its economy from rising import costs.
(b) The Bahamas: Tourism-heavy and 90-100% dependent on imported diesel, the country is seeing a direct “drain on foreign currency reserves” as oil prices exceed $100 per barrel.
(c) Grenada & Saint Lucia: These islands have power grids that are 96% dependent on diesel-fired plants. The war has forced these governments to redirect development funds to subsidise fuel, resulting in a “loss” in economic output.
While much of the region struggles, a small group of countries is benefiting from the shift in global energy geo-economics.
Countries such as Guyana, Suriname and Trinidad & Tobago are seeing increased interest from the U.S. and Europe as safer alternatives to Middle Eastern oil. However, they are also using these revenues to “fast-track” their own renewable targets, such as Guyana’s integration of oil revenue into long-term solar and hydro projects.
In Cuba, since the escalation of the war in the Middle East in early 2026, it has undergone one of the fastest renewable energy transitions in the developing world. Faced with a near-total fuel blockade and the loss of regional oil supplies from Venezuela and Mexico, the island has pivoted aggressively to solar power as an emergency “lifeline” for national survival.
Solar power’s share of Cuba’s national electricity generation jumped from 5.8% in early 2025 to over 20% by February 2026. In February 2026, Cuba’s solar output surpassed 900 MW during peak daylight hours for the first time, covering nearly 38% to 50% of midday demand.
As of early 2026, Cuba has connected 49 new solar parks to its grid, many financed and built by Chinese firms. The Artemisa Mega-Park (100 MW) is currently the island’s largest.
China is the primary partner, providing both financing and equipment for a goal of 92 solar parks totaling 2,000 MW by 2028 – roughly equal to Cuba’s current fossil fuel capacity.
Cuba has also sought collaboration with India and the European Union to diversify its renewable sources beyond solar, including wind and biomass.
Dominica has aggressively pursued a transition from diesel-reliant energy to 100% renewable energy by 2030, with a major 10-megawatt geothermal plant scheduled to be operational this year.
The centerpiece of Dominica’s strategy is a new 10-megawatt geothermal power plant near Laudat. As of March 2026, testing was underway, with two megawatts already dispatched to the grid and full commissioning anticipated by the end of March 2026.
Existing hydropower facilities at Laudat, Trafalgar, and Padu, which pre-date the 2017 storm, continue to provide a significant portion of the base load.
Solar energy is being used for resiliency, particularly for public infrastructure. Key projects include solar installations for hospitals and government buildings to ensure power during disasters.
Grenada has accelerated its transition from diesel dependence toward renewable energy. The nation has updated its target to achieve 100% renewable electricity by 2035, with a focus on solar, geothermal, and increased battery storage to combat high electricity costs driven by global oil volatility.
As of April 2026, early market engagement is underway for a 10.6 MW/21.2 MWh Battery Energy Storage System (BESS) at Maurice Bishop International Airport. This project, supported by the World Bank, aims to strengthen the grid for higher renewable integration.
In early 2025, the World Bank approved a $131.87 million regional project to boost renewable energy in Grenada, Saint Lucia, and Guyana. Additionally, in December 2024, the UK pledged £10 million to support Grenada’s geothermal energy.
Other Caribbean nations are urgently accelerating the deployment of renewable energy to increase energy security and reduce dependence on volatile foreign oil.
These countries, which import over 85% of their energy, are facing immediate, severe economic strain. As of April 2026, fuel prices in several Caribbean nations have exceeded $US5 per gallon, with Belize and Barbados seeing prices above $US7.
CARICOM members have set a target of 47% renewable energy contribution to electricity generation by 2027.
The World Bank is supporting a project to retrofit 500 public buildings with solar energy and efficiency technology to reduce import dependence by at least 20%.
The African Export-Import Bank has increased its CARICOM financing mandate to $5 billion to support renewable projects and regional energy cooperation.
Investment is accelerating in solar photovoltaic, geothermal (particularly in the Eastern Caribbean), and green hydrogen, with companies like Kenesjay Green Limited championing projects for regional green fuel production.
While accelerating renewables, some countries like Suriname and Trinidad & Tobago are still developing local oil and gas to ensure short-term energy security, creating a hybrid approach to the crisis.
The crisis has solidified the view that building renewable capacity is not just for climate goals, but a necessary hedge against geopolitical shocks.
Clearly, the 2026 conflict is proving to be a decisive moment, shifting the Caribbean from a primarily oil-dependent region to one that recognises renewable energy as the main pathway to long-term energy sovereignty and economic stability.
However, while the conflict serves as a wake-up call to accelerate the transition, it also presents challenges. The war has disrupted supply chains, making it harder to obtain materials like aluminum for solar panels, and increased inflation may make the high upfront capital costs of renewable projects harder to fund.
Simeon Collins is a former Director of the Grenada Bureau of Standards and first Chief Executive Officer (CEO) of the Caribbean Agricultural Health and Food Safety Agency (CAHFSA), a CARICOM Institution