Energy cost is a major element affecting the running costs of hotels in the Caribbean due to the region’s dependence on imported fuels for electricity generation and dependence on fossil fuels often subject to volatile prices. The energy matrix of the Caribbean is 90% composed of fossil fuels. High utility costs directly impact hotel rates for end customers and therefore the competitiveness of hotels.
Hence the Caribbean Hotel Energy Efficiency Action (CHENACT), aimed at improving energy efficiency in the sector. The first phase of this programme took place between 2009 and 2011.