15 September 2010: The Inter-American Development Bank (IDB) has approved a US$45 million loan to boost the use of renewable energy sources in Barbados and improve its energy efficiency.

The new IDB-financed programme is expected to generate a net benefit of US$284 million in fuel and electricity cost savings over the next 20 years and reduce oil imports’ cumulative cost from US$2.65 billion to US$1.98 billion over the same period. It is also anticipated that the programme will reduce over 4.5 million tons of carbon dioxide equivalent emissions. The programme will support energy co-generation through biomass (20 MW), waste-to-energy systems (13.5 MW), and wind farms (10 MW or more).

Furthermore, the programme is expected to fund at least one MW of installed PV panels in the next two years. It will also promote the use of compact fluorescent lamps (CFLs), power monitors, premium efficiency motors, efficient air conditioning systems, variable frequency drives and efficient chillers, which could help save 19.4% of the island’s total electricity consumption. [IDB Press Release]