US Energy diplomacy with the states of the Caribbean region
Abstract
The relevance of this study stems from the growing role of energy diplomacy in shaping regional security and economic stability in the Caribbean basin, against a backdrop of competition among major powers and the vulnerability of small island economies to external shocks. The aim of the study was to determine how US energy policy transformed the energy systems of Caribbean states and what strategic consequences this produced for the region. The methodological framework of the study included a comparative analysis of state policies, an institutional analysis of US programmes, content analysis of statistical data from international organisations, and a SWOT assessment of the position of Caribbean countries within the new energy configuration. The findings established that US policy contributed to significant diversification of energy supplies and reduced the countries’ dependence on imported oil, which had historically accounted for more than 80-90% of their energy balance. It was found that the development of LNG infrastructure ensured lower generation costs and improved the predictability of energy flows. It was demonstrated that US technical and institutional assistance strengthened the regulatory capacity of small states, accelerated their integration of renewable energy sources, and contributed to the modernisation of electricity grids. It was established that US programmes enhanced the region’s energy resilience to natural disasters through support for microgrids, energy storage systems, and the digitalisation of management. At the same time, it was revealed that the expansion of the American presence created risks of unequal access to investment, debt dependency, and the strengthening of structural asymmetry between donors and recipients. The study also showed that strategic competition between the United States, China, and Venezuela significantly altered the balance of power in the region, shaping a new model of energy security in which Caribbean countries are positioned between several centres of influence. The conclusions of the study demonstrated that US energy diplomacy became one of the key factors in the transformation of Caribbean energy systems, combining infrastructure modernisation, institutional reforms, and the geopolitical repositioning of the region. The practical significance of the work lies in the possibility of using its findings for the development of energy resilience strategies for small states and the formulation of a balanced foreign policy in the field of energy security
Keywords
liquefied natural gas; geopolitical competition; institutional capacity; climate; adaptation
References
- AES Dominicana. (2025). Investor presentation. Retrieved from https://www.aesdominicana.com/sites/aesvault.com/files/2025-07/AES-Dominicana-Investor-Presentation-2025-Q1.pdf.
- Bataille, C., et al. (2020). Net-zero deep decarbonization pathways in Latin America: Challenges and opportunities. Energy Strategy Reviews, 30, article number 100510. doi: 10.1016/j.esr.2020.100510.
- Brecha, R.J., Schoenenberger, K., Ashtine, M., & Koon Koon, R. (2021). Ocean thermal energy conversion – flexible enabling technology for variable renewable energy integration in the Caribbean. Energies, 14(8), article number 2192. doi: 10.3390/en14082192.
- Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE). (2023). Energy report card for 2023 for Barbados. Retrieved from https://cekh.ccreee.org/wp-content/uploads/2025/06/2023-Barbados-Energy-Report-Card-3.pdf.
- Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE). (n.d.). Energy report cards. Retrieved from https://www.ccreee.org/erc/.
- Caribbean Energy Security Initiative (CESI). (2014). Retrieved from https://www.state.gov/caribbean-energy-security-initiative-cesi.
- Cavalcanti, D.M., et al. (2025). Evaluating the impact of two decades of USAID interventions and projecting the effects of defunding on mortality up to 2030: A retrospective impact evaluation and forecasting analysis. The Lancet, 406(10500), 283-294. doi: 10.1016/s0140-6736(25)01186-9.
- Dewasmes, G.G., & Heron, T. (2020). The external economic relations of the Caribbean: A comparison between the USA and the European Union. In R. Looney (Ed.), Handbook of Caribbean economies (pp. 182-192). London: Routledge.
- Dougé-Prosper, M., & Schuller, M. (2021). End of empire? A view from Haiti. NACLA Report on the Americas, 53(1), 1-6. doi: 10.1080/10714839.2021.1889846.
- Dreher, A. (2025). When aid misses the target: Competing objectives, new classifications, and smarter delivery. World Development, 196, article number 107159. doi: 10.1016/j.worlddev.2025.107159.
- Eastern Caribbean Central Bank. (2025). Debt to gross domestic product. Retrieved from https://www.eccb-centralbank.org/statistics-category/public-sector-debt/debt-to-gross-domestic-product/a.
- Embassy of the People’s Republic of China in Grenada. (2018). China-Caribbean infrastructure special loans. Retrieved from https://gd.china-embassy.gov.cn/eng/zlhz_1/djlbyhgjzxdk/.
- Export-Import Bank of the United States (EXIM). (2023). Creating locally, exporting globally. Helping American businesses win the future. Retrieved from https://img.exim.gov/s3fs-public/reports/annual/2023/EXIM_AnnualReport%2723_27032023_Final.pdf.
- Export-Import Bank of the United States (EXIM). (2024). Honouring legacy, charting tomorrow. 2024 annual report. Retrieved from https://img.exim.gov/s3fs-public/reports/annual/2024/FY2024+Final.pdf.
- Galaitsi, S.E., et al. (2024). Balancing climate resilience and adaptation for Caribbean SIDS: Building institutional capacity. Integrated Environmental Assessment and Management, 20(5), 1237-1255. doi: 10.1002/ieam.4860.
- Gonzalez-Vicente, R., & Montoute, A. (2021). A Caribbean perspective on China-Caribbean relations: Global IR, dependency and the postcolonial condition. Third World Quarterly, 42(2), 219-238. doi: 10.1080/01436597.2020.1834841.
- Hosein, R., Tewarie, B., & Gookool-Bosland, R. (2025). China, the Caribbean, and the Hemisphere. In China in the Caribbean: Trade, investment, and geopolitical influence (pp. 265-300). Cham: Springer. doi: 10.1007/978-3-031-71985-1_10.
- International Renewable Energy Agency (IRENA). (2012). Renewable energy country profiles, Caribbean. Retrieved from https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2012/_CaribbeanComplete.pdf.
- International Renewable Energy Agency (IRENA). (2020). Renewable capacity statistics. Retrieved from https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Mar/IRENA_RE_Capacity_Statistics_2020.pdf.
- Jansson, L., Koschmieder, A., Servières, L., Trundle, A., & Poncabare, S. (2025). Climate resilient urban development: An agenda for Small Island Developing States. NPJ Urban Sustainability, 5, article number 99. doi: 10.1038/s42949-025-00278-w.
- Kersey, J., Blechinger, P., & Shirley, R. (2021). A panel data analysis of policy effectiveness for renewable energy expansion on Caribbean islands. Energy Policy, 155, article number 112340. doi: 10.1016/j.enpol.2021.112340.
- Khan, A.M. (2024). The geopolitics of global infrastructure projects: Challenges and opportunities for health and wellbeing. Oxford Open Infrastructure and Health, 2, article number ouae006. doi: 10.1093/ooih/ouae006.
- Konopka, N.O. & Kostiv, B.B. (2020). The energy market of Latin American countries in the context of a pandemic: Threats, protection mechanisms and potential consequences. Political Life, 3, 86-93. doi: 10.31558/2519-2949.2020.3.11.
- Krantz, D. (2021). Solving problems like Maria: A case study and review of collaborative hurricane-resilient solar energy and autogestión in Puerto Rico. Journal of Sustainability Research, 3(1), article number e210004. doi: 10.20900/jsr20210004.
- Latin American and Caribbean Economic System (SELA). (2024). The relationship of Latin America and the Caribbean with China: Notes for a development agenda. Retrieved from https://www.sela.org/wp-content/uploads/2024/11/The-Relationship-of-Latin-America-and-the-Caribbean-with-China.pdf.
- Leal-Arcas, R., Faktaufon, M., Ribeaud, R., Brown, R., & Prakash, K. (2021). International trade, energy transition and climate change obligations: The perspective of small Pacific Islands and the Caribbean Community. Trade, Law and Development, 13(2), 198-263.
- López, E.D. (2023). Venezuela, Cuba and United States: Power and geopolitics in the Great Caribbean. In M.A. Latouche, W. Muno & A. Gericke (Eds.), Venezuela – dimensions of the crisis: A perspective on democratic backsliding (pp. 169-195). Cham: Springer. doi: 10.1007/978-3-031-21889-7_10.
- Martyr-Koller, R., Thomas, A., Schleussner, C.-F., Nauels, A., & Lissner, T. (2021). Loss and damage implications of sea-level rise on Small Island Developing States. Current Opinion in Environmental Sustainability, 50, 245-259. doi: 10.1016/j.cosust.2021.05.001.
- Mohan, P.S. (2022). Climate finance to support Caribbean Small Island Developing States efforts in achieving their Nationally Determined Contributions in the energy sector. Energy Policy, 169, article number 113208. doi: 10.1016/j.enpol.2022.113208.
- Moncada, S., & Nguyen, L. (2024). Improving sustainability, climate resilience and pandemic preparedness in small islands: A systematic literature review. Sustainability, 16(2), article number 550. doi: 10.3390/su16020550.
- Pasman, H., Sripaul, E., Khan, F., & Fabiano, B. (2023). Energy transition technology comes with new process safety challenges and risks. Process Safety and Environmental Protection, 177, 765-794. doi: 10.1016/j.psep.2023.07.036.
- Pereira, E.E., & Steenge, A.E. (2022). Vulnerability and resilience in the Caribbean Island states; the role of connectivity. Networks and Spatial Economics, 22, 515-540. doi: 10.1007/s11067-021-09533-w.
- PetroCaribe Energy Cooperation Agreement. (2005, June). Retrieved from https://digitalrepository.unm.edu/cgi/viewcontent.cgi?article=1050&context=la_energy_policies.
- Pierre, M.-H., & Güzel, M. (2021). A critical analysis of the public sphere in the digital age: The case of the Petrocaribe Challenge movement. Etkileşim, 4(8), 90-107. doi: 10.32739/etkilesim.2021.4.8.139.
- Runde, D.F., Sandin, L., & Doring, A. (2021). Reimagining the U.S. strategy in the Caribbean. Washington, D.C.: Center for Strategic and International Studies (CSIS).
- Serrano-Moreno, J.E. (2023). Latin America and the Caribbean: How the Belt and Road Initiative diminished US influence. In S.S.F. Regilme Jr. (Ed.), The United States and China in the era of global transformations: Geographies of rivalry (pp. 138-159). Bristol: Bristol University Press. doi: 10.46692/9781529228472.007.
- Shah, K.U., Raghoo, P., & Surroop, D. (2021). An institutional-based governance framework for energy efficiency promotion in Small Island Developing States. Climate, 9(6), article number 95. doi: 10.3390/cli9060095.
- U.S. Department of State & USAID. (2024). FY 2024 annual performance report. Retrieved from https://2021-2025.state.gov/wp-content/uploads/2025/01/FY_2024-APR_01-17-2024_3-10pm.pdf.
- U.S. Department of State. (2020). Growth in the Americas. Retrieved from https://2017-2021.state.gov/wp-content/uploads/2020/04/One-Pager-English-April-2020-508.pdf.
- U.S. Energy Information Administration (EIA). (n.d.). Venezuela. Retrieved from https://www.eia.gov/international/overview/country/ven.
- U.S. International Development Finance Corporation (DFC). (2024). Annual report 2024. Retrieved from https://www.dfc.gov/sites/default/files/media/documents/DFC_AnnualReport_2024_final_508.pdf.
- Vadell, J. (2022). China’s bilateral and minilateral relationship with Latin America and the Caribbean: The case of China-CELAC Forum. Area Development and Policy, 7(2), 187-203. doi: 10.1080/23792949.2021.1974907.
- Winters, Z.S., Crisman, T.L., & Dumke, D.T. (2022). Sustainability of the water-energy-food nexus in Caribbean Small Island Developing States. Water, 14(3), article number 322. doi: 10.3390/w14030322.
- Witter, M. (2021). Caribbean economic thought: Advances, retreat, current challenges. Agrarian South: Journal of Political Economy, 10(3), 463-491. doi: 10.1177/22779760211053083.
- Zelicovich, J., & Yamin, P. (2024). Carrots or sticks? Analyzing the application of US economic statecraft towards Latin American engagement with China. Latin American Politics and Society, 66(4), 58-77. doi: 10.1017/lap.2024.9.
- Zhao, M. (2021). The Belt and Road Initiative and China-US strategic competition. China International Strategy Review, 3(2), 248-260. doi: 10.1007/s42533-021-00087-7.
Suggested citation
Brzychcy, K., & Kusznieruk, P.
(2026).
US Energy diplomacy with the states of the Caribbean region.
Foreign Affairs,
36(3),
61-74.
https://doi.org/10.59214/ua.fa/3.2026.61