The Energy Transition in the Cayman Islands

The Cayman Islands’ energy transition is driven by the need to reduce reliance on imported fossil fuels, enhance energy security, and support climate resilience. The territory’s current energy mix is overwhelmingly dependent on petroleum products, but the National Energy Policy 2017–2037 outlines targets to achieve 70% renewable energy generation by 2037. Solar PV remains the primary renewable energy focus, with growing interest in battery storage, energy efficiency measures, and potential offshore wind exploration. The OfReg (Utility Regulation and Competition Office) oversees energy regulation, encouraging private sector participation and investment in clean energy technologies through frameworks like the Consumer-Owned Renewable Energy (CORE) programme. The Cayman Islands have no domestic critical minerals production, relying entirely on imports for materials such as lithium, cobalt, nickel, and rare earth elements that are vital for renewable technologies and storage systems. While challenges include high infrastructure costs, hurricane vulnerability, and grid integration issues, the territory benefits from stable governance, investor interest, and access to climate finance. The Cayman Islands’ strong regulatory environment, ambitious policy targets, and focus on innovation position the territory as a regional leader in clean energy transition and sustainable development within the Caribbean.