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Increasing costs associated with fossil fuel generation coupled with the recognition and acceptance of the finiteness of this resource has, in part, contributed to the growing popularity of alternative energy generation. International environmental treaties have also forced many states, primarily developed states, to consciously review their use of fuels. This paper compares governmental policy and electricity market structure of selected countries of the European Union, that have successfully contributed to the increased use of renewable energy sources with those of some Caribbean countries. The European Union is by far the leader in the use of Embedded Generators, yet there are still those member countries that lag behind in the use of such technologies. It is therefore valuable to investigate any correlation between such member states and those of the Caribbean region. The correlation will be examined on governmental policies and market incentives. For the Caribbean countries, focus is also placed on schemes already implemented and their potential for sustainability under the current structures.