Dwight Mahabir, Chairman of the Energy Chamber of Trinidad and Tobago’s remarks at the opening of the Energy Efficiency and Renewables Conference 2021
It gives me great pleasure to welcome you to the Energy Chamber’s 5th Annual Energy Efficiency and Renewables Conference. This is the second time that we are conducting the conference virtually and I’m pleased to have heard from Dax that there are over 450 in attendance – thank you all, this is a positive indicator that Dax and his team are doing a great job and that more of us are recognizing that the future sources of energy and their transformation to electricity and other forms that are useful for society, will be different and we’re all tuning in to contribute and to seize opportunities that will arise.
The theme of the Conference this year is Leading in the Energy Transition and over the next three days we have a fantastic line-up of leaders from around the world who will be sharing their knowledge, experience and considered opinions on the energy transition in Trinidad & Tobago, the Caribbean and globally.
Over the past year there has been a noticeable shift in the conversation on climate change and the imperative of decarbonising the global economy. We have seen many countries making pledges to get to net zero emissions by 2050. Some of the world’s largest energy companies, including two of our major sponsors today, have made similar commitments. Here in the Caribbean, we have seen Barbados, St Kitts and Nevis and Dominica all committing to the ambitious target of achieving 100% of their electricity supply from renewable sources by 2030 or earlier.
The Covid pandemic has led to an unprecedented decline in demand for oil derivatives, particularly in transportation fuels, and most analysts view the pandemic as having accelerated the energy transition. Many countries have put renewable energy at the heart of their post-pandemic recovery plans, while the change in administration in the USA has led to a recommitment from the world’s biggest economy to the Paris Climate convention.
Here in Trinidad & Tobago, there is a sense that we have some catching-up to do. But things are happening. There are two major solar electricity plants currently going through the approval process, which will leapfrog us over most of our Caribbean neighbours in terms of installed renewable energy capacity. I expect we will hear more about these two projects later in the conference. There are also some small solar projects being implemented, including one at the Piarco airport.
There is also an increasing focus on energy efficiency, with the TTEC light bulb exchange programme in execution and other energy management projects being implemented in state-owned buildings.
The Energy Chamber has clearly stated our belief that fossil fuel subsidies should be removed, and we are fully supportive of the decision taken by the Government with respect to finally removing the transport fuel subsidy this year. This is something that the Energy Chamber has long recommended and we are delighted that this has now come to fruition. We also fully support the privatisation of the fuel retail sector and the removal of fixed margins.
We have noted the recent increases in taxes on private hybrid and electric vehicles, which we understand to be a policy measure aimed at reducing demand for foreign exchange. Our preliminary calculations are that this change will not reduce overall demand for foreign exchange with respect to fully electric vehicles, which are powered by locally generated electricity from natural gas rather than imported gasoline or diesel. There will be relevant data presented in the transport session on Wednesday afternoon – perhaps I could ask Minister Khan and Minister Gonzales to ensure that their respective technocrats take note of that data and, should the data support our position, perhaps have a dialogue with the Minister of Finance about the issue.
We have also stated our position that the subsidy on natural gas for electricity generation must be reduced and eventually removed with special consideration being given to low-income households. This will mean higher electricity rates for most consumers, but not necessarily higher electricity costs as we anticipate that consumers will become more conservative in their use of electricity and invest in alternative equipment as the associated economics improve.
There are around 80,000 households in Trinidad & Tobago that use under 400 kwH of electricity in a two-month billing period – these are households that have electricity bills of under TT$ 104. These households only use about 1 percent of the natural gas consumed by the electricity sector. We recommend keeping the subsidy for such households.
We at the Chamber are excited by the business opportunities that will arise from a keen focus on improved energy efficiency. These include products and services in areas such as air conditioning, solar water heaters, retrofitting of private dwellings and commercial buildings and factories for example, including modernization through the use of Automated Building Control Systems.
Many of the Chamber’s member companies have committed to improving their energy efficiency and have signed a declaration to that effect. Later this morning, our CEO, Dax Driver, will report on the actions that have been taken by members thus far. We must all, through our conversations, behaviours and focused efforts assist to increase the awareness of our leaders and the general public on the importance and benefits of energy conservation and efficiency. Our aim must be that every citizen of Trinidad and Tobago considers leaving a door open with an air conditioner running as socially unacceptable as throwing a plastic bottle out of the car window.
We also have to see that there are opportunities to be had from what might now be considered waste. One of the great projects that has been sparked by this Energy Efficiency and Renewables Conference is the New Gen hydrogen project. The concept behind this project was first floated at the 2019 conference. The idea was then taken on and further developed by a new start-up company which was launched at the Trinidad & Tobago Energy Conference almost exactly one year ago. What is great about this project is that it proposes to take what is now waste heat being vented to the atmosphere and, through the addition of heat recovery and steam generation equipment and the installation of steam turbine driven generators, generate electricity to produce hydrogen from electrolysis (rather than from Natural Gas) - Hydrogen being a key molecule used in ammonia and methanol production. You will hear a lot more about that project in the hydrogen session on Tuesday morning, but it is a great example of rethinking what is now just a waste resource and turning it into something of tangible value.
It is also a great example of why conferences like this are so important. They create opportunities for all of us to learn from each other and to spark new ideas. There is so much opportunity in this space of renewable energy, energy efficiency and decarbonisation that I am genuinely excited about the future. It is an area where we really must think regionally and learn from each other and find the best practices and best ideas across the region and indeed across the planet.
Covid has forced us to go virtual. While on one hand, there is downside to not being able to sit in the same room and informally chat and share ideas, on the other hand we have been able to include several new expert speakers and to make links across the region without increasing the carbon footprint and avoiding the cost of travel. I trust that you all will enjoy, learn and share ideas over the next three days and I look forward with positive anticipation to the next big idea or ideas that will be ignited by sparks generated at this year’s conference.