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Electronic copy available at: http://ssrn.com/abstract=1500721
Proceedings of the Tobago Gas Technology Conference (TGTC) 2008
Towards a Strategy for Moving Trinidad and Tobago to Renewable
Technologies
Anthony E. Paul ¥, Association of Caribbean Energy Specialists, Ltd.; Centre for Energy Enterprise Development
(Trinidad and Tobago).
Stefano Balbi, PhD Candidate in Analysis and Governance of Sustainable Development, University of Ca' Foscari,
Venezia (Italy). Former UNV Energy & Environment, UNDP T&T.
Abstract
Renewables have been a matter of political discussions in Trinidad and Tobago for more than twenty years. To date,
however, no comprehensive policies, or consistent elements leading to their creation, have been adopted. The intent of
this paper is to demonstrate that key incentives which might trigger a radical change, eventually moving Trinidad and
Tobago towards renewable technologies (RT), already exist.
However, a paradigm shift in the conception of a new energy policy is needed. It is envisaged that this could be
achieved by linking RT to Trinidad and Tobago’s other objectives and strategies for national and regional
development. The approach is to consider the possible strategic role of renewables for the future sustainable
development of the country, by highlighting the benefits of such a sub sector and its multiple, potential, economic and
social linkages in the current local and regional context.
Therefore, this paper not only considers the current economic, social, and political situation in Trinidad and Tobago,
including the role of the energy sector in national development and the strategies to increase national competitiveness
and economic sustainability, but also the regional energy market, including the social, economic and geopolitical
implications of regional energy strategies.
Keywords: renewable energy technology; Trinidad and Tobago and Caribbean; moving beyond oil and gas.
1. Introduction
Trinidad and Tobago’s early development, up to the
middle of the 20th century, was propelled by renewable
energy, as exemplified by the use of bagasse to fuel the
sugar refineries. Developing and using renewable
technologies (RT) have factored in the technical, social
and political discussions in Trinidad and Tobago since
the first oil boom of the 1970s. To date, however, no
comprehensive policy or strategy has been widely
articulated or implemented. As an example, the Energy
Vision 2020 Draft Report was deliberately very thin on
RT and energy conservation, recognising that national
institutions were not yet prepared to dedicate the time
and resources needed for engaging these challenging
issues in the manner required, given the high oil and
natural gas (NG) production and prices then prevailing
and projected (Government of Trinidad and Tobago,
2004a). In fact, all past and current energy policies have
said very little about the role of RT in the economic
development of the country, especially in terms of
energy conservation and environmental protection,
treating the argument with superficial statements and
little, in terms of solid decisions and clear actions.
This paper suggests a starting point to move on the
policy making process: a strategy to get to a new kind of
energy policy, which allows the linkage between RT and
Trinidad and Tobago’s other objectives and plans for the
national and regional development.
In order to lay down our strategy we consider the
possible role of renewables for the future sustainable
development of the country, through a comprehensive
approach that highlights the benefits of such a sub sector
and its multiple potential economical linkages in the
current local and regional context, out of the short-term
growth perspective.
We conclude that there already exist key incentives
which could trigger a consistent development of RT in
Trinidad and Tobago. The authors' aim is to emphasize
that now is the right time to capitalize on the expansion
of the country’s economy, by planning the necessary
actions for enhancing and securing its socioeconomic
wellness with increasing benefits for the population’s
living standards.
2. Situation Analysis
The economic growth of the country is consistently
guided by the energy sector, which, however, does not
realise its full potential in terms of job creation, local
participation, value added, efficiency and environmental
performance.
In particular, Trinidad and Tobago registered an average
annual gross domestic product (GDP) growth of 9.2%
from 2001 to 2006. This growth was mainly driven by
the Energy and Related Industries sector, which has
been contributing over 30% of the country’s GDP since
2003. Nonetheless, this sector only employed 3.5% of
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Electronic copy available at: http://ssrn.com/abstract=1500721
Proceedings of the Tobago Gas Technology Conference (TGTC) 2008
the workforce in 2004, 2005 and 2006 (Central Bank of
Trinidad and Tobago, 2006). In addition, there is a low
level of local presence in the Energy and Related
Industries sector, among both high-skilled workers and
supporting industries (i.e. Design Engineering, IT,
Trading, Financing).
Furthermore, the country’s heavy reliance on such a
volatile international market is exposing the economy to
significant risks for its future, especially when we take
into account the inevitable decline of the oil and NG
reserves. The need for a more qualitative development
of this sector has been strongly recognized in the Vision
2020 exercise (Government of Trinidad and Tobago,
2004b), but the policy making has not yet produced
major changes from the “business as usual” approach,
since 2004. In particular very little has been done to
explore the potential of RT, and still a lack of awareness
of the strategic role of renewables is prevalent. In fact,
Trinidad and Tobago remains a carbon resource
propelled economy vulnerable to external shocks such
as fluctuations in international commodity prices or
policy changes abroad. Significant changes in the
country’s foreign trade will have an immediate effect on
the GDP. Moreover, the economy is increasing its
dependence on oil and gas, in the short to medium term,
following the usual path of development.
2.1 Energy Sector Overview
The country’s total primary energy production is
approximately 716,500 barrels of oil equivalent per day
(boed), of which 20% derives from oil and 80% from
NG (Ministry of Energy and Energy Industries of
Trinidad and Tobago, 2006).
NG has constituted the bulk of the energy portfolio,
since 1995, but the future still remains brighter for oil,
given the projected trends in international prices,
reserves consumption/recovery rates and future resource
potential.
Refined oil fuels the domestic demand for transportation
while NG is mainly used for the local power generation.
In general, a small share of the carbon resources is
employed to stimulate the creation of local value added.
More than half of the crude oil is sold to overseas
refineries by multinational companies operating locally,
but the share of oil refined locally doubled since 2003
(from 20% to 45%). Half of the refined oil exports are
directed to Central America and the Caribbean, but this
condition is changing as a result of the PetroCaribe1
initiative, increasing the volumes going to the North
American market (currently 32%) (Petrotrin, 2007).
On the contrary, NG is following an opposite path with
several projects in the line-up planning to serve
1 The PetroCaribe agreement is a Caribbean oil alliance
with Venezuela to purchase oil on conditions of
preferential payment.
Caribbean countries. More than half (57%) of NG is
sold for liquid natural gas (LNG) production, which is at
moment the most valuable output (National Gas
Company of Trinidad and Tobago, 2006). However, NG
does not seem to be capturing all its economic potential,
even if the Government is putting a lot of effort in
finding more valuable downstream options beyond
methanol and ammonia, for example. Yet, in this sense,
scarce attention has been devoted to RT.
Considering the current reserves to production ratios, oil
could last at least 19 years2, versus 12 years or less for
NG3. The fact that the NG production capacity is
increasing every year, leads to a critical scenario,
without new discoveries. At this point we would expect
the economy to switch to a value capture oriented
approach, given the limited time of availability of this
resource.
We argue that RT development should be encouraged
not only by the wealth created by the traditional energy
sector but also by the direct employment of carbon
based fuels into the RT industry chain. We conceive this
as valuable and strategic move towards a green
economy.
2.2 Energy Sector in the Caribbean
All the regional states other than Trinidad and Tobago
are net energy importers with fragile economies,
vulnerable to fuel price volatility and exposed to a high
public debt. With an increasing power demand and
energy intensity of the economies, their situation is
getting very critical. In particular, the electricity
generating capacity is weak and subjected to power
outages and black outs on a regular basis (ESMAP,
2006). While the PetroCaribe initiative is securing
energy supply in the short term, it is also worsening the
debt exposure in the long term.
As the business as usual scenario is clearly
unsustainable, some Caribbean islands have begun to
look towards NG to diversify their energy consumption
away from imported oil. Therefore, the role of
Trinidad's NG seems to acquire even more importance,
in the regional scenario, notwithstanding its declining
reserves.
2 This has been estimated considering the amount that
refers to the 3P Total, including Proven, Probable and
Possible, according to the Government audit of January
2005. It does not consider the proven heavy oil
reservoirs in the Soldado and in the South-West
Peninsula oil sands. The projection has been calculated
discounting the Probable and Possible reserves by 50%
and 10%.
3 According to our estimations based on the published
results of the consultancy of Ryder Scott commissioned
by the Ministry of Energy and Energy Industries in
2006.
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Proceedings of the Tobago Gas Technology Conference (TGTC) 2008
In addition, there is a growing regional interest in
renewables, with Barbados and Jamaica leading the
process. The Caribbean economies are progressively
integrating under CARICOM and a regional energy
strategy is being touted, featuring an essential role of
RT. By means of this initiative, the region is preparing
to manage the long transition to a future free of carbon-
based fuels.
Hydro, geothermal, solar and wind are already
contributing to a small part of the regional energy
portfolio. Their implementation is growing consistently
in accordance with the regional abundance of these
natural resources, as the States recognize their strategic
value, supporting their introduction with specific
policies.
Wind and solar are the fastest growing implemented RT.
Wind farms have seen a 30% growth in the last decade,
with a significant boost in the Dutch and French
territories (UNDP, 2006b). Solar water heating is
already a commercially viable option in many countries:
Barbados has become the regional leader after a policy
decision in the 1970s. The case of solar water heating
systems in Barbados is a very successful example of
what a Caribbean island can do to capitalize its
enormous potential in terms of RT. However, even in
this case, much more can be achieved, specifically in
terms of electricity generation.
Agriculture presents the opportunity to utilize crops and
crop by-products to produce biomass, as already pursued
by private investors in Jamaica (i.e. the Jamaica Broilers
Group). Biomass represents the best available option for
the medium term, in terms of RT applications in
transportation. Jamaica and Barbados will soon start
moving to biofuels leading to a new Caribbean
transportation scenario (UNDP, 2006b).
Geothermal energy is a very convenient option for
power generation, but it is available only in the Eastern
Caribbean. As the Geo-Caraibes project becomes fully
implemented, the Eastern Caribbean States will receive
huge economic and environmental benefits (Lunda et
al., 2005).
Tidal power technology is still in its early development
phase but could find particular site-specific conditions in
the Caribbean to justify its implementation in the future
(UNDP, 2000).
It is readily conceivable that, with the existing
technologies, renewables could contribute up to 25%-
30% of the energy needs of the region (UNDP, 2006b).
3. Making the Economic Case for Renewables
As Trinidad and Tobago is enjoying a period of
economic wealth and natural resource abundance, there
is great risk of underestimating the full economic
benefits that can be derived from the introduction of RT.
In particular, the large subsidies for gasoline and the
growing power demand from of the existing grid
constitute two economic drivers for the implementation
of alternatives in the transportation sector and in power
generation.
The economic distortions associated to the subsidies
might be reduced by redirecting part of that subsidy to
developing methods that gradually replace gasoline with
alternative fuels. This opportunity is reinforced by the
fact that other islands are already looking at biofuels to
refurbish their transportation system. Trinidad would,
therefore, have the chance to differentiate itself as
privileged supplier of blended fuels, capturing the
higher layer of the regional energy market. Such a
diversion of the gasoline subsidies would then stimulate
the industrial response to the alternative energy demand
instead of locking-in the country's technological
development (OLADE, 2007).
At the same time the growing power demand can serve
as an opportunity to look at electrification through
alternative approaches and propose innovative solutions
that take into account the fact that renewable energy is
already more economical than conventional energy for
off-grid applications and that several renewable
technologies are potentially the least cost mini grid
generation technology (World Bank, 2006).
4. The Renewable Technologies Virtuous Circle
The rebirth of a national agriculture sector is already
perceived as fundamental to addressing the challenges
of increasing food prices. However this sector has more
to offer: it can produce even more benefits if associated
to bioenergy production. The complementary fit
between agriculture and energy has become evident, at a
global level, in the last decade. On one side the
competitions for land between food and energy has
produced negative impacts, as the rise of food prices, on
the other side integrated agri-bio-energy systems have
demonstrated the potential of maximizing this synergy
(Plieninger et al., 2006). In the future we will assist to a
progressive diffusion of the good practices leading to an
increment of the bioenergy share in the global energy
portfolio (Fischer and Schrattenholzer, 2001). There is a
continued trend of innovation in the technologies
currently applied, and room for enormous
improvements. In Trinidad and Tobago, agriculture can
serve as leverage to develop bioenergy initiatives, but
also, bioenergy can serve a reason to invest more in the
agricultural sector: the imperative is to capitalize the
synergies between the two sectors. Therefore, more
research is needed to identify the suitability of different
crops and crop by-products (but also of grassland and
animal waste) in order to understand the bioenergy
sustainable potential.
Trinidad and Tobago has to significantly improve its
innovation performance on its way to become a
developed country (World Economic Forum, 2008). The
need for research and development (R&D) has been
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Proceedings of the Tobago Gas Technology Conference (TGTC) 2008
partially recognized by the Government in the past,
leading to the establishment of the University of
Trinidad and Tobago (UTT) and the creation of a sound
research program, with special focus in energy and
agriculture. This constitutes a base research capability
that should considerably be improved for a long term
innovation driven development strategy. RT can serve as
a targeted research area to maximize the country’s
resources and capabilities. Trinidad could become an RT
leader in the Caribbean, confirming itself as a total
energy pole, recognized for its innovation capacity, with
a sound post hydrocarbons strategy. Given this
objective, we propose two strategies involving: (a) the
creation of a joint research program with a partner
country in the leading positions of the global
competitiveness ranking4 (World Economic Forum,
2008); (b) the establishment of a manufacturing pole for
the production of solar panels, capable to capitalize the
resource synergies of Trinidad and Tobago and its
neighbours5.
Indeed, RT provide a way to increase the local content
of the energy sector. UNDP case studies in developing
countries have shown that the introduction of RT, for
their intrinsic features of flexibility and local
configuration, will lead, in a first phase, to many small
scale projects targeted for rural communities (UNDP,
2006a). Given their initial limited dimensions, these
applications represent a unique opportunity to increase
the local content in the country’s economy. Moreover,
the introduction of RT in the energy portfolio is a
chance to transfer the know-how acquired in the last
fifty years to a new sub sector owned by local players.
Once the technology is set and run profitably the same
local companies would become regional points of
reference, offering themselves overseas.
Because of their small-scale economies, RT are a way to
foster the financial sector through a portfolio of diverse
applications locally accessible. In addition, locally
driven initiatives could become very attractive for
foreign private equity funds that have been investing
heavily in alternatives, contributing to the launch of an
established and financially vibrant sector and supporting
Trinidad and Tobago's aspiration to become an
international financial centre.
4 We are here referring to a strategic alliance among
institutions, companies and universities that can bring
the entire “education research innovation
production” system into a mutual knowledge and
resources exchange process.
5 This could be led by a major player in renewable
technologies (i.e. BP) by means of a public-private
participation that could derive the synergies among the
country's NG, Guyana's sand and the Barbados'
knowledge base.
Biofuels projects would benefit from the collaboration
between islands and countries in the Caribbean. The
specialisation among locations for different parts of the
supply chain (farming, processing, finishing and
marketing) will produce an increasing demand for
process integration and a for strong logistics base. This
setup will lead to a higher quality maritime sector,
improving not only the trade of goods, but also the
integration between the people of the region.
In spite of being in a serious situation, in terms of
carbon emissions, Trinidad and Tobago has available
opportunities, associated to the Kyoto Protocol6, for
financing RT projects, while contributing to the
reduction of carbon emissions. Moreover, this kind of
flexibility mechanisms is likely to be further improved
by the United Nation Framework Convention on
Climate Change (UNFCCC) with the post-Kyoto
regime. This issue is a particular imperative as it
embraces all the economic and strategic drivers that
have been portrayed until now. There is a resultant
funding mechanism that has the potential to make RT
introduction, not only economically viable, but also very
lucrative in the short to medium term.
We also emphasize the potential impact of RT on energy
efficiency and energy conservation. In fact, alternatives’
competitiveness is driven by the efficiency factor both
in terms of production and distribution systems. While
providing a higher degree of competition, RT
applications should lead to a more flexible energy
market. This flexibility is the key that leads to a more
efficient use of the available energy, and to a higher
capacity of conserving the hydrocarbon resources of the
country.
In addition to this, there is a huge economic and
strategic potential associated to the synergies between
RT applications and the tourism sector. The tourist
flows that interest Tobago and the main clusters of
Trinidad (North and North-East interiors and coasts) are
permeated by the concept of ecotourism. The
implementation of RT is becoming more and more a
“must have” feature for the destinations that aspire to
stay in this market segment. Indeed, the implementation
6 Under the terms of the Kyoto Protocol, Nations
without specific targets, as Trinidad and Tobago, can
still benefit from projects aimed at reducing greenhouse
gas (GHG) emissions through the so called Clean
Development Mechanism (CDM) (UNFCCC, 1998,
2008). These projects produce Certificates of Emission
Reduction (CERs), which can be sold to the countries
with specific targets. The Environmental Management
Agency of Trinidad and Tobago has already identified
several potential suitable CDM projects. Unfortunately,
only a couple of them involve the introduction of RT in
the energy portfolio (Van den Berg and Langenberg,
2007).
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Proceedings of the Tobago Gas Technology Conference (TGTC) 2008
of RT is a way for Trinidad to support the Tobago
development strategy, summarized with the mantra
“Clean, Green, Safe and Serene” (Tobago House of
Assembly, 2005).
RT are finally proposed as a driver for Trinidad and
Tobago to lead the development of the CARICOM
economy, providing an alternative to the PetroCaribe
initiative by supplying innovative products,
technological support and competitive financing.
Our vision of RT for Trinidad and Tobago, with
implications for the entire Caribbean region is captured
in Figure 1. R&D can be considered as the center of
three main aspects associated with the introduction of
RT in the country: (1) the local development, expressed
in the diagonal line; (2) the country's area of influence in
the Caribbean development, in the vertical line; and (3)
the capturing of higher value from fossil fuel resources,
in the horizontal line.
These dimensions can be considered in terms of the
strategies and the effects that might lead to long term
sustainable development. All the elements are generally
connected, but in this graphic we emphasize the virtuous
circle of RT, as divided in biological sources, in the
upper-right, and non biological alternative sources, in
the lower-left quadrant. We believe that this dichotomy
provides a more understandable framework to
communicate the opportunities of RT development in
the country.
Non biological alternatives are identified with wind and
solar, only because these technologies are already at
commercial state, with respect to ocean power, which is
still at a pilot/demo status (EPRI, 2005), and more
suitable for the country characteristics relative to hydro
power. However, we suggest that R&D should not avoid
these other options to maintain the technological future
leadership within the Caribbean.
R&D is the baseline to move towards RT because its
high tech requirements have to find the most suitable
applications for the site specifics. For instance, in the
case of biomass, R&D is needed to clarify which plant
species are more appropriate for Trinidad and Tobago
and its agricultural sector, taking into account the
specificities of the different soil types. In the case of
photovoltaics (PV), research is needed to show at the
institutional level how the synergies between Trinidad,
Guyana and Barbados can be better capitalized, in terms
of industrial inputs and processes. Similarly for
hydroelectric applications: R&D could stimulate the
cooperation between Trinidad and Guyana, both
between institutions and among the private sector. R&D
is, therefore, the first move to trigger off the RT virtuous
circle.
In the upper-right quadrant of Figure 1, wind and solar
energy will lead to an increasing degree of local content,
given the small scale characteristics of these projects, in
the form of independent power providers. The new
power system can improve the country’s energy
efficiency leading to a sensible reduction of GHG
emissions. At the same time, the local content will
require local investments featuring a pipeline of
diversified business options that has the potential to
boost the capital market. This can also benefit from
foreign private equity green funds. Moreover, the
reduction of GHG emissions opens the way to the
creation of a carbon trade hub that could become the
point of reference of the region in terms of financial
resources and know how.
In the lower-left quadrant, bioenergy will lead to the
development and the enhancement of agriculture for
their complementary synergies potential. Biofuels
productions, and/or manufacture, will necessitate a well
developed maritime system. This might have a positive
impact on the transportation of people and goods within
the Caribbean. We also expect that in the medium to
long term the region will reach a higher degree of
integration both between the economies and the
societies. Along this process, Trinidad and Tobago has
the potential to act as the leader of Caribbean
development towards a long term sustainable path.
R&D will also play a fundamental role in capturing a
higher value from the conventional energy sources
conserved through the diversification of the energy
system with renewables and thus making oil, refined
products and NG available for export to higher value
markets or for more valuable downstream options.
5. Potential Impact of RT on Sustainable
Development
Our vision of RT can be considered as complementary
to Trinidad and Tobago’s Vision 2020 (Government of
Trinidad and Tobago, 2004a). Indeed, RT have the
potential to produce a set of positive impacts that
address the five development pillars of Vision 2020. The
matrix in Figure 2 summarizes these impacts on the
country‘s economy, people and environment. In fact, the
impacts are divided in economic, social and
environmental as per definition of the three dimensions
of sustainable development. The color grade defines the
degree of impact in a scale of high, medium and low.
The bioenergy applications, if pursued in an
environmental friendly manner, show a higher degree of
positive impacts on most of the elements considered,
particularly on the environmental dimension, because of
their capacity of addressing land care. However non
biological renewables are fundamental in terms of
energy efficiency and conservation, local content and
competitiveness of hospitality structures. In particular
solar power is the most reliable as back-up system in
case of natural crisis such as excessively dry seasons
and heavy flooding.
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Proceedings of the Tobago Gas Technology Conference (TGTC) 2008
Given these potential positive impacts, we present, in
Figure 3, four possible future scenarios, depending on
the RT implementation options reviewed. These could
be considered also as consequential steps towards
sustainable development. We recommend that the
country should aspire to this objective, if the cost is seen
as an investment for future benefits, at this time of
windfall revenues.
The scenarios in the Figure 3 depict the positive impacts
that can be produced and the cost/opportunity and
efforts that the entire society will have to sustain. The
business as usual (BAU) represents a high cost in terms
of not capturing the higher value of conventional
sources, producing economic distortions, a low degree
of local content and heavy, negative environmental
impacts. The non biological renewables introduction is
not very costly, because of the typical small scale
applications, but produces significant positive impacts.
The bioenergy scenario implies a more complex
organization of the production and a socio-cultural shift,
which could present a high cost in terms of efforts
produced by the entire socioeconomic system. However,
the benefits associated with this case are much higher.
The last scenario totally embraces renewables and
represents the most coherent objective within a strategy
of sustainable development, which is the core of our
vision.
6. A Strategic Way Forward
Until now we have focused on the key incentives that
are already in place and should be capable of building
the necessary social and political consensus on the
introduction of RT in the country. The effective
implementation of such an idea has to be carried out by
policymakers. There is no doubt that the RT virtuous
circle cannot be triggered off without the support of
some significant policy signal, given the current state of
technological lock-in. We now build on our previous
elements to propose a framework, presented in Figure 4,
which may help the key players in policymaking to
move forward towards the implementation phase.
Our proposal consists of two programmes of business
development, wrapped in the “education research
innovation production” continuum and supported by
the relevant socioeconomic network, developed through
a strategic alliance between countries and multilateral
agencies, private companies and universities.
The first programme focuses on R&D, which may be
coordinated by a local university, with the partnership of
selected international innovation leaders. The second
programme focuses on the Clean Development
Mechanism (CDM) and may be coordinated by a
governmental agency with the support of the main
public entities.
The R&D programme consists of three strategic
business areas (SBAs).
1. The Wind & Solar + Hydro & Ocean SBA, which is
responsible for applying the research to the
development of a manufacturing pole for the
production of windmills, PV cells, solar thermal
panels and water turbines.
2. The BioEnergy SBA, which is responsible for
driving the process from the research selected
suitable options to the development of integrated
farms for food and bioenergy production.
3. The Energy Efficiency & Conservation SBA that
has the role to guide the research to identify
concrete actions for higher energy system
efficiency standards. At the same time higher value
downstream options for NG have to be defined to
capitalize the resource savings in the most valuable
way. This might lead to invest in future
technologies as, for instance, methanol to power or
fuel cells.
The Clean Development Mechanism Programme
consists of two SBAs.
1. The CARICOM Carbon Trade Integration SBA is
responsible for the creation of the regional CDM
hub in Trinidad and Tobago. This can lead to the
development of Trinidad and Tobago as the
regional aggregator of the Certificates of Emission
Reduction (CERs) produced in the Caribbean and
then marketed all over the world. A partnership
between the Designated National Authority (DNA)
under the CDM UNFCCC and one or more existing
Designated Operational Entities (DOEs) might be
desirable7.
2. The Capital Market & Local Content SBA is
responsible for facilitating the financing of potential
CERs producing projects in Trinidad and Tobago
and in the Caribbean region linking the local CDM
implementation with a higher degree of local
content in the national economy. We expect that
this will lead to the availability of specific financing
lines for local businesses involved in GHG
emissions reduction and to a boost of the capital
market linked to the carbon trade.
7. Conclusions
This paper emphasizes the role of the State as
fundamental for the introduction of RT in Trinidad and
Tobago’s economy, especially in the very first phase. In
fact, there are currently economic distortions and
technological lock-in the socioeconomic system that
7 The DNA under the CDM UNFCCC is currently the
Ministry of Public Utilities and the Environment. There
already exist private companies operating as DOEs in
the Caribbean, which are formally recognized by the
UNFCCC.
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Proceedings of the Tobago Gas Technology Conference (TGTC) 2008
appear to have stymied the process, preventing the
stimulation of the necessary degree of innovation. As
the Government recognizes the strategic role of RT, the
following final considerations should be taken into
account.
Definitely, RT would bring multiple benefits to the
country from an economic, a social and an
environmental point of view as expressed by the matrix
in Figure 2.
The appropriate technology should be chosen depending
on the sector of intervention, supported by a high quality
R&D programme. This paper embraces a
comprehensive approach proposing the development of
an RT industry focused on biofuel and biodiesel for
transportation and wind and solar for power generating
and heating. These are already commercially viable
options. However, we suggest that R&D should not
avoid other options such as ocean applications and fuel
cells to maintain the technological future leadership
within the Caribbean.
One thing is particularly crucial to kick-off this process:
more resources have to be mobilized in order to
centralize the research in terms of technology and
financing, with the collaboration of strategic partners
that can provide a higher degree of innovation. We
suggest consideration be given to redirecting some of
the funds currently used to subsidize gasoline and diesel.
Acknowledgements
This paper comes from a study, which was a UNDP
Trinidad and Tobago initiative to kick start the
introduction of Renewable Technologies in the country,
following up on the Conference on “Energy and the
Competitiveness of the Caribbean: Caribbean-Central
America Action Regional Trade and Investment Forum”,
held in Port of Spain in September 2006.
Special thanks to Marcia De Castro, the UNDP Resident
Representative, and to Mr. Willard Phillips, UNDP
Programme Manager in Energy and Environment.
The paper is subject to uncertainty and inaccuracy;
however it has been prepared conscientiously on the
basis of available formal and informal information and
our experience in the industry.
References
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[2] EPRI (2005). Renewable Energy Technical
Assessment Guide, December.
[3] ESMAP (2006). OECS Energy Issues and Options,
Report 317, February.
[4] Fischer, G.and Schrattenholzer, L.(2001). Global
bioenergy potentials through 2050, Biomass and
Bioenergy, Vol. 20, No. 3, 151-159.
[5] Government of Trinidad and Tobago (2004a). Vision
2020 Energy Report, Energy Sub-Committee, May.
[6] Government of Trinidad and Tobago (2004b). Vision
2020 Operational Plan 2007 - 2010.
[7] Lunda, J. W., Freestonb D. H., and. Boyda, T. L
(2005). Direct application of geothermal energy:
2005 Worldwide review, Geothermics, Vol. 34, No.
6, 691-727.
[8] Ministry of Energy and Energy Industries of
Trinidad and Tobago (2006). Energy Balance 2006.
[9] National Gas Company of Trinidad and Tobago
(2006). Annual Report 2006.
[10] OLADE (2007). Competition in Energy Markets:
national lessons learned document – The Trinidad
and Tobago case, January.
[11] Petrotrin (2007). Annual Report 2007.
[12] Plieninger T., Bens O., Hüttl R. F. (2006).
Perspectives of bioenergy for agriculture and rural
areas, Outlook on Agriculture, Vol. 35, No. 2, 123-
127.
[13] Tobago House of Assembly (2005). A
Comprehensive Economic Development Plan for
Tobago 2006-2010, June.
[14] UNDP (2000). World Energy Assessment: Energy
and the Challenge of Sustainability, September,
New York.
[15] UNDP (2006a). Expanding Access to Modern
Energy Services: Lessons from Community Based
Energy Initiatives, May, New York.
[16] UNDP (2006b). Energy and the Competitiveness of
the Caribbean: Caribbean-Central America Action
Regional Trade and Investment Forum, Final
Report, September.
[17] UNFCCC (1998). The Kyoto Protocol.
[18] UNFCCC (2008). Clean Development Mechanism:
2008 in brief.
[19] Van den Berg, J.B., and. Langenberg, J. W (2007).
Barriers and chances facing Caribbean Clean
Development Mechanism Projects, Department of
Systems Engineering, Policy Analysis and
Management, Delft University of
Technology.Internal Report, courtesy of K.
Kumarsingh, Program Officer of the EMA T&T.
[20] World Bank (2006). Technical and Economic
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Electrification Technologies, Summary report,
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[21] World Economic Forum (2008). The Global
Competitiveness Report 2006/2007.
7
Proceedings of the Tobago Gas Technology Conference (TGTC) 2008
Figure 1: Vision of RT in T&T – The Virtuous Circle.
R&D
Non Bio
Rnewables
Local Content
BioEnergy
Agriculture
Higher
Gas
Value
Higher
Oil
Value
Capital Market
CARICOM
Regional Development
Coventionals
T&T Development
T&T Development
GHG
Reduction
Energy
Efficiency
Maritime Tourism
Coventionals
Regional Development
Figure 2: Potential Positive Impacts of RT
RT Potential Posi tive Impacts Wind Solar Biofuel Biodiesel
Economic
Economic Div ersification
Energy Effici ency
Energy Conservation
CERs Production
Offsetting Subsidies Distorsions
Innovation Driv en Competitiv eness
FDI
Capital Market Devel opment
Agriculture Developm ent
Maritime Dev elopment
Tourism Developme nt
CARICOM Leading
Social
Energy Security
Crisis Backup System (Dry/Flooding Seasons)
Particulate and Other Emi ssions Reduction
Local Content
Employment
CARICOM People Integration
Rural Life Style
Environmental
GHG Mitigation
Preventing Land Degradation
Preventing Soil Erosion
Biodiversity
Protection of W atersheds
Emissions in Land and in Air (Nitrogen, Sul phur)
Ecoturism Developm ent
Legend High Medium Low
8
Figure 3: Achieving the Potential Benefits of RT
Soc ial
Co st - Op p or tu nit y
RT Pos itiv e I m pa ct s
• No n D iv er si fic at io n
• Res er ve s D ep le ti on
• Low V al ue Ca p tu re d
• Sca rc e L oc al Co nt en t
• GHG Em is sio n s R ise
• Eco no mic D ist or ti on s
• Ene rg y Effi cie n cy
• NG Co ns er va ti on
• Ene rg y d ow n st re am in g
• In no va ti on Dr iv en
Co m p et it i ve n es s
• Lo cal C on te nt
• To ur ism De ve lo pm e nt
• Div e r s ificat ion
• Ag ric ul tu re D ev el op m en t
• Ma ri ti m e D ev el op m en t
• Oi l C on ser va t io n
• GH G r ed uc ti on
• CERsp r o d uc t i o n
• Em pl o ym e n t
• La nd Ca re
• Par ti cu la te em i ssi on s
r ed uct io n
• Ene rg y Se cu rit y
• Ene rg y Co ns er va ti on
• Ene rg y Eff ic ie ncy
• Div e r s ifi catio n
• Em pl oy m e n t
• Loc al Co nt e nt
• In no vat ion D ri ve n Eco no m y
• Car ic om T ec hn ol og ica l a nd
Fi na nci al p oi nt of r ef er en ce
• CDM Im p le m en ta ti on
• Ene rg y En vi ro nm e nt al
Su s t a i n a b ili t y
BAU
W ind & S olar
BioEn er g y
RT Vir tuo us Cy cle
Sustainable
Development
Figure 4: Framework for a Strategic Way Forward
RenewableTech nologies Business Developm ent
Researc h& Development Clean Development
Mechanism
Programm es
Energy Efficien cy
&
Con serva tion
Wind & Solar
+
Hydro & Ocean
BioEnergy
Capit al M arket
&
Loca l Conte nt
CARI COM
Carbon Tra de
Integ ration
Strat egic
Business
Area s
Dow nstrea mingNG
Manu factur ing
Pole B ioA gri Farms
CDM
Local
Finan cing
Regional
CDM hu b
Application s
Meth anolto power
Fue l Cells
Othe rs
Wind T urbin es
PV Cells
Sol ar Thetm alPa nels
Wate r Turbi nes
Biod iesel
Biofu el
Spec ific
CDM Pr ojects
Fina ncingLi nes
Caric om CERs
mar ket
Products
9
¥ Anthony E. Paul: Email: tony1paul@gmail.com;
Tel: 868 640 2382; Fax: 868 640 5283
