Analysis of the potential solar energy market in the Caribbean

Abstract

Small island states, such as in the Caribbean, contribute only a small share to the global greenhouse effect, but they are the main victims of rising sea levels, change of seasonal climates and increase of tropical storms. In addition, they are heavily dependent on fossil fuels. Almost all Caribbean islands are aware of those negative effects and do consider to strive for use of renewable energy sources. Unfortunately, barriers like inadequate policies and strategies; lack of awareness, knowledge and confidence; inadequate capacity and lack of finance are still big hindrances. However, the potential for solar energy implementations in the Caribbean region is very high and it is possible to overcome the barriers. The case studies of Barbados, Grenada and St. Lucia show that local companies were able to establish a solar water heater and photovoltaic market. Through their strong commitment and governmental support, as well as a close cooperation with the utility, remarkable results have been achieved already. This master thesis shows under which conditions a solar water heater or photovoltaic market can be established and what is required for successful market penetration. Investigating and analyzing the drivers and obstacles, the generated frameworks shall help other islands to adopt the systems and help to extent the solar energy market. Governments, utilities and financial institutions will see how they can support the private sector and hence the consumer. Investors will learn what has to be considered when planning to enter the market, and donor agencies will get an idea how to further increase market growth. Finally, this master thesis discussed how to reach viability in terms of social, environmental and economic sustainability.