IDB Funds Fuel Diversification and Renewables in Barbados
10 November 2011: The Inter-American Development Bank (IDB) has approved a US$70 million loan to support energy diversification and power saving efforts in Barbados, expected to save 4.5 million tons of carbon dioxide equivalent by 2029.
The loan will support political and legislative developments to promote renewable energy as well as more efficient use of fossil fuels, with the objective of having a 29 percent share of renewable energy in the total electricity matrix by 2029. This target is expected to be achieved via photovoltaic, solar water heating, wind, biomass cogeneration, and waste-to-energy projects.
The program will also advance plans to promote use of biofuels by blending ethanol with gasoline, encouraging the use of natural gas as a substitute for other types of fossil fuels, and replacing incandescent light bulbs with more efficient alternatives. Greater efficiency is expected to enable Barbados to reduce its oil import bill by about 30 percent over a 20-year period. The loan is for a 20-year term, with a five-year grace period, and at a variable interest rate based on LIBOR. [IDB Press Release]