In January 2015, the then-Vice President Joe Biden addressed Caribbean leaders, emphasizing North America’s significance in the energy sector for the 21st century. He expressed the United States’ interest in promoting energy security beyond its borders by exporting affordable natural gas and renewable energy to countries with high electricity prices. Biden envisioned a Caribbean region that was prosperous, secure, and energy independent, and believed that the United States should play a role in achieving this.
However, almost a decade later, Puerto Rico, the largest U.S. territory in the Caribbean, continues to face unreliable electricity supply, particularly after the devastation caused by Hurricane Maria. Furthermore, energy prices in the region have skyrocketed due to a heavy reliance on imported fuels. The increasing intensity of storms caused by global warming has also resulted in the frequent disruption of transmission lines. Residents have had to resort to expensive generators or accept power outages as a normal part of life.
When Vice President Kamala Harris attended the recent summit with Caribbean leaders in the Bahamas, the White House’s promise of over $100 million in funding for renewable energy and other projects fell short of expectations. The announcement came shortly after news broke of a secret agreement between Cuba and China to establish a spy base in the Caribbean’s largest island, raising concerns about China’s growing presence in the region. China has been actively expanding its influence in the Caribbean by offering favorable loans, building infrastructure, and seeking diplomatic ties with countries that acknowledge Taiwan.
The original vision of an integrated North America, free from the volatility of fuels obtained from conflict zones, has taken a back seat. Instead, the Biden administration has focused on technical programs aimed at revamping electrical regulations and promoting zero-carbon energy sources in island nations. For example, the U.S. National Renewable Energy Laboratory is assisting in training workers in Antigua and Barbuda to install solar panels, batteries, and hurricane-resistant wind turbines. In Dominica, Saint Kitts and Nevis, the State Department is providing technical support to harness volcanic heat for geothermal power plants, while the U.S. Trade and Development Agency is helping the Dominican Republic develop rules for integrating batteries into the grid.
Although more than half of the $100 million funding is allocated to aid Haiti, the most populous and currently unstable island in the Caribbean, Vice President Harris announced that $20 million would support the new Caribbean Climate Investment Program. This program aims to incentivize private sector partnerships with Caribbean nations to develop clean energy technologies. An additional $15 million will be allocated to the Caribbean Disaster Emergency Management Agency to enhance storm warning systems and procure essential equipment.
Despite these efforts, experts from the Caribbean argue that the U.S. government has yet to fully leverage its capabilities in the region. The U.S. has historically maintained control over the Caribbean, as evidenced by the Monroe Doctrine adopted by Washington 200 years ago, which pledges to protect American interests against rival global powers. Analysts like Calixte George Jr. from Saint Lucia believe that the U.S. has the potential to make a game-changing impact but has not done so in this instance.
China’s presence in the Caribbean has grown significantly, as Beijing seeks to expand its influence and offer its goods and services in new markets. Between 2005 and 2022, China invested over $10 billion in six Caribbean countries. However, Chinese spending has decreased in recent years. The recent secret agreement between China and Cuba to establish a spy base poses a direct challenge to U.S. hegemony in the region, the most significant challenge since the collapse of the Soviet Union. Foreign policy hawks in the U.S. express concerns over China seeking strongholds in the Caribbean, similar to American military footholds in Japan, South Korea, and Taiwan, which China considers part of its territory.
The political interests of China in the Caribbean primarily revolve around breaking diplomatic ties between Caribbean nations and Taiwan. Saint Lucia, along with Saint Vincents and Kitts, the Dominican Republic, and Haiti, still maintains diplomatic relations with Taiwan. China’s appeal to island nations lies in its promise of affordable imports, such as solar panels, whereas the U.S. lacks competitive manufacturing scale or prices in this sector. Additionally, China offers loans with less stringent terms than those provided by institutions like the International Monetary Fund.
Debates continue among scholars about whether China’s loans offer an alternative that is beneficial or a debt trap aimed at ensnaring economically vulnerable nations. However, a review by the British think tank Chatham House concluded that China’s international development financing system is primarily focused on enhancing its own economy by selling more goods and earning interest abroad. China provided over $40 billion in loans to distressed countries in 2021, nearly matching the amount issued by the IMF. Nonetheless, Chinese loans do not typically require spending cuts and economic reforms that are common with other lenders.
In conclusion, while the United States has taken steps to support renewable energy projects and enhance electrical infrastructure in the Caribbean, experts argue that more could be done. China’s growing influence in the region presents a challenge to U.S. hegemony and raises questions about the nature of China’s intentions. The U.S. should seize the opportunity to leverage its capabilities and play a more significant role in advancing energy security and stability in the Caribbean.
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