Power Market Interconnection in the Caribbean Region

The interconnectivity of energy markets is a tangible reality that generates economies of scale, reduced reserves, more efficient operation of electrical systems, more optimal use of natural resources in each country or region, as well as the strengthening of relations between the countries participating in this new regional electricity market. Furthermore, the renewable energy potential in the Caribbean and South America, based on solar, wind, hydroelectric, biomass, geothermal, and tidal energy, among others, ensures a stable and reliable supply of energy to the region. Nevertheless, the greater the amount of renewable energy available, the greater the need for rotating energy from non-renewable energy sources to ensure the stability, security, and integrity of the electrical system, which increases its operational costs. Motivated by these premises, we develop a research project that allowed us to demonstrate the technical, economic, and financial feasibility of interconnected electricity markets in the countries of the Caribbean region. The Caribbean region, characterized by its diverse cultures and economies, faces unique challenges in energy supply due to its geographical fragmentation. This paper explores the potential for power market interconnection among Caribbean nations to enhance energy security, economic efficiency, and environmental sustainability. By evaluating technical, economic, and political aspects, this study aims to provide a comprehensive overview of how interconnected power markets could transform the region’s energy landscape.