There's a global renewable energy revolution taking place, but T&T seems to be lagging behind, says managing director of Smart Energy Ltd Ian Smart. Smart cited European countries such as Germany and Denmark where renewable energy sources were becoming the norm. In towns like Thisted, Denmark, 98 per cent of all electricity and 85 per cent of all heating comes from renewable energy, including solar and wind power.
Smart's company is one of about five locally-based renewable energy companies that have opened for business in the past decade, including Solar Gray Ltd, Solar Power Concepts Ltd and SM Solar and Wind Energy Systems. This is with the exception of Solaris Energy, a Barbadian company with branches in Trinidad, Jamaica and Grenada, which has been in business for nearly 20 years.
Smart told the T&T Guardian in a telephone interview last week there were many reasons why solar power was slow on the uptake locally. "The upfront cost is still too high and not economically achievable for the average person. And as an oil and gas-producing country, our energy costs are extremely low. Solar power is catching on further up the islands because their electricity is five or six times more expensive than ours."
A solar water heater can cost between $7,500 and $13,000 for the average household and this price depends on how many people need to be catered for. In a commercial building the cost can double or triple depending on the size. Smart said consumers should consider the long-term cost of continuing use of fossil-fuel-based energy, as opposed to the seemingly high cost of solar power use at present.
"It's (solar power) more expensive now but over time will be cheaper. Oil and coal are getting more expensive not just in terms of finding them, but in terms of the environmental costs. We're doing a large-scale experiment with our own atmosphere by releasing carbon dioxide into the air, which is affecting the climate globally." Smart also said a largely overlooked aspect of the renewable energy revolution was the major impact the development of the industry could have on class distinctions and providing the basis for a more equitable society. He believes that for the amount of revenue the oil and gas industry creates locally, the wealth distribution could be greater.
T&T can also learn from various regional models. In early October the largest solar power plant in the Caribbean opened in Puerto Rico. The plant has a 20-year contract with the state-owned utility company and will provide power to some 12,000 families annually. Also this month Solaris Energy opened a new facility in Barbados expanding their production to include not only traditional solar water heaters but a new line of vacuum tube heaters and solar electric products.
Although the Government has started exploring renewable energy, the Ministry of Energy's renewable-energy adviser Randy Ramadhar Singh said energy was still 99 per cent gas-based locally. He said while Government was committed to complying with various international treaties on sustainable energy to which T&T was a signatory, such as the Kyoto Protocol, the "fairly large industrial sector makes it harder to accomplish."
Since 2008 there has been a push from government to increase renewable energy use. In 2008, a Renewable Energy Committee established by Cabinet has been responsible for developing the framework for a renewable energy policy. However, Singh says, the framework was only used to inform the draft national energy policy which will go to Parliament before the end of the year.
In 2010, then Finance Minister Winston Dookeran announced in the 2010/2011 budget a 150 per cent tax allowance for companies commissioning energy audits and acquiring renewable equipment. There is also a 25 per cent tax incentive for renewable equipment for households, to a maximum value of $10,000. In the 2012/2013 budget, Finance Minister Larry Howai reiterated the Government's commitment to a solar power plant and announced a national wind resource assessment programme, a pilot wind-powered electricity programme on the east coast.
A number of community projects have also been started, including solar-powered lights for the Chaguaramas boardwalk and for 15 community centres throughout Trinidad. Solar power is also scheduled to be installed in the IT rooms of 25 schools by the first quarter of next year. Yet Singh said the ministry's role was merely to conduct research and provide incentives. "The uptake on these incentives is really up to the population," he said.