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purchase oil if PetroCaribe fails.6 Despite the benefits of PetroCaribe, power generation and transport fuel costs in the reviewed island nations remain among the most expensive on the planet. 2.1.4 Caribbean Community Renewable Energy Development Programme (1998) The CARICOM Renewable Energy Development Programme (CREDP) was conceived with the support of 16 Caribbean countries, UNDP-GEF, CARICOM, Gesselschaft fur Technische Zusammenarbeit (“German Technical Cooperation,” GTZ, now GIZ), and the OAS through its Global Sustainable Energy Island Initiative (OAS/GSEII). The seven island nations covered in this report are among the member nations. The objective of CREDP is to: • Reduce greenhouse gas emissions by removing barriers to the development of renewable energy, thereby fostering RE development and commercialization; • Develop and implement programs and activities that create sustainable renewable energy industry; and • Create a framework in which national and regional activities and initiatives on renewable energy development are mutually supportive. Among the intended initiatives of the project were: • An analysis of the barriers to renewable energy development and commercialization; • The design of a finance mechanism for renewable energy projects by creating the Caribbean Renewable Energy Facility (CREF) to “provide long-term debt for projects that are financed on- balance sheet (i.e. corporate finance), as well as off-balance sheet (i.e. limited recourse project finance)”7; • The establishing of a commercial loan guarantee mechanism; • The design of a Caribbean Technical Assistance Facility (CRETAF); and • The development of renewable energy investment projects. CREDP has made significant progress since it was established, including: • Reviewing existing legislative policy and pricing structures; • Coordinating the CARICOM Task Force on Regional Energy Policy and contributing to the draft and dissemination of the policy; • Providing technical assistance to the OECS Secretariat for the development of a sub-regional policy framework; • Providing a template power purchase agreement and other transactional documents; • Providing grant funds through CREDP/GTZ to assist individual projects in resource assessments and feasibility studies; and • Providing capacity building and training programs for individuals, government officials, utility companies, and other entities. 6 Ibid. 7 “Caribbean Renewable Energy Development Programme, United Nations Development Programme—Global Environment Facility, Project Document,” 2. http://www.caricom.org/jsp/projects/CREDP_Project_Document.pdf. Accessed February 6, 2012. 9PDF Image | Energy Policy and Analysis Caribbean
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