Senior Multimedia Reporter
peter.christopher
@guardian.co.tt
T&T’s foreign exchange concerns can be partially addressed by an increased focus on renewable energy. This is the belief of Energy Chamber president Dr Thackwray Driver, who urged for such a shift during CNC’s Mid Year Budget Review analysis show on Friday.
“If we increase the amount of electricity generated from renewable electricity, that’s (more) natural gas available to go ship petrochemicals and LNG to earn US dollars. What we’ve seen happening in the economy is that there’s been a big increase in electricity use in the residential sector and a decline in the industrial sector,” said Dr Driver, who called for an amendment to the T&TEC Act as well to encourage residential use of solar.
“I don’t think the country should be comfortable with where we are with our gas industry in particular. Because I think there are some structural issues which we need to get right,” said Dr Driver.
“One of them is around renewables. As a huge potential to bring renewable energy into Trinidad and Tobago, we can get to 30 per cent of our grid from renewables, without really having to have major investments in the grid.”
Public Utilities Minister Marvin Gonzales confirmed that there were indeed plans for such an adjustment. He said, “I am in full support of this. The technocrats in the Ministry of Public Utilities are already finalising the draft policy that will lay the foundation for legislative amendments to the T&TEC Act that will promote and facilitate non-utility scale solar power for private citizens and companies.”
The National Gas Company currently sells gas at a reduced price to T&TEC. Dr Driver explained that an adjustment there could increase foreign exchange returns.
“If we increase the price at which NGC is selling gas to T&TEC, that would then flow through to the upstream producers, so that the price of the wellhead would be higher. So then the Minister of Finance would collect more royalties, and he would collect more tax as well,” said Dr Driver.
Gonzales, however, acknowledged citizens were not currently incentivised to make that shift due to the low electricity rates. However, he was not in agreement with the chamber president’s call for an increase in pricing.
Gonzales said, “My concern is that many academics comment on these matters without an examination as to whether our current rates for power will allow for a successful non-utility scale sector in T&T. Any proposal without an open and honest discussion on the current rates is a wasted effort in my view.”
Economist Dr Marlene Attzs pointed out that an increase in the price of electricity would also lead to increased costs for much of the population. But she acknowledged that lower returns from the energy sector, which generates 80 per cent of the country’s foreign exchange, led to reduced foreign exchange in the country.
She also noted that while there has been a reduction in earnings, demand has remained high, and this is unsustainable.
