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9 Funding to build and operate a plant in Saint Lucia as a pilot project. Ocean Thermal Energy Conversion (OTEC), the other energy source mentioned, has a long way to go before it can be considered viable in the Caribbean. We should avoid making the same mistake of the 1970s with the resulting failures creating a lack of confidence in renewable energy sources when experimental energy technologies were introduced to the region. Policy and finance In considering the use of alternate sources of energy, two areas clearly lacking are those of policy and finance. Policy While it may be difficult to come to consensus for a regional policy, this continues to be the best option. It has been shown, however, especially by Barbados, that national policies can promote the use of renewable energy and provides examples for regional action. It is also recognised that for the use of renewable energy to be meaningful in the region, the utilities must buy into the policy and be willing to make incremental changes in their generating strategies. Given that the utilities would have already made large investments in the traditional source, it is not expected that change will take place over night. However, it is important that the need to diversify the energy sources be recognized and that conscious efforts be made by the utilities to introduce renewable sources of energy, even though they may be more expensive in the short run. Alternatively, if the utilities do not want to incur the risks, they can agree to buy electricity generated from alternative sources from private companies at a cost that is comparable to their own generating capability. The present state of affairs suggests that utilities on their own will not exhibit concern for the environment and other security measures outlined above. It would therefore be incumbent on governments to enact good environmental legislation as an incentive for the utilities. The model policy provided in this document could be visited by governments for possible implementation. Finance Two major sources of financing will be required to advance the cause of renewable energy in the Caribbean. One, to finance research and development work and another to help the utilities offset the additional costs of retrofitting and new equipment. Research and development may be financed by grants from the international financial institutions, such as the World Bank and the Inter-American Development Bank (IDB), from the United Nations Development Programme (UNDP), or the regional Caribbean Development Bank (CDB). Countries may also approach the European Union (EU) collectively for assistance. The second financing requirement may be of a more commercial nature with loans provided to companies at lower interest rates and spread over longer terms. This will allow the utilities to recover their additional costs within a reasonable period of time. Funds may be sourced from the World Bank, the IDB or the CDB.PDF Image | RENEWABLE ENERGY IN THE CARIBBEAN
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