I am delighted to welcome you to our annual Caribbean Sustainable Energy Conference. This is the event where we really get into the details of the energy transition and what companies, governments and other stakeholders need to do to meet the challenge of providing the world with secure, affordable, low carbon electricity, fuels and petrochemicals.
We have themed this year’s conference “From Ideas to Action” because we want the next three days to focus on the actions that we need to take to meet this challenge.
Now, I know over the next three days the conversations may tend to get very detailed and technical, especially when I see the high quality of speakers lined up for the various panels. However, I always like to start with the basics. For us in Trinidad and Tobago, the energy transition is both a necessity and an opportunity. The fact is that we simply must adapt to a changing world around us, but our wide range of natural resources and our wealth of talent, position us somewhat uniquely for the journey ahead.
There has been a lot going on in the sustainable energy space in the Caribbean over the past year. It is great news that we have broken ground on the first major grid-scale solar project here in Trinidad—this is going to be the largest solar project in the Caribbean region. There have also been many small-scale solar projects executed around the country, many with UNDP and EU funding. In the wider region, we have seen some progress with geothermal energy in Dominica and some exciting green hydrogen projects in Barbados.
In Trinidad, we have also seen the publication of a green hydrogen road map, funded by the IDB, and a pathway to wind generation report, funded by the EU. We held a naming ceremony for the country’s first methanol-fueled tanker, signalling a new era in shipping.
As recent as last week, our Prime Minister again highlighted the unique opportunity for Trinidad and Tobago to become a methanol fuelling hub. This would allow us to claim our share of a global marine fuel market worth approximately 105 billion US dollars, and in the process increase the demand for maritime services, generating employment and economic opportunities locally.
So there has been a lot going on, and many encouraging initiatives, but the fact is that we have barely scratched the surface to meet the challenge of net zero.
The challenge is very different in countries across the region. The pathway to net zero in a highly industrialised economy, like Trinidad and Tobago, is very different to the pathway for small tourism dominated economies in the eastern Caribbean. Nevertheless, the Energy Chamber firmly believes that addressing this challenge on a regional level just makes good sense. There are limited resources available in the region and wherever possible we should be pooling our expertise, knowledge and skills.
In the Energy Chamber we have championed the full implementation of the CARICOM Single Market and Economy and the integration of energy service markets in the region. It is important that companies, skilled workers and equipment are able to move freely around the region to implement all of the projects, big and small, that are needed to drive the energy transition. Our members in the engineering, contracting and services sectors here in Trinidad have a key role to play in implementing projects throughout the Caribbean.
In terms of capital, this is available both regionally and internationally to help finance the energy transition, but the key is to unlock that financing in a way that can actually be deployed in the region. This will likely require new approaches to financing projects, including public-private partnerships and the involvement of international development banks.
If this capital is to be deployed to support the energy transition, we do, however, need to have the right policy environment. In Trinidad and Tobago, for example, there are companies and even individuals who are anxious to install solar panels on their rooftops. However, until the legislation is changed to allow people to easily license solar systems and connect them to the grid, the reality is that these investments are not going to be made. We know that there are legislative changes in the pipeline, and we urge the Government to accelerate the implementation of these changes.
The addition of renewable energy onto the grid in Trinidad and Tobago is something which the Energy Chamber has championed for many years, especially through past iterations of this conference. Apart from the climate change impacts, it also just makes good economic sense for Trinidad and Tobago to divert as much natural gas as possible from electricity generation to the foreign exchange earning LNG and petrochemical sectors.
The pattern of electricity consumption in Trinidad and Tobago is concerning and not sustainable. Domestic electricity consumption has increased by 31% over the past decade, while industrial consumption has declined by 20% over the same period. With 10% of our natural gas supply now going into electricity generation, and much of that not contributing to economic output and wealth creation, this is a pattern that simply must be changed.
This is why the Energy Chamber has been supportive, in principle, of the electricity rate review process. We believe it is important though, that our recommendations be read in their entirety, because there are a number of factors to be addressed, including inefficiencies in power generation. Energy efficiency must be a mantra for everyone in Trinidad and Tobago—as it has been for a long time for many of our Caribbean neighbours. We are facing a serious shortfall in natural gas supply to our wealth generating industrial sectors, and we cannot be wasteful in the generation and consumption of electricity.
This conference is not, however, just about electricity. We need to look at the entire energy system, including transportation and industry. In terms of the latter, it is fairly well-known that our petrochemical industry—especially our ammonia plants - are major point sources for carbon dioxide. What is not as well-known is that for almost two decades, we have already been capturing large volumes of this CO2 for use in our methanol and downstream fertiliser production.
Over the course of this conference, we will discuss technologies to reduce emissions across the energy sector and to capture and sequester carbon. We will hear about opportunities around grey, blue and green hydrogen, but as I hinted earlier, I will leave that to the more capable minds to occupy this stage over these couple days.
We also have a tour of Point Lisas on the third and final day, which will allow delegates to better understand the technologies across the industry and see the process plants first-hand. In the Energy Chamber we always believe in adopting a practical approach and, in keeping with the theme of this conference, ensuring that ideas can indeed be translated into tangible action.
Regarding transportation, we have had a lot of discussion in past editions of this conference on land transport and especially on electric vehicles. This year, we are placing a spotlight on the marine transport sector and how we can reduce the carbon footprint of the global shipping industry. The cruise ship industry, so important to the Caribbean, is actively exploring ways of reducing its carbon footprint. Again referencing the Prime Minister’s comments last week—we believe that Trinidad and Tobago can play a major role in making that a reality.
In conclusion, as we move from ideas to action and a lower carbon, lower emission future, these are interesting and exciting times for the energy sector in Trinidad and Tobago and in the wider region as well. There are many opportunities, but in a rapidly changing world, if we move too slowly, these same opportunities, and the commodities on which our economies depend, can easily become liabilities. Let us therefore move with a sense of urgency to ensure that while we act responsibly in preserving the world for future generations, we also secure the economic well-being of our people. This is not a race in which we can afford to be left behind.