Like many Caribbean countries, Trinidad and Tobago relies on fossil fuels for electricity generation. But unlike many of its neighbors, Trinidad and Tobago is a natural gas producer and exporter. The islands are among the leading natural gas producers in the region, and the industry is one of the biggest contributors to the country’s $27.5 billion economy.
Trinidad and Tobago’s electricity market is controlled by the state-owned Trinidad and Tobago Electricity Commission (T&TEC), the sole transmission and distribution company in the country. It buys electricity from independent power producers who, in 2016, generated 9.4TWh of electricity from natural gas. The Ministry of Energy and Energy Affairs (MEEA) monitors, controls and regulates the energy and mineral sector.
In 2016, the country had 2.1GW of installed capacity, almost all of which was powered by its own natural gas. Oil and diesel accounted for the remaining share. The availability of low cost fuels means the islands have some of the cheapest electricity in Latin America and the Caribbean ($0.05/kWh), which dilutes the economic incentive to support renewable energy deployment.
In January 2011, the MEEA published its Renewable Energy Policy Framework, which makes recommendations and analyzes policies, technologies and targets for the deployment of renewable energy in Trinidad and Tobago. In 2011, two policy-based loans totaling $140 million were approved by the Inter-American Development Bank to help the country transition to a more sustainable energy matrix by incorporating energy efficiency and renewable energy and by strengthening its policy framework to integrate climate change into national economic development. One of the outcomes is to be the “Green Paper for Energy Policy in Trinidad and Tobago”, a plan to restructure the energy sector’s regulatory framework and to enact policies such as tax incentives for solar and wind power.
On March 30, 2015, the government of Trinidad and Tobago submitted its Intended Nationally Determined Contribution (INDC) to the United Nations, in which it committed conditionally to cut greenhouse gas emissions by 15% below the business as usual (BAU) scenario by 2030. The estimated cost of meeting this objective is $2 billion, which is expected to be met through a combination of domestic funding and international financing, including through the Green Climate Fund. Additionally, Trinidad and Tobago committed unconditionally to reduce its public transportation emissions by 30%, or 1.7MtCO2e, compared to 2013 by 2030.
The government’s National Climate Change Policy maps out its low-carbon development plan, and its Carbon Reduction Strategy for the power generation, transportation and industrial sectors forms the basis of its INDC. In order to reduce emissions in the energy sector, the country is working towards achieving greater efficiency through combined cycle generation at all its power plants. Implementation of renewable energy sources looks set to be the next stage in emissions reduction.