The Caribbean Development Bank (CDB) and the Green Climate Fund (GCF) have signed a Funded Activity Agreement (FAA) for the Scaling up the Deployment of Integrated Utility Services (IUS) to Support Energy Sector Transformation in the Caribbean (Phase 1) Programme. The Agreement unlocks a US$68.7 million investment to help households and businesses in Barbados, Belize and Jamaica invest in renewable energy and energy efficiency.

The FAA was signed by Dr. Isaac Solomon, Vice President (Operations), CDB, and Ms. Kristin Lang, Director, Department of the Latin America and the Caribbean Region, GCF. 

The Programme is being delivered by CDB as the Accredited Entity, with the national electric utilities – Barbados Light & Power Company Limited, Belize Electricity Limited and Jamaica Public Service Company Limited – serving as national Executing Entities, working closely with energy Ministries, regulators and National Designated Authorities. 

Under the IUS model, each utility will provide upfront financing for eligible technologies – including rooftop solar photovoltaic systems (with or without battery storage), solar water heaters, energy-efficient air conditioning and LED lighting – installed at customers’ premises by qualified service providers. Customers will then repay the cost through their monthly electricity bills. 

Highlighting the initiative, Dr. Solomon said, “The FAA advances a cleaner, more resilient and affordable energy future for the Caribbean. By enabling customers to repay clean energy investments through electricity bills, the IUS Programme removes the barrier of high upfront costs. We thank GCF for partnering with CDB to deliver transformative results for our Borrowing Member Countries.” 

Underscoring GCF’s commitment, Ms. Lang said, “Caribbean energy systems must become both cleaner and more resilient. This Programme represents a paradigm shift, turning utilities from suppliers of electricity into partners in their customers’ journey to clean energy transition. GCF is proud to partner with CDB on a model that can be replicated across the region.” 

Barbados, Belize and Jamaica rely heavily on imported fossil fuels for electricity. This exposes consumers to volatile prices and makes the power sector a major source of greenhouse gas emissions. It also exacerbates vulnerability to climatic and economic shocks. The transition to a more sustainable, resilient, and decentralised energy sector is therefore of paramount importance in all three countries.  

The IUS Programme is supported by US$26.74 million in financing from the GCF – comprising concessional loans of US$20.8 million and grants of US$5.94 million. CDB is contributing US$16.2 million in loans plus in-kind support, while the national utility companies will invest approximately US$25 million in smart meters. 

This first phase will lay the foundation for scaling up the IUS model across CDB’s other Borrowing Member Countries.