In many parts of the world, renewable energy (RE) has been integrated in some way into local electricity grids. This has been done in several Caribbean countries, including Suriname and Jamaica. The increased utilisation of renewable energy is consistent with countries’ commitment to the Paris Agreement, but also is being used as a strategy to bolster energy security and diversify sources of energy. Because of this global push, renewables share in electricity has increased from 18% in 2000 to 25% in 2018. The greatest source of renewable energy globally comes from hydropower. Note that in countries like Germany and the UK, installed RE capacity accounted for 41.99% and 33% of generation capacity respectively in 2018. Costa Rica and Uruguay have systems which are close to 100% powered by renewables. (Costa Rica for over 250 days in 2016 ran entirely on renewable energy and in 2015, 98.1% of its energy came from renewables).
The absence of a document that effectively spells out the underlying institutional framework for RE creates uncertainty in Trinidad and Tobago. What is required is a renewable energy plan which outlines the following: the objectives of the renewable energy policy of Trinidad and Tobago and the established targets with a budgetary target. This country is woefully weak on the renewable energy front and other countries in the region have progressed ahead of it. The amendment of the legislation will allow for the possibility of a utility scale renewable energy development.
To this end, there will also be a need to assess the renewable energy potential of the Trinidad and Tobago economy. This would include an understanding of how existing generation and transmission plants will be harmonised to meet renewable energy targets. Is it that some of the existing facilities will be retired in favour of renewable energy targets?
In recent times, the Trinidad and Tobago government has made some progress with regard to bringing RE onstream. BP and Shell, together with Lightsource (a renewable energy developer), won the bid for a request for proposals (RFP) to provide grid scale RE in the country. The next step of the arrangement is that the companies must now negotiate a power purchase agreement which has to go back to the Cabinet for approval. The target is to produce 130MW from renewable sources on a build, own and operate basis. Such an addition would be tremendous and would help release considerable amounts of natural gas which could be used to help earn foreign exchange either through greater liquefied natural gas (LNG) or petrochemical production.
To enhance renewable energy output, the Trinidad and Tobago Electricity Commission (T&TEC) Act, Chapter 54:70 and Regulated Industries Commission Act, Chapter 54:73 would have to be amended as these currently do not make any provisions for renewable energy production by independent power producers (IPPs). In this regard, the government of Trinidad and Tobago is seeking to provide a legislative framework for the generation of electricity based on renewable energy sources. This legislative framework would involve an amendment of the Acts which govern the Regulated Industries Commission, T&TEC and the Electrical Inspectorate Division (EID). To help inform this review, The Ministry of Energy and Energy Industries has collaborated with the United Nations Environment Programme (UNEP) to develop a framework for policy and legislation to govern feed-in tariffs.
In line with these legislative changes, it is critical that a renewable energy agency be established within the Ministry of Energy and Energy Industries and not just a renewable energy unit as it currently exists. The strategy in particular must be one that spells out 'how RE will be able to compete” with the low cost of fossil fuel generation and in this regard, it is critical that the cost of producing electricity, when the natural gas subsidy to T&TEC is removed, is properly determined. A phased approach would be required so as not to trigger inflation.
Other changes required
In closing, two changes are required to accelerate the process of increasing the production and utilisation of renewable energy in Trinidad and Tobago. The first is an umbrella institution, like the Guyana Energy Agency, be formed to push for the advancement of energy efficiency and renewable energy in the country. The second is a renewable energy training institution like Wigton renewable energy training lab in Jamaica. These agencies can help to institutionalise and catalyse change. Above all of this, the government of Trinidad and Tobago will have to undertake a massive educational drive to increase awareness of renewable energy in the country. This should be heavily focused on primary school education and lower forms at the secondary school level. This type of approach can help to change the mindset of heavy dependence on fossil fuel, and if properly coordinated, can target energy efficiency gains as well. Indeed, each primary school child could be given an LED bulb to help replace one of their incandescent bulbs at home, as promised in the 2019/20 National Budget. This hopefully can help trigger a greater level of awareness on energy thinking.