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Friday, August 29, 2025

The price of cheap electricity

by

1288 days ago
20220217

The ques­tions to be asked fol­low­ing Wednes­day’s is­land-wide elec­tric­i­ty out­age that left more than a mil­lion peo­ple with­out pow­er for sev­er­al hours can­not be lim­it­ed to the cause and who is to blame.

What about the fail­ure to meet a tar­get set in 2015 for ten per cent of the coun­try’s pow­er gen­er­a­tion to come from re­new­ables by 2021? Had that tar­get been met, bring­ing about some much-need­ed de­cen­tral­iza­tion of T&T’s pow­er gen­er­at­ing in­fra­struc­ture, cit­i­zens would not be now count­ing the huge loss­es from Wednes­day’s cat­a­stroph­ic event.

The need to as­sess the coun­try’s re­new­able en­er­gy po­ten­tial takes on more ur­gency now that a sig­nif­i­cant vul­ner­a­bil­i­ty has been ex­posed by that out­age which last­ed for up to 12 hours in some ar­eas and knocked out wa­ter sup­ply and telecom­mu­ni­ca­tions ser­vices in many parts of the is­land.

The fact that T&T is yet to take sig­nif­i­cant steps in the di­rec­tion of re­new­able en­er­gy means that a key promise made by the Kei­th Row­ley ad­min­is­tra­tion re­mains un­ful­filled. The re­new­able en­er­gy tar­get was an­nounced by Fi­nance Min­is­ter Colm Im­bert in his Oc­to­ber 2015 bud­get pre­sen­ta­tion. He said it was high on the gov­ern­ment’s agen­da and at the time it did not seem to be an over­ly am­bi­tious as­pi­ra­tion.

How­ev­er, more than six years lat­er, T&T is way be­hind many of its Cari­com coun­ter­parts since on­ly ba­by steps have been tak­en in the di­rec­tion of re­new­able en­er­gy. There are pi­lot projects—2-kilo­watt (kW) off-grid pho­to­volta­ic (PV) sys­tems in­stalled at the Uni­ver­si­ty of T&T (UTT) and T&TEC’s Mt. Hope com­pound and 21 1-kW PV sys­tems at schools across the coun­try—but not much else.

That leaves con­sumers sub­ject to the va­garies of an elec­tric­i­ty in­fra­struc­ture that is lim­it­ed to the sup­ply arrange­ments be­tween the T&T Elec­tric­i­ty Com­mis­sion (T&TEC) and three in­de­pen­dent pro­duc­ers. Pow­er­gen con­trols 1,386 megawatts (MW) of gas-fired ca­pac­i­ty across three fa­cil­i­ties, while Trinidad Gen­er­a­tion Un­lim­it­ed op­er­ates a 720-MW nat­ur­al gas com­bined cy­cle pow­er plant and Trin­i­ty Pow­er Lim­it­ed has a 225-MW sim­ple-cy­cle nat­ur­al gas plant.

A sep­a­rate elec­tric­i­ty gen­er­a­tion arrange­ment is in place for To­ba­go.

There has been a lev­el of com­pla­cen­cy about that less-than-per­fect elec­tric­i­ty arrange­ment be­cause con­sumers here en­joy the low­est en­er­gy costs in the re­gion. How­ev­er, this week’s ma­jor dis­rup­tion should wake up this na­tion to the im­por­tance of shift­ing to an arrange­ment that pro­vides greater re­li­a­bil­i­ty, and con­sis­ten­cy of ser­vice.

Some ef­fort is need­ed to get T&T back on track to achieve the ob­jec­tive of in­te­grat­ing re­new­able en­er­gy in­to the lo­cal elec­tric­i­ty grid.

The T&TEC Act, Chap­ter 54:70 and Reg­u­lat­ed In­dus­tries Com­mis­sion Act, Chap­ter 54:73 can be amend­ed to al­low for re­new­able en­er­gy pro­duc­tion by in­de­pen­dent pow­er pro­duc­ers and in­vest­ments made in the de­vel­op­ment and es­tab­lish­ment of ef­fi­cient re­new­able en­er­gy in­fra­struc­ture.

Nat­u­ral­ly oc­cur­ring fea­tures of our twin trop­i­cal is­lands can make the switch to re­new­able pow­er at­tain­able as we have two key sources in abun­dance—sun and wind.

It is al­so a cli­mate change goal that needs to be achieved soon­er rather than lat­er.

How­ev­er, af­ter the events of this week, the great­est mo­ti­va­tion should be mov­ing away from a sys­tem that ex­pos­es the high cost of T&T’s low elec­tric­i­ty rates.


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