Trinidad and Tobago on its way towards Clean Energy with a Renewable Energy Road Map & Implementation Plan
Port of Spain, 15 September 2017: The transition to clean, sustainable and efficient modern energy services in Trinidad and Tobago was the focus of the landmark two-day Conference “Energy Efficiency and Renewable Energy in a Hydrocarbon Economy” that took place on the 8th & 9th of June 2017 at the Arthur Lok Jack Graduate School of Business.
The question that the Government of Trinidad and Tobago needed answered with respect to this transition to Clean Energy was: What are the next steps that need to be taken by policymakers? The June Conference created a fruitful environment where all involved stakeholders exchanged views to allow country leaders to eventually shape a solid and long-term vision for clean and sustainable energy.
In this context, the findings from an assignment financed by the European Union related to the identification of options leading to the optimum path that the country needs to follow with respect to Clean Energy up to 2030 was elaborated in the Road Map & Implementation Plan 2021/2030, presented today in final draft form to the Ministry of Energy and Energy Industries.
It seems indeed - and all evidence indicates - that the timing for the transition towards Clean Energy in Trinidad and Tobago is ideal. Following this path would put Trinidad and Tobago in the club of countries that despite being oil and gas producers are gradually shifting towards clean energy so as to tactfully utilize and maintain their natural resources for higher value creation and the benefit of future generations.
BACKGROUND
Trinidad and Tobago is a country heavily reliant on oil and gas. Energy and its by-products have accounted for approximately 40% of GDP, half of all total government revenues, and 80% of exports. Therefore, the economy is highly susceptible to any abrupt changes in the sector. The recent oil shocks illustrate vividly the exposures to such a dependency.
According to latest available reports[1], the countries’ fossil fuel resources are tapering. Oil production is reducing and gas production is insufficient to meet domestic downstream and electricity demand. This makes oil and gas a scarce resource. It is therefore time to think about the optimal utilization of these natural resources and prepare a more sophisticated resource strategy.
The calculations show that by decreasing energy consumption and substituting fossil fuels in the energy mix with low cost renewables will save substantial amounts of natural gas that could be channeled to the domestic industry and transformed to high end value added products. According to estimates, the fiscal benefits from such fuel savings could be in the range of 1.5 up to 3 billion USD up to 2030 in line with the most optimistic scenarios.
Diversifying the economic base currently remains a prominent medium-term challenge. Several economic sectors could benefit from such a diversification strategy. The creation of a new economic sub-sector through renewables could boost all of the targeted primary sectors and ultimately the economy in its entity.
The promotion of Renewables and Energy Efficiency could create an additional knowledge base, stimulate local investment and attract Foreign Direct Investments; thus creating opportunities for new and existing businesses that have an overall positive impact on employment and GDP growth. Those benefits have already been witnessed in other countries irrespective of their size and shape. Moreover, given the high degree of industrialization of the country and the workforce skills, Renewables and Energy Efficiency could unlock several exporting opportunities for renewable equipment manufacturing and energy efficiency services to the wider Caribbean and possibly beyond, where Renewables are the primary source of electricity generation even up to 100% in certain countries.
Global leaders acknowledging the need to take drastic action for the protection of the environment joined the Paris Agreement. Two years ago the newly established Government of Trinidad and Tobago set a clear target for Renewable Energy – 10% of power generation from renewables by 2021. The Hon. Minister of Finance, in his budget speech on October 5th 2015, articulated this clear vision. This vision is now supported with clearly articulated policy and a robust Roadmap of detailed actions and measures to choose the optimum path.
The Road Map & the Implementation Plan is a guide to assist the government to translate policy vision and commitments into solid actions that the country needs.
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[1] http://www.tteiti.org.tt/wp-content/uploads/The-extractive-industries-in-Trinidad-and-Tobago-Contextual-Information.pdf