Going Green with Electric Vehicles: The Ups and Downs of Renewable Energy

By Stuart Wilson

‘Going Green’ is trending in paradise. As the Cayman Islands moves toward more renewable sources of energy, there are more and more electric cars appearing on the roads, bringing down emissions and decreasing the Islands’ carbon footprint.

The Cayman Islands aims to transition to 100% renewable energy by 2045, with an intermediate target of 70% by 2037, according to the National Energy Policy (NEP). Currently, only about 3% of energy is renewable (mainly solar), with 97% generated from diesel.

100 percent renewable energy in Cayman involves a strategy that relies on the Islands’ power providers (CUC, Brac Power and Light) implementing large-scale solar, battery storage, as well as potential offshore wind to move away from fossil fuels.

In April 2024, the updated NEP for 2024-2045 was approved and includes strategies to facilitate the transition to 100% electric vehicles by 2045,

Despite 100 percent renewable energy being considered doable, ‘net-zero’ however, (absolutely no combustible engines and zero fossil fuel use) is going to be extremely challenging for Cayman and the world.

Some experts argue that the latter may be impossible before several generations’ time, at the very least, and at the current pace. 

Challenges & Infrastructure

• Grid Stability: The reliance on diesel necessitates a major overhaul of infrastructure to ensure stability with higher renewable penetration.

• Land Use: Using existing developed spaces (parking lots, rooftops) and, or rehabilitated, land is prioritized for solar projects.

• Transportation: The policy also aims for 100% of new vehicles to be electric by 2045

With regard to car emissions playing a role in decreasing Cayman’s carbon footprint, the Islands’ Government has implemented incentives for persons who chose to go electric with duty concessions on electric vehicles to encourage the cleaner/greener option.

As early as 2019 then-Minister for Commerce Joey Hew (now Leader of the Opposition), announced that Customs duty would be reduced for electric vehicles.

Bicycles, electric motorcycles and electric bicycles incurred no custom duty fees upon import and no duty was imposed for the import of electric vehicles for personal use valued under $29,000.

Hybrid vehicles for personal use, valued under $29,000, paid a duty of 10%, whilst electric and hybrid vehicles imported for commercial use incurred duties of 5% and 10%, respectively.

The standard duty rate for conventional vehicles is 29.5%–32%.

At the time, Mr Hew noted:

“The benefit of switching to energy-efficient transportation will not only be environmental but also economical. The Cayman Islands transportation sector is the second-largest energy consumer in the country, accounting for approximately 30 percent of imported fuels.”

“It is also the second-largest emitter of carbon dioxide,” he added.

The government also installed electric vehicle charging stations at town halls and civic centres in attempts to meet the 2030 goals.

According to the Department of Vehicle and Drivers’ Licensing (DVDL), there were 648 electric vehicles licensed in the Cayman Islands in 2024.

This figure represents a substantial increase from previous years, However, the Cayman Islands’ EV adoption lags behind some Caribbean countries such as Barbados.

With gas and diesel prices rising due to the conflict in Iran, customers are feeling it at the pump in the Cayman Islands and though electric vehicles can be cheaper to ‘fuel’ in some instances, charging stations around the Islands are not free.

The cost of electricity may still be prohibitive (home charging units) and even with lower fees on duty EV’s can still be pricey to keep charged.

There are some instances where customers of certain establishments can charge their EV free of cost.

There are also environmental processing fees to consider for EV’s (introduced in 2025) with a CI$1,000 fee for vehicles up to CI$79,999 and  CI$2,000 fee for vehicles over CI$80,000.

According to automotive experts, electric vehicles provide a cleaner source of energy and are cheaper to import, however they may not always be more economical in the long run.