Support To The Sustainable Energy Program For Trinidad and Tobago (2014)

SupporttotheSustainableEnergyProgramme
(TTL1023)
FinalReport
Onbehalfof
InterAmericanDevelopmentBank
Barcelona,9.7.2014
ACKNOWLEDGEMENTS
TheGovernmentoftheRepublicofTrinidadandTobago(GoRTT)isintheprocessof
developing a Sustainable Energy Program (SEP), which aims to manage its natural
resourcesinamoresustainableway,enhancingtheuseofRenewableEnergy(RE)and
EnergyEfficiency(EE).Aspartofthisprocess,theInterAmericanDevelopmentBank
(IDB), who is supporting the SEP through a policy loan, has commissioned the
consortiumoftheCentreofPartnershipsforDevelopment(CAD),ProjektConsultand
LKSIngenieriatodevelopconsultancyservicesinordertosupporttheimplementation
oftheSEP.Thefollowingreportisasummaryofthemajorresultsofthisproject.
Thisreportwouldnothavebeenpossiblewithoutthevaluablecontributionofawide
range of stakeholders in Trinidad and Tobago. Especially, the RE and EE team of the
MinistryofEnergyandEnergyAffairs,undertheleadershipofRandyMauriceandAnita
Hankey,whoprovidedcontinuoussupportandinputinthepreparationofthisreport.
In addition, the local consultancy firms, Energy Dynamics Limited, Smart Energy and
TISSL,haveprovidedvaluableinputwithregardstotheimplementationofenergyaudits
throughouttheprocess.
We also would like to extend our special thanks to the following experts that have
authored different chapters of the report, Jochen Anrehm, Lauren Mia Britton,
FernandoCasado,AndrewFerdinando,IndraHaraksingh,MichaelHoffmann,Christoph
Menke,HerbertSamuelandWernerSiemers,aswellasitstwomaineditorsandproject
managers,JohannaKleinandDetlefLoy.
Lastly,wewouldliketothankIDBsEnergyDivisionfortheleadershiptheyareadopting
promotingamoresustainableenergyenvironmentinLatinAmericaandtheCaribbean,
especially Natacha Marzolf, Christiaan Gischler, Gerard Alleng, Edwin Malagn and
AnaiteeMills.
CAD
Signature
LKS
Signature
ProjektConsult
Signature
ii
AboutCAD
CAD (Centre of Partnerships for Development) is a network of international experts
specialized in international development, local economic development and public
privatepartnerships,withafocusonGreenEconomyandSustainableEnergy,SMEsin
developing countries, entrepreneurship, Base of the Pyramid and Monitoring and
Evaluationtoolsandmethods.
AboutProjektConsult
Projekt Consult is engaged in the management and execution of projects in
international cooperation programs. Prime emphasis is given to the promoting
environmentallysoundworkproceduresandparticipatoryapproaches,aswellasthe
application and transfer of needsoriented technology acceptable to the community.
ProjektConsultGmbH,workinginclosecooperationwithdonoragenciesandproject
partners,hasdevelopedcomprehensivesolutionswhichcorrespondtotheparticular
socioeconomic,culturalandecologicalsituation.
AboutLKSIngenieria
LKS is an international engineering and consultancy cooperative which provides
strategicadvice,projectassessmentandprojectdevelopmentexpertiseinvariousareas
includingsustainabledevelopmentinwhichithasexpertsinrenewableenergies,energy
efficiencyandclimatechange.
iii
CONTENT
ExecutiveSummary........................................................................................................1
Introduction...................................................................................................................8
2.1
LimitationsoftheReport.............................................................................................9
BaselineforElectricityGenerationandConsumption.................................................10
3.1
ObjectiveandScopeoftheBaseline.........................................................................10
3.2
TheTrinidadandTobagoEnergyMatrix....................................................................10
3.3
NaturalGasandDieselOil(FinalUse)appliedforElectricityGeneration.................12
3.3.1
AnnualDomesticConsumptionofNaturalGasandLNGExport.........................12
3.3.2
AnnualConsumptionofOil..................................................................................14
3.3.3
ProjectionsofNaturalGasforElectricityGeneration..........................................16
3.4
TypeandGenerationEfficienciesofExistingandFuturePowerPlants....................20
3.4.1
ProjectedTypeandGenerationEfficienciesofPowerPlants..............................21
3.5
LongertermDevelopmentofPowerGenerationCapacity.......................................22
3.6
PeakLoadsandPeakDemand...................................................................................23
3.7
PastandfutureDevelopmentofCO2EmissionsinthePowerSector.......................24
3.7.1
DevelopmentofpastCO2EmissionsinthePowerSector...................................24
3.7.2
EstimatedneartermDevelopmentofCO2Emissions(BaselineScenario)..........26
3.8
TypicalDailyLoadCurves...........................................................................................28
3.9
TransmissionandDistributionGridandPlansforReinforcementorExtension.......30
3.10
ElectricityGenerationCosts.......................................................................................33
3.11
Conclusionsofbaselinestudy....................................................................................34
EnergyPolicy................................................................................................................36
4.1
Mainactors................................................................................................................36
4.1.1
MinistryofEnergyandEnergyAffairs(MEEA).....................................................37
4.1.2
T&TECandIndependentPowerProducers..........................................................39
4.2
LegalandRegulatoryFrameworkandSupportingPolicies.......................................42
4.2.1
Statusquooftheregulatoryframework.............................................................42
4.2.2
AmendingoftheTrinidadandTobagoElectricityCommissionActandtheRICact
..............................................................................................................................43
4.2.3
TargetsforRE.......................................................................................................44
4.3
InputtotheGreenPaper...........................................................................................46
4.3.1
ProposedadaptationstotheDraftoftheGreenPaperforEnergyPolicy..........47
4.3.2
Proposedchangesandclarificationstothepolicymeasures..............................48
4.3.3
Summarytableofallrevisions.............................................................................54
4.4
ElectricityTariffsandSubsidySchemes.....................................................................55
iv
4.4.1
TariffSchedule.....................................................................................................55
4.4.2
Subsidies...............................................................................................................59
4.5
AdaptationofcriteriaforusingtheGreenFund.......................................................62
4.6
FinancingofSEPprojects...........................................................................................62
4.7
Needsforcapacitybuildingandinstitutionalstrengthening....................................63
EnergyEfficiency..........................................................................................................65
5.1
EnergyEfficiencyPotential........................................................................................65
5.1.1
WhichTechnologieshavePotential?...................................................................65
5.1.2
TheViabilityofEnergysavingTechnologies........................................................67
5.1.3
HowisUptaketobeencouraged?.......................................................................69
5.1.4
AnoteonBehavior..............................................................................................69
5.2
ProposedEEProgrammes..........................................................................................70
5.2.1
ResidentialSector................................................................................................70
5.2.2
HotelSector..........................................................................................................75
5.2.3
Commercial&SmallIndustrialSector.................................................................79
5.2.4
Government.........................................................................................................81
5.3
EnergyEfficiencyActionPlan&Budget.....................................................................87
5.3.1
ExistingActivities..................................................................................................87
5.3.2
EnergyEfficiencyTargets,ActionPlanandBudgetPlan......................................88
5.4
EnergyPolicymeasureswithregardstoEE...............................................................92
5.4.1
GeneralrecommendationsforEEPolicies...........................................................92
5.4.2
ProposedTrinidadandTobagoEnergyAgency...................................................94
5.5
ESCOCertificationCommittee...................................................................................96
5.5.1
Background..........................................................................................................96
5.5.2
RecommendationsonESCODefinition,ProceduresandProtocol......................97
5.6
EnergyAudits...........................................................................................................102
5.6.1
Buildingselectionmethodology.........................................................................102
5.6.2
Auditorselection................................................................................................104
5.6.3
Auditsupport.....................................................................................................105
5.6.4
GuidelinesforEnergyAudits..............................................................................106
5.6.5
ResultsoftheAuditingProcess..........................................................................106
5.6.6
ShortcomingsandConclusionsoftheAuditingProcess....................................113
5.6.7
NextSteps..........................................................................................................115
RenewableEnergy.....................................................................................................118
6.1
6.1.1
Establishmentofmechanismsforfeedingenergyintothegrid..............................118
FeedinTariffs....................................................................................................118
6.1.2
NetMetering.....................................................................................................120
6.1.3
NetBilling...........................................................................................................121
6.1.4
CompetitiveBidding...........................................................................................122
6.1.5
RenewablePortfolioStandards.........................................................................124
6.1.6
TheDevelopmentofPowerPurchaseAgreements...........................................124
6.2
GenerationCostsforOnshoreWindFarmsandSmallscalePVSystems...............125
6.2.1
LevelizedCostofEnergy(LCOE)Background..................................................125
6.2.2
WindPower........................................................................................................126
6.2.3
Photovoltaics......................................................................................................134
6.3
OffshoreWindEnergy..............................................................................................145
6.3.1
Statusofoffshorewindenergy..........................................................................145
6.3.2
Costsofoffshorewindpower............................................................................146
6.3.3
Offshorewindpowerandrisksofhurricanes....................................................147
6.3.4
Environmentalimpact........................................................................................147
6.3.5
Offshorelocationavailability.............................................................................147
6.3.6
Conclusionsandrecommendations...................................................................148
6.4
PotentialforSolarWaterHeating...........................................................................148
6.4.1
Introduction.......................................................................................................148
6.4.2
SolarResources..................................................................................................151
6.4.3
TechnologyofSolarWaterHeaters...................................................................155
6.4.4
ConsumptionofHotWater................................................................................157
6.4.5
Costs...................................................................................................................159
6.4.6
CostComparison................................................................................................159
6.4.7
EnvironmentalBenefits......................................................................................160
6.4.8
CurrentFiscalIncentivesforSWH......................................................................162
6.4.9
BarriersandRecommendations.........................................................................162
6.4.10
PotentialandOpportunitiesforLocalSWHManufacturing..............................165
6.4.11
CapacityBuilding................................................................................................165
6.4.12
StandardsforSWHSystemsinT&T...................................................................165
6.4.13
Conclusions........................................................................................................167
6.5
WastetoEnergy(WtE)............................................................................................169
6.5.1
LimitationsofthisChapter.................................................................................169
6.5.2
CurrentSituationofWasteManagementinTrinidad.......................................170
6.5.3
InvestigatedTechnologies..................................................................................175
6.5.4
SuggestedTechnology.......................................................................................178
6.5.5
EconomicFeasibilityofWtE...............................................................................181
vi
6.5.6
CurrentObstaclesfortheImplementationofWtEprojects..............................185
6.5.7
SuggestedImplementationStrategy..................................................................186
6.5.8
WtEinotherIslandCountries............................................................................188
6.5.9
SuggestedFollowUps........................................................................................190
6.5.10
Conclusions........................................................................................................191
6.6
BioenergyUseforElectricityGeneration................................................................192
6.6.1
EnergyPotentialofdifferentResources............................................................192
6.6.2
ManufacturingCapacity.....................................................................................202
6.6.3
ProposalsforPilotProjects................................................................................203
6.6.4
GridAvailabilityandGridCapacity.....................................................................203
6.6.5
TrainingandEducation......................................................................................204
6.6.6
BaselineCO2Emissions......................................................................................204
6.7
OceanEnergyforElectricityGenerationanditsApplicabilityforT&T....................205
6.7.1
Introduction.......................................................................................................205
6.7.2
PowerGenerationfromTideandCurrent.........................................................208
6.7.3
OceanThermalEnergyConversion(OTEC)........................................................211
6.7.4
ConclusionsandRecommendations..................................................................213
6.8
ApplicabilityofConcentratedSolarPower..............................................................215
6.8.1
Introduction.......................................................................................................215
6.8.2
CurrentandfutureCostDevelopmentofCSPTechnology................................216
6.8.3
SummaryandRecommendations......................................................................217
6.9
7
RenewableEnergyActionPlan................................................................................218
LongtermScenarios................................................Fehler!Textmarkenichtdefiniert.
7.1.1
7.2
7.2.1
ProjectionsforPopulationandGDPGrowth...Fehler!Textmarkenichtdefiniert.
BusinessasUsualProjectiontill2032...................Fehler!Textmarkenichtdefiniert.
ProjectedOilProduction&Consumption........Fehler!Textmarkenichtdefiniert.
7.2.2
ProjectedNaturalGasProduction&ConsumptionFehler!
definiert.
Textmarke
nicht
7.2.3
AdjustedGDPProjectionforrecordedNaturalGasReservesanddeclineinCrude
OilProduction.................................................................Fehler!Textmarkenichtdefiniert.
7.2.4
ProjectedElectricityDemand(Businessasusual)Fehler!
definiert.
7.2.5
ProjectedCO2EmissionsfromPowerGenerationFehler!
definiert.
Textmarke
nicht
nicht
7.3
Scenario1:IntroductionofEnergyEfficiencyMeasures........Fehler!Textmarkenicht
definiert.
7.4
Scenario2:IntroductionofREcovering2.5%ofGeneratedPowerby2020....Fehler!
Textmarkenichtdefiniert.
vii
Textmarke
7.5
Scenario3:IntroductionofREcovering4.0%ofpowergenerationby2020....Fehler!
Textmarkenichtdefiniert.
7.6
Scenario4:CombinationofScenarios1&2...........Fehler!Textmarkenichtdefiniert.
7.7
Scenario5:CombinationofScenarios1&3...........Fehler!Textmarkenichtdefiniert.
Conclusions................................................................................................................219
REFERENCES..............................................................................................................................245
APPENDICES..............................................................................................................................259
AppendixA:LoadCurvesofT&TEC......................................................................................259
AppendixB:MapsofTransmissionandDistributionGrids.................................................262
AppendixC:MethodologyforResidentialBaselineandSavingsEstimates........................264
AppendixD:HighlightsoftheMyEnergy,MyResponsibilityCampaign.........................269
AppendixE:EstimateofCosts&Benefitsof150%TaxAllowanceProgram.......................271
AppendixF:StreetLightingPilotProject.............................................................................276
AppendixG:SupporttotheESCOcommitteeMeetingNotes..........................................277
AppendixH:GuidelinesforEnergyAudits...........................................................................282
AppendixI:InternationalExamplesofMarketbasedFinancialMechanismsforEEandRE
MeasuresintheResidentialSector.........................................................................287
AppendixJ:CurrentElectricityGenerationCostsforOnshoreWindFarms......................291
AppendixK:SolarWaterHeating.........................................................................................292
AppendixK:WastetoEnergyContacts.............................................................................294
AppendixL:PowerOutputofthePelamisSystem..............................................................295
viii
LISTOFTABLES
TABLE1:CUSTOMERFORECASTBYRATECATEGORY..............................................................................................17
TABLE2:ELECTRICITYSALESTOEACHRATECATEGORY..........................................................................................17
TABLE3:POWERGENERATIONPLANTSINT&T(2012)..........................................................................................21
TABLE4:FUTUREPLANSOFPOWERGENERATIONCAPACITYINT&T(INCLUDINGRETIREMENTOFPOSPLANTIN2015)....23
TABLE5:MINIMUMANDMAXIMUM'ACTUALSYSTEMLOAD'VALUESINTHEWEEK28DEC2012.................................30
TABLE6:CONVERSIONCOSTSANDSPECIFICFUELCOSTSOFT&TPOWERPLANTSIN2013............................................33
TABLE7:ELECTRICITYGENERATIONCOSTS............................................................................................................34
TABLE8:RESPONSIBILITYFORTHEENERGYSECTORINT&T.....................................................................................36
TABLE9:ELECTRICITYRATESINT&T...................................................................................................................56
TABLE10:PROPOSEDELECTRICITYTARIFFSUNTIL2016.........................................................................................58
TABLE11:EETECHNOLOGIESANDTHEIRUPTAKE..................................................................................................66
TABLE12:AVERAGEHOUSEHOLDELECTRICITYCONSUMPTION,2010......................................................................71
TABLE13:HOUSEHOLDELECTRICITYCONSUMPTIONWITHAIRCONDITIONING,2010.................................................71
TABLE14:PROPOSEDEEPROGRAMMESINTHERESIDENTIALSECTOR........................................................................73
TABLE15:ESTIMATEDRESIDENTIALSECTORSAVINGSFROMREPLACEMENTOFBASELINETECHNOLOGIESWITHENERGY
EFFICIENTTECHNOLOGIES.........................................................................................................................74
TABLE16:RECOMMENDEDPROGRAMMESFOREEINHOTELS.................................................................................77
TABLE17:ELECTRICITYSALESTOCOMMERCIALANDINDUSTRIALCATEGORIES,2011..................................................80
TABLE18:PERFORMANCERISKANDPAYBACKPERIODSASSOCIATEDWITHEETECHNOLOGIES.........................................80
TABLE19:RECOMMENDEDPROGRAMMESFOREEINCOMMERCIAL&SMALLINDUSTRYSECTOR..................................81
TABLE20:EXISTINGEEMEASURESIMPLEMENTEDANDFUNDEDBYGORTT...............................................................87
TABLE21:SUMMARYOF5YEARBUDGETS,ESTIMATEDSAVINGSANDCO2AVOIDED...................................................88
TABLE22:PROPOSEDRESIDENTIALSECTOREEMEASURESTOBEIMPLEMENTEDBYGORTT..........................................89
TABLE23:PROPOSEDHOTELSECTOREEMEASURESTOBEIMPLEMENTEDBYGORTT..................................................91
TABLE24:PROPOSEDCOMMERCIALSECTOREEMEASURESTOBEIMPLEMENTEDBYGORTT........................................92
TABLE25:TYPICALRESPONSIBILITIESOFANENERGYMINISTRY................................................................................94
TABLE26:SUMMARYOFENERGYAUDITPROCEDURESANDREPORTINGPROTOCOLS...................................................100
TABLE27LISTOFPRESELECTEDBUILDINGS.........................................................................................................104
TABLE28:SUMMARYOFAUDITFINDINGS..........................................................................................................109
TABLE29:PREDICTIONOFLEVELIZEDCOSTOFWINDENERGYINUS$/MWH............................................................133
TABLE30:ASSUMPTIONSFORLCOECALCULATION.............................................................................................133
TABLE31:LCOEFORPVSYSTEMSINTRINIDADANDTOBAGO...............................................................................143
TABLE32:CARBONABATEMENTFROMSOLARWATERHEATINGINSELECTEDCOUNTRIES.............................................161
TABLE33:WASTECOMPOSITIONATTHETHREELANDFILLSITES(1995)COMPOSITION1995.....................................172
TABLE34:WASTECOMPOSITION2010............................................................................................................173
TABLE35:COMPARISONOFTHERMALCONVERSIONTECHNOLOGIES.......................................................................178
TABLE36:PRODUCTIONOFKEYCOMMODITIES..................................................................................................193
TABLE37:PRODUCTIONOFCOMMERCIALAGRICULTURALGOODS...........................................................................194
TABLE38:TRINIDADLANDCOVER....................................................................................................................195
TABLE39:SUMMARYOFSOLIDBIOMASSPOTENTIALS..........................................................................................195
TABLE40:ANIMALPOPULATIONINT&T...........................................................................................................196
TABLE41:PIGPOPULATIONINT&T.................................................................................................................196
TABLE42:NUMBERANDTYPEOFBUSINESSINT&T.............................................................................................198
TABLE43:DIFFERENTCOMMODITIESANDPRODUCTIONFIGURES...........................................................................199
TABLE44:POTENTIALSFORBIOGAS..................................................................................................................200
TABLE45:SUMMARYMATRIXFORBIOMASSUSE.................................................................................................202
TABLE46:REINVESTMENTPLAN20142020...................................................................................................219
TABLE47:ENERGYSAVINGCOSTOFEETECHNOLOGIES.......................................................................................268
TABLE48:ESTIMATEDLIGHTINGCONSUMPTION,COST&SAVINGSFORHDCHOUSES..............................................268
TABLE49:COMMERCIALANDINDUSTRIALTARIFFCATEGORIESANDSALES(2011)...................................................272
TABLE50:ESTIMATESOFCUSTOMERUPTAKEANDEXPENDITUREONTHE150%TAXALLOWANCEPROGRAM.................273
TABLE51:COST(TAXESFOREGONE)OFACTIVITYUNDER150%TAXALLOWANCEPROGRAM.....................................274
TABLE52ESTIMATEDBENEFITOFACTIVITYUNDERTHE150%TAXALLOWANCEPROGRAM........................................275
ix
TABLE53:SWHINCENTIVESINBARBADOS........................................................................................................292
TABLE54:POWEROFTHEPELAMISSYSTEM(INKW)ANDITSINFLUENCEBYHEIGHTANDPERIODOFWAVES..................295
LISTOFFIGURES
FIGURE1:ENERGYFLOWTRINIDADANDTOBAGO.................................................................................................11
FIGURE2:DISTRIBUTIONOFFINALCONSUMPTIONBYSECTOR..................................................................................11
FIGURE3:NATURALGASUTILISATIONINT&T19902013..................................................................................12
FIGURE4:OVERVIEWOFNATURALGASCONSUMERSINT&T,INCLUDINGLNGEXPORT,2012.....................................13
FIGURE5:TOTALOILPRODUCTIONANDCONSUMPTIONINT&T,20002011.........................................................14
FIGURE6:CRUDEOILPRODUCTIONINT&T,19902011....................................................................................15
FIGURE7:NATURALGASRESERVESINT&T,19992010.....................................................................................19
FIGURE8:NATURALGASDEMANDINT&T,20052015.....................................................................................20
FIGURE9:PEAKDEMANDINT&T19902012....................................................................................................24
FIGURE10:GROSSELECTRICITYGENERATIONT&T................................................................................................25
FIGURE11:DEVELOPMENTOFPASTCO2EMISSIONS(INMT)FROMELECTRICITYGENERATIONINT&T............................26
FIGURE12:POSSIBLEDEVELOPMENTOFFUTURECO2EMISSIONSFROMELECTRICITYGENERATIONINT&T(INMT),BASELINE
SCENARIO.............................................................................................................................................28
FIGURE13:EXEMPLARYDAILYLOADCURVEINT&T:WEEKDAY................................................................................29
FIGURE14:EXEMPLARYDAILYLOADCURVEINT&T:WEEKEND................................................................................29
FIGURE15RENEWABLEENERGYANDENERGYEFFICIENCYATTHEMEEA...................................................................38
FIGURE16ORGANIZATIONALCHARTPROPOSEDFORTHEMEEA..............................................................................39
FIGURE17:OPERATIONALSTRUCTUREOFT&TEC.................................................................................................41
FIGURE18:EUROPEANUNIONMEMBERSRESHAREIN2012VS.2020COMMITMENTS............................................46
FIGURE19:ELECTRICITYTARIFFSINSELECTEDCARIBBEANCOUNTRIES......................................................................57
FIGURE20:HENRYHUBNATURALGASPRICE(US$/MMBTU)MAY2011MAY2014............................................59
FIGURE21:GLOBALLNGPRICES,JULY2013.......................................................................................................60
FIGURE22:NATURALGASPRICEPROJECTIONS.....................................................................................................61
FIGURE23:USEESUPPLYCURVE2020(FROMMCKINSEY)................................................................................68
FIGURE24:AVERAGEHOUSEHOLDELECTRICITYCONSUMPTION,2010.....................................................................72
FIGURE25:HOUSEHOLDELECTRICITYCONSUMPTIONWITHAIRCONDITIONING,2010................................................72
FIGURE26:ELECTRICITYCONSUMPTIONBYENDUSEINHOTELSOFBARBADOS...........................................................76
FIGURE27:PROPOSEDORGANISATIONCHART,T&TENERGYAGENCY......................................................................96
FIGURE28:SUMMARYOFTHE150%TAXALLOWANCEPROCESS(DRAFT).................................................................98
FIGURE29SELECTIONPROCESS........................................................................................................................102
FIGURE30:GLOBALCUMULATIVEINSTALLEDWINDCAPACITYFROM19962013...................................................126
FIGURE31:WINDPENETRATIONRATESINDIFFERENTCOUNTRIES...........................................................................127
FIGURE32:HISTORICALWINDENERGYCAPITALCOSTSINTHEUNITEDSTATES...........................................................128
FIGURE33:DISTRIBUTIONOFCAPITALCOSTOFAWINDTURBINEBYSECTORS............................................................129
FIGURE34:ANNUALAVERAGEWINDSPEEDDISTRIBUTION....................................................................................131
FIGURE35:SCENARIOSOFLCOEDEVELOPMENT................................................................................................132
FIGURE36:AVERAGEINSTALLEDPRICEBYMARKETSEGMENTINTHEUS,Q22011Q22013....................................136
FIGURE37:EVOLUTIONOFPHOTOVOLTAICCELLEFFICIENCIESUNDERLABORATORYCONDITIONS..................................137
FIGURE38:CONTRIBUTIONSTOINSTALLEDCOSTOFRESIDENTIALANDCOMMERCIALPVSYSTEMSINTHEU.S.(FIRSTHALFOF
2012)................................................................................................................................................139
FIGURE39:HISTORICALGROWTHOFTHEGLOBALOFFSHOREWINDMARKET..........................................................145
FIGURE40:REPORTEDCAPITALCOSTSFORGLOBALOFFSHOREWINDPROJECTOVERTIME........................................146
FIGURE41:ANNUALINSTALLEDCAPACITYOFGLAZEDSOLARCOLLECTORSWORLDWIDE..............................................149
FIGURE42:TOTALCAPACITYOFGLAZEDFLATPLATEANDEVACUATEDTUBECOLLECTORSINOPERATION,ENDOF2011.....150
FIGURE43:SOLARWATERHEATINGPENETRATIONINCARICOMSTATES...............................................................151
FIGURE44:WORLDMAPOFPOTENTIALSOLARPOWER(SOLARINSOLATIONINKWH/M2/DAY......................................151
FIGURE45:SOLARINSOLATIONMAPOFTHECARIBBEANDIRECTNORMALIRRADIANCE............................................152
FIGURE46:SOLARINSOLATIONMAPOFTHECARIBBEANGLOBALSOLARRADIATIONTILTEDATLATITUDE....................153
FIGURE47:AVERAGEDAILYSOLARRADIATIONATUWI,TRINIDAD........................................................................154
FIGURE48:AVERAGESOLARRADIATIONONAHORIZONTALSURFACEINEACHMONTH...............................................154
FIGURE49:AVERAGESOLARRADIATIONONANINCLINEDSURFACEINEACHMONTH.................................................155
xi
FIGURE50:DIMENSIONSOFSWHSYSTEMS.......................................................................................................157
FIGURE51:COSTCOMPARISONOFVARIOUSWATERHEATINGSYSTEMS...................................................................160
FIGURE52:LOCATIONSOFSWMCOLLANDFILLS................................................................................................171
FIGURE53:PLANVIEWOFBEETHAMLANDFILL..................................................................................................171
FIGURE54:TYPICALDISPOSEDMSWINPORTOFSPAIN......................................................................................173
FIGURE55:DISPOSEDMSWATBEETHAMLANDFILL...........................................................................................174
FIGURE56:ORGANICLOADSFROMPLANTATIONS,MARKETSANDGARDENSCANEASILYBESEPARATEDFROMREMAINING
WASTE................................................................................................................................................174
FIGURE57:SCHEMATICCROSSSECTIONOFAMOVINGGRATEINCINERATOR...........................................................180
FIGURE58:SUGGESTIONFORAMANUALPRESORTINGAREA...............................................................................180
FIGURE59:SUGGESTEDLOCATIONOFFIRSTINCINERATIONPLANT.........................................................................187
FIGURE60:DEVICEWORKINGONTHEOVERTOPPINGPRINCIPLE.............................................................................206
FIGURE61:VOITHTURBO500KWPLANTINISLAY,SCOTLAND.............................................................................206
FIGURE62:PELAMISPROTOTYPEINCONSTRUCTIONANDOFFTHECOASTOFTHEORKNEYISLESINEARLY2012...............207
FIGURE63:SEASURFACEVARIATIONDUETOLUNARTIDESINMETERS.....................................................................209
FIGURE64:SEAGENTIDALSTREAMPLANTINSTRANGFORDLOUGH,SCOTLAND........................................................210
FIGURE65:TEMPERATUREPROFILEGENERATEDWITHDATAFROMTHEATLANTICOCEANATLAS..................................212
FIGURE66:YEARLYSUMOFDNIINTHEWORLD.................................................................................................215
FIGURE67:CONCENTRATINGSOLARTHERMALPOWERINSTALLEDCAPACITY,19842012........................................216
FIGURE68:LCOEOFCSPDEPENDINGONTECHNOLOGYANDRADIATION................................................................216
FIGURE69:POPULATIONFIGURESFORTRINIDADANDTOBAGOFROM1990TO2030...............................................229
FIGURE70:GROSSDOMESTICPRODUCT(GDP)INREALVALUESFORTRINIDAD&TOBAGO,19902032....................230
FIGURE71:PROJECTEDCRUDEOILPRODUCTION&CONSUMPTIONUPTO2032.......................................................231
FIGURE72:PROJECTEDNATURALGASPRODUCTIONANDCONSUMPTION.................................................................232
FIGURE73:GDPPROJECTIONANDADJUSTMENTFORDECLINEINCRUDEOILANDNATURALGASPRODUCTION.................233
FIGURE74:PROJECTEDELECTRICITYDEMANDBUSINESSASUSUAL...................................................................234
FIGURE75:PROJECTEDCO2EMISSIONSFROMPOWERGENERATIONBUSINESSASUSUAL.....................................234
FIGURE76:FOSSILFUELBASEDELECTRICITYGENERATIONSCENARIO1..................................................................236
FIGURE77:CO2EMISSIONSFROMPOWERGENERATIONSCENARIO1...................................................................236
FIGURE78:FOSSILFUELBASEDELECTRICITYGENERATIONSCENARIO2...................................................................237
FIGURE80:FOSSILFUELBASEDELECTRICITYGENERATIONSCENARIO3..................................................................238
FIGURE81:CO2EMISSIONSFROMPOWERGENERATIONSCENARIO3....................................................................239
FIGURE83:CO2EMISSIONSFROMPOWERGENERATIONSCENARIO4....................................................................240
FIGURE86:T&TECRESIDENTIALCUSTOMERDISTRIBUTIONCURVE,2010..............................................................266
FIGURE87:GRAPHICALCHRONOLOGYOFANNUALSWHINSTALLATIONSINBARBADOS..............................................293
FIGURE88:CUMULATIVEINSTALLEDSWHSTORAGEINBARBADOS(19742002)..................................................293
xii
ABBREVIATIONSandACRONYMS
ADO
AE
AEP
AOE
BOE
BOOT
BOT
CAD
AutomotiveDieselOil
AlternativeEnergy
AnnualEnergyProduction
AnnualOperatingExpenses
TrinidadandTobagoBoardofEngineers
BuildOwnOperateTransfer
BuildOperateTransfer
CentrodeAlianzasparaelDesarrollo(CentreofPartnershipsfor
Development)
CaO
CCGT
CEN
CalciumOxide
CombinedCycleGasTurbine
EuropeanCommitteeforStandardization
CFL
CHENACT
CHP
CO2
CREC
CRF
CSP
DNI
Compactfluorescentlamp
CaribbeanHotelsEnergyEfficiencyActionProgramme
CombinedHeatandPower
CarbonDioxide
CaribbeanRenewableEnergyCentre
CapitalRecoveryFactor
ConcentratedSolarPower
DirectNormalIrradiance
ECC
ECPA
EE
EEC
EPC
ESCO
EU
EVO
FCR
GDP
GEF
GHG
ESCOCertificationCommittee
EnergyandClimatePartnershipoftheAmericas
EnergyEfficiency
EnergyEfficiencyCommittee
EnergyPerformanceContracting
EnergyServiceCompany
EuropeanUnion
EfficiencyValuationOrganization
FixedChargeRate
GrossDomesticProduct
GlobalEnvironmentFacility
GreenhouseGases
GoRTT
HDC
ICC
IDB
IEA
IMF
IPP
IRENA
ISO
TheGovernmentoftheRepublicofTrinidadandTobago
TrinidadandTobagoHousingDevelopmentCorporation
InstalledCapitalCost
InterAmericanDevelopmentBank
InternationalEnergyAgency
InternationalMonetaryFund
IndependentPowerProducer
InternationalRenewableEnergyAgency
InternationalStandardsOrganisation
LCOE
LED
LevelizedCostofEnergy
Lightemittingdiode
xiii
LNG
LPG
LiquefiedNaturalGas
LiquidPetroleumGas
MEEA
MPE
MSW
NEC
NG
NIMBY
NPMC
NREL
O&M
OTEC
OWC
PBL
PowerGen
PSC
PPA
PV
RDF
RE
REC
REEEP
RIC
RO
ROI
SCGT
SEP
SME
SWH
SMCOL
MinistryofEnergyandEnergyAffairs
MinistryofPlanningandtheEconomy
MunicipalSolidWaste
NationalEnergyCorporation
NaturalGas
Notinmybackyard
NationalPetroleumMarketingCompany
NationalRenewableEnergyLaboratory
OperationandMaintenance
OceanThermalEnergyConversion
OscillatingWaterColumn
PolicyBasedLoan
PowerGenerationCompanyofTrinidadandTobagoLimited
ProductionSharingContract
PowerPurchasingAgreement
Photovoltaic
RefuseDerivedFuel
RenewableEnergy
RenewableEnergyCommittee
RenewableEnergyandEnergyEfficiencyPartnership
RegulatedIndustriesCommission
ReversalOsmosis
ReturnonInvestment
SimpleCycleGasTurbine
SustainableEnergyProgram
SmallandMediumSizedEnterprise
SolarWaterHeater
TheTrinidadandTobagoSolidWasteManagementCompany
T&T
T&TEC
TDC
TGU
ToR
TTBS
TTEA
THA
U.S.EPA
ULSD
UNDP
UNEP
UNIPET
USct
USDA
TrinidadandTobago
TheTrinidadandTobagoElectricityCommission
TourismDevelopmentCompanyofTrinidadandTobago
TrinidadGenerationUnlimited
TermsofReference
TrinidadandTobagoBureauofStandards
TrinidadandTobagoEnergyAgency
TobagoHousingAssembly
UnitedStatesEnvironmentalProtectionAgency
UltraLowSulphurDieselPlant
UnitedNationsDevelopmentProgramme
UnitedNationsEnvironmentProgramme
UnitedIndependentPetroleumMarketingCompanyLimited
currency,centsinUSDollar
UnitedStatesDepartmentofAgriculture
xiv
USDOE
UWI
VAT
UnitedStatesDepartmentofEnergy
UniversityoftheWestIndies
ValueAddedTax
WACC
WtE
WeightedAverageCostofCapital
WastetoEnergy
UNITS
bcf
billioncubicfeet
GJ
Gigajoule,109Joule(energy)
GWh
ha
kW,kWh
MMBTU
MMSCF/D
MW,MWh
Gigawatthours
Hectare
kilowatt,kilowatthours(electricalpowerandwork)
MillionBritishThermalUnits
MillionsofStandardCubicFeetperday
Megawatt,Megawatthours(electricalpowerandwork)
Nm3,m3
t,kt
t/a
t/d
tcf
TWh
Normcubicmeter,cubicmeter
ton,103tons
tonsperyear
tonsperday
trillioncubicfeet
Terawatthours
xv
ExecutiveSummary
TheGovernmentoftheRepublicofTrinidadand Tobago(GORTT)hasreceivedaPolicyBasedLoan
(PBL)(TTL1023)fromtheInterAmericanDevelopmentBank(IDB).ThisPBLfortheSustainableEnergy
Programconsistsofthreedifferentoperations,eachwithspecificinstitutionalandpolicygoals.The
IDBhiredtheconsortiumofCentreofPartnershipsforDevelopment(CAD),ProjektConsultandLKSin
2012 to support the Ministry of Energy and Energy Affairs (MEEA) with technical assistance in the
developmentofpoliciesandactivitiesthatwillpromotethedeploymentofRenewableEnergy(RE)and
theimplementationofEnergyEfficiency(EE)measures.
ThefollowingistheFinalReportoftheconsultancyservicesundertaken.Itdefinesthebaselinefor
electricity generation and carbon dioxide emissions, provides recommendations on policies for a
SustainableEnergyfuture,assessesthepotentialforEEinT&Tandanalysestheoptionsfordifferent
REtechnologiesandtheirpossibleuptakeinT&T.
BaselineforElectricityGenerationandCarbonDioxideEmissions
In2010,TrinidadandTobagogenerated8.5TWhofelectricitywithCO2emissionsof700gforevery
kWhgenerated.Whencomparedtointernationalbenchmarksfor2010,thesefiguresdemonstratea
highelectricityconsumptionandCO2emissionspercapitafromenergyrelatedactivitiesatnearly2.5
times the world average.1 Plans are identified to improve the efficiency of the existing electricity
generatingplantsaswellasanintentiontoincorporateasmallpercentageofREbasedgeneration
overthecomingyears.
Theelectricitygenerationistoalmost100%basedonnaturalgas.ThecontributionofREgeneration
isnegligiblewithonlyafewresidentialandcommercialmicroscalesystemsconnectedtothegridor
operatingasstandalonesystems.
T&Thaslargenaturalgasreservesandgasextractionhasincreasedsignificantlyoverthepast22years
from177bcfin1990to811bcfin2011.Therehasbeennoshortageofgasforlocalconsumptionand
duetoasubstantialincreaseintheindustrialnaturalgasuse,powergenerationonlyaccountsfor8%
oftheannualgasproduction,with56%beingexportedasLNG(liquefiednaturalgas).Thisabundance
accompaniedbylowpriceshasmadegastheobviouschoiceofenergyforelectricitygenerationupto
nowandforthemediumtermfuture.
However,arapidlyincreasingdemandforelectricityinallsectorsinlinewithGDPgrowthandreduced
exportationofCrudeOilwillresultinalargerproportionofgasbeingdesignatedtopowergeneration,
withtheconsequentincreaseinlocalCO2emissions.Itisthereforeessentialthatconcertedeffortsare
madetointroduceahigherpercentageofREintothepowergenerationequationalongwithparallel
EEimplementationatboththegenerationandenduselevel.
Basedonthegrowthratesseenoverthepast20years(average4.4%perannum)itisexpectedthat
by2020,T&T'sgrosspowergenerationoutputwillbe13.0TWh,equivalenttoaround10,000kWh
percapita,farhigherthaninmanyindustrializedcountries,unlessdemandcurbingmeasuresarebeing
introduced.2 The projected increase in consumption needs to be tackled accordingly. When
extrapolating this further to 2032, T&T's gross power generation output could reach almost 16.8
1 InternationalEnergyAgency:CO2Emissionsfromfuelcombustion,2012
2
E.g.7,081kWh/cap.InGermanyand5,516kWh/cap.intheUnitedKingdomin2011.See:ttp://wdi.worldbank.org/table/5.11
TWh, equivalent to around 12,000 kWh per capita, under a businessasusual scenario. However,
industrializednationsexperienceasaturationofelectricityconsumptionatsomepoint.
An elevated electricity demand will need to be more efficiently generated in order to avoid
augmentingcarbonemissionsfromincreasedfuelconsumption.Thethermalefficiencyoftheexisting
eightpowerplantsislow.Theproposedmeasures,whichconsistmainlyinsubstitutingsimplecycle
gas turbines with combinedcycle plants could achieve a 45% efficiency improvement by 2020, a
significantstepforwardagainstcurrentefficiencyratesofanaverageofabout27%.Moreover,looking
asfaras2032,suchenergysavingmeasureswillenablethenaturalgasproductionsectortoincrease
its share of exports, generating increased revenue compared to the costinefficient and subsidized
domesticmarket.
EEmeasuresimplementedinbuildingsandindustrialprocessescouldsignificantlylowerthedemand
forelectricityandrelatedgasconsumption,whichinturnwouldleadtoreducedCO2emissions.
However, there are currently various barriers, which do not incentivize the implementation of EE
measuresandtechnologies;oneofthesearetheexistinglowtariffsforelectricity.Duetothereduced
ratesforlocalgasconsumption,electricitycustomersinT&Tenjoyverylowtariffsincomparisonto
other countries in the region, with prices seven times lower than the Caribbean average. Negative
consequences include potential discouragement of both supplyside and demandside efficiency
improvements,thepromotionofnoneconomicconsumptionofenergy.Finallyandimportantlyinthe
contextofthisassignment,fossilfuelenergysubsidieshinderthedevelopmentofREtechnologiesby
makingthemeconomicallyuncompetitive(WB,2010).
IncreasingthepercentageofREinT&T'selectricitygenerationmixwillbevitalinreducingoverallCO2
emissions. There are a number of zero carbon technologies available, which could potentially be
appliedbothatanationalandlocalscaletogenerateemissionfreeelectricityandreducethecountrys
carbonfootprint.GoRTThasexpresseditsplantoincreasetheshareofREbasedpowergeneration
and has envisaged a respective target of 60 MW RE capacity by 2020 as part of its Green Paper.
Althoughsmall(around2.5%ofoverallpowergenerationcapacity)itwillbeastepforwardinreducing
overallemissionsandisafoundation,onwhichfurtherREprojectscanbebuilton.
LegalandRegulatoryFrameworkandSupportingPolicies
The most important policy is the Green Paper on Sustainable Energy that is currently under
developmentandwillbefedintoanationalconsultationprocessforfurtherdiscussion.TheGreen
PaperwillprovidetheoverallguidelinesforimplementationofEEandREmeasuresinthefuture.While
thedraftGreenPaperenvisagestoincreasetheshareofREtoabout2.5%ofoverallpowergeneration
by2020,theconsultantsrecommendraisingthistargettoatleast4%tocreatesufficientmarketsize
thatcouldthenleadtolowerspecificcostsandastrengthenedbusinesssector.Asunderthisscenario
sufficientmarketsizetomakeREmoreattractivewouldhavebeenreached,itisexpectedthata0.5%
increaseperyearinthefirst8yearsupto2020,followedbya1%increasethereafter,yieldinga16%
shareofREelectricityby2032.
InordertocreatethelegalandregulatoryrequirementsforREinT&Titwillbenecessarytoamend
theTrinidadandTobagoElectricityCommissionActthatcurrentlydoesnotallowforwheelingorthe
feedingofelectricityfromindependentoperatorsintothegridwithoutconsentofthestateowned
utility.Oncethelegalframeworkisinplace,itissuggestedtoconcentrateonthedevelopmentoffeed
intariffsforgridconnectedsmallerscaleREfacilities,namelysolarPVandsmall,assourcesofREwith
thelargestpotential.Theintroductionofanetmeteringornetbillingschemesarenotadvisableunder
the current conditions with highly subsidized consumer tariff rates, as PV investments would need
2
significantadditionalfinancialandfiscalincentivestobecompetitive.Forutilityscalewindandsolar
plants, competitive bidding is recommended, which will allow site and capacity planning that fits
generationexpansionplansandusesexistingresourcesadequately.Tostimulatetheinitialuptakeof
householdPVsystems,itisrecommendedthata100roofsprogrambedeveloped.
LowelectricitytariffsareonemajorreasonforlowenergyefficiencyinT&T.Inordertoexploitthe
potential of EE and RE in the country, electricity tariffs need to be further increased. Other policy
recommendationsthatcouldhaveavisibleimpactonenergyefficiencyincludetheenactmentofan
Energy Efficiency Law, as well as demandsidemanagement programs, a market ban of inefficient
consumer products, such as incandescent light bulbs, the development of minimum efficiency
standards and labelling programs, as well as the introduction of energyrelated building standards,
includingthemandatoryuseofsolarwaterheatersatleastinspecificcases.Itisalsorecommended
toexpandtheinfrastructureinawaythatSMEscanbenefitfromdirectsupplyofnaturalgasandto
installsmartmeters.
EnergyEfficiency(EE)
ItiswidelyacceptedthatEEisoneoftheleastcostwaysofsatisfyinggrowingdemandforenergy
services. No comprehensive study has previously been made of the EE potential in Trinidad and
Tobago,butourreviewindicatesauniquecaseintheCaribbean:verylowretailenergyprices;aper
capitaenergyconsumptionexceedingNorthAmericanandmostEuropeanlevels;andalowappetite
forEEtechnologiesandpracticesacrosstheboard.
ThemostimportantbarrierstoEEuptakearethecountryslowretailenergyprices(whicharelargely
a consequence of price subsidies employed by the Government) and low levels of public energy
awarenessandliteracy.UnlikeelsewhereintheCaribbean,limitedaccesstofinancingisnotafactor
ofsignificance.
Inrelationtopolicysetting,theuptakeofEEtechnologieswillbeinfluencedbythespecificmixofand
interactionbetween:informationprovided,incentivessetandregulationsimposedbytheauthorities.
Policyinturnmusttranslateintospecificprogramsineachsectorasproposedbelow.
The residential sector is almost fully electrified and consumes 29% of total electricity. Average
householdconsumptionisthehighestintheCARICOMregion,anditisconsideredthatthereisalarge
potentialforenergysavingsthroughefficiencyinthesector.Fourmainresidentialenergyefficiency
interventionsarerecommended,aimedat:
Reducingtheuseofelectricityforwaterheating;
Encouragingtheuseofenergyefficientappliancesandlighting;
Reducingenergyconsumptioninthesocialhousingsector;
Engagingandmotivatingconsumerstoadoptnocost,durableenergysavingsbehaviours.
Overthefirstfiveyears,estimatedsavingsfromtherecommendedresidentialEEmeasures,would
amount to 930 GWh of electricity worth US$ 46.5 million at current electricity rates; and avoided
emissionsofsome651ktofcarbondioxide(CO2).
TrinidadandTobagohasover6,300hotelrooms,withatotalannualelectricityconsumptionestimated
at76GWh.ItisrecommendedthatthehotelsectorinvestsinEEinterventionsaspartofaholistic
sustainabilitystrategy,aimedat increasingoverall sectorperformance.In thiscontext,wepropose
fourgeneralprograminterventions,to:
3
Improveairconditioningefficiency;
Usemoreefficientlightingandcontrols;
Usemoreefficientequipmentandappliances;
Encouragegreenhotelcertification.
Based on an assessment, implementation of these measures can allow the hotel sector to achieve
aggregatesavingsof10.3GWhofelectricityoverafiveyearperiod.
Overall,thecommercialandindustrialsectorconsumedsome5,600GWhofelectricityin2011,which
was twothirds of the countrys total electricity consumption. In the absence of specific industrial
sectorenduseconsumptiondata,itcanreasonablybeassumed,thatelectricmotors,processheating,
cooling,ventilationandlightingaresignificantendusers.TherelevantEEinvestmentsthatprocessing
andmanufacturingfirmsshouldmakeinclude:
RetrofitofmotorswithVariableFrequencyDrive(VFD)systems3;
Processheatingretrofits;
Installationofhighefficiency,chilledbeamairconditioningsystems;
Lightingreplacements/retrofitsandimplementationoflightingcontrolsystems.
Itisestimatedthatoverthefirstfiveyears,amodesttotalof224commercialandindustrialcustomers
willtakeadvantageoftheproposedEnergyServiceCompany(ESCO)150%TaxAllowanceProgram,
resultinginacumulativesavingsovertheperiodofapproximately33GWhofelectricity.
TheuptakeofviableEEtechnologieswillbeinfluencedbythespecificmixofinformation,incentives
andregulations,deliveredundertheumbrellaofGovernmentpolicy.GoRTThasalreadycommenced
educationandawarenessprograms,aswellasincentivesforpromotingEE.Continuedgovernment
actioninfourareasisrecommended:
Deliveryofinformation;
Designandimplementationofincentives;
Enactingandenforcementofregulations;
Designandimplementationofspecificprojects(suchasenergyauditsandinterventionson
highprofilegovernmentbuildings).
Inrelationtoinstitutionalarrangements,theestablishmentofaTrinidadandTobagoEnergyAgency
(TTEA)isrecommended;withresponsibilityforensuringthepromotionofREandEE,supportingthe
MEEAbyoutsourcingactivitiesthatarenotpartofthecorefunctionsoftheMinistry.
GivenGoRTTsmaintenanceofasystemofsignificantpricesubsidies,themarketsituationdoesnot
encourageprivateinvestmentinEEanditisrecommendedthatGoRTTmustleadbyexamplewith
specificinitiatives.
Aspartofthisintervention,GoRTT,withsupportfromexternalenergyexperts,hasundertakenenergy
auditsinpublicbuildings.Resultsindicatethatenergysavingpotentialsarehighinalltheselected
buildings. Energy savings of over 22% can be achieved through the implementation of energy
conservationand/orrenewableenergymeasureswithapaybacktimeoflessthanfiveyears.Beside
thesepromisingsavingpotentials,theauditsalsoresultedinanumberofinterestinglessonsforthe
AVariableFrequencyDrive(VFD)orVariableSpeedDrive(VSD),isanelectroniccontroldeviceusedinelectromechanicaldrive
systemstocontrolthespeedandturningforceofalternatingcurrentmotors,byvaryingthemotorinputfrequencyandvoltage.VFDs
areusedinapplicationsrangingfromsmallappliancestothelargestmotorsandcompressors,andallowsignificantenergysavings
comparedtooperationinfixedspeedmode.
MEEAandtheESCOCertificationCommittee(ECC).Theseincludedtheneedforcapacitybuildingof
auditors,andtheneedforanincreasedfocusonpassivesolutionswithregardtobuildingenvelope
improvements.
The proposed fiveyear budget plan for the implementation of all EE measures estimates an
expenditureofUS$23.3million,resultingincumulativeenergysavingsof972.9GWh,costsavingsof
US$48.6millionandavoidedemissionsof681ktofCO2overtheperiod.
To promote EE in the housing sector, a full Global Environment Facility (GEF) proposal has been
developed.TheProjectInformationForm(PIF)wasapprovedasofearly2014.TheGEFprojectintents
tofocusonpromotingEEinthesocialhousingsector,assistingtheirlowincomeuserstosaveasmuch
energyandexpendituresaspossible.Itisexpectedthattheexperiencesgainedinthisprojectwillalso
haveconsiderableeffectonthehousingmarketanddomesticsectoringeneral.
ThepotentialofdifferentREtechnologiesinT&T
AllpossibletechnologiesforREinT&Tthatcouldtheoreticallybeapplied,havebeenassessed.PV,
SWHandonshorewindenergyarethemostpromisingtechnologies.Tosupportagenerousuptakeof
thesetechnologies,detailedtechnicalstudiesarenecessary,suchasadetailedwindmeasurementto
assessthepotentialelectricityyieldatconcretesites.
WindPower
WhilewindpowerisnotusedinT&Tatpresent,theGoRTTplanstoinstallawindcapacityequivalent
of5%ofthetotalgenerationcapacityby2020.T&Tliesinanareawithstrongwindsallyearroundand
theGoRTTiscurrentlyundertakingawindassessmenttodefinetheexactpotentiallocationsforwind
farms.BasedonexperiencesinotherCaribbeanislandsitseemslikelythatacapacityfactorofatleast
35%canbeachieved.
It is relevant to note that when it comes to the cost of installing wind turbines in T&T, it is more
expensivethaninmostothercountries,duetothelackofroadinfrastructuretocopewithoversized
trucks,etc.Anothermajorconstraintisthelikelyunavailabilityoflargecranesnearthesiteandthe
lackoftrainedassemblycrews.AsmorewindturbinesareinstalledintheCaribbeanaswellasinT&T
thosecostswillreduceveryquickly;however,itisacostfactorthatneedstobetakenintoaccount.
Tobeabletocapitalizeontheexistingpotentialforwindfarms,legislationthatallowswindfarmsto
beoperatedbyindependentpowerproducersneedstobeestablishedandasubsidyschemeforthe
promotionofwindfarmswouldneedtobeestablished.
Offshorewindpowerwillbeasignificantsourceofelectricityinthefuture,butbeforeTrinidadcan
starttoexplorethisresource,theonshoremarketshouldbedeveloped,asexperiencegainedwith
wind turbines on land is essential. At the same time, as offshore wind power is still in its early
development,itrequiresstrongandlonglastingtechnologysupportschemesbygovernments,aswell
asverystrongengineeringskillstoovercometechnicalchallenges.ItisthereforenotadvisableforT&T
touseitsresourcesonventuringintooffshoredevelopmentatthecurrentstage.
SolarPV
In the case of Trinidad and Tobago, it is relevant to note that hardware costs are no longer the
determining factor for the overall installed costs. Particularly for small residential systems, the so
calledsoftcostsforsalestaxes,permissionfees,labour,transaction,etc.byfaroutnumberthosefor
thecombinedcostsofmodules,inverterandcabling,astheanalysisoftheU.S.marketdemonstrates.
5
This means that a high percentage of the total value chain is raised, and remains within the local
economy,despitethefactthatmosthardwareneedstobeimported.
TheexampleofGermanywithaverymaturephotovoltaic(PV)marketshowsthatsoftcostscanbe
furtherloweredwithincreasedexperienceandmarketpenetration.Thisisthemainreasonforanearly
startintoPVapplicationatabroaderscale,evenifgenerationcostsmaynotbefullycompetitivewith
othersupplyoptionsatthemoment.
With price levels experienced in Germany today, it would be possible to achieve levelized costs in
TrinidadandTobagoofbetweenUS$ct8.8to13.5perkilowatthour(kWh),dependingonthesizeof
thesystem.Basedonmoreconservativeparameters,takingintoaccountthepracticallynonexisting
PVmarketinTrinidadandTobago,levelizedcostshavebeencalculatedtobebetweenUS$ct14.0and
28.8perkWhat2012prices.
VariousexamplesfromtheDominican Republic, St.Kitts,CaymanIslands,Puerto RicoandJamaica
showthatsolarelectricityisnowbecomingacommonfeatureintheelectricitysupplysector.This
rangesfromsmallresidentialrooftopsystemstolargegroundmountedsolarfarmswith20MWor
more. This also demonstrates that integration of such large solar plants with fluctuating electricity
generation into relatively small generation systems is technically possible. Those PV plants can
therefore compete with traditional fossil fuel power generation, if electricity is rated at full costs,
excludingalldirectandindirectsubsidies.
SolarWaterHeating
IncomparisontootherislandsintheCaribbean,thedeploymentofSWHinT&Tisverylimited.Itis
estimatedthatthereareonlyafewhundredSWHsystemsintheentirecountry.AllSWHsystemsin
T&Tareimportedmodelsastherearecurrentlynolocalmanufacturers.However,besidesitslimited
application,thepotentialforSWHisextremelyfavourable,assolarinsolationlevelsarehighandDNI
values are close to the global irradiance values on an inclined surface, which guarantees optimal
performanceofsolarenergysystems.
ToencourageuptakeofSWH,theGoRTThasdevelopedanumberoffiscalincentives,suchasa25%
taxcredit,0%VATonSWH,a150%wearandtearallowance,aswellasconditionaldutyexemptions
formanufacturers.Whiletheseincentiveshavestimulatedsomegrowth,generaluptakehasbeenslow
fromacommercial,aswellasfromadomesticuserperspective.
ThemajorbarrierfortheuptakeofSWHremainstobefinancing.Thelowcostofelectricity,coupled
withinsufficientincentivesmakethecostofSWHprohibitive,especiallyforpoorerhouseholds.Atthe
sametime,thereisonlyverylimitedpublicawarenessaboutSWHandtheiradvantagesandqualityof
servicewithregardstodesign,installationandmaintenanceisstillpoor.
Inordertoreachsignificantimpacta penetration ofabout10,000SWHsystemswould needtobe
realized.Usinganadequateincentivescheme,asadoptedbyBarbados,T&Tcouldseeasimilargrowth
asBarbadosdidinthe1980s.Toachievethisobjective,thedevelopmentofaspecificgovernment
programcombiningincentives,capacitybuilding,awarenessraising,standardsandtestingwouldbe
necessary.
WastetoEnergy
Likemostislandcountries,T&TfacesincreasingproblemswithitsdisposalofMunicipalSolidWaste
(MSW).Theexistingdisposalfacilitiesaresimpledumpsiteswithoutproperenvironmentalprotection,
6
leading to increasing pollution of surrounding surface and ground water. At the same time, the
establishmentofnewlandfillsisamajorchallengeduetolimitedlandavailability.
AnidealsolutiontosolvetheMSWproblemwhileprovidingT&TwithanadditionalsourceofREor
alternativeenergywouldbetheconversionoftheMSWintoenergy.Afirstfeasibilityanalysisshows
thatamovinggrateincineratorcombinedwithsteamturbinesforelectricitygenerationmightbethe
optimalsolutionforT&T,asitisalongestablishedandwellunderstoodtechnology.
TheMSWinT&Tisdrywastethatdoesnotrequirespecifictechnologiesforpretreatmentandthere
arealargenumberofindustrialengineersinthecountrythatcouldeasilybetrainedtooperatethe
incinerator. Under the current estimations, a WtE project is not economically feasible. Further
investigation to develop an appropriate economic model would be necessary and the possible
utilizationofsteamforproductivepurposesshouldbeinvestigated.
Majorexistingobstaclesarethelowpriceforelectricitygeneration,aswellasverylowwastedisposal
fees.Theexistinginformalsectorwouldneedtobeintegrated,asaWtEplantwouldeliminatetheir
sourceofincome.However,WtEprojectscannotonlybeassessedontheireconomicfeasibility,but
needtotaketheoverallwastemanagementsituationinacountryintoaccount.
Itisrecommendedtoundertakeacomprehensivewastecharacterizationstudy,aswellasastudyof
thecompositionandstatusofthewasteattheexistinglandfills.Ithasalsotobeanalysed,inhowfar
anincineratorplantcouldbebuiltlocallyandhowmuchoftheequipmentwouldneedtobeimported.
Bioenergy
ThepotentialforbioenergysourcesinT&Tislimited.Thereisalsolimitedscopeformanufacturing
capacityinthesegmentofsolidbiomassenergy.Atmaximumoneplantwouldberequired,however
all components would need to be imported. Large biogas plants face the same problem, as the
potentialforreplicationwouldbeverylimited.Atotaloffourdemonstrationprojectcouldbepossible,
beinglocatedatthelocaldistillery,aswellasthethreeexistinglargepigfarms.
Othertechnologies
Most ocean power technologies are still in their infancy and none of the existing technologies is
perfectlysuitedforapplicationinT&T.Duetomaturityoftechnologyandlocation,onlytidalpower
streamplantsmaypresentasensibleopportunity.OceanThermalEnergyConversion(OTEC)hasgreat
potential and an international or at least a regional approach in the Caribbean should be sought.
However,withnolargerprojectsgloballyinexistence,OTECstillneedsasignificantR&Dpushbefore
itcanprovideasizablecontribution.
Introduction
TrinidadandTobago(T&T)isatwinislandstatecoveringanareaof5,128kmwithatotalpopulation
of1.3million,mostlylocatedinTrinidad,thelargerofthetwinisles,with4,820km,andabout95%
ofthetotalnumberofinhabitants.
T&Thasalonghistoryin theexploitationoffossilenergyresources.Itsoilindustryhasoneofthe
longesthistoricrecordsintheworld,andthecountryhasmorerecentlybecomeasupplierofgasto
itsnationalindustryandpowersector,andisnowalsoamajorexporterofLiquefiedNaturalGas(LNG).
AccordingtoBPs2013StatisticalReview,totalprimaryenergyconsumption(TPEC)inT&Twasabout
842trillionBtuin2012.4Naturalgasconsumptionaccountedforapproximately92%andconsumption
ofpetroleumproductswasjustunder8%ofTPEC.Theuseofrenewablefuelswasnegligible.
Due to a highly energyintensive industry, low energetic efficiency in almost all sectors and the
exclusiveuseoffossilfuels,T&ThasveryhighCarbonDioxide(CO2)emissionsfromenergyuseinthe
rangeof52millionmetrictonnesperyear(2011).With40tonnesCO2percapitathoseemissionsare
amongthehighestintheworld.
GoRTTisintheprocessofdevelopingaSustainableEnergyProgram(SEP),whichwillmaximizetheuse
ofitsnaturalresources,anddeveloptheuseofrenewableandsustainableenergy,includingEnergy
Efficiency(EE).
TheProgramwillfocuson:
(i)
Developingasustainableenergyframework;
(ii)
Institutional strengthening of Government entities for the formulation and

implementation of policies oriented towards Sustainable Energy, supporting the
widespreaduseofAlternativeEnergy;
(iii)
Promotingsmallenergybusinesses,whichwillforgelinkswithothersectors,suchas
servicesandmanufacturing.
SpecificprovisionswillbemadetodeterminenationalRenewableEnergy(RE)potentials,encourage
renewableelectricitytechnologies,suchaswind,solar,hydro,biomassandgeothermal,andtosupport
EEandconservationinitiatives.
ToimplementanddeveloptheSustainableEnergyProgram(SEP),GoRTThasreceivedaPolicyBased
Loan(PBL)(TTL1023)fromtheInterAmericanDevelopmentBank(IDB).ThisPBLfortheSEPconsists
ofthreedifferentoperations,eachwithspecificinstitutionalandpolicygoals.
TheIDBhiredtheconsortiumofCentreofPartnershipsforDevelopment(CAD),ProjektConsult,and
LKStosupporttheMinistryofEnergyandEnergyAffairs(MEEA)inthedevelopmentofpoliciesand
activitiesthatwillpromotethedeploymentofREandtheimplementationofEEmeasures.
AsstatedintheTermsofReference,thegeneralobjectiveofthisassignmentisthepromotionofRE
andEEprograms,toensuresustainabledevelopmentinT&T,andtoprovidealternativestominimize
thedependencyonfossilfuels.
AccordingtoU.S.EnergyInformationAdministrationstatisticsitwas930billionbtuin2013(EIA,2013).
Thisincludesthe:
(i)
SupporttothepreparationanddevelopmentoftheprogrammaticPBLfortheSEP;
(ii)
ProvisionoftechnicalassistancetoGoRTT,i.e.theCentralGovernmentofTrinidadand
Tobago,andtheTobagoHouseofAssembly,intheareaofEE;and
(iii)
Exploration of options for RE, together with the funding of specific RE pilot projects.
ParticularfocuswillbegiventoTobagoinordertopromotesustainableenergyuse.5
2.1 LimitationsoftheReport
Oneofthemajorlimitationsofthisreportistheavailabilityofdata.WhiletheConsultants,aswellas
thelocalCADrepresentationandtheMEEAhavemadeeveryefforttoreceiveallthenecessarydata
to analyze the situation in T&T in as much detail as possible, a number of challenges have been
encounteredthroughouttheprocess:
1) Existenceofdata:
Duetothelowenergycosts,inT&Tanumberofsectorssuchasthetourismsector,donotrecord
theaverageenergyconsumption,asenergyisnotarelevantcostfactor.
2) Accesstodata:
Ithasproventobealongandcomplicatedprocesstoreceivethenecessarydatafromtherelevant
organizations,suchastheTrinidadandTobagoElectricityCommission(T&TEC).TheConsultants,as
wellastheMEEA,havetriedtosourcethenecessaryenergydata.Althoughvariousintents,such
aswrittenandformalrequests,directvisitsandfollowupbyphonewereundertaken,itwasnot
possibletoretrieveallexistingdata.
InordertotreatwiththeabovelimitationstheConsultantshavemadeassumptionswhereverpossible.
IneachoftheChaptersandAppendixes,themethodfordevelopingandcalculatingtheassumptions
hasbeenexplained.
Forsomeofthedata,ithasnotbeenpossibletodevelopassumptions,asnocomparabledatawere
available.
TermsofReference,SupporttotheSustainableEnergyProgram
BaselineforElectricityGenerationandConsumption
3.1 ObjectiveandScopeoftheBaseline
Thefollowingchapterestablishesabaseline(businessasusual),intermsofelectricitygenerationand
consumption,aswellasassociatedcarbondioxideemissionsinordertodocumenttheeffectiveness
ofanysignificantfutureREcontributionandEEmeasuresandestablishenergyforecastscenarios.The
baselinefocusesontheelectricitysectorandincludesthefollowingfactors:
1) Amountofnaturalgasanddieseloil(finaluse)appliedforelectricitygeneration(chapter3.3);
2) Typeandgenerationefficienciesofexistingandfuturepowerplants(chapter3.4);
3) Longerterm development of power generation capacity (fossil fuel baseline without RE),
includingreservecapacity(chapter3.5);
4) Pastandprojectedfinalelectricitydemand(residential,industrialetc.,includinginformation
about electricity consumption in public buildings and hotels) and peak loads; prospective
baseline scenarios without EE measures will be based on adequate and reasonable
assumptions(chapter3.6);
5) PastandfuturedevelopmentofCO2emissionsinthepowersector(chapter3.7);
6) Typicaldailyloadcurves(chapter3.8);
7) TransmissionanddistributiongridandplansforreinforcementorextensioninT&T(chapter
3.9);
8) Electricitygenerationcosts,costcoverageandsubsidiesinthepowersector(chapter3.10).
3.2 TheTrinidadandTobagoEnergyMatrix
TheenergysectorisoneofthemostimportantsectorsinT&T.Itamountsto45.3%ofnationalGDP
(2011), provides almost 60% of government revenue and is the most important export commodity
with83%ofmerchandiseexports,mainlyrefinedoilproducts,liquefiednaturalgas(LNG),andnatural
gasliquids(IDB,2013).T&TisthemainexporterofoilintheCaribbean,aswellasthemainproducer
ofLNGinLatinAmericaandtheCaribbean.
While the following chapter mostly focuses on the baseline for electricity, Figure 1 provides an
overviewoftheprimaryenergymatrixandenergyflowsinT&T.
T&Texportsthemajority(58%)ofitsnaturalgasintheformofLNG.In2012,T&Twasthe6thlargest
LNGexporterintheworld(IEA,2012c).Therestisuseddomesticallyinthepetrochemicalindustry
(28%),theelectricitysector(8%)andother(7%),(IDB2013).
T&Talsoproducesaround80,000barrelsofoilperday(2012).20%oftotalproductionareconsumed
locally,mainlybythetransportsector(IDB,2013)
10
Figure1:EnergyFlowTrinidadandTobago6
Finalconsumptionisdominatedbygasandpetroleumextractionindustryandothers(whichincludes
nonenergyconsumptionandtheproductionofderivates,65%),followedbyindustry(25%),transport
(7%)andtheresidentialandcommercialsectorwith3%.7
Figure2:Distributionoffinalconsumptionbysector
25%
7%
65%
2%
1%
Industry
Transport
Residential
Commercial
CR&W=Combustibles,RenewablesandWaste
OwnelaborationbasedonEnergyFlowTrinidadandTobago
11
Other(derivateproduction)
T&Twithitshydrocarbonbasedeconomy,whileonlycontributingto0.1%ofglobalCO2emissions,has
oneofthehighestpercapitaCO2emissionsintheworld.Itcurrentlyranks2ndwithregardstoper
capitaemissionsandproducesanestimatedamountof52millionmetrictonsofCO2annually(UNEP,
2011;IEA2011).
BasedondatafromtheUniversityofTrinidadandTobago(UTT),thecontributionoftheenergysector
andpetrochemicaloperationstoCO2emissionsisaround80%,andthetransportsectoraccountsfor
6%(TrinidadExpress,2013).
WhilethereportfocusesonthepotentialforCO2emissionsreductionsinthepowersector,aswellas
throughenergyefficiencyandtheuseofrenewableenergy,italsoneedstobenotedthattheGoRTT
is starting to focus on the use of CNG in the transport sector, as another strategy to reduce CO2
emissionsinthecountry.
3.3 NaturalGasandDieselOil(FinalUse)appliedforElectricityGeneration
3.3.1 AnnualDomesticConsumptionofNaturalGasandLNGExport
AsillustratedinFigure3,theannualdomesticconsumptionofnaturalgasinT&Thasrisenbetween
theyears1990and2013,from167bcfto599bcfanincreaseof359%overthetimeframeof23
years.8
Figure3:NaturalGasUtilisationinT&T19902013
1600
1400
Billionft
1200
LNG
1000
800
600
400
Domestic
consumption
200
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Year
Source:MEEA
Theunderlyingreasonsofthisgrowthinnaturalgasconsumptionincludethefollowingfactors:
In2010domesticconsumptionpeakedat616bcfandthereafterdecreased.
12
Availabilityofnaturalgasforlocalmarket:significantincreaseoflocalextractionofnatural
gasoverthelast22years:from235bcfin1990to1,514bcfin20139anincreaseof644%.
Thegastooilproductionratioalsoconfirmstheimportanceofnaturalgasforthelocalmarket,
given that it increased from 1:1 (energy equivalent) in 1998 to 5:1 in 2007 (GASCO, 2011).
Furthermore,theincreasedavailabilityoflocalnaturalgasatleastuntil2010isalsodueto
investmentsinlocalgasinfrastructure,whichwasinturnfacilitatedbyasignificantincreasein
energyrevenuesdueto,forinstance,oilpriceincreasesintheearly1980s(GASCO,2011).
Priceofnaturalgasforlocalmarket:thepriceismuchlowerthanelsewhere(seeFigure21,
page),which,inturn,hasbeenthemaincontributingfactor(alongwithsuitableinfrastructure
developedbytheGovernment)tothedevelopmentofindustriesthatareintensiveusersof
gas.10T&TEC,forexample,currently(2012)paysUS$1.2538perMMBTUfornaturalgas.This,
however,isnotthemarketpriceforgas,giventhatgasissoldatvaryingpricestodifferent
domesticcompaniesandforeignbuyersbasedonanumberofcriteria(T&TEC,2013).
Increaseinindustrialnaturalgasconsumerbase:connectionoflocalmanufacturingbusinesses
(includingsmallones)tothenaturalgasgrid(GASCO,2011).Inthiscontext,FIGURE4provides
anoverviewofthedifferenttypesofnaturalgasconsumers:
Figure4:OverviewofNaturalGasConsumersinT&T,includingLNGexport,2012
PowerGeneration
8,0%
AmmoniaProduction
15,0%
MethanolProduction
Refinery
56,6%
Iron&Steel
13,6%
CementProduction
AmmoniaDerivates
GasProcessing
2,0%
0,2%
0,3%
0,8%
2,9%
SmallConsumers
LNG
0,6%
Owngraph;Source:MEEA,2012b
IncreaseinGDPandindustrialactivity:T&T'sGDPpercapitahasincreasedby400%between
1990(4,170currentUS$)and2011(16,699currentUS$)(WB,2013);atthesametimethe
valueaddedoftheindustryhasincreasedfrom47%ofGDPin1990to60%ofGDPin2011
(WB,2013).
Increase in electricity production from natural gas: The gross electricity generation (in turn
almost exclusively from natural gas, with electricity from oil or REbased electricity being
Productionhaspeakedin2010at1580bcf.
10
With11ammoniaplantsandsevenmethanolplants,T&Tistheworldslargestexporterofammoniaandthesecondlargestexporter
ofmethanol,accordingtoIHSGlobalInsight.
13
negligible,i.e.accountingforlessthan1%)hasgoneupfrom3.6TWhin1990,to8.5TWhin
2010anincreaseof137%over20years(IEA,2012a).
Asfortheshareofnaturalgasusedtogenerateelectricity,thisfigurehasdecreasedfrom13.6%in
2000(MEEA,2011a)to8.0%in2012and7.9%in2013.Themainreasonforthisdevelopmentisthe
increasedimportanceofLNGexports(whichhavegoneupfrom31.7%ofthetotaluseofnaturalgas
in2000,toalmost57%in201211).T&ThasbeentheworldssixthlargestLNGexporterin2012.
3.3.2 AnnualConsumptionofOil
Betweentheyear1990and2011,andasillustratedinFigure5below,theannualconsumptionofoil
inT&Thasincreasedfrom20,400barrelsperday(bpd)to50,000bpd12anincreaseof145%overa
periodof22years.AsfortheproductiondatainFigure5,thiscoverstotaloilproduction,whichas
pertherelevantIEAdefinitionincludes"productionofcrudeoilincludingleasecondensate,natural
gas plant liquids and other liquids and refinery processing gain (loss)". Oil production peaked at
179,000 bpd in 2006, however it has declined yearoveryear since 2008. The declines have been
attributed to maturing oilfields and operational challenges. According to (EIA, 2013), total oil
productionhasfallento119,315bpdin2012,whileconsumptionstoodat43,686bpd.
Figure5:TotalOilProductionandConsumptioninT&T,20002011
TotalOilProduction&Consumption
inTrinidad&Tobago,1990 2011
160
Thousandbarrels/day
140
120
100
80
Production
60
Consumption
40
20
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Year
Owngraph;Source:MEEA,2014
Inthiscontext,FIGURE9alsoshowscrudeoilproduction,whichhasbeenbelow100,000barrelsper
day since 2010. In 2012, the production had fallen to 81,735 barrels per day (EIA, 2013; MEEA,
11
57.4%in2013
12
AccordingtoEIA,2013,itwasonlyabout40,000bpdin2011.
14
ConsolidatedMonthlyBulletin2012);in2013,thedailyaveragewas81,157bpd(MEEA,Consolidated
MonthlyBulletin2013).T&Thad728millionbarrelsofprovencrudeoilreservesasofJanuary2013
(EIA,2013).
Theunderlyingreasonsofthegrowthinoilconsumptionincludethefollowingfactors:
IncreaseinGDPandindustrialactivity:asalreadymentionedintheprevioussection,T&T's
GDPpercapitahasincreasedby400%between1990(4,170currentUS$)and2011(16,699
currentUS$);atthesametimethevalueaddedoftheindustryhasincreasedfrom47%ofGDP
in1990to60%ofGDPin2011(WB,2013).
IncreaseinenergyintensityperunitofGDP:asalreadymentionedintheprevioussection,the
totalprimaryenergyintensityinT&Thasrisenby38.2%between1990(16,663Btuper2005
US$)and2012(25,496Btuper2005US$)(EIA,2013).
Growthofhighoilconsumptionindustrysectors:tworelevantfactorsinthiscontextare:i)
growthofindustrialsectorsasapercentageofGDP,whichhasincreasedfrom47%in1990to
60%in2011(WB,2013)withmanufacturingbeingtheonlyeconomicsector,thatdespitethe
global financial crisis, hasat no point since 2007 experienced negative growth rates (CBTT,
2012); and ii) increase in consumption and conversion (refinery) of the locally extracted
petroleum:increaseinoilandnaturalgasrefiningbyalmost500%between1995and2009
(CSO,2013).
Figure6:CrudeOilProductioninT&T,19902013
OIL PRODUCTION (BOPD)

160.000
140.000
120.000
100.000
80.000
60.000
40.000
20.000
0
1985
1990
1995
2000
2005
2010
2015
Owngraph,Source:MEEA,2014
Increaseinresidentialoilconsumption:asaresultofthe10.7%populationgrowthinT&Tover
thelast22years,thetransportationsectorisconsideredtohavegrownaccordingly,aswell.
15
Thepercentageofthetotalconsumptionofdieseloilusedtogenerateelectricityisnegligible,given
that in the past diesel has only been utilized for electricity generation for the two power plants in
Tobago, with a combined installed capacity of 86 MW, accounting for 3.5% of the total power
generation capacity, and for the startup phase of gas powered plants. Diesel oil use therefore
accounted for less than 1% of the primary fuel used for electricity generation in T&T (as of 2012).
Furthermore, the Cove diesel/gas power plant in Tobago switched to operate on natural gas in
November2013.Duetothoserecentchanges,thisreportapproximatesdieselgenerationtozero.
UltraLowSulphurDieselUnit(ULSD)
AspartoftheSEP,theGoRTTisimplementingaULSD.InJuly2013,theconstructionprogressoftheULSD
projectwasnegativelyaffectedbyfinancialconstraintsandpoorplanningandoutofsequencework,
whichledtosignificantamountofrework.Nevertheless,asatJuly2013,totalEPCprojectprogresswas
96.6%,whileengineeringwas98.9%,andconstructionwas96.7%complete.ThenewULSDPlantwill
enablePetrotrintomeetstringentnewdieselqualityspecifications(sulphurandaromatics)inthelocal,
regionalandinternationalmarketandispartofPetrotrinscleanenergyprogram.TheULSDisdesigned
toprocess40,000BPSD(barrelsperstreamday)ofdieselboilingrangefeedstockstoproduceadiesel
productthatwillreduce:sulphurcontentfrom>1000ppmto8ppm;aromaticsfrom>45%to<25%;and
the Cetane Number from 41 to 50. This is consistent with the most stringent current and forecasted
futureonroadfuelspecifications.
3.3.3 ProjectionsofNaturalGasforElectricityGeneration
Intermsofprojectingtheelectricitygenerationintothefuture,andtherefore,theamountofnatural
gastobeusedforit,thefollowingfactorsneedtobetakenintoaccount:
a) Factors determining the demand for electricity, i.e. projected development of electricity
demand in the commercial and industrial sector, development of Gross Domestic Product
(GDP)andtheresidentialsector(developmentofpopulationsizeandhouseholds);
b) Projectedpowergenerationmix,i.e.typesofplants,fueltypesandthermalefficiencies;
c) Availabilityoftheunderlyingprimaryfuel,i.e.naturalgasreserves.
3.3.3.1 Electricity Demand
Factorsdeterminingthedemandforelectricityarethefollowing:
ProjectedGDPgrowth:theInternationalMonetaryFunds(IMF's)mostrecentprojectionsfor
thedevelopmentoftheGDPinT&TarepositivewithrealGDPgrowthratesprojectedtobe
around+2.2%in2013,and+3.0%in2017(IMF,2012b).
Increaseofresidentialenergyconsumerbase:T&Tspopulationhasgrown10.8%overthelast
22years,i.e.from1.21millionin1990to1.35millionin2011(WB,2013);Thecrudebirthrate
forT&Thasbeenrelativelyconstantforalmosttwodecades(since1995:between1416per
1,000asperWB,2013),andthereare nonegativeindicatorsin termsofapotentiallower
immigrationorhigheremigrationrate.However,UNDESA,aswellasUNDPPopulationFigures
expect a stabilization in population by around 2025, at approximately 1.4 Million people.
Anotherfactortobetakenintoaccountinthiscontextisthatthenumberofhouseholdsmay
increaseatahigherrateduetothetendencyforlessoccupancyperhousehold.
Increaseofnonresidentialenergyconsumerbase:accordingtotheforecastbyT&TEC(2011),
thenumberofnonresidentialelectricitycustomersuntil2016isexpectedtoincreaseinevery
16
rateclasswiththeexceptionofmostofthelargeandverylargeindustrycustomers(whose
numberisexpectedtoremainstable)asillustratedinTABLE1.
Table1:CustomerForecastbyRateCategory13
Owntable;Source:T&TEC,2010
Increaseinelectricityconsumptionacrossmostratecategories:accordingtoforecastinT&TEC
(2011),theelectricityconsumptionisexpectedtoincreaseinmostratecategoriesuntil2016
asillustratedinTABLE2.
Table2:ElectricitySalestoEachRateCategory14
InlinewithT&T'saverageelectricityoutputgrowthbetween1990and2010(IEA,2012a),itisassumed
thatT&T'sannualpowergenerationoutputwillkeepincreasingatasimilarrateuntil2020,i.e.around
4.4% per annum. As a result, gross output is expected to increase to nearly 13.0 TWh in 2020
equivalenttoaround10,000kWhpercapita.Thispercapitavalue,inturn,isfarhigherthaninmany
industrializedcountries15.Anincreaseinenduseefficiencyof10%,forinstance,wouldalreadyhavea
significantimpact.
3.3.3.2 Projected Power Generation Mix
Intermsofprojectedpowergenerationmix,i.e.typesofplants,fueltypesandthermalefficiencies,
thefollowingfactorsneedtobeconsidered:
13
ForratecategorydescriptionseeTable5.At30thApril2013,T&TEChad433,733customersintotal(PRTT,2014).Ofthose,3,392were
industrialcustomers.
14
ForratecategorydescriptionseeTable5.
15
E.g.about7,845kWh/cap.inGermanyandabout5,620kWh/cap.intheUnitedKingdomin2013.
17
Currentpowergenerationmix:In2012,T&T'spowergenerationmixconsistedofeightpower
plantswithatotalinstallednameplatecapacityof2,417MW99%ofwhichnaturalgasfired
(1%isdiesel).
Projectedpowergenerationmix:AspresentedinTABLE3insection3.4,theaverageoverall
thermal efficiency was around 26.6%16 in 2012. In order to improve this low value, a
replacementofaround50%ofallSimpleCycleGasTurbine(SCGT)(i.e.equivalenttoaround
975 MW) by Combined Cycle Gas Turbine (CCGT) by 2020 is expected, based on T&TEC's
confirmationthat"combinedcycleplantsshouldreplaceallgasturbineplants"(T&TEC,2011).
Thiswouldresultinaprojectedimprovementoftheoverallthermalefficiencytoanestimated
38.5%by202017.Furthermore,naturalgasisexpectedtoremaintheonlysignificant(fossil)
fuelusedforelectricitygeneration.
3.3.3.3 Development of Natural Gas Reserves

Regardingavailabilityoftheunderlyingprimaryfuel,i.e.naturalgasreserves,thefollowingfactors
needtobeconsidered:
Naturalgasreserves(IMF,2012a;Guardian,2012).Therearetwomainreasonsforthedecline
in natural gas reserves since 2005 (see FIGURE 7): i) no new areas for exploration and
productionhadbeenawardedbetween2006and2012,presumablyinpartduetotheglobal
economiccrisisandthecollapseinenergypricesinmid2008;andii)anincreaseinnaturalgas
productionuntil2010.Asaresult,thetotalnaturalgasreserveshavedeclinedfrom34.9tcfin
2005to25.5tcfin2011.
Thedeclineinprovenreservesin2011hassloweddownincomparisontotheyearsbefore,
andwasestimatedtobearound1.5%,comparedtoanannualslowdownrateofbetween6
9% in the years prior. The underlying reasons for this trend reversal were increased
development drilling activities in 2011, better than expected reservoir performance, and a
decreaseinnaturalgasextraction(furthercontinuedin2012).Asatendof2011,theproven
naturalgasreservesequatetoanequivalentofaroundnineyearsofnaturalgasproduction,
based on the country's current commitments, which result in an annual production rate of
about1.5tcf.18
In2012,theMEEAlaunchedabidroundfor6deepwaterblocks.Fourblockshavesincebeen
awardedtotheAustraliancompanyBHPBilliton,forwhichproductionsharingcontractswith
theMEEAweresignedinJune2013.BHPBillitonhasplansforinvestmentsofapproximately
US$565millionforthefirstexplorationphase,andafurtherUS$459millionoverthenext
optionalphases.Theexplorationprogrammeinvolvesseismicsurveysofapproximately5,330
kmtobestartedatthesecondquarterof2014,andthedrillingofsixexplorationwells.The
firstwellisexpectedtobedrilledin2016.Preliminaryestimatesofthecombinednaturalgas
resourcepotentialoftheseblocksareintherangeof2.423.6trillioncubicfeet(tcf),and
crudeoilresourcesareintherangeof4284,200millionbarrelsofoil.
16
Weightedaveragefromthermalefficienciesofcurrentmixof930MWSCGTand465MWCCGT.Ithasincreasedtoabout30%in2013
withthepartialoperationofthecombinedcycleturbinesofTGU.
17
Midwaybetweencurrentthermalefficiencyweightedaverageof26.6%andprojectedfutureupgradeofallSCGTbyCCGT(49.9%
thermalefficiency).
18
AsofJanuary2012,T&Thad13.3tcfofprovennaturalgasreserves(EIA,2013).Asofendof2012,T&Thad13.11tcfofprovennatural
gasreserves(2012RyderScottGasReserveAudit).
18
Inaddition,anotherDeepWaterCompetitiveBidRoundwaslaunchedinAugust2013,which
closedinMarch2014.Blockswillbeawardedattheendoftheevaluationprocesswhichis
nearcompletion.Furthermore,aTrinidadOnshoreBidRoundwaslaunchedinApril2013;three
blocksintheprolificoilandgasprovinceofthesouthernbasinofTrinidadwereawardedto:
LeaseOperatorsLtd.,RangeResourcesTrinidadLtd.andTouchstoneExplorationInc.
Figure7:NaturalGasReservesinT&T,19992010
Source:IMF,2012a
Giventhisoverallcontext,thefollowingfactorsrelevanttotheprojectionsoftheamountofnatural
gastobeusedforelectricitygeneration(20122020)arepresented:
AsillustratedinFIGURE8,nosubstantialincreaseofnaturalgasdemandisexpectedforthe
near future; i.e. it is expected domestic consumption will increase, and LNG export will
decrease.
19
Figure8:NaturalGasDemandinT&T,20052015
Source:MEEA,2012b
3.3.3.4 Projected Natural Gas Consumption for Electricity Generation until 2020
Thefuelconsumptionofallpowerplantsin2010wasequivalenttoalmost118,600TJor112.4
bcfofnaturalgas(T&TEC,2013).
Generatingtheprojected13.0TWhin2020wouldthereforeresultinafuelconsumptionof
around 182,000 TJ at the current low thermal efficiency; applying the projected improved
average thermal efficiency of 38.5% by 2020 (see chapter 3.3.3.2) would result in a 45%
efficiency improvement, resulting in a reduction of the same magnitude of the fuel
consumption,whichwoulddeclinetoonly81,400TJequivalenttoavalueofaroundUS$386
million.19
3.4 TypeandGenerationEfficienciesofExistingandFuturePowerPlants
In 2012, T&Ts power generation capacity consisted of eight power plants operated by T&TEC and
differentIndependentPowerProducers(IPPs)withatotalinstallednameplatecapacityof2,417MW.
TABLE3summarizestherelevantdatainthiscontext.
19
UsingUS$5.0/MMBTUasareferenceprice;1TJ=947.82MMBTU
20
Table3:PowergenerationplantsinT&T(2012)20
Source:Calculationsmade,basedondataextractedfrom(T&TEC,2013),(IDB,2011)
Attheendof2013,thetotalinstalledcapacityhaddecreasedto2,155MW,withoneoftheplantsat
Point Lisas with 208 MW having been shut down in the meantime and somewhat differentiating
capacityfiguresfortheremainingplants().
AsfortheTrinidadGenerationUnlimited(TGU)plant,thecommissioningscheduleofMarch2011
confirmedexcesspoweroverthecourseoftheinitialyearsofoperationoftheplant,withoperation
establishedaspartofaphasedapproach.Thecommissioningschedulewasasfollows(T&TEC,2013):
Phase1A(225MWofsimplecyclegasturbines):1August2011
Phase1B(another225MWofsimplecyclegasturbines,i.e.totalof450MW):20December
2011
Phase2(two135MWsteamturbinesforcombinedcycle,i.e.fulloperationof720MW):18
December2012
Due to transmission capacity restrictions, currently (first half of 2014) only about 350 MW of the
installedcapacityof720MWareavailabletothenationalelectricitygrid.
Ithasbeenalreadynoted,thatthermalefficienciesofSCGT,aswellasCCGTinT&Tarebelowglobal
industrywidestandards,whicharetypicallyaround3542%(SCGT)and5059%(CCGT)21.
3.4.1 ProjectedTypeandGenerationEfficienciesofPowerPlants
Projections (20122030) of type and generation efficiencies of power plants (per turbine, mode of
operation)dependonthreemainaspects:
(i)
Retirementplansofexistingpowerplants:
20
Pleasenotethatthistablereflectsthesituationin2012withtheTGUplantonlyoperatingwithsimplecycleturbines.Attheendof
2013thisplanthadathermalefficiencyof38%,whiletheaverageforallplantsreached30%(PRTT,2014).
21
BasedonLowerHeatingValueandGrossOutput.
21
Atotalofupto691MWisexpectedtoberetiredbetween20132015atthreeofPowerGen's
existingpowerplants,whichhaveextraordinarilylowefficienciesofbetween20.9%and27.9%
(T&TEC,2013).
(ii) Anticipatedcommissioningofnewpowerplants:
ThereareplansfortheestablishmentofanewpowerplantinBaratariaby2018.Furthermore,
planshaveadvancedforanonshorewindenergypilotprojectattheEastcoastofTrinidad(Toco)
withacapacityof1.4MW.
(iii) Anticipatedupgradesofexistingpowerplants:Powergenhasaplantopotentiallyrepowerthe
PortofSpain Power Station provided that a new power station in Barataria were not
commissionedby2018(T&TEC,2011).
Moredetailsonthesethreemainfactorsareprovidedinsection3.5.
Overall,theaverageefficiencyofpowerplantsinT&Tcanatleastbeincreasedtothelevelofthenew
TGUplant(incombinedcyclemode).
3.5 LongertermDevelopmentofPowerGenerationCapacity
Longerterm development of power generation capacity depends on three main factors, i.e. (i)
retirement22 plans of existing power plants, (ii) adding new generation capacity, i.e. either
commissioningplansofnewpowerplantsorrepoweringofexistingcapacity,aswellas(iii)anticipated
upgradeplansofexistingpowerplants.
Regardingtheretirementplansforexistingpowerplants,thefollowingturbinesareexpectedtobe
retiredoverthecourseofthenextyears23:
77MWofPowerGen'sexistingcapacityatPointLisas(giventhatallofTGU'snewunitsare
operational);
As soon as the revised 1994 Power Purchase Agreement (PPA) comes into effect24, the
followingcapacitywillberetired:
o
o
o
o
168.5MWatPointLisasplant25;
20MWatPenalplant26;
308MWatPortofSpain(POS)stationafterDecember2015;
Afurther118MWofPowerGen'sexistingcapacity(2014).
AccordingtoT&TEC,therearenofurtherretirementplansforexistingpowerplantsatthisstage.
Withrespecttoadditionalgenerationcapacity,thereareplansfortheestablishmentofanewpower
plantinBaratariaby2018andT&TEChasalreadyallocatedTT$16.1millionfortheacquisitionofthe
constructionsitebetween2014and2016(T&TEC,2011).Furthermore,severalupgradesofrelevant
22
Powerstationsthatwillberetired,butthatarenotownedbyT&TECaresubjecttointernalmanagementdecisionswhenorifto
decommissionandpossiblydemolish
23
Asconfirmedby(T&TEC,2013)andbasedonPowerGenssubmissionof20101117
24
Pointintimeisunknown,butforthepurposeofthisReport,itisassumedtotakeplacein2014
25
Ptls#3(20MW)+Ptls#5(86MW)+Ptls#8(62.5MW)=168.5MW;evenmorehasalreadybeenretiredin2013(PRTT,2014).
26
Penal#6(20MW)
22
infrastructureacrossthecountryhaveeitheralreadybeencompleted,orarestillongoingorplanned
with the objective to improve the transmission network (for instance upgrade or replacement of
overhead lines, underground cables, transformers, circuit breakers and isolators). Another option
wouldbetorepowerexistinggenerationsites,suchasthePOSplant.
Asforreservecapacity,itisassumedforT&TECtomaintainareservecapacityof25%inthefuture.
Takingintoaccountacontinuedpeakdemandgrowthrateof4%(T&TEC2013),TABLE4providesan
overviewofthedevelopmentofpowergenerationcapacity(fossilbaselinewithoutRE),peakdemand
andreservecapacity.
Basedontheavailableinformation,thePOSplantisexpectedtobedecommissionedin2016,which
if no additional power plant capacity was to come online (i.e. new power plant or repowering of
existingpowerplant)wouldresultinthereservemargindecreasingfrom45%in2014to2%in2020
andto34%by2030.Inthiscase,ifthereservemarginof25%istobemaintained,newadditional
generationpowerof:
About500MWwouldbesufficient(nolaterthanby2016)tomaintainthereservemarginat
orabovethe25%targetreservemarginuntil2020,and
Anotherabout1,100MW(asfrom2020onwards)tokeepitatorabovethetargetreserve
marginuntil2030.
Table4:FuturePlansofPowerGenerationCapacityinT&T(includingretirementofPOSPlantin2015)
Owntable;Sources:T&TEC,2010;T&TEC,2013andIDB,2011
3.6 PeakLoadsandPeakDemand
AsillustratedinFIGURE9,thepeakdemandofthepublicelectricityserviceinT&Thasgrownfrom557
MWin1990to1,322MWin2012equivalenttoanaverageannualgrowthrateofabout4%.
23
Figure9:PeakDemandinT&T19902012
1400
1322
1300
1200
1100
MaximumDemand(MW)
1000
900
806
800
700
600
500
609
569
557
593
607
665
834
746
815
1998
2000
710
876
925
970
1275
1181
1222
1182
1132
1034
1070
1057
400
300
200
100
0
1990
1992
1994
1996
2002
2004
2006
2008
2010
Year
2012
Source:T&TEC,2013
As for projecting peak demand into the future (2013 2020), peak demand is assumed to develop
withoutmajormeasuresforEEincrease.Thepastaveragepeakloadgrowthrateof4%perannum
(between1990and2012)isassumedtocontinueuntil2020.T&TECundertookasystempeakdemand
forecastanalysiswiththefollowingresults:1,541MWin2015and1,817MWin2020(T&TEC2011).
TheseprojectedT&TECfiguresarebasedonanassumedcontinuedaveragepeakloadgrowthrateof
roughly4%perannum.Newerforecastsindicateademandof1,596MWattheendof2017,whilethe
installed capacity would be 1,905 MW at that time, leaving a generation reserve margin of 19.4%,
whichislessthanthedesired25%(PRTT,2014).Thoseforecastsnowassumeanincreaseinelectrical
demandof3to3.5%perannum.
GiventhatgenerationcapacityisthemostcapitalintensiveinfrastructureaspectforT&TEC,system
peakdemandforecastingneedstobeanaccurateinputintothegenerationplanningprocess(T&TEC,
2010).Giventheimportanceofaccuracyinthisprocess(T&TECcontinuestouseeconometricmodels
togeneratetheirpeakdemandforecasts)incombinationwiththeaforementionedpositiveeconomic
outlookfortheyearstocome(seesection1.3),theabovementionedT&TECpeakdemandforecastis
consideredreasonablebytheConsultantsasbaselinenotconsideringanyEEintervention.
Anotherscenariointhiscontextincludescurbingthegrowthofpeakdemandtoanannualrateof2%
inthefuture,whichwouldresultinaprojectedpeakdemandof1,403MWin2015and1,549MWin
2020.
3.7 PastandfutureDevelopmentofCO2EmissionsinthePowerSector
3.7.1 DevelopmentofpastCO2EmissionsinthePowerSector
ThissectionpresentsthepastdevelopmentofCO2emissionsinT&T'spowersector.
24
Theunderlyingdataareasfollows:
Carbonfactor"CO2emissionsfromelectricitygenerationinT&T":AsconfirmedbyT&TEC
(2013),theapplicablecarbonfactoris0.69kgCO2/kWh.Thiscarbonfactorisinlinewiththe
0.70kgCO2/kWh(2010figure)givenbytheInternationalEnergyAgency(IEA).Forthepurpose
ofthisreport,andinviewofdataavailabilityoftherelevantannualcarbonfactorssince1990,
the IEA figures are utilized. The carbon factors between 1990 and 2010 were in a range
between 678 g CO2/kWh27 and 767 g CO2/kWh, with the most recent value being the
aforementioned700gCO2/kWh.
Electricityoutput:Thegrosselectricitygenerationhasgoneupfrom3.6TWhin1990to8.5
TWhin2010(FIGURE10)anincreaseof137%over20years(IEA,2012a).
Electricity generation by fuel: T&T produces all of its primary fuel required for power
generation. Electricity production has almost exclusively been from natural gas since well
before1990,withonlyaverysmallpercentage(upto1%)oftheelectricitybeinggenerated
fromoil.28GenerationfromREtechnologiesisnegligibleaswell,asitislimitedtoonlyafew
residentialandcommercialmicroscalesystems,suchassolarPVandwind.
Figure10:GrosselectricitygenerationT&T
Source:IEA,2012b
Regarding the development of past CO2 emissions from electricity generation in T&T, FIGURE 11
illustratesaconstantrisefrom2.5Megaton(Mt)CO2in1990to5.9MtCO2in2010anincreaseof
134%overthattimeframe.
27
Giventhattherearecarbonfactorsinthepastthatwerelowerthantodays,thissuggeststhatplantsweremoreefficientinthepast.
28
SinceApril2013,allpublicelectricityisproducedexclusivelyfromgas,whentheCoverpowerstationonTobagostartedtooperateon
gasinsteadofoil.
25
Figure11:DevelopmentofpastCO2emissions(inMt)fromelectricitygenerationinT&T
7,00
6,00
5,00
4,00
3,00
2,00
1,00
0,00
Owngraph;Source:dataextractedfromIEA,2012a
3.7.2 EstimatedneartermDevelopmentofCO2Emissions(BaselineScenario)
ThebaselinedevelopmentofpowergenerationrelatedCO2emissionspredominantlydependsontwo
mainfactors:i)thefuturecarbonintensityofthepowerplantsandii)theexpectedelectricityoutput.
3.7.2.1 Carbon Intensity of Power Generation
It is expected that the future carbon factors for electricity generation in T&T will decrease (in
comparisontothecurrentones)forthreemainreasons:
Asalreadystatedinsection3.3.3.2,50%ofallsimplecycleturbineswilleventuallybereplaced
bycombinedcycleplantsby2020,therebysignificantlyimprovingthethermalefficiency.
GoRTT has expressed its plan to increase the share of REbased power generation and has
envisagedatargetof60MWREcapacity(mainlywindpower)by2020.Eventhen,theshare
ofREbasedgenerationwillremainverysmallwitharound2.5%ofoverallpowergeneration
capacity;yet,theemissionfreeREgeneration(inturnequivalenttoaround1.5%ofoverall
grosselectricitygeneration)willstillcontributetoafurtherdecreaseinoverallemissions.
Athirdfactorinthiscontextisthefueltypeusedforpowergeneration.Apartfromthesmall
decrease in carbon intensity stemming from an increase in RE generation, natural gas is
expectedtoremainthemainoronly(fossil)fuelusedforelectricitygeneration,inturnnot
causinganyincreaseincarbonintensityresultingfromapotentialchangetoafuelsourcewith
apotentiallyhighercarbonfactor.
26
3.7.2.2 Expected Electricity Output

Inlinewiththeaverageelectricityoutputgrowthbetween1990and2010(IEA,2012a),itisassumed
thattheoutputwillkeepincreasingatasimilarrate,i.e.around4.4%perannum.Thisdevelopment
also depends on two other factors: expected GDP / industrial output growth, as well as the
developmentofpopulationandhouseholdfiguresinT&T.Asfortheformer,theIMF'smostrecent
projectionsforthedevelopmentoftheGDPinT&TarepositivewithrealGDPgrowthratesprojected
tobearound+2.2%in2013and+3.0%in2017(IMF,2012b).Regardingthelatter,T&T'spopulation
hasgrownatarateof10.7%overthelast22years,andalthoughitisexpectedtocontinuetoincrease
asfaras2025,T&Tspopulationisexpectedtostabilizeataround1.407Millionpeopleaccordingto
UNDESAslatestpopulationfigures(chapter0),whilethenumberofhouseholdsmayfurtherincrease
duetoreducedoccupancyperhousehold.
3.7.2.3 Summary of assumptions and estimated CO2 development until 2020
EstimatedfutureelectricityoutputinT&T:
Annualpowergenerationoutputratewillkeepincreasingatasimilarrateasinthepast,i.e.
4.4%perannum,thusfrom8.5TWhin2010to13.0TWhin2020.
ExpecteddevelopmentoffuturecarbonfactorsforelectricitygenerationinT&T:
Assumedreplacementofaround50%ofallexistingSCGTbyCCGTby2020(i.e.equivalentto
around460MWSCGTbeingreplaced),therebyimprovingtheoverallthermalefficiencyfroman
averageofcurrently26.6%29toanestimated38.5%by202030.Thisinturn,equatestoathermal
efficiencyimprovementof44.7%,whichwhenappliedtothecarbonfactorof700gCO2/kWhin
2010wouldresultinanannuallydecreasingcarbonfactor,with387gCO2/kWhin2020.Applying
the respective carbon factor to the power generation output as identified above results in
carbonemissionsof5.0MtCO2in2020.
InfluenceofREgenerationonCO2emission(Governmentscenario):
IncreasingtheshareofREbasedpowergenerationtoatargetof60MWRE(wind)capacityby
2020.Thiswouldresultincloseto1.5%ofREcontributiontototalelectricitygeneration31,in
turnresultinginafurtherdecreaseinoverallemissionsbytheaforementioned1.5%.Applying
this percentage reduction to the figure calculated above (i.e. 5.0 Mt CO2) results in carbon
emissionsof4.93MtCO2intheyear2020.
Asaresult,andasillustratedinFigure12,thedevelopmentoffutureCO2emissionsinT&Tuntil2020
isestimatedtobeasfollows:
29
Weightedaveragefromthermalefficienciesofcurrentmixof930MWSCGTand465MWCCGT.
30
I.e.50%betweencurrentthermalefficiencyweightedaverageof26.6%andprojectedfutureupgradeofallSCGTbyCCGT(49.9%
thermalefficiency).
31
Thesharecanbehigher,ifenergysavingmeasureswilllowerelectricityconsumptionconsiderably.
27
Figure12:PossibledevelopmentoffutureCO2emissionsfromelectricitygenerationinT&T(inMt),Baseline
Scenario
5,94
5,84
5,74
5,64
5,54
5,44
5,35
5,26
5,17
5,08
5,0
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Source:owncalculations
3.8 TypicalDailyLoadCurves
The purpose of this load curve analysis is to determine T&Ts daily load profile behaviour and
generationcapacityrequirements(i.e.theamountofpowerthatneedstobemadeavailableatany
pointintime).
ThissectionpresentsthedailyloadcurvesprovidedbyT&TECforeachdayoftheweek28December
2012.Forthepurposeoftheanalysisofthissection,twodailyloadcurvesofthatparticularweekhave
beenselected(i.e.MondayandSundayasillustratedinFIGURE13andFIGURE14)giventhatthese
werethetwodayswiththemostextremehighandlowpointsintermsofweekdayandweekendloads.
Theremainingfivedailyloadcurves(TueSat)areprovidedinAppendixA:LoadCurvesofT&TEC.
28
Figure13:ExemplarydailyloadcurveinT&T:weekday
weekly
minimum
Source:T&TEC,2013
Figure14:ExemplarydailyloadcurveinT&T:weekend
weekly
maximum
Source:T&TEC,2013
29
TABLE 5 summarizes the respective minimum, maximum and average 'actual system load' values
throughout thatweek.Thedatashowsthatthesystemloadrangesbetweentheweekly minimum
(824.5 MW) and maximum value (1,320.5 MW), with the average value being 1,057.8 MW. These
valuesprovideanindicationintermsofbaseloadandpeakloadrequirements.
Table5:Minimumandmaximum'actualsystemload'valuesintheweek28Dec2012
Owntable;Source:dataextractedfrom(T&TEC,2013)
Thedataindicateanumberoffurtherrelevantfactors:
The demand profiles are characterized by two peaks: a day time peak (roughly between
8.30amand5pm)andahighernighttimepeak(roughlybetween6.30pmand10.30pm).
There is an early morning demand profile trough (which ends around 6.30am) with only
minimalcommercialorresidentialconsumption.
Thebaseloadisrelativelyhigh.
Themaximumdemandonweekenddaysissimilartothatondaysduringtheweek.
TherelevanceofthisdataforT&TEC,forinstance,includes:
Inthecontextofgenerationplanning,potentialincreasedloaddemand(e.g.newdesalination
plant,otherindustrialplants,newhousingdevelopments,etc.)wouldrequireananalysisto
evaluateaneedforimprovedinfrastructure(e.g.newsubstations,feeders,etc.);
Atthesametime,acceptablelevelsofreliabilityneedtobemaintained;inthiscontext,T&TEC
hasareliabilitycriterionoflossofloadexpectation(LOLE)of<=12hoursperyear,meaning
thattheexpectedtimetheavailablegenerationcapacitywillfallshortorbeunabletosupply
thetotalsystemloadcannotexceedayearlymaximumof12hours(T&TEC,2010);
Improved analysis of potential demand side management measures, such as load shifting
throughtimeofusetariffs,whichmaximizetheefficientuseofgenerationcapacity,byshifting
demandfrompeaktooffpeakperiods.
3.9 TransmissionandDistributionGridandPlansforReinforcementorExtension
BasedonthefindingsofLongertermDevelopmentofPowerGenerationCapacity,thekeyareasfor
reinforcement or extension over the next years are as follows (see also Appendix B: Maps of
TransmissionandDistributionGrids):
30
Barataria(betweenSanJuanandPortofSpain):
Isalocationforapotentialnewpowerplant(nodetailsknownregardinganticipated
capacity);
Sitsatastrategiclocationfromaninfrastructurerelatedpointofview,i.e.benefits
fromanearbysubstation,aswellas33kVand132kVoverheadlinesandproximityto
gassupply;
At first glance it seems that the current infrastructure would be sufficient to

accommodate the commissioning of a new power plant in the Barataria area,
however,moredetailedanalysis(includingaccesstomoredata)wouldberequiredto
makeasoundstatementonthatissue.
PortofSpain,WrightsonRoad:
Is the current location of a PowerGen gassteam power plant (original installed

capacity:300MW);
Might be subject to either decommissioning (anticipated timescales: year 2015) or

repowering;finaldecisionontheseissuesisstillpending;
Sits at a central location in Port of Spain and also benefits from a connection to a
substation,aswellas33kVand132kVoverheadlines;
Between2011and2016,almosttheentireundergroundtransmissionnetwork(i.e.24
kmoutofa totalof25kmofunderground transmissioncables) isscheduled tobe
replacedmostlyinthecityofPortofSpain;
Six transformers (out of a total of 31 interbus transformers) are scheduled to be

replaced by 2016 (at Westmoorings, Wrightson Road, Rio Claro, and at St. Mary's
substations);
Atfirstglanceitseems thatthecurrentinfrastructure(especiallyonce theongoing

works have been completed) would be sufficient to accommodate a potential
repoweringoftheexistingPowerGenplantoreventheconstructionofanewpower
plant in the area, however, more detailed analysis (including access to more data)
wouldberequiredtomakeasoundstatementonthatissue.
Toco(NorthEastTrinidad):
Designatedwindenergypilotprojectsitewithacapacityof2x1.4MWturbines;
Benefitsfromtwonearbysubstations,three33kVoverheadlines,acommunication
tower,aswellastheconnectioncablewithTobago.
LaBrea(SouthWestTrinidad):
LocationofTGUplant(combinedcycle;totalcapacity:720MW);
Benefitsfromtwonearbysubstationsandaconnectiontothe33kVoverheadline;
Themainload(480MW)oftherecentlyconstructedTGUpowerstationwasexpected
to be the Alutrint Smelter Plant. However, GoRTT has made the decision not to
proceedwiththeconstructionofAlutrint(T&TEC,2011).Asaresult,newtransmission
lineswillneedtobeconstructedtoreinforcetheconnectionoftheTGUplantwiththe
loadcentres.
31
Relevant transmission and distributionrelated works recently completed or planned include the
following(T&TEC,2011):
Felicity area and Charlieville: installation of two transformers and of switchgear,

respectively;
PintoRoad:replacementoftransformerstoimprovethereliabilityofthe66kVsupply;
OrangeGrove:establishmentofnew66/12kVsubstationtoreinforceandimprove
reliability of electricity supply in Mt. Hope, St. Augustine, San Juan, Barataria,
Tacariguaandthesurroundingareas(completed);
Couva: upgrade of 12 kV line conductors in the Calcutta area for greater current
carryingcapacityfordistribution(completed);
St. Joseph / Maracas: provision of an alternative supply to meet increasing load

demandsandimprovereliability(completed)
NewHVtransmissionlinesconstructed(totalofover63km):
Bamboo/MtHope132kVtowerline
MtPleasant/Diamondvale66kVOverheadline
Carenage/MtPleasant66kVOverheadline
SanRaphael132kVTowerline
PintoRoad/Wallerfield66kVTowerline
Reform/Debe220kVTowerline
Debe/Union220kVTowerline
Debe/Penal132kVTowerline
Bamboo/EastDryRiver132kVTowerline
BrechinCastle/Reform#3,#4132kVcircuits;
Tobagovoltageincreasedto66kVfornewlines.
Isolatorswork(i.e.replacements)between2011and2016:Bamboo132kV,Bamboo66kV,
SanRafael,Fyzabad,Pt.Fortin,NorthOropoucheandHarmonysubstations.
Workstobecarriedoutatvarioussubstationsby2016alsoincludethereplacementof48oil
andfaultygasandvacuumcircuitbreakers(outofatotalof154circuitbreakers).
CurrentdistributionrelatedprojectsincludeGeographicInformationSystem(GIS)mappingof
infrastructure, Computerized Maintenance Management System (CMMS), as well as
distributionautomation.
Electricity infrastructurerelated challenges in T&T (requiring investment in the infrastructure to
improvequalityandreliabilityofelectricitysupply)alsoinclude:
Voltagefluctuations(potentiallyresultingfromobsoleteinfrastructureandpoorpowerfactor
ofcustomerelectricalloads);
Vulnerabilitytowideareablackouts(duetoamainlycentralizedelectricitygenerationsystem)
incaseswheregenerationinfrastructurewastofail;
Vandalismandtheftofassets;
A number of difficulties are expected in relation to the ongoing and upcoming transmission and
distributionrelatedworks(T&TEC,2011),including:
32
Availabilityandcapacityofrelevantlocalexpertisetoensuretimelycompletionoftheprojects;
PotentialprojectmanagementrelatedissuesatT&TECduetovariousongoingmegaprojects;
Ensuringcontinuedoperationsduringtherefurbishmentoftheexistinginfrastructure;
Potentialcostincrease.
3.10 ElectricityGenerationCosts
Thissectionpresentsanoverviewofelectricitygenerationcost,includingconversionandfuelcosts.
Overall, fuel purchases and conversion to energy account for more than 60% of T&TEC's total
operationalcosts(T&TEC,2011).Intermsofrecenttrendsinthiscontext,theadditionoftheTGUplant
tothegridwasassumedtoresultina60%increaseinaverageconversioncosts,inturnbeingthemain
contributor to the proposed revised electricity tariffs up to 2016, which as outlined in chapter
4.4.1wouldresultinarateincreaseacrossallclasses,withsomeofthemmovingupbymorethan
30%by2016.
AscanbeseenfromTable6theconversioncostsvarysignificantlydependingmainlyontheageofthe
plant,whilethespecificfuelcostsdependprimarilyontheefficiencyoftheplant.Itisevidentthatthe
newTGUplantisnotoperatingcostcoveringwiththecurrenttariffsbeinginplace.
Table6:ConversioncostsandSpecificFuelcostsofT&Tpowerplantsin2013
PowerStation
PowerGenTotal
TrinityPower
TGULaBrea
Tobago(Cove&Scarborough)
Total
ConversionCost
(TT$ct/kWhandUS
ct/kWh)
SpecificFuelCost
(TT$ct/kWhandUS
ct/kWh)
1,135
16.0/2.5
11.4/1.8
225
10.0/1.5
10.0/1.5
72032
35.0/5.4
7.2/1.1
N/A
39.0/60
18.3/2.8
10.0/1.5
Capacity(MW)
75
2,155
Source:PRTT,2014
Highlightsoftheelectricitygenerationcostsinclude:
OverallT&TECexpenditureforgenerationwasexpectedtoincreasefromTT$1.43billionin
2010toTT$2.51billionin201233;
Thepercentageofconversioncostsoutoftotalgenerationcostswassupposedtoincrease
from 42% in 2010 to 63% in 2012; as a result, the proportion of fuel costs would have
decreasedfrom52%in2010to37%in2012;
CostsperkWhsoldwereexpectedtogoupfromTT$0.18(US$0.03)in2010toTT$0.29(US$
0.045)in2012;
Atthesametime,revenueperkWhsoldwasprojectedtoincreasebyTT$0.07(US$0.01)to
TT$0.41(US$0.06)in2012assumingtherateincreasewasimplemented;
32
Untilmid2014,only350MWwereavailabletothegrid.
33
All2012figuresinthiscontextareprojectedfigures.Duringtimeofreportingnonewerfigureswereavailable.
33
Electricitysalesandtotalrevenuesoverthesetwoyearswereassumedtoincreasefrom7.9
TWh/TT$2.67billion(2010)to8.7TWh/TT$3.58billion(2012);
Overall,duetointerest,financeandpensioncosts,T&TECismakingafinancialloss.
Atablewiththedetailedelectricitygenerationcostsispresentedbelow.
Table7:Electricitygenerationcosts
3.11 Conclusionsofbaselinestudy
The baseline study establishes the key factors impacting the energy sector and the related CO2
emissions:
(i)
HighelectricityconsumptionpercapitawithhighCO2emissions34giventhenatureof
EnergyProductionbasedeconomyandlackofconsiderableEEandREmeasuresand
incentives;dependentonpopulationgrowthandGDPincrease.
(ii)
The whole energy sector currently contributes over 43% of the GDP (2013) and
estimatesanticipateanexponentialincreaseinpercapitaGDPinthefuture.
(iii)
Theexistingfuelmixforelectricitygenerationis99%naturalgaswiththeother1%
comingfromdieseloil;
(iv)
Thereiscurrentlynoexpectedshortageofgastomeetthefuturedemand.Theoil
demandislikelytoovertakethedomesticproductioncapacitywithinthe2032period.
(v)
Basedontheanalysis,thisreportassumesthattheprojectedGDPincreasescannotbe
maintaineduntil2032withthedepletingoilreservesincludingthecombinedcurrent
reservesandthebestestimatefordeepseagasreservesbeingcurrentlyawarded.
34 InternationalEnergyAgency:CO2Emissionsfromfuelcombustion,2012
34
(vi)
Itthereforedemonstratestheneedtodiversifytheenergymatrix,toreducenational
demandwhichcouldbeusedforincreasedenergyexports.
35
EnergyPolicy
4.1 Mainactors
Thefollowingchapterprovidesanoverviewofthemainactorsrelevantfortheenergysectorsand
subsequently promoting RE and EE in Trinidad and Tobago. Table 8 shows the primary entities
operatingwithinthecountrysenergysector.
Table8:ResponsibilityfortheEnergySectorinT&T
Entity
Type
Responsibility
StandingCommitteeon
Energy
Adhoccabinet
committeechairedbythe
PrimeMinister
Responsibleforhighleveloversightanddecision
makingintheenergysector.Comprisedofcabinet
ministersandsupportedbyseniortechnocratsfrom
theMEEA,MinistryofFinanceandMinistryof
Planning,andthetopbrassoftheenergysectors
stateenterprises.
MinistryofEnergyand
EnergyAffairs(MEEA)
Governmentministry
Thedevelopmentofpolicies,strategicdirectionand
plansforthenationalenergysector.
RECommittee(REC)
WorkingCommitteeof
theMEEAandother
stakeholders
ToreviewandadviseonthepotentialofRE
technologies,tosetrealizabletargetsandtimeframes
forREintheenergymixandtorecommendincentives
andlegislationtofacilitatethemarketshift.
PetroleumCompanyof
TrinidadandTobago
Limited(Petrotrin)
Stateowned,integrated
oil&gascompany
T&Tslargestproducerofcrudeoilandoperatorofthe
solepetroleumrefineryinthecountry.
Oil&Gascompanies
Privatelyownedoil&gas
producingcompanies
Responsiblefortheexplorationandproductionof
crudeoilandnaturalgasunderthetermsoflicences
issuedbyGoRTT.
NationalGasCompanyof
TrinidadandTobago
(NGC)
Stateowneddiversified
energycompany
Purchases,transports,distributesandsellsnaturalgas
toindustrial&commercialusers.Owns,operatesand
maintainsthecountrysoffshoreandonshorepipeline
network;throughitssubsidiariesdevelopsgasrelated
industrialsites,infrastructure&servicesandis
involvedinupstreamgas,oil&LNGproduction.
NationalEnergyCompany
(NEC)
Awhollyowned
subsidiaryoftheNGC
Todevelopandmanagesuitableinfrastructuresoasto
facilitateandpromotetheactivitiesrelevantand
appropriatetoallnaturalgasrelatedoperationsin
T&T.
TheEnergyChamber
Privatesectortrade
association
Thetradeassociationrepresentingthecollective
interestsofitsmembership,comprisedofcompanies
operatingwithintheenergysectorinT&T.
RegulatedIndustries
Commission
Independentstatutory
body
Toensurehighquality,fairandequitableutility
services,includingmattersrelatedtolicensing,rate
setting,customercareandqualitystandards,
efficiencyandcompetition.
TrinidadandTobago
ElectricityCommission
(T&TEC)
Stateowned,vertically
integratedutility
Generation,transmissionanddistributionofelectricity
IndependentPower
Producers(PowerGen,
TrinityPowerandTGU)
Public/privateJoint
Responsibleforprovidingpowercapacityandenergy
venture/privatelyowned totheT&TECgrid,underthetermsofapower
IPPs
purchaseagreement(PPA).
36
Entity
Type
Responsibility
Environmental
ManagementAuthority,
Ministryofthe
EnvironmentandWater
Resources
Statutoryagency
TheEMAoperatesunderthe1995Environment
ManagementActandismandatedtodevelopand
enforcecriteria,standardsandregulationsfor
environmentalmanagementacrossallsectorsofthe
economy,andtoeducatethepublicaboutthenation's
environmentalissuesthroughawarenessprogrammes.
NationalPetroleum
MarketingCompany
Limited(NPMC)and
UnitedIndependent
PetroleumMarketing
CompanyLimited
(UNIPET).
WholesaleMarketing
Companies
TheNPMCandtheUNIPETareengagedinthestorage,
marketinganddistributionoffuel.
Source:Ownelaboration
4.1.1 MinistryofEnergyandEnergyAffairs(MEEA)
TheMEEAasthemajorcounterpartofthisconsultancyorganizesEEandREinitsoperationsunder
two different areas: The Energy, Research and Planning Department is responsible for Renewable
EnergyandEnergyEfficiency,aswellasanumberofotheractivitiessuchasinternationalrelations,
trendanalysisandresearch,PublicSectorInvestmentProgramme(PSIP),etc.
Thedepartmentisledbyadirectoranddividedintoanumberofteams,theREandEEteambeingone
ofthem.TheREandEEteamisledbyaSeniorPlanningspecialist.
Itsmainresponsibilitiesinclude:
RenewableEnergy(RE)andEnergyEfficiency(EE)Policydevelopmentandreview.
Preparing, drafting and reviewing legislation in relation to the incorporation of RE into the
countrysenergymix
DevelopingandreviewingappropriatefiscalandotherincentivesforREandEE
ProvidingtechnicalandothersupporttotheBureauofStandardsinthepreparationofstandards
andcertificationofREandEEsuppliers,equipmentandproducts
Implementation of and ensuring compliance with requirements of standards and certification

procedures
Spearheading RE and EE initiatives being pursued by the MEEA through dialogue with various
stakeholders
OrganizingtrainingworkshopswithotherstakeholdersinREandEE
Education,trainingandpublicawareness
Preparing a register of RE and EE service providers and suppliers on the MEEAs website and
servicingthisregisterasneeded
CollaboratingwiththeNECintheevaluationofREandEEprojectproposals
ProvidingtechnicalsupporttotheCarbonReductionStrategyTaskForce
InterfacingwithallrelevantinternalandexternalstakeholdersinthepursuitofREandEEinitiatives
andensuringtimelyandefficientsubmissionofdataforwhichrequestshavebeenmade.
37
ApartfromtheRenewableEnergyGroup,thereisasecondteam(outsidetheEnergy,Researchand
PlanningDepartment)thatissupportingtheimplementationofREandEEattheMinistry.Itdirectly
reportstotheMinisterandisheadedbytheAdvisortotheMinisterofRE.Theteamisresponsible
fortheEnergyCommunicationCampaign.(seeEnergyEfficiency
EnergyEfficiencyPotential
Figure15RenewableenergyandEnergyEfficiencyattheMEEA
TheMEEAisundergoingastrategicchangeprocess,oneofthemajorchangesrelevantforREandEE,
beingtheupgradetoitsowndivision.SeeFigure16foranoverviewonthenewstructure.
RE will be one out of eight divisions and as such operate on the same level as Energy Research &
Planning(ofwhichithadbeenagroupuntilnow).
38
Figure16OrganizationalchartproposedfortheMEEA
Minister
Permanent
Secretary (AO)
Communica ons
Internal Audit
Security
Permanent
Secretary (In)
P.S. Secretariat
Legal
Deputy Permanent
Secretary
Resource
Management
Commercial
Evalua on
Energy Research
& Planning
HSE&M
Renewable Energy
Minerals
Downstream
Petroleum
Management
Upstream Petroleum
Management
General
Administra on
Accounts
Energy Info. Mgmt.

& Technology
Human Resource
Financial Services
Informa on
Technology
Energy Informa on
Unit
Energy Legacy Info.

Programme
Geographical Info.
Systems
Library
Source:BasedoninternaldocumentationprovidedbyMEEA
The RE director will report directly to the Permanent Secretary. The division will be divided in two
groups; RE and EE development and management and the monitoring of RE and EE initiatives and
policydevelopment.
Itisnotclear,whythetitleofthedepartmentonlyreferstoRE,anddoesnotmentionEE.Bothtopics
areofextremerelevanceforT&TanditwouldberecommendedtomentionEEinthetitleofthenew
division.
4.1.2 T&TECandIndependentPowerProducers
The second relevant actor that deserves attention is the utility T&TEC. T&TEC is a stateowned,
verticallyintegratedelectricitycompany,responsibleforalllevelsofpowergenerationandsupply.
T&TECisalsoinchargeofpowersystemplanningforbothislands,aswellaselectricitygenerationand
distributioninTobago.T&TECbuysallenergygeneratedbythePowerGenerationCompanyofTrinidad
andTobago(PowerGen),anindependentpowerproducerwhereitmaintainsa51%share,aswellas
fromTrinityPowerLimitedandfromTrinidadGenerationUnlimited(TGU).T&TEChasamonopolyfor
transmitting,distributingandsaleofelectricityinT&T.
The purchase of bulk power from the Independent Power Producers is governed by four separate
Power Purchase Agreements (PPAs). Two of these PPAs are with PowerGen for a total contracted
capacityof819MW.ThisPPAcommencedin1994fora15yearperiod,whichendedinDecember
2009.Itsrenewalisstillpending.ThesecondPPA,referredtoasPPA2005,hascontracted210MW
fromthePt.Lisaspowerplant.ThisPPAcoversaperiodof30yearsandwillterminatein2035.The
Trinityagreementwassignedin1998,alsoforatermof30years.ThemostrecentPPAwassignedin
2009withTGUforacontractedcapacityof729MW,ofwhichthefirstphasewascommissionedin
2011with225MW.ThePPAisvalidfora35yearperiod.TheGoRTTholdsmorethan90%oftheshares
inTGU,withtheremainingsharesownedbytheAESCorporation.
39
Currently,T&TECpurchasesgasonbehalfoftheIPPsforafixedprice,whilethePPAsonlydefinethe
conversioncosts,i.e.transforminggasenergyintoelectricity.
AllproposalsfortheexpansionofthepowersystemmustbereviewedbytheRegulatedIndustries
Commission(RIC),theMinistryofPublicUtilitiesandT&TECinordertodeterminebestoptionsfor
coveringfuturedemandandanalyzecostsandpossibletariffsadjustments.Section53oftheTrinidad
and Tobago Electricity Commission Act gives T&TEC the responsibility for proposing tariffs. In
accordancewithSection6(1)oftheRICAct,theRICisempoweredtomakethefinaldeterminationon
theproposedtariffs.
AnorganogramofT&TECsoperationalstructureisdepictedinFigure17.TheEngineeringDivisionof
T&TEC prepares the load forecast and performs the load flow and shortcircuit studies for the
transmission system. A project plan is developed, approved and forwarded to the Transmission
Division. The Transmission Division and Engineering Services Department analyzes the proposed
transmissiondevelopmentplananddeterminesthebeststrategiesforimplementation.
A Research Unit is currently conducting research on renewable energy options, with a view to
developingastrategyforintegration.T&TEChasanumberofongoingsmallscalerenewableenergy
projectsattheUniversityofTrinidadandTobago,theIslamicCentreinGasparilloandwithinT&TEC.
WithlargerREprojectscomingup,T&TECsstaffwillcertainlyneedtobestrengthenedwithadditional
expertise.
40
Figure17:OperationalstructureofT&TEC
41
4.2 LegalandRegulatoryFrameworkandSupportingPolicies
The following chapter provides a short overview on the Legal and Regulatory Framework and
supporting policies and then analyses some aspects with regard to changes of the political and
regulatoryframeworkfortheenhancementofREandEEtechnologies.Withrespecttootherandmore
detailed political actions that could support EE initiatives and the uptake of solar water heating,
referenceismadetotherespectivechaptersandourrecommendationstothedraftGreenPaperof
October2012(seechapter4.3).Attentionisdrawntoseveralsuggestionsforpoliticalinitiativesand
activitiesthathavebeenmadeinthedifferentchaptersonREtechnologies.
T&Thasalmosta100%accesstoelectricityandonlyremoteareasinTobagoarenotconnectedtothe
grid.ThefollowingreportthereforefocusesongridconnectedoptionsforRE.Itisnotrecommended
tofocusonstandaloneREfromthepolicyside,astheimpactwouldbeminimal.Informationwith
regardstotheapplicationofSolarHomeSystemscanbeprovidedtoisolatedhouseholds;however,it
isrecommendedthatGoRTTfocusesitsattentiononotheractivities,asrecommendedinchapter6.
4.2.1 Statusquooftheregulatoryframework
EstablishedundertheRegulatedCommissionActNo.26of1998,theRegulatedIndustryCommission
(RIC)isresponsibleforregulatingsupplyofelectricityinT&T.
TheRICActspecifiesthattheRICisto:
Reviewtheprinciplesfordeterminingratesandchargesforserviceseveryfiveyearsor,wherethe
license issued to the service provider prescribes otherwise, at such shorter interval as it may be
determined.(IADB2011)
Also,underthecurrentact,electricitygenerationisnotpossiblewithoutpriorlicensingthroughMEEA,
unlessanexemptionisgranted(RICActNo.26of1998,PartIV).
Thelatestrevisionoftariffswasduein2011,howeveruntilnowtheproposedrevisionofthetariffs(a
21%increaseasproposedbyT&TEC)hadnotbeenapprovedbytheendof2013.
TheTrinidadandTobagoElectricityandCommissionAct(Chapter54:70)wasoriginallyenactedin1945
andwassubsequentlyamendedseveraltime,withthecurrentversionbeingfromJune2009.Asthe
namesuggests,thecoreintentionoftheActhasbeentheestablishmentofthestateownedutility
enterpriseT&TEC,whichwascreatedtocombinetheservicesofgeneration,transmissionandsupply
ofelectricityforthewholecountryunderonebody.Untilnow,T&TECisthesolebuyerofallgenerated
electricityandhasacountrywidemonopolyforthedistributionofelectricpower.
TheActstatesinPartVI,section31.(2)thattheCommission35maywiththeconsentoftheMinister,
purchaseenergyfromanapprovedgeneratorofelectricity.Itfurthersaysinparagraph(3)ofthesame
sectionthattherighttogenerateenergyinanypartofTrinidadandTobagoforthepublicorany
memberthereofisvestedintheCommissionwhomay,subjecttosubsection(5)enterintoalicense
35
T&TEC
42
agreementwithanapprovedgeneratorofelectricitypermittingtheapprovedgeneratorofelectricity
thenonexclusiverighttogenerateelectricity.
Itfurtheroutlinesandclarifiesinthesamesection31:
(3A) SubjecttothisAct,therighttosupplyenergyinanypartofTrinidadofTobagotothepublic
oranymemberthereof,eitherdirectlyorindirectly,isvestedintheCommission.
(3C) TheCommissionmay,withtheapprovaloftheMinister,byOrderdeclareabodycorporate
orfirmtobeanapprovedgeneratorofelectricity.
(5)
Therightofanapprovedgeneratorofelectricitytogenerateenergyissubjecttosuchterms
andconditionsastheMinistermaydetermine.
ThecurrentpoliciesandstrategydocumentsthatarepromotingSustainableEnergyarethe
following:
TheDraftGreenPaperonaNationalEnergy&MineralsPolicy
ReportonaFrameworkforDevelopmentofaRenewableEnergyPolicy
ReportonaFrameworkforEnergyEfficiencyPolicyandProgram
4.2.2 AmendingoftheTrinidadandTobagoElectricityCommissionActandtheRIC
act
Based on the existing legislation, the socalled approved generator is the classical Independent
PowerProducerwhodeliversallitselectricitytothesolebuyerunderanegotiatedPowerPurchase
Agreement(PPA).Currently,theT&TECActneitherallowsforsmalleroperatorstofeedelectricityinto
the grid nor is selfgeneration or wheeling of electricity between power source and demand sink
permitted.36ThesameaccountsfortheRICAct(IADB2011).
Itwillthereforebenecessarytoamendbothactsaccordinglyandallowaccesstothegrid,although
theextentandscopeshouldbecontrolledbyT&TECinlinewiththeRegulatedIndustriesCommission
(RIC) and made dependent on capacity demand and technical circumstances. In addition, it is
recommendedtosimplifythepermissionprocessforoperatorsofsmalldistributedgenerationand
minimize the licensing procedure. A simple request for registration and control by the electrical
inspectorateshouldbesufficient.
Connectionofpilotprojectstothegrid
Ananalysisofthecurrentregulatoryframeworkrevealsthatitiscurrentlyonlypossibletoconnect
REtothegridundertwopotentialscenarios:
1) Tofacilitateoperationwithoutgoingthroughalengthylicensingprocessandtoavoidany
conflictswiththesinglebuyerofelectricityitisrecommendedthatoperationofpotential
REenergysystemsismaintainedinthehandsofT&TEC.Thiscouldbedoneonthebasisof
acontractualagreementbetweentheplantownerandgridoperator,definingtheexact
36
Wheelingmeansthetransportofelectricitye.g.incaseofindustrialfacilitieswhichearnwindpoweratonesiteanduseitata
differentsitebytransportingelectricityviathepublicgridonapaymentbasis.
43
roleofeachparty.T&TECwouldhavefullcontrolandsupervisionofthesystem,butwould
needtoguaranteethatREelectricityisdispatchedwithprioritytothegrid.
2) A power reimbursement contract between T&TEC and the owner of a facility can be
developedtoorganizeimplementation.Inthiscaseitneedstobemadesurethatinstead
ofgoingthroughalengthylicensingprocess,arathersimplerequestforregistrationshould
besufficient.
Ifpilotprojectstakeplace,itisrecommendedthatallelectricitygeneratedisexportedtothegrid
and metered accordingly. Every kilowatthour produced should be reimbursed at the average
electricitypricethefacilitywouldpayforitsenergyconsumption.Thismoneyshouldbeusedasa
fund for maintenance and repair and therefore be kept in a separate account. It is further
recommended that a maintenance contract will be signed with the supplying and installing
company.Ifreimbursementisnotpossible,anotheroptioncouldbethatT&TECprovidesfunding
formaintenanceaspartoftheirresearchandfundingbudget.Thisfundingsourcecouldalsobe
usedformonitoring.
4.2.3 TargetsforRE
T&T has not yet established a politically approved and timebound target (Renewable Portfolio
Standard)forthecontributionofrenewableenergiesintheelectricitygenerationandothersectors,
ashasbeendoneinothercountriesoftheCaribbeanandinparticularinthememberstatesofthe
European Union (see Figure 18 for overall RE commitments). For instance, Grenada has officially
declared thatby2020,20%ofalldomesticenergy usageforelectricityand transportwilloriginate
from RE sources (GRENADA, 2011). Germany had already reached more than 25% of RE electricity
contribution in2013andisboundtoachieveat least35%by2020and80% by2050,according to
politicallysetbindingtargets.
Renewableshaveaccountedforanevergrowingshareofelectriccapacityaddedworldwideeachyear.
In2012theymadeupjustoverhalfofnetadditionstopowergeneratingcapacity.Byendof2012,
renewableelectricityfromnonhydrosourcescontributed5.2%toglobalelectricitygeneration,while
16.5%wasprovidedfromhydropower(REN21,2013).
Asinthefieldofrenewableenergiesitwouldalsobebeneficialtoexpressclearquantitativeobjectives
forloweringenergyintensity,eitheronaglobalscale(e.g.electricityconsumptionperGDP)orsector
wise.SettingREtargetsalonewillnotassistinmovingenergygenerationandconsumptiontowards
greatersustainabilityandsecurity.
SettingclearandachievableREandEEtargetsisanessentialrequirementforstrivingtowardsaless
carbondependenteconomy.Theywilldeterminewhatpoliciesarenecessarytoreachtheobjectives.
Apermanentobservationandmonitoringoftheachievementlevelwillpointtoadjustmentsrequired
ifgoalsmaynotbemetintheremainingtimeperiod.
Sofar,theGovernmentofTrinidadandTobagoinitsdraftGreenPaperhasonlyexpressedagoalof
generating6%ofthepresentpeakelectricitydemand(i.e.60MW)fromREsources(mainlywind)by
2020.Underlyingacapacityfactorofabout35%,thiswouldresultinacontributionofabout1.5%to
totalprojectedgrosselectricityproductionin2020,ifwindistheprevailingenergysource.37Atthe
sametimetheCARICOMhaspublishedregionaltargetsaimingfor20%ofrenewablepowercapacity
in2017,28percentby2022,and47percentby2027.(CSERMS2013)Underthecurrentscenario,itis
37
Obviouslythecontributionwouldbehigherifelectricityconsumptiongrowthcouldbecurbed,seechapter3.7.2.
44
verychallengingthatT&Twouldbeabletoreachthesetargetsandwouldbeabletomeaningfully
contributewithoutdevelopingmoreambitiousREtargets.
The consultants therefore strongly suggest raising the target to at least a contribution of 4% in
electricityconsumptionprojectedby2020inordertocreatesufficientmarketsizethatwillreciprocally
leadtolowerspecificcostsandstrengthenexperienceinnewbusinesssectors.By2030,atargetof
15%REshareinelectricityconsumptioncouldbereasonablyachieved,mainlybasedonamixofwind
andsolarpower.Withalowerconsumptionincreasebetween2020and2030of3%/a,mainlydueto
enforcedefficiencymeasures,annualelectricitygenerationwouldresultin17.5TWhby2030,with2.6
TWhcomingfromrenewableenergysources.ThisinturnwilllowertheCO2emissionsinthepower
sectorfromthebaselinescenariobyabout1Mt,ifthecalculationisbasedontheemissionfactoras
estimatedfor2020(seechapter3.7.2),whiletotalCO2emissionswouldbeintherangeof6.8Mt.It
needstobesaidthatapolicyofimprovedfossilfuelpowerplantsisnotsufficientinthelongerrunto
keep CO2 emission within acceptable levels. Only in combination with a substantial share of RE
contribution,asignificantincreaseofCO2emissionscanbepreventedinthefuture.
One way of enforcing such a legally binding RE target is by mandating T&TEC to either generate
(through its subsidiary PowerGen) sufficient RE or purchase the balance from external generators.
Those external generators could be the established larger Independent Power Producers or small
private,commercialandindustrialoperatorsselling(excess)renewableelectricitytothegrid.Giving
T&TECthemainresponsibilityforimplementationofthetargetprovidestheadvantagethatthemost
costefficient solutions could gain priority. It will certainly be larger wind farms that can generate
electricityatcompetitivecostswithnewgasbasedpowerplants,ifnaturalgaswouldbesoldtoT&TEC
at regular nonsubsidized costs. Next in line would be larger solar power plants which are rapidly
gainingeconomicgroundagainstallotherformsofelectricitygeneration.Inordertoallowforprivate
(andinparticularsmall)operatorstosetupandrungridconnectedREsystems,severalamendments
havetobemadetothecurrentregulatoryframework.
45
Figure18:EuropeanUnionMembersREsharein2012vs.2020Commitments
4.3 InputtotheGreenPaper
Based on a specific request by the Ministry of Energy and Energy Affairs (MEEA), the Consultants
preparedareviewofchapter6EfficientUseofEnergyResourcesoftheDraftoftheGreenPaperfor
EnergyPolicy.TheGreenPaperhasbeendevelopedinaparticipatoryprocessthroughoutthelastyear
andisnowreadytobepresentedtocabinet.TheConsultantshaveanalyzedthesubchapteronEEand
provideanumberofrecommendationstostrengthenEEaspartoftheGreenPaperandtobeableto
usetheexistingpotentialforEEinthecountry.
The following proposal has been integrated into the Green Paper Draft that is currently awaiting
approvaloftheHonorableMinister.
46
4.3.1 ProposedadaptationstotheDraftoftheGreenPaperforEnergyPolicy
BasedonthediscussionsundertakenwiththeMEEAandotherrelevantstakeholders,aswellasbased
ontheexperienceoftheConsultants,aseriesofchangesbothtothestructureofthechapter,aswell
asregardingthecontentofthedifferentpolicymeasuresareproposed.
4.3.1.1 General remarks
GenerallytheConsultantsproposetoincludefurthertextwhichexplainsthedifferentpolicymeasures
andthereasonstowardstheminmoredetail.Additionally,theConsultantsproposetoaddpreambles
tothedifferentpolicymeasurestoclarifythedifferentaspectsandactivities.
4.3.1.2 Proposed changes to introduction and objectives
TheConsultantsproposetoexpandtheintroductiontothechapterwithadditionaldescriptivetext,
whichwillbetterdescribetheissuesandoptionsforEEinT&T.
For this purpose, the Consultants have proposed an adapted introductory text, which covers
additionalissuesrelatedto:
1) TheoverallpotentialofEEinTrinidadandTobago
2) TherelevanceofSMEsforEE
3) Therelevanceofcontinuingactivitiesinthepetrochemicalssector
4) The already introduced fiscal incentives to promote EE, as well as a short overview on the
intendedmeasuresrelatedtotheESCOs.
5) Therelevanceofhouseholdsandtheirpotentialforenergysavings.
AdditionallytheConsultantsproposetoomitthefollowingkeyissue:Alackofknowledgeandhuman
resourcestohelpmakethebusinesscaseforsuchinvestments.Itisfeltthatthereisnotalackof
knowledgeand/orhumanresourcesperse.Thefactofthematteristhat,giventhelowpricesofenergy
thatexistinT&T,thebusinesscaseforEEinterventionsisnotparticularlygood.
Relatedtotheobjectivesforchapter6,theConsultantsproposeaseriesofchangeswhichwillhelpto
definetheobjectivesforEEinamorepreciseway.
Itisproposedtoreplacethefollowingobjectives,astheyareveryvague(Objective3and4)ordonot
haveaspecificEErelation(Objective2):
Objective2:Supportenergysecurity
Objective3:Strengthenthesupplycapacityandsustainabilityforenergy
Objective4:Beproactivetoglobalenergydevelopmentsandenvironmentalissues
AdditionallyitisproposedtosplittheoldObjective8(MakeEEintegraltotheoperationsofexisting
facilitiesandasignificantfeatureofthedesignbasisandimplementationstrategyforthedevelopment
of new projects) into two objectives, as these are two different aspects that should be measured
separately:
47
NewObjectives
To make EE a significant feature of the design of new commercial, institutional and
governmentbuildings;
TomakeEEmeasuresintegraltotheoperationsofexistingfacilities;
AnewobjectivewasaddedpertainingtothepromotionofacultureofEE.Thisobjectiveisveryclosely
relatedtotheawarenessraisingandeducationalprogrammescurrentlyimplementedbytheMEEA.
TheyareofenhancedrelevanceforthepromotionofEEinTTandshouldbehighlightedthroughan
additionalobjective,whichwouldread:
NewObjective
Topromoteacultureofefficiencythroughprogrammesdesignedtoeducate,engageand
motivateconsumerstoreduceconsumptionandwaste.
Basedontheseproposedchanges,thenewkeyobjectivesforchapter6oftheDraftGreenPaperin
TTwouldbethefollowing:
NewKeyObjectives
1. To reduce energy demand through increased conservation and energy efficiency
acrossallsectorsoftheeconomy;
2. To encourage private sector participation and investment in energy efficient
technologies;
3. Todevelopsustainableapproachestoachievingenergyefficiencythatwillbenefitthe
economy,societyandtheenvironment;
4. Toensure thatthedevelopmentofenergyresourceswillresultinincreased energy
efficiency
5. To make energy efficiency a significant feature of the design of new commercial,
institutionalandgovernmentbuildings;
6. Tomakeenergyefficiencymeasuresintegraltotheoperationsofexistingfacilities;
7. Topromoteacultureofefficiencythroughprogrammesdesignedtoeducate,engage
andmotivateconsumerstoreduceconsumptionandwaste
4.3.2 Proposedchangesandclarificationstothepolicymeasures
4.3.2.1 Promotion of EE and conservation
TheGoRTTwillpromoteEEandconservationatnationallevelthroughcollaborationamongrelevant
governmentagencies,NGOsandregionalandinternationalbodies.
TheConsultantsproposetodothisthroughanEnergyAgency.Thisagencycouldbeoutfittedwiththe
latest and most efficient techniques to demonstrate to consumers what is possible, and used as a
channelforraisingconsumerawarenessandpromotingeducation.Someoftheactivitiesoftheagency
couldbe:
o
Togather,compileandmakepubliclyavailable,relevantinformationonenergyproduction
andconsumptionthatisnotalreadycompiledandavailableelsewhere;
ToincreasepubliceducationandawarenessonEEandconservationbylectures,workshops,
courses,fairsetc.usingbestpracticecasesfromtheCaribbean,USandEurope;
Todevelopandimplementtrainingprogramsforengineers,architectsandcraftsmen;
TointroduceEEinthecurriculumoftheeducationsystem;
48
Tobringenergyefficientconstructiontotheforefront;
TopromoteEEinpublicbuildings.
AkeystrategyreflectingthedevelopmentofanEnergyAgencyshouldbeadded.
Atthesame time,theConsultantsproposetoput thekeystrategiesa)c),thedevelopmentand
implementationoftrainingprogrammes,publiceducationandawarenessonEEandconservation,as
wellastheintroductionofEEinthecurriculumoftheeducationsystemasactionitemsoftheEnergy
Agency.
Additionally it is recommended to adapt the current key strategy f) on energy labeling. It will be
importanttodesignoradoptaneasilyunderstandablesystemforlabelingofappliancestoindicate
theirEE.Thisshouldbedoneincollaborationwithanappropriateeducationandpublicawareness
program.ExistingexamplesfromChileorEuropecanprovideamodelforsuchaprogramme.
Basedonthisrecommendation,thekeystrategycouldreadasfollows:
d)Designoradoptaneasilyunderstandablesystemforlabelingofappliancestoindicate
their energy efficiency, in collaboration with an appropriate education and public
awarenessprogrammes.
BasedontheexperienceoftheConsultants,keystrategygonthepromotionofacultureonEEshould
berevisedtoreflecttwoimportantaspects:
1)Promotionofacultureofenergyefficiencyinitsownright,and
2)Promotion of energy efficiency as a complement to existing and proposed renewable energy
programmes.Animportantelementofthispromotionwillinvolvethecreationofinternetandsocial
mediaplatformstoengageandmotivateconsumers.
e) Promotion of a culture of energy efficiency and conservation as elements of a desirable

lifestyleandpromotespecificdemandsidemanagementpracticesaspartofthis.
f) Promotion of energy efficiency and conservation as complementary elements of the
programmetointroducerenewableenergyintotheenergymix;
Key strategy h) is proposed to be omitted. The statement as it is written is very vague and more
importantly the achievement of successful EE outcomes does not necessarily depend on R&D
programmes.
Key strategy e) Introduce green building codes that meet internationally recognized standards for
buildingefficiencyshouldbemovedtoPolicymeasure4tomakeitthematicallymoreconsistent.
Based on the above mentioned adaptations and revisions, the adapted key strategies for policy
measure1wouldreadasfollow:
a) ImplementationofanEnergyAgency;
b) Promotionofdemandsidemanagementpractices;
49
c) Designoradoptionofaneasilyunderstandablesystemforlabelingofappliancesto
indicatetheirenergyefficiency,incollaborationwithanappropriateeducationand
publicawarenessprogram;
d) Promotion of a culture of energy efficiency and conservation as elements of a
desirablelifestyleandpromotespecificdemandsidemanagementpracticesaspart
ofthis.
e) Promotionofenergyefficiencyandconservationascomplementaryelementsofthe
programmetointroducerenewableenergyintotheenergymix;
4.3.2.2 Introduction of fiscal incentives and other mechanisms to facilitate adoption of

energy efficient technologies/practices
Policy measure 2 deals especially with the establishment of the certified Energy Service Company
(ESCO)system,aswellaswiththeintroductionoffiscalincentives.
Theprimaryincentiveunderkeystrategy2(provideincentivestoencouragethegrowthofESCOs)is
the150%taxallowanceprogramme,announcedbyGoRTTin2010,butnotyetoperationalised.
AsprovidedforunderTheFinanceNo.13ofAct2010,ESCOswillbecertifiedbytheESCOCertification
Committee (ECC) of the MEEA, once the requirements of the ECC are met. In terms of specific
requirements,inadditiontothosethatalreadyexist,wewouldrecommendthefollowing:
Thecertificationprocessmustensurethatthetrainingtreatstheaforementionedintegralview
ofEE;
The training must be similar to that required for a technical diploma, with an appropriate
examination;
Thetrainingmustbestrictlypersonal:itappliestotheindividual,nottheESCO.Ifthetrained
individual subsequently leaves the company, the ESCOs certification will be reviewed in that
regard;
CertifiedESCOswillberegisteredinanationalregisterwhichwillbeavailableonlineonawebsite
maintainedbytheECC.Throughthiswebsite,customersconsideringtheuseofanESCOhavethe
opportunitytoreviewrelevantmetricssuchasnumbersandtypesofenergyauditscompleted,
typesofcustomersserved,andsoon;
TheESCOcertificationsshouldbesubjecttoreviewandrenewal.
Related to the specific key strategies under policy measure 2, it is recommended to highlight the
ultimate objective of an intervention by an ESCO, which is to design and implement energy saving
projects,ratherthantosimplyconductenergyaudits.
Keystrategya)andb)arethereforeproposedtobeadaptedasfollows:
a) ProvideincentivestoencouragecompaniestoengageESCOstodesignandimplement
energysavingprojects,basedontheperformanceofenergyaudits;
50
b) ProvideincentivestoencouragethegrowthofESCOs
Theadaptedkeystrategiesforpolicymeasure2wouldreadasfollows:
a) Provide incentives to encourage companies to engage ESCOs to design and implement
energysavingprojects,basedontheperformanceofenergyaudits;
b) ProvideincentivestoencouragethegrowthofESCOs;
c) Design and implement training programmes for development of local energy auditing
expertise
4.3.2.3 Review pricing of petroleum products with the aim to encourage greater
conservation practices involving electricity and transportation fuels
TheGoRTTisacutelyawareoftheinfluenceofpricingandsubsidiesonenergyconsumptionandEE
outcomes,whichisreflectedinpolicymeasure3.Consequently,theGovernmentinits2013budget
presentation(madeon1stOctober2012)proposedtoinitiateagradualreductioninthefuelsubsidies
and to review additional measures aimed at further addressing and reducing the current levels of
subsidy,whichmeasureswillbeprogressivelyintroducedduringthefiscalyear2013.
Underthispolicy,thefirstspecificinterventionwasareductionofthesubsidyonpremiumgasoline,
whichraisesthepumppriceby44%,fromTT$4perlitretoTT$5.75perlitre.Itisimportanttonote
that one of the main drivers of this specific subsidy intervention is the Governments objective of
establishingcompressednaturalgas(CNG)asanalternativetransportationfuel.However,thisfuel
replacementinitiativehasnotachievedthedesiredresultstodate,andtheGoRTTcitesthesubstantial
disincentivefromthesubsidiesasanimportantfactor.
ThespecificinterventionindicatesthewillingnessoftheGoRTTtousepricemechanismstoinfluence
consumersenergychoices;inthiscase,toswitchfromgasolinetheavailabilityofwhichisbasedon
declininglocalcrudeoilproductiontoCNG,whichisbasedonanincreasinglocalproductionofnatural
gas. This willingness now needs to be extended and targeted to incentivize consumers to choose
sustainableenergyservices,includingEE.
One way to implement the reduction of subsidies, as mentioned in key strategy b) could be to
announceanannual,minimumsubsidyreductiononallpetroleumbasedfuelsandelectricity.Sofor
example, it could be announced in 2013 that, in the following 5 years, the subsidies on fuels and
electricity will be reduced by a minimum of 7.5% per year, but possibly more, based on an annual
reviewofthesituation.Thiswouldsendthecorrectsignaltothemarketandatthesametimeallow
consumers,businessesandinvestorstoplanaccordingly.
To promote EE, a portion of the money saved by the subsidy removal could be used to provide
installationcreditsorrebatestoconsumersinvestinginEEservicesandgoods,suchas:
EEbuildingdesigntoacceptedstandards;
Energyefficientequipmentandlargeappliances;
Solarwaterheaterinstallation;
51
Therebatesandcreditscouldbeoperationalisedandmanagedviaanewfundspecificallysetupfor
thepurpose38.Withspecificregardtothetransportsector,implementationofataxregimeforvehicles
inrelationtotheirCO2emissionscanbeusedtosendamarketsignal.
Basedontheaboveobservations,theConsultantswouldnotchangekeystrategiesa)tod).
Atthesametime,theywouldsuggesttoomitkeystrategiese)tog)fordifferentreasons.
e) SupportrenewableenergytechnologiesintheGovernmentsHousingProgramme
f) Mountpubliceducationandawarenesscampaignstosensitizethepopulationonpricing
andenergyefficiencyissues.
Keystrategye)asitisrelatedtorenewableenergytechnologiesandshouldthereforebereflected
underthechapterforrenewableenergy.
Keystrategyf)asthepromotionofCNGisnotanEEmeasureandisalreadytakingplace.
Keystrategyg)asitisalreadyreflectedunderpolicymeasure1andshouldnotberepeated.
Theadaptedkeystrategiesforpolicymeasure3wouldreadasfollow:
a) Establish a multistakeholder committee to undertake review pricing of petroleum
products
b) Scheduleatimeframeforthereductionofthesubsidiesandthe%reduction.Thiswillgive
consumersandinvestorsintheenergysectorusefulinformationforplanningEEMeasure
fortheirenergyperformance.
c) Conductanimpactanalysisonthevariouscategoriesofcustomers
d) Developandimplementdemandsidemanagementprograms
4.3.2.4 Government takes the lead in the promotion of energy efficiency through
development of pilot initiatives utilizing energyefficient technologies in its
buildings and facilities
Oneofthesuggestionsmostoftenmadebystakeholdersintheenergysector,bothformallyinspecific
focus groups, and informally, is that the government should lead by example. This commonsense
prescriptioncanbefollowedbytheimplementationofanenergymanagementsystem,aswellasthe
applicationofgreenbuildingprinciplesandcodesalongwithsuitabletechnologiesincorporatedatthe
designstagesofbuildingprojects;appropriateretrofittingofexistingbuildingsandtheimpositionof
appropriatemonitoringandmanagementregimesthereafter.
It is therefore suggested to add the key strategy on the development of EE standards in buildings
(originallydevelopedforPolicyMeasure1)underPolicyMeasure4andtoslightlyadaptitasbasedon
38
ItwouldprobablybeprudenttokeepthisseparatefromtheexistingGreenFund,whichhasparticularrestrictionsregardingeligibility
andwhichisatthemomentarelativelyunknownandunderutilizedentity.
52
theexperienceoftheConsultantsbuildingcodesonlymakesenseiftheadministrativestructureallows
forsufficientcontroloftheirenforcement.
Itisthereforerecommendedtofocusonthedevelopmentofstandardsandtheencouragementof
application.Appropriatemeasuresshouldbeconsideredthatprovideincentivesfortheapplicationof
EEinvestments.Suchmeasurescouldbeimplementede.g.inthesocialhousingareaandthepublic
buildingsector,wheretheGovernmenthasdirectinfluenceonthedesignandconstructionquality.
IntroduceappropriateEEbuildingstandardsthatmeetrequirementsundertropicalconditions.
Promotetheuseofthesestandardsandpracticesandencouragetheirimplementation.
Modify planning and procurement rules and methods for government constructions and
purchases by incorporating EE aspects and retrofit existing buildings to lower energy
consumption;
Implementanenergymanagementsystemingovernmentalinstitutions.
RegardingKeyStrategyb),themandateofaspecificorganizationtoimplementandmonitorpolicyand
programmemeasures,theConsultantsproposetoprovidetheenergyagencyunderpolicymeasure1
withthismandate.
Theycouldtakeoverahighlevelmanagementpositioninthegovernmenthierarchy,directlyreporting
tothehighestlevelsofpolicyanddecisionmaking,withasuitablebudgetandauthoritytoimplement
recommendationsandtodelegateactions.Amongtheinitialfunctionsofsuchapositionwouldbeto
design and implement a project to perform a series of energy audits of government buildings, to
determinebaselineinformation.
TheadaptedkeystrategiesforPolicyMeasure4wouldreadasfollow:
a) SettimeframeandtargetsfortheimplementationofanationalbuildingEEprogramme.
b) Mandateaspecificorganization(withintheGovernmentoratarmslength)toimplement
andmonitorpolicyandprogrammemeasures.
c) Introduceappropriateenergyefficiencybuildingstandardsthatmeetrequirementsunder
tropicalconditions.Promotetheuseofthesestandardsandpracticesandencouragetheir
implementation.
d) Modifyplanningandprocurementrulesandmethodsforgovernmentconstructionsand
purchasesbyincorporatingenergyefficiencyaspectsandretrofitexistingbuildingstolower
energyconsumption.
e) Implementanenergymanagementsystemingovernmentalinstitutions.
4.3.2.5 Encourage EE in industry

RelativetoitsCaribbeanneighborsandforitssize,T&Tisaheavilyindustrializedcountry:lightand
heavy industry combined accounted for 61% of electricity demand in 2008. The industrial sector is
thereforealogicaltargetforEEefforts.
53
Onechangeisproposedtothedifferentkeystrategies.
ItisrecommendedtoomitKeyStrategyb)andc),asbasedontheperceptionoftheConsultantsthat
thegovernmentshouldnotinterveneingassupply.
EEwouldbeoneofthefactorsinthedeterminationofallocationofincrementalgassupplies
toexistingplantsattheendofthecontractterm.
ConsiderationwouldbegiventousingEEofnewandexistingplantsasoneofthefactorsinthe
finaldeterminationofgaspricetoindustrialcustomers.
Basedontheseadaptations,theobjectivesforPolicyMeasure5wouldreadasfollows:
All gasbased industries are encouraged to conduct energy audits and benchmark their
plantsintermsofenergyefficiency;
4.3.3 Summarytableofallrevisions
Page
Section
Revisions
41
Chapter4Section6
Theintroductiontosection6wasexpandedwithadditionaldescriptive
text,tobetterdescribetheissuesandoptionspertainingtoenergy
efficiency.
KeyIssues
Abriefpreamblewasaddedtothissection;
Relativelylowpricesfornaturalgas,andconsequentlylowelectricity
prices,werehighlightedasindividualkeyissues;
Objectives
WeomittedtheitemAlackofknowledgeandhumanresourcestohelp
makethebusinesscaseforsuchinvestments.Wefeelthatthereisnota
lackinTrinidad&Tobagoofknowledgeand/orhumanresourcesperse.
Thefactofthematteristhat,giventhelowpricesofenergythatexistin
T&T,thebusinesscaseforEEinterventionsisnotparticularlygood.
Anintroductorysentencewasaddedtothissubsection;
Inthissubsection,objectives3and4wereconsideredtoovaguetobe
listedasobjectivesandwereomitted;
Objective2wasconsideredasnotdirectlyrelatedtoEEandtherefore
omitted.
42
PolicyMeasures
Objectivenumber8wassplitintotworelatedobjectives:onepertaining
tothedesignandoperationofnewfacilitiesandtheotherrelatingtothe
operationofexistingfacilities;
Weaddedanewobjectivepertainingtopromotionofacultureofenergy
efficiency.Wefeelthatthisisanimportantaspectoftheoverallpicture,
particularlyinhouseholds,wherebehaviorcanaccountforasignificant
proportionofsuccessfulenergyefficiencyoutcomes.
Preambleswereaddedtothepolicymeasures1through5(orexpanded,
wheretheywerealreadypresent),tohighlightsomeoftheissuesand
options;
54
Page
Section
KeyStrategiesto
PolicyMeasure1
Revisions
Theformattingofthesectionwasmodifiedbyaddingsubheadings,to
makethesectioneasiertoread;
Akeystrategyitemontheimplementationofanenergyagencywas
added.Thisagencywillberesponsibleforthecollection,compilationand
publicationofalldataandinformationonenergyefficiencyandrenewable
energyandforthecoordinatedpromotionofsustainableenergyacross
thecountry.
Strategyiteme)wasrelocatedtosubsection4.c),whereitisspecifically
applicabletothepolicymeasureunderthatsubsection;
Strategyitemg)wasrevisedtoreflecttwothings:1.promotionofa
cultureofenergyefficiencyinitsownright,and2.Promotionofenergy
efficiencyasacomplementtoexistingandproposedrenewableenergy
programs;
Strategyitemh)wasomitted.Aswritten,thestatementwasvague.More
tothepointisthatachievingsuccessfulEEoutcomesinouropiniondoes
notdependonR&Dprograms.
Strategyitemsac)havebeenomitted,astheyareunderstoodasaction
itemsoftheEnergyagency.
KeyStrategiesto
PolicyMeasure2
Keystrategyitemsa)andb)weremodifiedtohighlighttheultimate
objectiveofaninterventionbyanESCO,whichistodesignandimplement
energysavingsprojects(notsimplytoconductenergyaudits)
KeyStrategiesto
PolicyMeasure3
UndertheKeystrategiesheadingtwostrategyitems,e)andf)were
omitted.Itwasconsideredthattheseitemsmoreappropriatelydescribe
renewableenergystrategiesmentionedelsewhereintheGreenPaper.
Keystrategyg)hasbeenomitted,asitisalreadyreflectedunderpolicy
measure1.
43
KeyStrategiesto
PolicyMeasure4
KeyStrategiesto
PolicyMeasure5
Akeystrategyitemc)wasadded,pertainingtogreenbuildingcodesand
practices.
Twokeystrategyitemsd)ande)thatreflectpossiblepilotprogrammes
throughthegovernmenthavebeenadded.
Keystrategyb)andc)hasbeenomittedaswefeelatthegovernment
shouldnotinterfereingassupply.
4.4 ElectricityTariffsandSubsidySchemes
4.4.1 TariffSchedule
AsshowninTABLE9,thecurrentelectricitytariffscheduleinT&Tisasfollows:
55
Table9:ElectricityRatesinT&T
Source:dataextractedfrom(T&TEC,2009)
Theelectricityratesarecategorizedintofiveclassesofcustomers:
Residential(A):Residentialcustomers
Commercial(B,B1):Nonresidentialcustomerswithamaximumdemandnotexceeding350
kVA
Industrial:
o LightIndustrial(D1,D2):Smallandmediumindustrialcustomerswithademandof
upto350kVAand4,000kVA,respectively
o HeavyIndustrial(D3E5):Largeandverylargeindustrialcustomerswithload
demandsrangingfromover4,000kVA(D3)toover25,000kVA(E5)
StreetLighting:forstreet,highwayandsafetylightingofthoroughfares,bridges,parksand
otherapprovedlocations.
Thetariffsarecomposedofthreemaincomponents,notallofwhich,however,applytoalltheabove
mentionedratecategories:
Customer charge: this is a fixed charge for metering and administration only applicable to
residential(tariffA)andsmallcommercialcustomers(tariffB)andrangingfromTT$6(A)to
TT$25(B)
Energyrate:thisisausagecharge(perkWh)whichappliesacrossalltariffs;thereisathree
tieredsystemforresidentialcustomersfordifferentconsumptionlevels(below400kWh,as
wellasbelowandabove1,000kWh);overall,thetariffsystemisofaprogressivenature,i.e.
theaveragekWhcostincreasesinlinewithrisingconsumption.
56
Demand charge: this is a maximum demand charge that only applies to light and heavy
industrycustomers(tariffsD1E5);itisamonthlychargepermaximumkVArangingfromTT$
37TT$50.
Asforprojectionsrelatedtothefutureoftheelectricitytariffs,thefollowingfactorsaretakeninto
accountinthiscontext:
Firstly,electricitycustomersinT&TenjoyverylowtariffsincomparisontootherCaribbeancountries
asshowninFIGURE19.
Figure19:ElectricityTariffsinSelectedCaribbeanCountries
US$:Domesticconsumerusing
100kWh/month
70,00
60,00
50,00
40,00
30,00
20,00
10,00
0,00
Owngraph;Source:CARILEC,2012
Secondly,T&TECisfacingadifficultfinancialsituationforvariousreasons,including,butnotlimited,
tothefollowingones(T&TEC,2011):
AsaconsequenceofT&TECnotbenefittingfromatariffadjustmentbetween1992and2006
(acrossallcustomerclasses,withthe exceptionof 18ofthelargestindustrialcustomersin
T&T),T&TECwasoperatingwithuneconomicelectricityratesthroughoutthemajorityofthese
14years.
TherewasatleastonecasewheretheactualimplementationofnewandRICapprovedtariffs
wasdelayedinthe past(e.g.November2006forcommercialandindustrial customersand
May2008forresidentialcustomers).ThisinturncontributedtoT&TECrevenuelosses.
T&TECexpendituresrelatedtotheCoveandTGUpowerplantswerenotincludedintheRIC
approved 2006 2011 tariff adjustments, however, T&TEC is facing real costs from these
expenditures.
T&TEC expenditures associated with operations/purchase of power from power stations,

ageinginfrastructure,futurewageandsalaryincreases,annualincreasesinfuelprices,aswell
aschallengingreturnonratebaseareconsiderableandneedtobeaddressed.
57
Overall, there are three main possibilities to counteract T&TEC's upward cost pressures: rising
electricitytariffstoanadequatelevel,reducingT&TECinvestmentsincapitalprojects,orfinancingof
anyrevenueshortfallbyGoRTT.Inthecontextofthelatter,themagnitudeofthesubsidyisaround
US$3.75/MMBTU39.
Table10:ProposedElectricityTariffsuntil2016
Source:T&TEC,2010
Anyprojectionrelatedtopotentialfuturelevelsofelectricitytariffs,therefore,largelydependsonthe
politicalresponsetothechallengingfinancialsituationofT&TEC.
Inthiscontext,TABLE10showstheT&TECproposedelectricitytariffs20112016whichwouldresult
inatariffincreaseacrossallclasses,withsomeofthemincreasingbyupto30.8%by2016.
39
I.e.thedifferencebetweenareferencepriceofUS$5/MMBTU(takingintoaccountthatHenryHubisnolongerthemainreference
pricegiventhatonly20%ofgasexportsin2011weretotheU.S.,withgaspricesinEurope,LatinAmericaandAsiabeinghigherdueto
higherdemandanddifferentpricingregimes)andwhatT&TECcurrentlypaysforallnaturalgas.(T&TEC,2013).
58
4.4.2 Subsidies
T&TECpurchasesallitsfuel(naturalgas)fromthealsostateownedNationalGasCompanyatprices
set by the Government, which are far below production costs and only a fraction of socalled
opportunitycosts.Evenifthosereducedcostsdonotinvolvedirectsubsidiesinaclassicalmanner,the
resultissimilarastheGovernmentabstainsfromgaininghigherprofitsoutofthegasbusiness.We
havecalculatedtheindirectsubsidyunderthefollowingassumptions:
The price that T&TEC currently pays for all natural gas is below US$ 1.30/MMBTU (T&TEC,
2013)whichisfarbelowgasmarketprices.Incomparison:Thebudgetrevenueforthefiscal
year2014isbasedontheassumptionofUS$2.75/MMBTU.40
Intermsofdeterminingareferenceprice,thisusedtobeHenryHubforthecountrysLNG
exports.However,giventhatnaturalgasexportstotheU.S.havedecreaseddrasticallyandin
2011 only accounted for less than 20% of total gas exports, the reference prices of other
importingcountriesinLatinAmerica(Argentina),Europe(Spain)andAsianeedtobetaken
intoaccount,aswell.
Gasreferencepricesintheseotherexportcountrieshavebeen higher than theHenry Hub
price (which collapsed due to shale gas production and the economic slowdown from an
averageofUS$8.64/MMBtuin2005toonlyUS$2.00inApril2012,beforeitclimbedagainto
morethanUS$4.00(Figure20Fehler!Verweisquellekonntenichtgefundenwerden.).Atthe
sametime,pricesperMMBtustartedatUS$8.0inEurope,atUS$11.0inSouthAmericaand
at US$ 13.5 in Asia (IMF, 2012a). LNG prices of July 2013 for different global markets are
depictedinFigure21.
Figure20:HenryHubNaturalGasPrice(US$/MMBtu)May2011May2014
Source:FinancialTimes
40
Ernst&Young,FocusonTrinidadandTobagoBudget2014,September2013
59
Figure21:GlobalLNGprices,July2013
Source:NationalGasCompanyofTrinidadandTobago
Giventhiscontext,forthepurposeofthisreportareferencepriceofUS$5.00perMMBtuis
assumed(whichisattheverylowerendoftherangeofthevariousaverageLNGsalesprices).
As a result, the estimated (indirect) gas price subsidy is around US$ 3.75 per MMBtu
equivalent to the difference in the reference price (US$ 5.00) and the price that T&TEC
currentlypays(US$1.25).Thegaspriceisthereforesubsidizedbyaround75%.
ThefuelconsumptionofallofT&T'spowerplantsin2010wasequivalenttoalmost118,600
TJ(T&TEC,2013)inturnequivalentto112.4bcf41ofnaturalgas.Thiswouldresultinatotal
annualbudgetincomedeficitofUS$421.5million.
Anestimationofrealisticgenerationcostsandsalespriceswouldbeasfollows:Actualfuel
costs in 2012 were around US$ 145 million (equivalent to US$ 580 million without indirect
subsidies). Generation costs would therefore equate to 9.5 US$ct/kWh (instead of 5.0
US$ct/kWh). As for the average sales price, this would be 13.3 US$ct/kWh (+40% against
generationcosts,fordistributionetc.).
Forfutureprojectionsitisimportanttonotethatsimilarglobalpricelevelsareexpectedfor2025,with
EuropeanandAsiancontractmarketpricesdecreasingandspotmarketpricesincreasing(Figure22).
41
1bcf=1millionMMBtu,i.e.112.4bcf=112.4millionMMBtu
60
Figure22:NaturalGasPriceProjections
Source:MEEA,2010
Inadditiontoreducedpurchasingpricesfornaturalgasprovidedforthepowersector,theGoTThas
introduced several direct subsidies and fiscal preferences for the gas and oil industry. Under the
SupplementalPetroleumTaxregime,anInvestmentTaxCreditwasintroducedin2010andtookeffect
from January 1, 2011. This incentive allows companies to claim 20% of the expenditure on
development activity for mature fields and enhanced oil recovery projects as a credit against tax
liabilities.Asfromthebeginningof2014,unusedtaxcreditswereallowedtobecarriedforwardfor
oneyear.Alsowiththestartof2014,thealreadyexistinginitialandannualallowancesforexploration
activitieswerereplacedfortheperiod2014to2017byanewallowanceof100%ofexplorationcosts
tobewrittenoffintheyeartheexpenditureisincurred.Asimilarmechanismwithallowancesspread
overathreeyearperiodwasintroducedfordevelopmentactivities.
Whileenergysubsidies(orasinthiscaseartificiallylowkeptenergyprices)canhaveapositiveimpact
onanumberofaspects,includingeconomicdevelopment,theyresultinanumberofchallengesfor
otherrelevantareas.Negativeconsequencesofsubsidiesincludepotentialdiscouragementofboth
supplyside and demandside efficiency improvements, potential promotion of noneconomic
consumptionofenergy,competitionforlimitedresourcesfordeliveryofothertypesofservices,and
finally, fossil fuel energy subsidies hinder the development of RE technologies by making them
economicallyuncompetitive(WB,2010).
Electricitytariffsneedthereforetobefurtherincreasedwhilemaintainingpreferentialratesforlow
incomehouseholds(positiveisalreadytheprogressivepricingscheme).Subsidiesforthepowersector
have to be curbed. They are now in the range of at least US$ 3.75/MMBTU (based on the price
difference of T&TECs purchasing price to the average export revenues). The Regulated Industries
CommissioniscurrentlyassessingatariffincreaseproposedbyT&TECfortheperiod20112016.While
pricesfornaturalgaspurchaseareexpectedtoincrease,itisstillobviousthatthecurrentschemeof
preferentialratesforelectricitygenerationremainsuntouched.Consequently,manyEEmeasuresas
wellasREprojectscannotcompetewithlowelectricityprices.Wethereforerecommendincreasing
thepricelevelfornaturalpricestepbystepuptotheaveragesalespriceofnaturalgasforexports.
61
Electricity tariffs should then be raised accordingly. For lowincome households preferential rates
shouldbemaintained.
4.5 AdaptationofcriteriaforusingtheGreenFund
In2000,theGoRTTestablishedtheGreenFundasthenationalenvironmentalfund.42Thefundsgrant
facility is available to community groups and organizations engaged in activities focusing on
remediation,reforestationorconservationoftheenvironment.Thefundiscapitalizedbyataxof0.1%
onthegrosssalesorreceiptsofcompaniescarryingonbusinessinT&T.Tenyearson,thefundisvery
wellendowed,butonlyahandfulofprojectshavebeenfinancedandnonewithanEEfocus.Itisour
recommendationthattheGoRTTandthefundmanagers43reviewtheaims,objectivesandoperating
parameters of the fund to optimize it to include the ability to support viable EE and RE projects.
CurrentlytheGreenFundisonlyeligibleforcommunitygroups,nongovernmentalorganizationsand
nonprofitcompaniesorbodiesengagedinactivitiesrelatedtotheobjectivesoftheGreenFund.Given
the situation that the Fund has substantial problems in receiving acceptable proposals and has
collectedalargeamountoffundingcapitalitisadvisedthatconsiderationbegiventoanextensionof
thescopeoffinancing,inparticularinsuchcaseswhereprivatecapitalcouldberaisedwithadditional
publicsupport.
4.6 FinancingofSEPprojects
ImportantforthefinancingofREprojectswithrelativelyhighinitialcapitalcostsandlongpayback
periodsisastableandsecurepoliticalframeworkwithlimitedrisksandclearmarketperspectives.Any
potentially negative impact on the expected financial output of projects, such as uncalculated
downwardvariationsintariffsforelectricitysuppliedtothenationalgridorunannouncednewtaxes,
willincreasetherisklevelandraiseinterestratesoncreditlines.Highfinancingcostscancreatea
substantialbarrierforanyREprojectindevelopingcountrieswithlimitedexperiencesofcommercial
banks.
Within specific programmes or based on bilateral agreements, international financing institutions44
offer soft loans for specific purposes, which are usually channelled through national development
banks (IRENA, 2012; UNEP, 2014). Other sources of financing could be attracted through sales of
carboncreditswithintheCleanDevelopmentMechanisms(CDM)inlargescaleREprojects,although
thecurrentlowpricelevelforsuchcreditsmaynotbesufficienttocontributesignificantlytoproject
incomes.
Loansarenevergrantedwithoutsecurity.Examplesincludethetransferofownershipoftheplant,the
transferofrightsfromprojectcontracts,pledgingoftheoperatorsaccountorpledgingofsharesin
thebusiness.Banksthereforeoftensetrequirementsforthecontentofprojectcontracts,orplace
stricterdemandontheuseofcashflow.Inaddition,theymayrequirethequalityoftheinstallationto
beinspectedbyexternalexpertsandwillrequestatleasttwoindependentyieldprojections.
Inordertokeepcostsaslowaspossible,clearguidelinesandadministrativeproceduresneedtobe
established for all processes within the permission and preparation of projects. Unnecessary and
42
Moreinformationonthefundisavailableathttp://www.mphe.gov.tt/agenciesdivisions/gf.html
43
TheGreenFundExecutingUnit,adivisionwithintheMinistryofHousingandtheEnvironment
44
SuchasKfW(Germany),EuropeanInvestmentBank(EIB),WorldBankGroup,InterAmericanDevelopmentBank(IDB),Caribbean
DevelopmentBank.KfWalonemadeUS$26billionavailableforcleanenergyprojectsin2012.Inthesameyear,the26major
developmentandexportimportbanksprovidedUS$58.7billionforrenewableenergy,withUS$27.5billionflowingintothewind
energysectorandUS$12.1billionsupportingthesolarsector(BNEF,2013).
62
overlybureaucraticrequestsshouldbeavoidedinordertominimizetransactioncostsandreducethe
time for project realization. This concerns issues such as environmental impact assessments,
application requirements for generation licensing and grid connections, construction permissions,
technical requirements and inspections, contractual arrangements for payment schedules, etc.
Experiencesarewidespreadinothercountries,sothatreplicationofgoodexamplescanbeeasilydone.
4.7 Needsforcapacitybuildingandinstitutionalstrengthening
ItisconsideredthatT&Thasthehumancapitalresourcesandtherequiredbaseofeducationaland
technical facilities (precollege schools, technical colleges and universities) necessary for the
development of a sustainable energy economy.45 The requirement at this time is for the countrys
human and institutional resources to be organized into effective structures that allow the efficient
utilizationoftheresources,aswellastheprovisionofspecificandrelevantcapacitybuildingmeasures
forfurtherdevelopment.
ThestaffattheMEEAisandhasbeenundertakingvariouscapacitybuildingmeasures(nationallyand
internationally)throughoutthecourseofthelastyears.Someofthecapacitybuildingmeasuresthat
standoutare:
Sustainable Energy Policy and Technology Training seminar for Latin America and the
Caribbean(LAC)
OLADEsExecutiveDevelopmentProgrammeonEnergyPlanning(EDPEP)
TrainingonInnovativefiscalandregulatoryincentivesforEnergyEfficiencyandRenewable
Energyinitiatives
InternationalTrainingProgrammeonSolarEnergyTechnologiesandApplicationsattheSolar
EnergyCentreinIndia
SeminaronCleanEnergyApplicationandClimateChangeforDevelopingCountries,China
RegionalWorkshopofCapacityBuildingandSharingLessonsinthedevelopmentofNationally
AppropriateMitigationActions(NAMAs)
RegionalDesignatedNationalAuthority(DNA)TrainingandCleanDevelopmentMechanism
(CDM)Workshop
RegionalRenewableEnergyFinancingWorkshopandRETSCREENTraining
At the same time the consultants have prepared and implemented a range of training courses
throughoutthecourseoftheconsultancy.Trainingcoursesincluded:
AworkshopandtrainingonthepotentialforbiomassandbioenergyinT&T
Aworkshopandtrainingontheconcepts,technicalbackgroundandpotentialforWasteto
Energy
AworkshopandtrainingonSolarWaterHeater,theirtechnicalspecifications,aswellasthe
potentialinT&T
Aworkshopforenergyauditorsonhowtodoenergyauditsinpublicbuildings,aswellasaone
ononecoachingofauditfirms.
CapacitybuildingandmeasureswerededicatedtotheMEEA,aswellasotherrelevantstakeholdersin
T&T.
Ascanbeseen,theMEEAisthrivingtowardscontinuouslearningofitsstaffandprovidesthemwith
the possibility to undertake renowned capacity building and training measures to be able to move
45
Forexample,T&Tisranked71stinhighereducationandtraining,outof144economiessurveyedbytheWorldEconomicForuminits
GlobalCompetitivenessReport20122013.
63
towardsmoresustainableenergyinT&T.However,theexistingteamisrelativelysmallandhastofulfill
an enormous amount of tasks. Further institutional strengthening, as well as a reorganization of
activities,suchasthroughoutsourcingofarangeofactivitiestoadedicatedenergyagencyistherefore
recommended.(seechapter5.4forfurtheranalysis).
64
EnergyEfficiency
5.1 EnergyEfficiencyPotential
It is widely accepted, based on international experience, that EE is one of the leastcost ways of
satisfyinggrowingdemandforenergyrelatedservices(WB,2011).InrelationtoT&T,a2008report
by the InterAmerican Development Banks Sustainable Energy and Climate Change Initiative (IDB,
2008)providesaninitialestimateoftheoverallEEopportunity,advisingthat
IfTrinidadandTobagoweretoimproveitsEnergyEfficiencyby10%overthenext10years,itwould
savetheequivalentof980GWhofelectricityperyearby2018.Thecostofachievingthatlevelof
efficiencybyvariousmeasureswouldamounttoaroundUS115millionoverthisperiod(in2008
dollars).(MEEA,2011)
Thereportadvisesthatthealternativescenariocommissioningtheequivalentoftwogaspowered
opencyclegenerationplantstoproducethesame980GWhofelectricityperyearwould,at2008
prices,costapproximatelyUS$365millionjusttobuild,notcountingoperationalandfuelcosts.In
short,itissuggestedthatEEisthequickest,cheapestandcleanestwaytoextendthecountrysenergy
supplies.
Nodetailed,comprehensivestudyhasbeenmadeoftheEEpotentialinT&T,buttheMEEA(MEEA)is
awareofthegeneralopportunities.Onthesupplyside,theMinistrycitesagingpowersectorfacilities
whichneedtobeupgradedandnotesthatthemajorityofexistingpowerplantsaresimplecyclewith
lowconversionefficiency(seechapter3.4).
On the demand side, several factors are noted by the MEEA, including the situation that current
pricingofelectricityislowforresidentialandcommercialcustomersandthishasledtoinefficiencyin
theuseofelectricity(MEEA,2011).
Inprinciple,largefirmsthatarehighlyenergyintensivetendtohaveadirectfinancialincentive(i.e.:
continuous bottom line improvement) to improve EE and it is clear from our discussions with the
stakeholdersthatthelargestindustrialoperationsinthecountryhaverecentlybecomeengagedin
ensuringoperationalEE,forinternalfinancialandinternationalbusinessreasons.
Part of the impetus for this was a 2011 EE study conducted on behalf of the National Energy
Corporation(NEC)forthePointLisaIndustrialEstate(CBCL,2011),whichconcludedthattotalenergy
use in the industrial sector could be reduced by 15% by 2023 if best practices were implemented.
Basedonwalkthroughauditsinammonia,methanolandiron&steelproductionfacilitiesatPoint
Lisas,opportunitieswereidentifiedforEEinvestmentsofoverUS$13million,whichwoulddeliver
annualsavingsofoverUS$2.8millionwithasimplepaybackperiodoflessthansixyears.
WeconsiderthatthisstudyhasadequatelysettheparametersforEEstrategiesandrecommendations
forthelargeindustrialsectorandthereforeourreviewdoesnotconsiderthetechnicalissues,options
orspecificrecommendationsforthisconsumptionsector.
5.1.1 WhichTechnologieshavePotential?
Table11listsrelevantEEtechnologiesandprovidesanestimationoftheirsectorofapplication,their
technicalEEpotential,andtheircurrentrateofuptake(low,medium,high)ineachsector.
65
ThetableshowsthateventhoughthepotentialforEEtechnologiestodeliverenergysavings(technical
EE potential) is high, the actual uptake is nonexistent or low in most cases and high in none. It
additionallyprovidesanoverviewontheavailabilityoftechnologiesinTrinidadandTobago.Theonly
technologiescurrentlynotimportedtoT&TareLEDlampsandLEDstreetlights.
Table11:EETechnologiesandtheiruptake
EEType
CFLlamps
T8fluorescent
lampswith
electronic
ballast
T5fluorescent
lamps
(electronic
ballast)
LEDlamps
LEDstreet
lamps
Variable
frequency
drives
Highefficiency
airconditioning
units
Highefficiency
commercialand
industrialscale
chillerunits
Potential
sectorof
application
Technical
EE
Potential
Residential
Commercial
High
High
Low/Mediu
m
Low
Already
being
imported
Residential
Commercial
Small
Industrial
PublicSector
MedHigh
MedHigh
MedHigh
MedHigh
Already
being
imported
Commercial
Small
Industrial
PublicSector
High
High
High
Low
Low
Medium
Low
Medium
Low
Low
Low
Low
Residential
Commercial
Small
Industrial
PublicSector
Publicsector
High
High
High
High
None
None
None
None
Not
imported
High
None
Not
imported
Commercial
Small
Industrial
MedHigh
MedHigh
High
Low
Low
Low
Medium
Already
being
imported
Residential
Commercial
High
High
Low
Low
Already
being
imported
Commercial
Industrial
PublicSector
High
High
High
Low
Low
Low
Already
being
imported
Residential
Commercial
Med
Low
Already
being
imported
Description
Smallfluorescentlampswith
electronicballastinbase,designedto
replaceregularincandescentlamps
andprovidethesamelightoutputfor
onefifthtoonethirdtheelectricity
consumption,withanaverage
lifetime8timeslonger.
Slim,1diameterefficientfluorescent
tubethatoperatesusingelectronic
ballastsaswellasthetraditional
magneticballast.
Slim,5/8dia.efficientfluorescent
tubethatoperateswithelectronic
ballast.Moreefficientbut
significantlyhigherinvestmentcost
thanT8tube.
Highlyefficientlightingbasedon
lightemittingdiode(LED)technology.
Veryhighinvestmentcost.
Streetlightingthatutilizeshighly
efficientLEDlampsforillumination.
Verylowenergyusage,butveryhigh
costofinstallation.
ElectroniccontrollerforACmotors
thatallowthespeedandpower(and
hencetheenergyconsumption)of
themotortobevariedtosuitthe
motorsload.
Roomairconditioningunitswithan
EEratio(EER)of10ormore.TheEER
istheratioofthecoolingcapacity(in
Btuperhour)tothepowerinput(in
watts)
Highcapacitycoolingunitswith
efficientcompressorsemploying
variablefrequencydrives,or
absorptionchillersutilizingwaste
heat.
Appliancesandconsumerelectronic
devicesachievingEnergyStaror
similarratingforEE.
Highefficiency,
domestic
appliancesand
consumer
electronic
devices
66
Estimated
uptake
Import
status
Already
being
imported
5.1.2 TheViabilityofEnergysavingTechnologies
T&TpresentstheuniquecaseintheCaribbeanwhereenergyconsumptionishighacrosstheboard
but, because of energy price subsidies and low retail energy prices, the business case for EE
investmentsislow.Asindicatedabove,thereareseveralestablishedEEtechnologiesthatarerelevant
totheprovisionoftheenergyservices:lighting,cooling,ventilationandmechanicalworktoendusers.
In the T&T market some are financially and economically viable, others are not. For example, the
financialviabilityofatechnologysuchasLEDstreetlightingispooratbest,sincetheveryhighcostof
thenecessaryinvestmentwilltaketoolongtoberecoveredoutofenergycostsavings;evenifthe
energy (kWh) savings are significant, the tariff rate per kWh is so low that the cost savings are
marginal.46
The chart in FIGURE 23, from McKinsey & Company (MCKINSEY, 2009), provides a general starting
pointforassessmentofviability.ItshowsanestimatedEEsupplycurvefortheUSeconomy,depicting
therangeofEEmeasuresfromthelowesttohighestcosttoimplement,perunitofenergysaved,over
thelifetimeofthemeasure.ThoughthevaluesinthechartarenotspecifictoT&T,therelevantpoint
istoidentifytheresidentialandcommercialEEtechnologiesinthelowcostrangeofthespectrum.
From the chart we see that the price for EE of efficient refrigerators, electrical devices, electric
motors, airconditioners and lighting are all well below the forecasted weighted average price of
energyacrossallfueltypesin2020(thedottedhorizontallineatUS$13.80perMMBTU,equaltoUS$ct
4.7perkWh).Ingeneral,thechartindicatesthattheselowcostEEopportunitiesrepresentaviable
waytoprovideforfutureenergyrequirements.
46
SeeAppendix8.3.D,whichsummarizestheresultsofacomprehensivestreetlightingreplacementstudycarriedoutinPortland
Oregon.
67
Figure23:USEESupplyCurve2020(fromMcKinsey)
Source:MCKINSEY,2009
The chart also indicates something else to note: the xaxis of the chart shows the estimated total
potentialsavingsopportunityifallviableEEmeasuresintheUSAareimplemented,withthewidthof
eachbarshowingtheamountofpotentialsavingsinthatgroupofmeasures.Sothecomplexityofthe
EEoptionisalsodemonstrated:nosinglegroupofmeasuresaccountsformorethanabout12%ofthe
totalsavingspotentialthereisnomagicbulletforEEandavarietyofmeasuresneedtobetakento
generatemeaningfulimpact.
Toprovideaninterpretationofthechartallowingforlocalconditions:itislikelythatinT&Tthecosts
to implement the various measures will be at the high end of the ranges shown here, due to the
addition of importrelated transaction costs.47 In relation to the forecast price of energy in 2020:
althoughT&Tsenergymixisdominatedbynaturalgascomparedtothecostlier,predominantlycoal
basedmixintheUSA,itislikelythatthecomparablelocalcostofenergyin2020couldbesimilarto
theforecastshownhere.T&TEChasproposedincreasesof26%to33%initstariffsto2016(T&TEC,
2011).If(asisdoneinthechart),theaveragepriceofavoidedenergyconsumptionattheindustrial
priceisconsidered,theproposed2016costofelectricityisTT$ct26.9perkWh(US$ct4.2perkWhor
US$ 12.32 per MMBTU). If the T&TEC proposals areaccepted by the regulator, and if Government
progressivelyremovessubsidiesonthesupplyofnaturalgastothepowerindustryandonotherfuel
typesthrough2020,thereferencepricecouldbeevenhigher.
47
Forexample,thecosttosaveakWhofelectricitybyinstallingCFLbulbsinT&TisestimatedinAppendixC:Methodologyfor
ResidentialBaselineandSavingsEstimatestobeUS$ct1.2perkWh,orUS$3.56perMMBTU,whichisattheupperendoftherangeof
theMcKinseyestimatedcostofenergysavingsforresidentiallighting.
68
5.1.3 HowisUptaketobeencouraged?
TheappetiteforEEtechnologiesandpracticesinT&Tisassessedtobelow.Themostimportantreason
for this is the very low price of energy. For example, the hotel sector organizations (the Tourism
Development Company TDC and the Trinidad Hotels, Restaurants & Tourism Association THRTA)
acknowledgethat,becauseenergycostsrelativetototaloperatingcostsaresolow,theycollectno
dataontheirmembersenergyconsumption.ThesameadmissionismadebytheTrinidadandTobago
Chamber of Commerce and the Trinidad and Tobago Manufacturers Association.48 Whereas energy
costs in other Caribbean countries affect the regional and international competitiveness of their
tourismandmanufacturingsectors,thisisnotthecaseinT&T.Giventhisfact,wecanconcludethat
theperformanceofenergyaudits,forexample,isnotahighpriorityformanagersinthetourismand
the(nonenergyintensive)manufacturingsectors.49
Anotherreasoncitedislowknowledgeandawareness.Anenergyawarenesssurvey(MEEA,2012c)
carriedoutbytheMEEAproducedsomeinterestingresultsthatindicatedlowpublicawarenessabout
energy.Forexample,accordingtothesurvey,only43%oftherespondentsknewthattheirelectricity
wassuppliedbyT&TEC.50
LimitedaccesstofinancingisoftenlistedasabarriertotheuptakeofEE,butitisnotlikelytobea
factorofmajorimportanceinthiscase.IfthereislowdemandforimplementingEEprojectstobegin
with, there will be little demand for financing to do so. However, given that the GoRTT intends to
increasethedemandforEEinvestments,thenmechanismsforfinancingtheseinvestmentsmustbe
madeavailableandtheseareconsideredbelow.
In terms of policysetting, uptake of EE technologies will be influenced by the specific mix of and
interactionbetweeninformationprovided,incentivessetandregulationsimposedbytheauthorities.
Informationisacriticalfactor.Ifconsumersdonothavespecificknowledgeabouttheenergyoptions
available,theycannotmakeinformedchoicesanddecisionsaboutenergyuse.Onceinformationis
available, incentives encourage desirable action and the case of residential light bulb replacement
programmesisaclassicexample.CertainlyfromanEEperspective,itisdesirableforallhouseholdsto
use CFLs instead of incandescent bulbs, as this will reduce national energy consumption, carbon
emissionsetc.HouseholdswhodosowillsavemoneyoverthelifetimeoftheCFLbulbs,withaquick
returnontheirinvestment.However,thedomesticsectorinT&Tenjoysverylowenergypricesand
probablyseesnopressingneedtoinvestevensmallsumsofmoneytotakeactiontoreduceenergy
coststhatarealreadylow.Insuchanevent,specificincentivesneedtobeapplied,toencouragethe
desired result of reducing the use of incandescent bulbs. And in the event that incentives will not
achievethedesiredresult,thenregulationstheuseoflawsandrulesmustbebroughttobear.In
thiscase,theGoRTTmaychoosetophaseouttheimportationandsaleofincandescentbulbs.
5.1.4 AnoteonBehavior
An underrated factor in the EE equation is the aspect of consumer behaviour. Some studies of
residentialenergyconsumptionhaveconcludedthattheenergyconsumersbehaviourisapotentially
48
Meetingsheldwiththeseandotherstakeholders,Sept17th19th2012attheMEEAoffices.
49
MrAndreEscalante,ownerandCEOofEnergyDynamicsLtd,corroboratesthisviewespeciallyinrelationtotheperformanceofenergy
audits.
50
Thequestionaskedwas:Howdoestheenergythatpowersyourelectricalappliancesgettoyou?Answerchoiceswere:a)T&TEC/
PowerlinesfromT&TEC;b)TheSun;c)Underground.Only43%ofrespondentschosethecorrectanswer.Totalnumberof
respondents:539.Noageinformationwasrequestedfromrespondents.
69
enormous source of energy savings (SHIPEE, 1980) yet it is hardly mentioned in analyses of EE
potentials.Asnotedabove,informationiscriticaltothemissionofreducingenergyconsumption,but
it has been demonstrated (DARBY, 2006) that information, on its own, is not sufficient to change
behaviourandmustbeaccompaniedbyothermotivatingfactorssuchasfeedback,goalsettingand
socialproof(SAMUEL,2009).
Theconclusionisthatstandardeducationandpublicawarenessapproacheswillincreaseknowledge,
butwillnotnecessarilygeneratesignificantactiontowardsthedesiredoutcomes,andattemptsmust
be made to engage and motivate consumers, by providing additional behavioural factors. In this
regard,itisnotablethatT&TECisalreadyconsideringconvertingfrombimonthlytomonthlybilling
for residential and commercial customers (T&TEC, 2011). We recommend that T&TEC should be
encouraged to do so, as this will help consumers to get a better sense of the connection between
personal behaviour and their household energy consumption and will go hand in hand with any
nationalcustomerengagementprogrammes.
5.2 ProposedEEProgrammes
5.2.1 ResidentialSector
5.2.1.1 Overview and estimates of baseline consumption
TheresidentialsectorinT&Tisfullyelectrifiedandconsumesapproximately29%oftotalelectricity
used.(T&TEC,2010)AveragedailyconsumptionperhouseholdishighbyCaribbeanstandards:16.6
kWh per day (T&TEC, 2010), almost double the 8.5 kWh per day average in Barbados (LHP, 2011),
thoughtheaveragehouseholdsizeinT&Tisonly19%greaterthaninBarbados.51Personalincomes
arehighinT&T,butsimilarlyinBarbados,whichalsohasacomparablepercapitaGDPandstandard
ofliving.
We make two estimates for baseline residential electricity consumption in T&T. The first is for the
average household, i.e.: the household with a consumption calculated simply by dividing total
residentialsalesbythetotalnumberofresidentialcustomers;thisestimateisshowninTABLE12.
51
Datafromyear2000censusreportsforT&T,Barbadosindicateaveragehouseholdsizesof3.7personsinT&Tand3.1inBarbados
70
Table12:AverageHouseholdElectricityConsumption,2010
ResidentialElectricityEndUse
Bimonthly
Consumption,
kWh
Lighting
89
10
164
18
87
175
19
36
Cooling&Ventilation
141
15
Appliances(entertainment&personal)
225
24
917
100
WaterHeating&Pumping
Cooking
Refrigeration
Laundry
Total
The second estimate is for households that use airconditioning (which would be in a higher
consumptionrangethantheaverage).ThisestimateisshowninTABLE13.Detailedinformationon
these estimates is available in Appendix C: Methodology for Residential Baseline and Savings
Estimates.
Table13:HouseholdElectricityConsumptionwithAirconditioning,2010
ResidentialElectricityEndUse
Bimonthly
Consumption,
kWh
Lighting
120
1,302
42
87
Refrigeration
329
11
Laundry
254
CoolingandVentilation(A/C)
727
24
Appliances(entertainment&personal)
267
3,086
100
Cooking
Total
TheseestimatesareillustratedinFIGURE24andFIGURE25.
71
Appliances
(entertainment
&personal)
24%
Appliances
(entertainment
&personal)
9%
WaterHeating
&Pumping
18%
Lighting
10%
Lighting
4%
WaterHeating&
Pumping
42%
Coolingand
Ventilation(A/C)
23%
Cooling&
Ventilation
(Fans)
15%
Cooking
10%
Laundry
8%
Laundry
4%
Refrigeration
19%
Figure24:AverageHouseholdElectricity
Consumption,2010
Refrigeration
11%
Cooking
3%
Figure25:HouseholdElectricityConsumptionwithair
conditioning,2010
5.2.1.2 Proposed EE Interventions

ThefundamentalreasonforT&Tshighhouseholdelectricityconsumptionisthelowcostofelectricity,
butsurveysconductedbytheMEEAalsoindicatethatpublicunderstandingofenergy,whereitcomes
fromandhowittranslatesintotheprovisionofdailyenergyservicesislow.Theabovesuggeststhat
therearesignificantopportunitiesforreducingpersonalenergyconsumption,withoutadverseeffects
onlifestyle.Ortoputitanotherway:lowenergycostandlowpublicenergyliteracyarelikelytoresult
inhighlevelsofenergywastage.Withthisinmind,theMEEAhasalreadybeganaspecificawareness,
educationandcommunicationsprogrammedirectedatthegeneralpublic,markedbythelaunchofits
RE/EECampaigninSeptember2012.Itisproposedbelowtoextendtheseactivities.
Thegovernmentssocialhousingunit,theHousingDevelopmentCorporation(HDC)ismandatedto
make6,500housingstartsperyearforsaletoeligible,lowincomecitizens.Information52suppliedby
the HDC shows that the HDC delivered 53% of that target in 2012, with plans for the delivery of
approximately3,200newunitsperyearthrough2015.
HDChomesaresuppliedwithoutappliancesorlightbulbsanditislikelythattheeventualoccupants
simplybuytheleastexpensiveincandescentbulbs53.
To support the GoRTT in using social housing as an entry point for the provision of more energy
efficienthousinginT&T,theConsultantshavedevelopedaGEFProjectInformationForm(PIF)thatis
currently being reviewed by the GEF. This could potentially become a GEF supported project,
enhancingthesustainabilityofthesocialhousingsectorinT&T.
The Trinidad and Tobago Bureau of Standards (TTBS) is already engaged with the exercise of
determiningtheappropriateEEstandardsforlightingandappliances;thoughnonationalstandards
fortheseitemshaveyetbeenpublished.NoactivitiesrelatedtoEElabellingofappliancesaretaking
placeinT&T,andthereisnospecificprogrammeaimedatencouragingpurchasesofenergyefficient
52
HDC:ResponsestotherequestforsupporttotheapplicationforfundsundertheGEF5TrustFund.HDC,30July,2013
53
AnaverageofpricesfromthreeretailersinPortofSpainrevealsthata15wattCFLcostsalmostsixtimesasmuchasa60watt
incandescentbulb.
72
(Energy Star or equivalent) appliances. However, through the light bulb exchange program, Energy
Efficientlightingandappliancesareencouraged.
Basedontheabove,werecommendfourresidentialEEprogrammesaimedat:
Engagingandmotivatingconsumerstoadoptnocost,durableenergysavingsbehaviours.
Table14:ProposedEEprogrammesintheresidentialsector
Programmeofmeasures
Information
Toreducetheuseoftank
andothertypesofelectric
waterheaters(notethisis
relatedtoincreasinguseof
SWHcoveredelsewhere).
Toencouragetheuseof
efficientappliances.
TypeofPolicyIntervention
Incentive
Implementan
informationprogramme
onthebenefitsofsolar
waterheating,energy
efficientlightingand
appliances.
Implementan
onthebenefitsofenergy
appliances(already
startedwiththe
AwarenessCampaign).
Developandimplement
anapplianceenergy
labellingprogramme.
Taxdeductionofupto
US$500forperformance
ofresidentialenergy
audits.
Taxdeductionofupto
US$5,000forthe
purchaseofapproved
environmentallyfriendly
products(suchassolar
waterheaters,energy
efficientairconditioners
andappliances,etc.)
Provideincentivesto
applianceretailersto
encouragetradeinsof
old,inefficientappliances
formoreefficientmodels.
Thisincentivecould
initiallybetargetedat
lowerincome
households.
Toencouragetheuseof
efficientlighting.
Toeffectenergysavingsin
socialhousing.
Implementan
onthebenefitsofenergy
appliances(inprogress).
Removeallimportduties
onallcategoriesof
energyefficientlight
bulbs,tubesandballast
fittings.
Implementan
tosensitizeHDCowners
ofthebenefitsofenergy
appliances.
Preinstall11to15WCFL
bulbsinHDChousing
units.
73
Regulation
Progressivelyincreaseimportdutiesontankwaterheaters
overthenext3years.
Certificationofenergyauditors.
Adoptionofappropriate
appliance&equipment
standards.
Requireenergylabelstobe
displayedonallappliances
offeredforsale.
Progressivelyincreaseimport
dutiesandtaxesonandphase
outtheuseofinefficient
appliances,particularlya/c
units,overthenext5years.
Adoptionofappropriate
standards.
Progressivelyincreaseimport
dutiesonandphaseoutthe
useofincandescentbulbsover
thenext5years.
NR
Programmeofmeasures
Incentive
Information
Toengage&motivate
consumerstoadoptnocost
behaviourstoreduce
energyuse.
Designandimplementa
programmetoengage
andmotivateconsumers
tochangetheirenergy
consumptionbehaviours.
T&TECtobeencouraged
tomovetomonthly
billingofresidentialand
commercialcustomers.
Regulation
NR
NR=NoneRecommended
5.2.1.3 Estimated Energy Savings Potential

OurpreliminaryestimatesoftheannualsavingspotentialintheresidentialsectorareshowninTABLE
15.
Table15:Estimatedresidentialsectorsavingsfromreplacementofbaselinetechnologieswithenergy
efficienttechnologies
RESIDENTIAL
EstimatedAnnualSavingsPotential
MWh
Lighting
000TT$
000US$
%ShareofTotal
Savings
151,960
46,682
7,294
35
73,474
22,571
3,527
17
Refrigeration
67,577
20,760
3,244
16
Laundry
11,248
3,455
540
Cooling&Ventilation
90,165
27,699
4,328
21
Appliances(entertainment
&personal)
26,778
8,226
1,285
SocialHousing
11,350
3,487
545
432,552
132,880
20,762
100
Cooking
TotalEstimatedSavings
Theaboveestimateofpotentialsavingsamountsto20%oftotalresidentialelectricityconsumptionin
2010.TheseestimatesarebasedonestimatesandassumptionsdetailedinAppendixC:Methodology
forResidentialBaselineandSavingsEstimates.
Thenominalannualsavingspotentialintheresidentialsectorhasbeenestimated,butitisrecognized
thattheactualrateofuptakebythepublic,ofnewEEinterventions,doesnotstartat100%;actual
uptake(andthereforesavingsimpact)inthefirstyearwillbesmallandwillgrowinthenext,andso
on.Rogers(1962)proposedamodelforthediffusionofinnovationswithincultures(EVERETT,1962)
thatseemsusefulasaguidehereandourestimatesofuptakearebasedthereon.Mostnotably,we
assumethat 15%oftheresidentialsectorwillnotatanytimeadopttheEEinterventionsandthat
maximumuptake(i.e.:by85%oftheresidentialsector)willonlyoccursometimeafteryear5.These
assumptionsinformoursavingstargetssetoutinsection5.4.2below.
Ourestimatesaboveandthroughoutthisreportarebasedonanassessmentoftechnicalsavingsand
wemakeanotehereaboutthepotentialimpactofreboundeffects.Inrelationtoenergy,therebound
effect is a behavioural response to the reduction in energy costs caused by an improvement in
technicalefficiency:asthecostofusingenergyisreducedduetoefficiencyimprovements,people
tend to use more energy, thereby offsetting the energy savings made possible by the efficiency
74
improvements54. A 2007 study of the rebound effect published by the UK Energy Research Centre
(SORRELL, 2007) concluded that rebound effects are of sufficient importance to merit explicit
treatment.Failuretotakeaccountofreboundeffectscouldcontributetoshortfallsintheachievement
ofenergyandclimatepolicygoals.Wehavehowevermadenospecificestimatesofreboundeffects,
as the T&T case (very low energy prices and relatively high per capita consumption) presents a
scenario,wherereboundeffectsarelikelytobesmall.
5.2.2 HotelSector
5.2.2.1 Overview and estimates of baseline consumption
TourismmarketinginTrinidadhastraditionallybeenbasedontargetingthebusinesstraveller,butthis
markethasbeendecliningandthetargetisnowbeingfocusedforthefirsttimeontheleisuretraveller
andonecotourism55.Thissignalstheintentionoftheauthoritiestoincreasethesizeandfortunesof
the hotel & tourism sector, which will nominally increase demand for energy services in the hotel
sector.Theaimistobeabletodelivernewenergyservicesthroughefficiency,ratherthanthrough
additionalenergyproductioncapacity.
TheMinistryofTourismreportsatotalof6,307hotelroomsinT&Tin2010(MT,2010).With12.8%
directandindirectcontributiontotheGDP(2008),travelandtourisminT&Thasfarlessimportance
thaninotherCaribbeancountries(e.g.26.5%inGrenadaand54.0%inBarbados;WTTC,2009).A2012
reportonaCHENACTstudy56ofthehotelsectorintheregionestimatesthatthehotelsinT&Tconsume
76GWhofelectricityannually,i.e.about1.0%ofthetotalnationalelectricityconsumption(CHENACT,
2012).57SinceelectricityandLPGratesaresignificantlylowerthanintherestoftheCaribbean,the
expenditureforenergyanditsshareontheoveralloperationalcostsofhotelsandguesthousesisalso
far lower. We assume that, in accordance with the findings of studies conducted elsewhere in the
region(includingCHENACT,FIGURE26),thelargestareaofelectricityuseinhotelsinT&Tisforair
conditioning,followedbylighting,kitchenappliancesandpumpingequipment58.
54
SeeUKEnergyResearchCentre,TheReboundEffect
(http://www.ukerc.ac.uk/Downloads/PDF/07/0710ReboundEffect/0710ReboundEffectReport.pdf)
55
InterviewwithMsYolandeSelman,TourismDevelopmentCompany,17thSeptember2012andinterviewwithMsLouannaChaiAlves,
TrinidadHotels,RestaurantsandTourismAssociation,18thSeptember2012.
56
CHENACTisanEEprojectfinancedbytheIDB,GIZ,CDE,UNEP,BarbadosLight&PowerandtheGovernmentofBarbadosand
implementedbytheCaribbeanTourismOrganisation.ThePhase1reportwaspresentedinMarch2012.
57
Iftheestimationiscorrect,thissharewouldbefarlowerthaninotherCaribbeanislandstates.
58
TheCHENACTstudyfindsthatinBarbados,48%ofhotelselectricityisconsumedbyairconditioning,12%bylightingand11%by
kitchenandrefrigerationequipment.
75
Figure26:ElectricityconsumptionbyenduseinhotelsofBarbados
Source:CHENACT,2012
ThehotelsectorsuffersfromtheconstrainttoinvestinEEalreadyidentifiedabove:lowenergyprices
providelittlefinancialincentiveandpaybackperiodsarelong.Hotelownersaremorelikelytomake
investmentsthatincreasetheiroccupancy(andthereforeincreasedirectrevenues).
Basedonthefactsthat(a)thetourismmarketingapproachisnowfocusedtowardstheleisuretraveller
and(b)travellersappeartobebecomingmoreenvironmentallyconscious(TRIPADVISOR,2012),this
suggeststhathotelsshouldbeencouragedtoinvestinEEinterventionsaspartofasuitablegreen
certificationprogramme.Consequently,wewouldrecommendanapproachthatmarketsEEaspartof
aholisticsustainabilitystrategy,whichismeanttoincreaserevenues,ratherthananapproachthat
focusesbasicallyonreducingenergycosts.
Basedontheaboveweproposefourgeneralprogrammeinterventionsthatwill:
Improveairconditioningefficiency;
Usemoreefficientlightingandcontrols;
Usemoreefficientequipmentandappliancesinroomsandbackofhouse
Encouragegreenhotelcertification.
TherecommendedinterventionstoencourageuptakeareshowninTABLE16.
76
Table16:RecommendedProgrammesforEEinHotels
Programmeof
Measures
Toincreasetheuseof
efficientairconditioning
systems
Tousemoreefficientlighting
&controls
Tousemoreefficient
equipment&appliances
backofhouse
Toencourageenvironmental
&sustainabilitycertification
Information
Incentive
Designandimplementa
nationalsustainable
tourismeducation&
awarenessprogramme,
targetedatowners,
operatorsandstake
holdersinthehotel&
tourismsector
Asabove
150%TaxAllowanceprogramme
Asabove
Asabove
Regulation
None
Recommended
ProvidesupportfromtheTDCs
Hotel&GuesthouseRoomStock
UpgradeIncentiveProjectfor
expendituresonapproved
environmentalcertification
programmes(EarthCheck,Green
Globe,etc).Propertieswillbe
reimbursedfromthegrantfund
oncompletionandawardofthe
certification.
Hotels that benefit from energy audits will have specific recommendations made. In general, we
recommendthatthefollowingmeasuresbeconsideredforimplementationbyhotels.
a)Airconditioning
Thespecificinvestmentsinairconditioningplantandequipmentwilldependonthehotelsizesand
relatedfactors,butthebasiccomponentswillinclude,formediumandlargehotels:
Highefficiency,chilledbeamairconditioningsystems;
Guestroomoccupancycontrols;
Retrofit of existing hotels to reduce cooling loads by passive cooling (e.g. by adding
insulation,windowtint,lightcolouredrooftreatments,etc.).
Andforsmallhotels:
Highefficiencychillerunits;
EER10+splitunits;
Passivecoolingretrofitstoreducecoolingloads.
b)Lighting&controls
Forallsizesofhotels,lightingandcontrolsinvestmentswillinclude:
77
Replacement of T12 fluorescent lamps and magnetic ballasts with T8 lamps/electronic

ballasts;59
ReplacementofincandescentlampswithCFLs;
Installphotocellswitchesforoutdoorlightingapplications;
Installoccupancyandmotionsensorsforindoorpublicarealighting.
c)Equipment&Appliances
Forallsizesofhotels,therecommendedinterventionsregardingappliancesandequipmentare:
Useappropriatelysizedandenergyefficient(EnergyStarorequivalentrating)guestroom
appliances(refrigerators,TVs);
Retrofit walkin freezers, refrigerators and cold rooms with defrost optimization (10%
energy savings (SAMUEL, 2011) and compressor optimization systems (15% energy
savings60).
Retrofitpumpmotorswithvariablefrequencydrives.
d)GreenCertificationProgrammes
Variouscertificationprogrammesexist;EarthCheck(seebox)andGreenGlobearetwothatarefamiliar
totheT&Thotelsectorandareapplicabletolarge,mediumandsmallhotelsseekingtoconfirmthat
they are environmentally sustainable bona fides. These programmes include requirements for
benchmarkingandgoalsettingtoachieveannualenergyandwaterusereductions,utilizationofRE
sources and specific awareness, education and communication efforts targeted at the owners,
managementandstaffofthehotelsbeingcertified.Thiscouldalsointegrateactivitiesthatsensitize
guests, such as through signage in guest rooms that encourage the conservation of energy and
resources.
InconsultationwiththetwoHotelassociationsTDCandTHRTA,theGoRTTshouldestablishanational
sustainabilitycertificationprocessforallhotelsinT&T.Suchcertificationshouldbeacomponentof
thenationalEEpolicyandshouldbemadeobligatoryforhotelsafteracertaintimespan.
59
WedonotrecommendreplacementofT8swithT5s,asthemarginalenergyandcostsavingstobederivedwillnotoutweighthe
significantadditionalreplacementcosts:aT5lampandadaptercombinationcancostupto4timesasmuchastheequivalent
T8/electronicballastfittingandtheT5systemdoesnotoutperformtheT8systembyasimilarmargin,whilebothlampsaretypically
ratedforthesamelifetime.
60
Estimatefromsupplierliterature:http://www.smartcool.net/technology/howsmartcoolsaves.
78
EarthCheck
Thiscertificationhastheobjectivetoimprovethecarbonfootprintoftheparticipatinghotelsviasixstepstosustainable
tourism
practices.
Commitment:Addressingsustainability,preparesustainablepolicyandcompletecorporatehealthcheck.
Measurethecarbonfootprint:Measurementandbenchmarkingprogramstoassessenvironmentaland
socialfootprint.
SustainableActionPlan:UsingtheresultsavailablefromBenchmarkingdeterminetheareawhere
improvementisneededandprepareaSustainableActionPlan.
ImplementChange:Engagewithstaffthroughcapacitybuildingprogrammesandsuppliersthroughgreen
purchasingtoreduceandoffset.
Verificationandoffsetting:Achieveverificationthrougharecognizedandreputableprogramme.
Evaluation,MonitoringandMarketing:Evaluatesuccessandchallenges,sharebestpracticeandcelebrate
achievements.
Source:www.earthcheck.org
5.2.2.3 Estimated energy savings potential

ThereportoftherecentlyimplementedCHENACTPhase1projectestimatesthatthehotelsectorin
T&Tcouldsaveupto18GWhofelectricityovera7yearperiodifEEinterventionswerecarriedout,
primarilyinrelationtoairconditioning,lightingandcontrolsystems.Our5yeartargetsarebasedon
thissavingsestimate,withanexpectationthattheannualsavingswillnotbelinear;aslowerrateof
uptakeandsavingsisassumedinthefirstyear.
5.2.3 Commercial&SmallIndustrialSector
5.2.3.1 Overview and Proposed EE Interventions
Theindustrialsectorholdssignificantpotentialforenergysavings,whichisindicatedbythe2011Point
LisasEEstudyconductedbytheNEC.Asidefromthepossibleconnectionwiththe150%TaxAllowance
program,nofurtherconsiderationisgivenheretoEEoptionsforthelargeindustrialsector.61
Overall,thecommercialandindustrialsectorconsumedsome5,600GWhofelectricityin2011,which
wastwothirdsofthecountrystotalelectricityconsumption.Thisconsumptionisdistributedacross
thesalescategoriesasshowninTable17:
61
In2010therewere38companiesinT&TECsLargeIndustrial(34)andVerylargeIndustrial(4)customerclassifications.
79
Table17:ElectricitySalestoCommercialandIndustrialCategories,2011
Numberof
Customers
Category
Commercial
Commercial
SmallIndustrial
MediumIndustrial
LargeIndustrial
LargeIndustrial
LargeIndustrialStandby
VeryLargeLoad
VeryLargeLoad
VeryLargeIndustrial
VeryLargeIndustrial
VeryLargeIndustrial
Total
B
B1
D1
D2
D3
D4
D5
E1
E2
E3
E4
E5
38,336
35
2,320
772
14
19
1
3
1
0
0
1
41,502
Sales,GWh
GWh
%
773
2
512
1,368
460
892
1
321
401
0
0
870
5,600
14
0
9
24
8
16
0
6
7
0
0
16
100
Source:T&TECBusinessPlan20112016
Notethattheconsumptiondistributionisheavilyskewedtowardsthelargeindustrialcustomers:one
verylargeindustrialcustomeraccountsfor16%oftotalconsumptionandonly39customers(0.1%of
thecustomerbase)consumed53%ofthetotal.
TheEfficiencyValuationOrganization(EVO)62estimatesthatthefollowingcommercialandindustrial
technologieshavetheassociatedlevelsofperformanceriskandpaybackperiods(TABLE18).
Table18:PerformanceriskandpaybackperiodsassociatedwithEEtechnologies
Typical
Associated
Risk
Simple
Payback,
Years
Highefficiencylighting
Low
23
Highefficiencychillers
Low
510
Highefficiencyboilers
Low
15
Heatrecovery&steamtraps
Low
24
HVACupgrades
MedHigh
28
Variablefrequencydrives(VFDs)onmotors(fans,pumps,etc.)
MedHigh
35
High
35
EETechnology
Newautomatedbuildings&HVACcontrols
Source:EfficiencyValuationOrganization2009
In the absence of specific industrial sector consumption data, it can reasonably be assumed that
electric motors, process heating, cooling, ventilation and lighting are significant endusers. The
relevantEEinvestmentsthatprocessingandmanufacturingfirmsshouldmakeinclude:
62
TheEfficiencyValuationOrganization(EVO)isanonprofitorganizationwhosemissionistodevelopandpromotetheuseof
standardizedprotocols,methodsandtoolstoquantifyandmanagetheperformancerisksandbenefitsassociatedwithenduseEE,RE,
andwaterefficiencybusinesstransactions.Seewww.evoworld.org
80
Retrofitofmotorswithvariablefrequencydrivesystems;
Processheatingretrofits;
Installationofhighefficiency,chilledbeamairconditioningsystems;
Lightbulbandlightingfixturereplacements/retrofits;
Implementationoflightingcontrolsystems.
TheproposedprogrammestoencourageuptakeoftheaboveareshowninTABLE19.
Table19:RecommendedProgrammesforEEinCommercial&SmallIndustrySector
ProgrammeofMeasures
Toutilizehighefficiencyair
conditioningsystems
Toretrofitmotorswithvariable
frequencydrivesystems
Toimplementlightbulband
lightingfixturereplacements
/retrofits
Toencourageuseoflighting
controlsystems
Incentive
Regulation
Phaseoutof
incandescentlight
bulbs
5.2.3.3 Estimated energy savings potential

Itislikelythat,largelyasaresultofverylowenergyprices,energyconsumptioninT&Tisattendedby
asignificantcomponentofenergywastage.BasedonthefindingsoftheNECstudyandgiventhatlarge
companiesinacompetitivebusinessenvironmentaretypicallymotivatedtoreducecostsinanycase,
it is reasonable to assume that a 15% energy savings is quickly attainable across the board for all
categories of commercial and industrial consumers. In relation to the effect of the proposed ESCO
150%taxallowance,weestimatethatoverthefirstfiveyears,amodesttotalof224commercialand
industrialcustomerswilltakeadvantageoftheprogramme,resultinginacumulativesavingsover5
yearsofapproximately33GWhofelectricity(whichisacumulative25%reductioninconsumptionfor
thosecustomers).Thiswouldresultinsavingsofabout23.1ktCO2emissions,certainlystillnotenough
toattractthecarbonmarketatcurrentlowpricesforcarbonemissions.
5.2.4 Government
5.2.4.1 Overview and estimates of baseline energy consumption
As noted above, the uptake of viable EE technologies will be influenced by the specific mix of
information,incentivesandregulationsdeliveredundertheumbrellaofGovernmentpolicy.However,
theconsistentcommentheardfromstakeholdersduringmeetingsandinterviewsisthatgovernment
shouldnotjustsetpolicy,installincentivesandmakeregulations,butshouldactivelyleadbyexample
indevelopingspecificEEprojects.Weagreewiththisgeneralproposition.Themarketsituation,based
ontheGovernmentsmaintenanceofasystemofsignificantpricesubsidies,doesnotfacilitateprivate
investment in EE, at any level. Under existing market conditions, Government cannot expect the
privatesectortolead;itmusttakespecialinitiativestosetanexample.
In relation to information, GoRTT has already embarked (in September 2012) on a national energy
awarenessprogrammeunderthethemeMyEnergy,MyResponsibility.Thecampaigniscomprised
81
ofthreephasesandisdesignedtotargetschoolchildrenthroughoutthecountry.Highlightsofthe
programmearepresentedinAppendixD:HighlightsoftheMyEnergy,MyResponsibilityCampaign.
GoRTT has been active in developing incentives and regulations designed to encourage EE in the
commercialandindustrialsectors.Themostimportantisthe150%TaxAllowanceincentive,designed
toencouragecompaniestoengageEnergyServiceCompanies(ESCOs)toidentifysavingpotentialsand
implement energy saving projects. The programme is targeted at commercial, light and heavy
industrialcompanies.
The programme (which is enacted, but not yet operational) provides for approved companies to
receivea150%taxallowance63ontheirinvestment,onceatleasta15%energyreductionisachieved
asaresultoftheirinvestmentintherecommendedEEactivities.Itisintendedthatcertaintypesof
companies(e.g.:powergenerators)willbeexcluded;therewillbeaminimumexpenditurethatwould
beeligibleforanallowanceandacapontheallowableinvestmentvalue.
TheimplementationoftheallowanceistheresponsibilityoftheESCOCertificationCommittee(ECC),
amultisectoralbodychairedbytheMEEA.64TheECCsstatedtermsofreferencearetocertifyESCOs,
developproceduresandstandardsfortheconductofenergyauditsandtomakerecommendationson
theapplicationsforandawardofthetaxincentives.Itistobenotedthatnoactualcertificationof
ESCOsorenergyauditorsisactuallybeingdoneatthistime;theECCisprimarilyestablishingaregister
offirms.Wemakerecommendationsonthisincentivebelow.
Withregardtobaselineenergyconsumption,wenotethatnoestimatesareavailableoftheaggregate
energyconsumptionofgovernmentownedoroperatedbuildingsandfacilities.
Ashasbeenoutlinedabove,Governmentactionisrecommendedinthefollowingfourareas:
Deliveryofinformation;
Designandimplementationofincentives;
Enactingandenforcementofregulations;
Designandimplementationofspecificprojects.
a)Deliveryofinformation
Governmentshoulddesignandimplementacomprehensive,fiveyearprogrammetoquantify,analyse
andimprovethegeneralpublicsawarenessofandengagementwithenergyissues.Suchaprogramme
willincludesomeofthefollowingactivities:
Competitions,promotionsandgiveaways;
Exhibitionsandenergyfairs;
Freeworkshopsanddemonstrations;
Informationcampaigns;
Lectures&presentationstothepublicandtoschools;
Level1energyaudits;
63
Ataxallowancedecreasestheamountofthetaxableincomeandcanberolledforwardtofutureyears.
64
OthermembersaretheBoardofEngineering,theT&TElectricalInspectorateDivision,theAccreditationCouncilofT&T,theT&TGreen
BuildingCouncil(TTGBC),theT&TBureauofStandards(TTBS),theRegulatedIndustriesCommission(RIC),UniversityofTrinidadand
Tobago(UTT)andtheUniversityofTheWestIndies(UWI)
82
Developmentofadatabasewithgovernmentenergyusagedata;
Publicationofgovernmentenergyusagedata;
Internalbenchmarkingofgovernmentenergyusedata;
RadioandTVshows;
Research,surveysandpublicationofresults;
Socialmediaandmobilequizzesandgames.
b)Designandimplementationofincentives
Three general types of incentive are considered: incentives for individuals, for businesses and
incentivesthatencouragetheelectricitydistributioncompanytoengageinprogrammesthatreduce
customerdemand.65
c)Incentivesforhouseholds
Householdsarealreadyeligiblefora25%taxcreditforsolarwaterheatinginstallationsofuptoTT$
10,000(US$1,560)invalue.Inaddition,werecommendthefollowingforconsiderationbytheGoRTT:
Providetaxdeductionsforindividualsfor:
-
Performance of household energy audits by certified energy auditors (recommended

deductionofuptoUS$500);
Implementation of EE improvements recommended by the audit and/or purchase of

environmentallyfriendlyproductssuchasefficientsplitairconditioningsystems,Energy
Starorequivalentratedappliances,etc.(uptoUS$5,000peryear).Notethateligibility
forthisincentiveshouldnotbeaffectedbyoptingoutoftheenergyaudit;
Provide incentives to encourage appliance retailers to offer tradein programmes, for

customerstoreplaceinefficientapplianceswithenergyefficientones;
Provide support for lowinterest credit through established financial organizations (banks,
creditunions).
d)Commercialincentives
The GoRTT has recently legislated several interventions targeted at the commercial and industrial
sectors,themostimportantofwhicharetheGreenFundandtheESCOClient150%TaxAllowance.
TheGreenFund(seealsochapter4.5)
In2000theGoRTTestablishedtheGreenFundasthenationalenvironmentalfund.66Thefundsgrant
facility is available to community groups and organizations engaged in activities focusing on
remediation,reforestationorconservationoftheenvironment.Thefundiscapitalizedbyataxof0.1%
onthegrosssalesorreceiptsofcompaniescarryingonbusinessinT&T.Tenyearson,thefundisvery
wellendowed,butonlyahandfulofprojectshavebeenfinancedandnonewithanEEfocus.
65
Suchdemandsidemanagement(DSM)programmesaimtoreduceoveralldemandforelectricityand/ortoshiftdemandfrompeak
timestooffpeaktimes.
66
Moreinformationonthefundisavailableathttp://www.mphe.gov.tt/agenciesdivisions/gf.html
83
ItisourrecommendationthattheGoRTTandthefundmanagers67reviewtheaims,objectivesand
operatingparametersofthefundtooptimizeittoincludetheabilitytosupportviableEEprojects.
ESCOClient150%TaxAllowance
AmajorinitiativebytheGoRTTisitsESCOClient150%TaxAllowance,whichwasenactedin201068.
Wewereprovidedwithtworestrictedcirculationdocumentsregardingthisallowance:
ESCOClient150%TaxAllowanceGuidelines,and
AuditRequirements&Guidelines.
BasedondiscussionswiththeESCOCertificationCommittee,weestimatethatwithmodestuptake
andsuccessinachievingthetargetenergyreductions,the150%taxallowanceschemecouldfacilitate
savingsof33GWhandUS$1.6millionover5years,withanestimatedpaybackperiodofapproximately
sixyears.OurestimatesandassumptionsaredetailedinAppendixE:EstimateofCosts&Benefitsof
150%TaxAllowanceProgram
We recommend that the Trinidad and Tobago Electricity Commission (T&TEC) should be the entity
responsibleformeasurementandverificationofenergysavingsachievedbyparticipants.Thereare
severaladvantagestothisapproach:
T&TECalreadypossessesthenecessaryinformation(kVAdemanddata)toclassifyclientsso
therewouldbenoprivacyissuesinrelationtohandlingoruseofsuchdata;
T&TECalreadypossessesthenecessarymeasurementdata(meteredelectricityconsumption)
fortheprospectivecustomers;
Theywouldonlyneedtoincorporatetheverificationaspects,whichshouldnotbedifficultfor
them.
Insuchacase,T&TECwouldberuledasnoteligibletoapplyfortheincentive,butsincetaxallowances
onlyapplytocompaniesthatmakeaprofitinanygivenyearandT&TECdoesnot,thenthisissueis
moot,atleastforthenearfuture.69
e)IncentivesfortheelectricitysuppliertoimplementDSMandconservationprogrammes
Interventionsmadebytheelectricitysupplier,withtheaimofreducingoveralldemandforelectricity
and/or shifting demand from peak to offpeak times, generally referred to as demandside
management (DSM) programs, are another option for reducing consumption. A key factor in the
success of such programs in advanced economies has been the implementation of policies and
incentives designed to make EE investments attractive to utilities, even as the ultimate aim of the
investmentsistoreduceenduserconsumptionofelectricity(andthereforerevenuetotheutilities).
AnobviousconstraintintheT&Tcontextisthattheutility,T&TEC,isalreadyoperatingatafinancial
loss.AkeyquestionthereforeisiftheRICwillallowT&TECtorecover,infuturetariffs,theadditional
costsitwouldincurtoimplementDSMprograms.
67
TheGreenFundExecutingUnit,adivisionwithintheMinistryofHousingandtheEnvironment
68
UndertheFinanceAct2010(section10PoftheCorporationTaxAct),whichregulatesproposedtaxallowancesforESCOs.
69
Also,itisconsideredthat,inprinciple,governmentownedentitiesshouldnotneedincentivestheycansimplybemandatedtotake
thedesiredaction.
84
f)Regulations
ItisrecommendedthatGoRTTshouldenactanEnergyEfficiencyActthatwill,amongotherthings:
Provide financial and economic incentives for EE in all sectors: residential, commercial,
industrial,transportandagriculture.
Establish an EE Information Centre that will advise all types of customers on best ways to
conserveenergy.
MandatetheapplicationofappropriateEEstandards,throughanationalbuildingcode,for
cooling,ventilation,lighting,hotwatersystemsandappliancesininstitutional,commercialand
industrial buildings. Development of the code can refer to existing American Society for
Heating, Refrigeration and Airconditioning Engineers (ASHRAE) standards70 and US Green
BuildingCouncil(USGBC)guidelines,amongothers.Specificclausesinthecodewillbeneeded
tocover:
o
Lightingefficiency,sothatspacesarelitbynaturalmeansduringthedaytimeandnot
underoroverilluminatedotherwise;
Insulation efficiency for airconditioned spaces, so that cooling is confined to the

buildingenvelopes;
Passivedesignforreducingbuildingheatloads,sothatlessenergyneedstobeused
for cooling in the first place, e.g.: through installation of shading devices outside
windows.
Provideapathforthephasingoutofinefficienttechnologiessuchasincandescentlighting;
Providethelegalframeworkforregistration,trainingandcertificationofenergyauditorsand
ESCOs;
Providebusinessincentivesfortheutilitycompaniestoconsiderefficiencyanddemandside
management(DSM)activitiesintheirleastcostplanningmodelsforprovisionofadditional
energyservices;
Legislaterequirementsforstandardsettingandenergylabellingofconsumerappliances;
Where public funds are used to implement any EE project or programme, mandate the
publicationoftheapplicableresultsonapublicwebsite;
Develop and monitor indicators of national EE (e.g.: energy intensity amount of energy
requiredtoproduceaunitofGDPorenergyservice).
ThepassageofsuchlegislationwilleffectivelysetthestageforensuringthatEEhasanimportantrole
inthedevelopmentofthecountrysenergyfuture.Itshouldbenotedherethatseveralcountriesand
jurisdictionshaveoverthepasttwentyyearsimplementedEElegislation,addressingareasidentified
above.AfrequentlycitedexampleisCalifornia,wheretheCaliforniaPublicUtilitiesCommission(CPUC)
andtheCaliforniaEnergyCommission(CEC)in2005adoptedCaliforniasEnergyActionPlanII,which
set a loading order for the provision of the states energy needs and identified EE and demand
responseastheStatespreferredmeansofmeetinggrowingenergyneeds(StateofCalifornia2005).
More recently, the European Union adopted directives, in 2006 on energy enduse efficiency and
energyservices,andin2010onenergyuseinbuildings.Theformer,Directive2006/32/EC,includesan
70
Suchas2010ASHRAE189.1:StandardfortheDesignofHighPerformanceGreenBuildingsExceptLowRiseResidentialBuildings
85
indicative energy savings target for the member states; obligations on national public authorities
regardingenergysavingsandenergyefficientprocurement,andmeasurestopromoteEEandenergy
services.71
g)SpecificGovernmentprojects
Inlightoftheargumentsoutlinedabove,werecommendthatoverthenextfiveyears,thegovernment
shouldseektobecomethecountrysmostvisibleEEcustomer,primarilyinrelationtobuildingsenergy
useand,toafarlesserextent,instreetlighting.TheMEEAhascommencedleadingbyexamplehere,
andhasundertaken,underthisconsultancy,aprogrammeofenergyauditsofpublicbuildingsthathas
nowbeenconcludedandwhosemainfindingsaredetailedinChapter5.6.
h)Buildings
NospecificinformationonthecontributionofbuildingstoenergyconsumptioninT&Tisavailable,but
the International Energy Agency (IEA) estimates that residential, commercial, and public buildings
accountfor30%to40%oftheworldsenergyconsumption.Weassumethatfiguresofthatorderare
likelytoapplyinhighlycommercializedandindustrializedT&T.
NospecialincentivesorprogramsareinplaceforEEinpublicbuildingsandtheproportionofbuildings
ownedbyand/oroccupiedbythepublicsectorisnotrecorded.Somenewbuildings(suchastheMEEA
buildingnowbeingaudited)incorporatesomeformofenergymanagementsystem,butitwasnoted
thatthesystemintheministrysbuildinghasnotyetbeencommissioned.
T&ThasadraftSmallBuildingCodethatdoesnotaddressEEmattersandtheGoRTThasadvisedthat
itismovingtowardsestablishinganationalbuildingcode.
Governmentshouldperformareviewandinventoryofexistingbuildingsownedandoccupiedbythe
public sector to determine the baseline status of building stock, as a first step to designing the
appropriateEEinterventions.Interventionswillinclude:
Airconditioningretrofits;
Lightingretrofits;
Useofintegratedbuildingenergymanagementsystems;
Passivecoolingretrofits.
Governmentshouldfurther
workwiththeGreenBuildingCouncil,theBoardofEngineering,theBureauofStandards
andotherprofessionalorganizationsofengineers,architectsandenergyserviceproviders
tomovetowardsspecifyingEErequirementsinexistingandnewbuildingcodes;
select one large and/or prestigious Governmentowned or occupied building to

implement a national demonstration project on EE, addressing airconditioning and
lighting retrofits, integrated energy management systems, water use and occupant
behaviour modification. Possible candidates would be the Piarco International Airport
complexortheRepublicBankofT&T;
71
Seehttp://ec.europa.eu/energy/efficiency/enduse_en.htm
86
developandinstitutespecificEEengagement(awareness,educationandcommunications)
programmesforpublicsectoremployees.
i)StreetLighting
Theotherareatobeaddressedisstreetlighting,forwhichtheGoRTT(throughT&TEC)isresponsible.
Over 180,000 street lighting lamps are installed in T&T. The vast majority (95%) of these are low
pressuresodiumlampsandthebalanceiscomprisedofmercuryvapourandhighpressuresodium
lamps.Theselampsaccountforanannualelectricityconsumptionofover110GWh(about1.5%of
totalelectricityconsumption).
ThereplacementoftheexistinglampswithLEDswillcertainlyreducetheenergyconsumedbystreet
lighting, but the economics of the intervention are prohibitive. Assessments of street lighting
replacement programmes in the USA (where electricity prices are significantly higher than in T&T)
indicatepaybackperiodsof23+yearsforLEDreplacementprogrammes(PNNL,2012).Itisnotedthat
T&TEC,initsBusinessPlan20112016,citesaweakbalancesheet,negativecashflowsandhighdebt
aslimitationstoitsperformance.Inthiscontextandgivingverylowexistingtariffs,suchinvestments
would be prohibitive to T&TEC in the absence of significant subsidization from GoRTT. Given the
constraints, the most suitable approach would be to implement one or more relatively small,
strategicallylocated,pilotprojectsfordemonstrationpurposesatthisstage.SeeAppendixF:Street
LightingPilotProjectforfurtherinformation.
5.3 EnergyEfficiencyActionPlan&Budget
5.3.1 ExistingActivities
TheGoRTThasimplementedseveralincentives(Table20)andanationalenergyawarenesscampaign
aimedatreducingenergyconsumptionbyindividuals,householdsandbusinesses.
Table20:ExistingEEmeasuresimplementedandfundedbyGoRTT
Sector
Residential
sector
Commercial
sector
DescriptionoftheMeasure
2010
HouseholdSolarWaterHeaterTaxCredit
Householdsareeligiblefora25%taxcredit
forSWHinstallationsofuptoTT$10,000
(US$1,560)invalue.
2010
150%ESCOTaxAllowance
CompaniesthatengagecertifiedESCOsto
designandimplementenergysavingsprojects
areentitledtoa150%taxallowanceontheir
investment,providedatleasta15%energy
reductionisachievedasaresultoftheir
investmentintherecommendedEEactivities.
2010
ESCODepreciationAllowance
WhereacertifiedESCOhasacquiredplant
andmachineryforthepurposeofconducting
energyauditstheyareallowed:
- 75%accelerateddepreciationonthe
acquiredassetsinthefirstyear;
87
Cost&Benefit
Theuptakethroughend2012hasbeen
negligible:Seventaxcreditsweregranted,
havingatotalcostofUS$4,000and
providingestimatedenergysavingsof
US$1,850
Theprogrammehasnotyetbeen
operationalized,andnotaxrevenue
impactorsectorwidebenefithasbeen
estimated.
Notaxrevenueimpactorsectorwide
benefithasbeenestimated
Sector
DescriptionoftheMeasure
Cost&Benefit
- 25%wearandtearallowanceonthe
acquiredassetsinthefollowingyear
Hotelsector 2010
Theprogrammehasnotyetbeen
operationalizedandnotaxrevenue
HotelsthatengagecertifiedESCOstodesign
impactorsectorwidebenefithasbeen
andimplementenergysavingsprojectsare
estimated.
entitledtoa150%taxallowanceontheir
Light Manu 2010
Theprogrammehasnotbeenquantified.
facturing
Sector
CompaniesthatengagecertifiedESCOsto
designandimplementenergysavingsprojects
areentitledtoa150%taxallowanceontheir
General
Reductionorremovalofimportdutiesfrom
Costsandimpactshavenotbeen
Public
specifiedEEitems
quantifiedbytherelevantauthorities.
Note:The150%taxallowanceappliestothecommercialandindustrialsectors.
5.3.2 EnergyEfficiencyTargets,ActionPlanandBudgetPlan
TheoverallobjectiveistoreduceT&Tspercapitaenergyconsumptionfrompresentdaylevels,which,
asdescribedabove,areunsustainableoverthemediumtolongterm.Short,mediumandlongterm
targets are proposed as shown in Table 22 to Table 24. The budget figures presented are
recommendedbudgetnumbersfor5yearsinthefirstinstance.
Theestimatedoutcomeisanexpenditureover5yearsofUS$23.3million,resultinginenergysavings
of972.9GWh,cumulativecostsavingsofUS$48.6millionandavoidedemissionsof681ktofCO2over
theperiod;assummarizedinTable21.
Table21:Summaryof5yearBudgets,EstimatedSavingsandCO2avoided
Item
Expenditure,000
US$
EnergySavings,MWh
CostSavings,000
US$
CostSavings,000TT$
CO2emissions
avoided,kt
Residential
Hotels
TOTAL
12,950
1,750
8,622
23,322
929,986
10,286
32,604
972,876
46,499
514
1,630
48,644
297,595
3,291
10,432
311,319
651
7.2
22.8
681
88
Commercial&
Industrial
Table22:ProposedResidentialSectorEEmeasurestobeimplementedbyGoRTT
RESIDENTIALSECTOR
Budget
Responsibilityor
Sourceof
Funding
SummaryofTargets
Summaryofobjectives
TheoverallobjectivesforEE
interventionsintheresidential
sectorareto:
reducetheuseofelectricity
forwaterheating;
encouragetheuseofenergy
efficientappliances&
lighting;
reduceenergyconsumption
inthesocialhousingsector;
engage&motivate
consumerstoadoptnocost,
durableenergysavings
behaviours.
ShortTerm
MediumTerm
LongTerm
5years
615years
15+years
Reducepercapitaenergyconsumptionby20%from2010levels
Reducepercapita
energyconsumptionby
25%from2010levels
Reducepercapita
energyconsumptionby
30%from2010levels
SpecificActivities&5yrBudgettomeetTargets
Design&implementcomprehensiveawareness,information&engagement
programmetoquantify,analyse&improvegeneralpublicawarenessof&
engagementwithenergyissues,encompassingthebenefitsofsolarwaterheating,
energyefficientappliances&lighting
Continue,reviewandappropriatelymodifythe
programme
GoRTT
BudgetUS$2,500,000
DevelopaprogrammeforapplianceEEstandardsandlabelling
Implement,continueandimprovetheprogramme
GoRTT,TTBS
BudgetUS$5,000,000
Increaseimportdutyontankwaterheatersfrom20%to30%&continueprovision
oftaxcreditsforsolarwaterheating
Increaseimporttariffs
to50%
Increase import tariffs

to65%
GoRTT
BudgetUS$1,400,000
Providetaxcredits&financialincentivesforefficientappliances(basedon
establishedEEstandardsandlabellingprogramssuchasEnergyStarorequivalent),
includingincentivestoretailerstoaggressivelymarketEEappliances
Increaseimporttariffsoninefficientappliancesas
designatedbytheadoptedstandards;
Continuefiscal&financialincentivesforefficient
BudgetUS$1,500,000 appliances
89
GoRTT
GoRTT
Reducetheimportdutyonhighefficiencyairconditioningunitsto10%and
progressivelyincreaseimportdutiesfrom20%to50%onlowefficiencyunits
GoRTT
Incandescentbulbsare
nolongerabletobe
imported.Existingstock
canbesold
No
incandescent
lightinginuse
GoRTT
BudgetUS$0.00
Increaseimportdutyonincandescentlightbulbsfrom20%to30%andannounce
intentiontophaseoutin5years.Design&implementCFLdisposalprogramme
BudgetUS$500,000
PreinstallationofCFLstonewHDCsocialhousingunits
BudgetUS$550,000
ImplementprogrammeofreplacementofincandescentlightbulbsinexistingHDC
socialhousing
BudgetUS$300,000
OtherProject:T&TECisconsideringmovingfrombimonthlytomonthlybillingfor
residential&commercialcustomers.GoRTTshouldencourageandsupportthis
project.
CFLbulbsarepre
No
incandescent
installedinallHDCunits lightinginuse
Noincandescent
lightinginusein
existingHDCunits
No
incandescent
lightinginuseinexisting
HDCunits
HDC
HDC
T&TEC
BudgetUS$1,200,000
Identifiedbenefitsareincreasedcustomergoodwillandreducedreceivables.An
additionalbenefitispotentialincreaseinconsumerawareness&engagement.
T&TEChasnotquantifiedanylikelybenefits.
5YEARBUDGET,US$
12,950,000
AGGREGATEENERGY
SAVINGS,MWh
929,986
COSTSAVINGS,000US$
46,499
COSTSAVINGS,000TT$
297,595
651
CO2EMISSIONSAVOIDED,kt
Notes:
CFLpriceisretailprice.CFLretailpricewillaverageUS$5.07to2016;Inflationaverage8%overtheperiod(basedondatafromTradingEconomics.com);Assumed2,000SWHtaxcreditapplications
@averageUS$700each;HDCwilldeliver3,200unitsperyearoverthe5yearperiod;OtherenergysavingsestimatesandassumptionsaredetailedinAppendixC:Methodologyfor
ResidentialBaselineandSavingsEstimates.
90
Table23:ProposedHotelSectorEEmeasurestobeimplementedbyGoRTT
HOTELSECTOR
SummaryofTargets
Summaryofobjectives
interventionsinthehotel
sectorareto:
increasetheuseof
efficientairconditioning
systems;
usemoreefficientlighting
&controls;
usemoreefficient
equipment&appliances
backofhouse;
encourageenvironmental
&sustainability
certification.
ShortTerm
MediumTerm
LongTerm
5years
615years
15+years
Reduceaveragesectorenergy
consumptionby15%from
2010levels.
Reduceaverage
sectorenergy
consumptionby
25%from2010
levels.
Reduce
averagesector
energy
consumption
by35%from
2010levels.
Budget
Responsibility
orSourceof
Funding
Designandimplementa
nationalsustainabletourism
education&awareness
programme,targetedat
owners,operatorsand
stakeholdersinthehotel&
tourismsector.
GoRTT,TDC,
THRTA
BudgetUS$1.5million
Implementthe150%Tax
Allowanceprogramme.
Review,continueandimprovethe
programme.
GoRTT
Budgetincludedelsewhere
Providesupportforexpendituresonapprovedenvironmental
certificationprogrammes(EarthCheck,GreenGlobe,etc.).
Propertieswillbereimbursedfromthegrantfundoncompletion
andawardofthecertification.
BudgetUS$250,000
TOTAL5YRBUDGET,US$
10,286
COSTSAVINGS,000US$
514
COSTSAVINGS,000TT$
3,291
CO2EMISSIONS
AVOIDED,kt
7.2
91
1,750,000
AGGREGATEENERGY
SAVINGS,MWh
GoRTT(viaTDC)
GreenFund
Table24:ProposedCommercialSectorEEmeasurestobeimplementedbyGoRTT
COMMERCIALSECTOR
SummaryofTargets
Summaryofobjectives
interventionsinthe
commercialsectorareto:
increasetheuseofefficient
HVAC&coolingsystems.
usemoreefficientlighting
systems.
usemoreefficientprocess
technology&control
systems.
ShortTerm
MediumTerm
LongTerm
5years
615years
15+years
Reduceenergyconsumption
comparedtobaselineby15%
from2010levels.
Reduceenergy
consumption
comparedto
baselineby25%
from2010
levels.
Reduceenergy
consumption
comparedto
baselineby
35%from2010
levels.
Budget
Responsibility
orSourceof
Funding
Implementthe150%Tax
Allowanceprogramme
Review,continueandimprovethe
programme
GoRTT
BudgetUS$8,622,000
TOTAL5YRBUDGET,US$
AGGREGATEENERGYSAVINGS,MWh
8,622,000
32,604
COSTSAVINGS,000US$
1,630
COSTSAVINGS,000TT$
10,432
22.8
Notes: Budget and savings based on assumptions and estimates presented in Appendix C: Methodology for
ResidentialBaselineandSavingsEstimates.
5.4 EnergyPolicymeasureswithregardstoEE
Tobeabletoreachtheproposedmeasuresasdetailedintheactionplan,acoherentpolicyresponse
willbenecessary.OnlyiftheGovernmentundertakescertainchangestheenergyefficiencypotential
canbeusedtoitsfullpotential.
5.4.1 GeneralrecommendationsforEEPolicies
T&TEC should be obliged to carry out demandsidemanagement programmes, e.g. by

replacing inefficient refrigerators and providing rebates for the purchase of new efficient
refrigeratorsorbypurchasingefficientrefrigeratorsinbulk.Suchmeasuresshouldeitherbe
financed through the Green Fund (see above) or through an extra levy on revenues of the
powergenerationutilities.
TariffpolicywouldneedtobeamendedbytheRegulatedIndustriesCommissioninsuchaway
thatcostsincurredforsuchprogrammescanbeclaimedbyT&TECandwouldformpartofthe
overallcoststatementwhichdeterminestheratesetting.
92
Incandescentlightbulbsshouldbebannedfromthemarketbysettingminimumperformance
standardsforlighting.IncandescentlightbulbshavebeenbannedfromtheEuropeanUnion
marketsinceSeptember2012andwillbebannedintheUnitedStatesofAmericaandMexico
by2014.AlsootherLatinAmericancountriesarecurrentlyintheprocessoftakinglegalactions
againstinefficientlightingorhavealreadydoneso.ItisrecommendedthatCARICOMcountries
takeaharmonizedapproach,whereT&Tcouldtakealeadasoneofthemajormarketsinthe
Caribbeanforlightbulbs.Duringthecourseoftheconsultancy,GoRTThasstartedanexchange
programmeforincandescentlightbulbswhichareagoodfirststepintherightdirection.
Minimumefficiencystandardsandlabellingprogrammesshouldbeimplemented.Minimum
performancestandardsforEEandconsumerinformationaboutenergyconsumptionthrough
labels are normal and often mandatory procedures in many jurisdictions. Currently OECS
memberstatesareconsideringhowtoestablishownstandardandlabellingschemesandset
uptestingfacilitiesforverification.WeproposethatT&TtakesinitiativeattheCARICOMlevel
for a common and harmonized approach. In particular efficient light bulbs (compact
fluorescentlamps)shouldberequiredtocarryaminimumamountofinformationabouttheir
performance on the packages. This will increase the general product quality and make
consumersawareofthedifferencesbetweenapparentlysimilarproductsonthemarket.
Minimumbuildingstandardswillbeestablishedandappliedinitiallyforsocialhousingprojects
and for all public and government buildings. Currently T&T has no standards for EE in the
construction sector. As mandatory standards are difficult to control and need a strong
administrativestructure,theintroductionofbuildingstandardsforthesuggestedconstruction
areasunderdirectgovernmentcontrolisrecommendedasafirstmeasure.Inparticularsocial
housingprojectsareagoodstartingpointasmostofthebuildingsarenotadaptedtotropical
climate leading to a low comfort and/or high electricity costs if dwellers purchase air
conditioningsystemstolowerhighroomtemperatures.ExamplesinMexicohaveshownthat
smallinvestmentscanleveragesubstantialincreasesincomfortbyinsulatingroofsandsun
exposedwalls,improvingnaturalventilation.
Infrastructureshouldbeexpandedinsuchawaythatsmallormediumsizedconsumerscan
benefitfromdirectsupplyofnaturalgas,e.g.foruseinabsorptionchillersforairconditioning
systems of larger buildings and for cogeneration (in particular trigeneration to produce
electricity,heat/steamandcoolingenergy).Currentlyonlyaverylimited numberof clients
outsideoftheindustrialcomplexesarereceivingpipednaturalgas.Itisrecommendedthat
T&T takes measures to expand the grid and allows the direct decentralized and efficient
consumption of natural gas for various purposes, in particular where it can substitute
electricitywithoutloweringthequalityandamountofenergyservices.
Theuseofsolarwaterheatersshouldbecomemandatoryforallnewhousingprojects,hotels,
guesthouses and other major hot water users (according to iisd Financing Low Carbon
DevelopmentinTobago,13%oftotalelectricityconsumptionisbeingusedforwaterheating).
SolarwaterheatersarecurrentlynotcostcompetitiveinT&T,butcaneasilysaveelectricity
and reduce greenhouse gas emissions with proven and reliable technology. It is therefore
suggestedtoamendthegeneralbuildingcodeinsuchawaythatsolarwaterheatersbecome
a mandatory feature in such constructions that by determination use high volumes of hot
water.
Themostinefficientturbinesforelectricitygenerationshouldbedecommissionedassoonas
possible. The current thermal efficiency for electricity generation with 2627% is extremely
low. Modern combinedcycle power plants with natural gas supply can reach at least 50%
93
efficiency. It is therefore recommended to retire all inefficient turbines and substitute the
generation fleet by new efficient plants as soon as possible. In this regard, the Regulated
IndustriesCommission(RIC)shouldsetmaximumannualheatratesperkWhandprovidea
timescaleforfurtherefficiencyincreases.
Smartmetersshouldbeinstalledandtheintroductionoftimeofuseratesconsidered.Smart
metersoffertheopportunityforelectricityconsumerstobettermanagetheirconsumption
patternandgetfirsthandinformationontheuseofelectricityatacertainperiodoftime.In
combinationwithtimeofuserates,theycancontributetoashiftofpowerdemandfrompeak
timesintolowloadperiods.Aninvestigationofwhethersmartmeterscansupportinlowering
electricity consumption and whether timeofuse rates would be suitable for curbing peak
demandisrecommended.
5.4.2 ProposedTrinidadandTobagoEnergyAgency
To support the MEEA in undertaking the change towards EE, the consortium proposes the
developmentofanEnergyAgencyforTrinidadandTobago(TTEA).TheTTEAwouldcomplementthe
activitiesoftheMEEAtomakesurethatitcanfocusonitscoreactivities.SeeTable25forinformation
onthetypicalcoreactivitiesofanenergyministry.
Table25:TypicalresponsibilitiesofanEnergyMinistry
Defineenergystrategiesandpolicies
Planningoflongertermenergysupply
Designthelegalframework
Mandatespecificstudies
Harmonizenormsandstandardswithneighbouringcountries
Maintainenergystatistics,observemarketdevelopments
Takeoverregulatoryroleunlesslefttoseparateentity
Establishandmonitorsupportprogrammes,e.g.onenergyefficiencymeasures
Engageininternationalinstitutions
Attractfinancialresources/donors
Source:DetlefLoy
Based on international experience, as well as discussions with relevant stakeholders from T&T,
especiallytheMEEA,theConsultantsproposethattheTTEAhavethefollowingmandate:
ProvidegeneralandtechnicalguidanceonEEandRE.
Poolandtransferknowledgeandinformationonnationalenergysupply,efficientenergyuse
andresourcesmanagement.
Actinthetriangleofgovernment,privatesectorandfinancinginstitutions.
Promote three general objectives of energy policy: secure, environmentally friendly and
economicallyviableenergysupply.
BasedonthediscussionswiththeMEEA,aswellastheexperienceoftheConsultants,thefollowing
areasofactivitieswouldbeofspecialinterest,tofulfilitsmandate:
a) Developmentofstudiesandresearchonenergypolicyrelatedmatters;
94
b) Consultancyforpublicandprivatesector;
c) Information,awarenessraisingandmotivationservicesforenergyconsumers,includingthe
implementationofpublicawarenesscampaignsandpubliceducationservices;
d) OrganizationandimplementationofeventswithregardstoEEandRE;
e) Demandsidemanagementprogramsfor/withutilities;
f) AssistanceforGovernmentinfundingprograms,implementationofpilotprojects,planning
forlongtermenergysupply,statisticalservicesonenergysupplyandconsumption;
g) CapacityBuildingandTrainingfordifferentenergyrelatedaspects;
h) ImplementationofESCOservices;
i) Assessmentofenergyresources,e.g.hydropower,wind,biomass,solar;
j) Advisestaterunpublicsectorandmunicipalitiesinassessingenergysavingpotentialsand
purchasingenergyefficientequipment;
k) SupportT&Teducationstakeholderstodevelopaprogramfortheincorporationof
educationonsustainableenergytothenationalcurriculaatalllevels;
l) BringbuildingEEandenergyefficientconstructiontotheforefrontbyimplementinga
comprehensiveprogramoftrainingforengineers,architectsandcraftsmen.
It is envisaged that the TTEA will operate at a high level, with a suitable budget and authority to
implementrecommendationsandtodelegateactions.Itwilldeliveritsmandatethroughcollaboration
withrelevantGovernmentagencies,NGOs,theprivatesector,regionalandinternationalbodies.
Tomakesurethatanenergyagencycanoperateefficiently,itisimportantthatitisindependentfrom
directpoliticalinfluence,andthatitisespeciallynotinfluencedbypoliticalchanges.Itshouldoperate
atleastasasemiautonomousinstitutionwithitsownbudgetandshouldhaveautonomytotakeits
own operational decisions. To make it financially sustainable and more independent, it should be
allowedtoearnincome.
BasedondiscussionswithrelevantstakeholdersinT&T,themostsuitablebusinessmodelfortheTTEA
would be a Public Private Partnership. This would allow the integration of different relevant
stakeholder groups into the operations of the TTEA and would guarantee that the interests of all
relevantstakeholdergroupsarerepresented.Potentialpartnersfortheenergyagencycouldbethe
EnergyChamber,aswellastheMinistryofPlanningandSustainableDevelopmentandtheMinistryof
theEnvironmentandWaterResources.
Itisproposedthattheorganizationbestructuredasfollows(maximumstaffnumbersinbrackets):
95
Figure27:ProposedOrganisationChart,T&TEnergyAgency
CEO
(1)
Executive
Assistant
(1)
Awarenessraising
and
communication
(3)
EnergyEfficiency
(4)
Renewable
Energy
(4)
LegalDivision
(1)
Admin,Finance&
HRDivision
(4)
Generallyenergyagenciesarecharacterizedbylowhierarchiesandaflexiblestructure.Amaximum
numberofstaffhasbeenproposedforeachdivisionindicatedinthechart.Thestaffwillmostlikely
developoveraperiodoftimeandshouldbeadaptedtotheneedsinT&T.
5.5 ESCOCertificationCommittee
5.5.1 Background
TheGoRTTin2010passedtheFinanceAct2010whichprovideslegislationonspecificEEincentives
andsubsequentlysetupanESCOCertificationCommittee(ECC)underthechairmanshipoftheMEEA,
whichisscheduledtomeetonthesecondThursdayofeverymonth.
The work of the ECC is primarily carried out by an ESCO Working Group comprised of some of its
members.
TheECCsTermsofReferenceare:
todevelopregulationsandstandardsfortheconductofenergyauditstoensureadherenceto
minimumindustryrequirementsinaccordancewithbestinternationalpractices;
to make recommendations for the certification of ESCOs through review and evaluation of
applicationsandcredentialstoenhanceprofessionalismandqualityofservicesoffered;
tomakerecommendationsfortheawardofthe150%TaxAllowanceonthebasisofcriteriato
beestablishedbytheCertificationCommitteewithrespectto:
qualifyingexpenditures
the level of energy savings to be achieved through the installation of energy savings
equipmentanddevices.
TheECChasdecidedthatregistrationisbetterthancertificationfortheECCandMEAasitrelatesto
indemnicationissues.
TheCommitteebasesitsproposalsoninternationalexamples,suchastheNewBrunswick(Canada)
EfficiencyIndustryProgram,theUKEnhancedCapitalAllowance,theEnergyConservationPromotion
FundofThailandandtheAcceleratedCapitalAllowancesforenergyefficientequipmentofIreland.
96
5.5.2 RecommendationsonESCODefinition,ProceduresandProtocol
The ESCO tax allowance programme allows approved companies that engage a registered ESCO to
implementanenergysavingsproject,toreceivea150%taxallowanceontheirinvestment,onceat
leasta15%energyreductionisachievedasaresultoftheinvestmentintherecommendedEEproject.
TheimplementationoftheallowanceistheresponsibilityoftheESCOCertificationCommittee(ECC),
amultisectoralbodychairedbytheMEEA.TheECCsstatedtermsofreferencearetoregisterESCOs,
developproceduresandstandardsfortheconductofenergyauditsandtomakerecommendationson
theapplicationsforandawardofthetaxincentives.72
Theprogrammehasnotyetbeenputintooperation,ascertainkeyissuesarestilltobedecidedupon
andarrangementsandsystemsmustbeputintoplace.TheConsultantsmakerecommendationsbelow
onthefollowing:
1. WhatisthedefinitionofanESCO?
2. HowareESCOstoberegistered?
3. Whataretheprotocolsforcarryingoutenergyaudits?
4. Howismeasurement&verification(M&V)tobecarriedoutandbywhichregulatingbodyor
enterprise?
Aproposedsummaryoftheprocessforimplementationofthe150%taxallowanceisillustratedin
Figure28.TheECChasproposeddraftamendmentstothe150%taxallowancelegislationthatmake
provisionsforwhatshouldhappeniftheprojectisnotcompletedwithin1year.Insuchacase,the
client is eligible to apply for a 100% allowance in the first year and, subject to measurement and
verificationofthesavings,applicationforthebalanceof50%canbemadeattheendoftheM&V
period.73
72
ItistobenotedthatnoactualcertificationofESCOsorenergyauditorsisactuallybeingdoneatthistime;theECCisprimarily
establishingaregisteroffirms.
73
Nodecisionappearstohaveyetbeenmadeonhowtohandlethecasewherea100%allowancewasgrantedandasubsequent50%
allowancewasdisallowedduetofailuretomeetthesavingstarget.Alsocertainactions(suchaswhathappensiftheallowancesare
notgrantedforsomereason)remaintobespecified.
97
Figure28:Summaryofthe150%TaxAllowanceprocess(draft)
START
ClientappliesforAllowance
ClienthirescertifiedESCO
ESCOperformsaudit&submits
reportwithrecommendationsfor
project
Clientimplementsproject
Projectcompletedwithin1year?
No
Yes
Clientmayapplyfor100%
allowance
Allowancegranted?
No
No
GotoEND
No
Measurement&Verificationcommences&completed
Energysavingstargetachieved?
Energysavingstargetachieved?
Clientappliesfor150%Allowance
Clientappliesfor50%Allowance
Allowancegranted?
END
5.5.2.1 Definition of an ESCO

Afterconsiderationofthevariousissuesrelatingtothelocalmarketandtheimplementationofthe
150%taxallowanceprogramme,thefollowingdefinitionisrecommended:
AnESCOisacompanywhichprovidesservicesandtechnologyforimprovementofEE.Services
shallincludetheconductofenergyauditsandthegenerationofrecommendationsarisingfrom
same.ServicesmayalsoincludethedesignandimplementationofEEandREprojects;theprovision
ofmonitoringservicesandthefinancingofEEprojects.
98
WespecificallyrecommendthatanESCOshouldnotberequiredtoprovidefinancingforprojects.Our
rationaleforthisrecommendationisdetailedbelowinsection5.5.2.5.
5.5.2.2 Registration of ESCO and their staff
A registered ESCO shall be a firm that satisfies the ECCs requirements, including the national
requirements for local content. The ECC has defined a process for the receipt and processing of
applicationsforESCOregistrationandsuccessfulapplicantswillbegrantedacertificateofregistration
bytheECC.
Inthecontextofthisprogramme,anenergyauditorisdefinedasanindividualperson.Thesuitability
ofenergyauditorsshallbeassessedbasedonthequalificationssetoutbytheECCandtheECCisin
thefinalstagesofdefiningthesequalifications.
ESCOswillbeallowedtoengagesubcontractorswithinthescopeoftheaforementionedrequirements.
The ECC must ensure that the appropriate contractual subclauses are included in their contract
documentsthatwillindemnifytheECCfromfailureofanESCOoritssubcontractorstoperform.
Asrecommendedbytheconsultants,theECChasdevelopedadraftcontractbetweentheMEEAand
theESCO.
5.5.2.3 Energy audit protocols
EnergyauditsundertheprogrammeshallbecarriedoutinaccordancewithASHRAEprocedures74for
Level2andLevel3energyauditsasapplicabletotheclient.
TheAmericanSocietyofHeating,RefrigeratingandAirConditioningEngineers(ASHRAE)definesthree
levelsatwhichenergyauditsmaybeperformed.Eachlevelbuildsonthepreviouslevelandeachlevel
is more complex, thorough and comprehensive in terms of site assessment, data collection and
reporting. The choice between carrying out a level 2 or level 3 audit will depend on the clients
requirements, but it should be noted that the additional effort expended for a level 3 audit can
translateintohigherenergysavings.Level3auditsareespeciallyusefulforindustrialinstallations.
TheprotocolsfortheauditprocessandreportingaresummarizedinTable26.
74
ProceduresforCommercialBuildingEnergyAudits.SecondEdition,AmericanSocietyofHeating,RefrigerationandAirconditioning
Engineers,Inc.
99
Table26:Summaryofenergyauditproceduresandreportingprotocols
ConductPreliminaryEnergyAnalysis
AuditProcess
AuditLevel
Conductwalkthroughsurvey
Identifylowcost/nocostrecommendations
Identifycapitalimprovements
Reviewmechanical&electricalsystemdesign,conditionandO&M
practices
Measurekeyparameters
Analyzecapitalmeasures(savings&costsincludinginteraction)
Meetwithowner/operatorstoreviewrecommendations
Conductadditionaltesting/monitoring
Performdetailedsystemmodelling
Provideschematiclayoutsforrecommendations
AuditLevel
AuditReport
CompareEnergyUseIndextothatofsimilarsites
Summarizeutilitydata
Estimatelow/cost/nocostsavings
Performdetailedendusebreakdown
Estimatecapitalprojectcostsandsavings
Completebuildingdescriptionandequipmentinventory
Generaldescriptionofconsideredmeasures
Recommendedmeasurement&verificationmethod
Financialanalysisofrecommendedenergysavingsmeasures(ESM)
Detaileddescriptionofrecommendedmeasures
DetailedESMcostestimates
AdaptedfromJimKelsey,PE,kWEngineering.UpdatedProceduresforCommercialBuildingEnergyAudits
AclientmayalreadybeimplementingitsenergymanagementpracticesinaccordancewiththeISO
50001EnergyManagementstandard(ormayevenbecertifiedtothatstandard).Inanycase,ESCOs
areencouragedtobeguidedbytheISO50001energymanagementstandard,whereapplicable,inthe
performanceoftheirassignments.
5.5.2.4 Measurement and Verification
Anentityforthemeasurementandverification(M&V)ofsavingsmustbeidentifiedandputinplace
priortotheimplementationoftheallowancescheme.Ourrecommendationisthatthisentityshould
betheTrinidadandTobagoElectricityCommission.Thereareseverallogicalreasonsforthischoice:
a) T&TEC already knows what category (as determined by the kVA demand) the prospective
clientwouldfallunder;
100
b) T&TECalreadyhasaccesstotheelectricityconsumptioninformationofanyprospectiveclient
andthereforenoprivacyissueswouldariseintheaccessingofsuchinformation;
c) In general, T&TEC is considered to have the inhouse technical capacity to perform the
necessaryM&Vfunctions,thoughtherewillnodoubtneedtobesomeinternalreorganization
ofhumanresourcestoproperlycarryoutthisfunction.
ThemeasurementandverificationofenergysavingsmustconformtoestablishedM&Vprocedures.
WerecommendthoseproposedbytheEfficiencyValuationOrganization(EVO)intheirInternational
PerformanceMeasurementandVerificationProtocol(IPMVP)(EVOb)whichmaybesupplementedby
the complementary ASHRAE Guideline 142002 and/or the Federal Management Program (FEMP)
M&VGuidelines.(NEXANT)
It must be noted that the design and implementation of a successful M&V plan requires strong
collaborationbetweentheparties(theclient,theESCOandtheM&Vagent),atallstagesoftheproject.
5.5.2.5 ESCO capacity to execute energy performance contracting in T&T
An Energy Performance Contract (EPC) is an alternative financing mechanism that was initially
designedtofacilitateimplementationofenergysavingsprojectswithoutupfrontinvestmentsbythe
projectbeneficiaries.
Ingeneral,anEPCisapartnershipbetweenaclientandanenergyservicecompany(ESCO).TheESCO
conductsacomprehensiveenergyauditfortheclientandidentifiesenergysavingopportunities.In
consultationwiththeclient,theESCOdesignsandconstructsaprojectthatmeetstheclientsneeds
andarrangesthenecessaryfinancing.TheESCOguaranteesthattheinterventionwilldeliverenergy
costsavingssufficienttopayfortheprojectandfinancingcostsoverthetermofthecontract.After
thecontractends,alladditionalcostsavingsaccruetotheclient.Thesavingsmustbeguaranteedand
theESCOisobligatedtomakegoodanylossorshortfallinsavingsactuallyachieved.
There are two characteristics of the EPC arrangement that make it unlikely to be adopted for
widespreadusebyESCOsoperatinginT&T.Theseare:
a) TherequirementfortheESCOtoarrangefinancing,and
b) therequirementfortheESCOtoguaranteetheidentifiedenergysavingsbeforethefact.
Ingeneral,exceptforverysmallprojects,ESCOswillnothavetheabilitytofinanceaclientsproject
outofcashflow.ThismeansthattheESCOwillhavetoarrangefinancingfromacommercialbankor
other lending institution. The likelihood of an ESCO being able to access such financing in T&T is
extremely small (if not zero) at this time, given that no such market exists or has yet been
demonstratedforfinancingprojectsinT&TortheCARICOMregion.
Therequirementstoguaranteesavings(whichputsalloftheriskontotheESCO)willdetertheESCO.
IntheexistingclimateinT&T,wherethereisverylimitedactivityintheareaofenergyauditingand
energysavingsinterventions,andwhereenergypricesareverylow,arationalESCOwillcalculatethat
they are better off seeking business outside of T&T, where clients are faced with very high energy
pricesandhavegreaterincentivestotakeontheassociatedrisksthemselves.
Inrelation tothespecific 150%TaxAllowanceIncentive, thereisalsoafundamentalcomplication,
whicharguesagainsttheEPCmodel:Iftheintentofthetaxincentiveistopersuadetheclienttoinvest
inEE,butinsteadtheESCOistheentityactuallymakingtheinvestment,thentheincentivetotakethe
riskshouldbetothebenefitoftheESCO,nottheclient.Thisisclearlynottheintentofthe150%tax
allowancescheme.
101
Basedontheforegoing,itisrecommendedthat:
a) Thereshouldnotbeafocusontheuseofenergyperformancecontracts,and
b) FinancingofenergysavingprojectsbyESCOsshouldnotberequired.Ifthecaseariseswhere
anESCOcanandwillfinanceaclientsproject,thatclientcannotbeconsideredeligibleforthe
150%taxallowance.
5.6 EnergyAudits
AspartoftheirworkwithregardstoEE,theConsultantshavecarriedoutenergyauditsoneightpublic
buildingsinT&T.
Undertakingenergyauditshasvariouskeyobjectives:
1) ShowthattheGoRTTisleadingEEbyexample,throughtheimplementationofenergyaudits
invariouskeyGovernmentbuildings;
2) Collectfirsthanddataonenergyconsumption,aswellasenergysavingpotentialsinavariety
ofdifferentbuildingsinT&T;
3) Support local consultants and audit firms through capacity building measures and guided
implementationandestablishalocalmarketforenergyauditing.
5.6.1 Buildingselectionmethodology
Theselectionofbuildingstobeauditedfollowedastringentprocessofanalysisbasedonanumberof
unifiedcriteriaandapredefinedapproach:
Figure29Selectionprocess
Finalselectionof
buildingsbasedon:
Selectionof
buildingsbasedon
unifiedselection
critieria
Analysisofselected
buildingsthrougha
checklistandsite
visits
Relevanceofthe
buildingand
potentialimpact
Commitmentof
buildingownersto
participateinthe
auditandto
implement
recommendations
Apartfromthisunifiedselectionprocess,twoadditionalbuildingswerechosenduetotheirspecific
relevancefortheprojectortheMEEA:
102
1) MinisterialToweratInternationalWaterfrontCentre:TheofficesoftheMEEAarelocated
insidetheMinisterialToweratInternationalWaterfrontCentre.AstheMEEAintendstolead
theprocessofconvertingTrinidadandTobagointoacountrywithamoresustainableenergy
framework,theMinisterialTowerhasbeenchosenasthefirstbuildingtoconductanenergy
audit.
2) TheSpeysideSecondarySchoolinTobago:TheSpeysideSecondarySchoolhasbeenchosen
asthelocationforapilotprojectundertheTechnicalAssistanceprovidedbytheIDB.Asafirst
stepandnecessarypreconditiontobeabletodefinetheexactscopeoftheREpilotproject,
anenergyauditandfeasibilitystudywillneedtobeundertakenatSpeysideSecondarySchool.
Preselectionofthebuildingswasbasedonanumberofcriteria(Table):
Table1CriteriaforPreselectionofbuildings
Substantialelectricityconsumption(>100MWh/a)
Substantialelectriclighting,cooling&ventilationloads
Fulfilcommonpublicpurposes(suchasschools,hospitals,airport,office&administrative
buildings)
Havehadaseparateelectricitymeterforthepastthreeyears
Beabletoactasmodelcaseforsimilarbuildingsatotherlocations
BelocatedindifferentpartsofTrinidadandTobago
Beolderthan10yearsandhavenotbeenremodelledinthelast5years
The building operators and or users should have a genuine interest in an energy audit,
supportitsimplementationandbewillingtoconductchangesandinvestments
Basedonthepreselectioncriteria,theMEEAdefinedalistofbuildingstobeconsideredfortheenergy
audits.75 The building operators were requested to submit a checklist with regards to some basic
criteriasuchas:
Generaldataonthebuilding
Overallconsumptiondata
Existingappliances
Somebasicfactsaboutenergyefficiency.
SitevisitstookplaceinallthebuildingsthroughoutthemonthofJune2013withrepresentativesfrom
theconsortium,aswellastheMEEAandincludeddiscussionswithrelevantbuildingadministrators
andfacilitymanagers.
75
Basedonthefactthatnocofinancinghasbeenexpectedfromthebuildings,aswellasduetothespecific
situationinT&T,theconsortium,jointlywithIDBandtheMEEAhavedecidedtofocusallenergyauditsonpublic
buildings.
103
Table27Listofpreselectedbuildings
Building
SanFernandoGeneralHospital
NALISPortofSpain
PortAuthorityAdministrativeBuilding
PortofSpainGeneralHospital
THAAdministrativeBuilding
PolicyResearchDevelopmentInstituteBuilding
(PlanningDivision)
NationalTreasuryBuilding
UTTSanFernandoCampus
TunapunaAdministrativeCampus
SipariaAdministrativeCampus
St.JamesLibrary
MaloneyLibrary
Basedontheresultsofthechecklist,thepreselectiontabledeveloped(seeTable2)andthesitevisits,
thefollowingbuildingswerechosen:
NALISPortofSpain76
PortAuthorityAdministrativeBuilding
THAAdministrativeBuilding
NationalTreasuryBuilding
UTTSanFernandoCampus
PortofSpainGeneralHospital
TunapunaAdministrativeComplex.
Asmentionedpreviously,theMinisterialToweratInternationalWaterfrontCentreandtheSpeyside
SecondarySchoolinTobagowerealsochosenandselectedasthefirstbuildingstobeauditeddueto
theirpotentialawarenessimpact.
5.6.2 Auditorselection
Anopenandcompetitiveprocesswassoughttoassessthewholerangeofqualificationsandcostsfor
auditingavailableinTrinidad&Tobago.Insightoftheauditmarketontheislandsisfundamentalto
notonlyidentifythemostcompetentcompaniesbutalsopromoteandencouragetheservicelocally.
Inordertocompileacompletelistofcompaniesandindividualsofferingtheservicesofenergyaudits,
referencesweretakenfromtheMEEAdatabase.Inordertopromotelocalservices,onlyTrinidad&
Tobagobasedcompanieswereinvited.
Nineteencompanieswereidentifiedasofferingenergyauditsorrelatedservicesandwereinvitedto
present proposals in the first tender for the MEEA Ministerial Tower building and Speyside school.
Ninecompaniesrespondedwithproposals.
Although an open and wide identification process was chosen, it was essential that the selected
companiesdemonstrateahighqualityofserviceinlinewiththecomplexityoftheproposedwork.
Aremainingsevenbuildingswereselected,theauditsofwhichneededtobecarriedoutinashort
periodoftimehenceitwasunlikelythatonecompanycouldcopewiththeworkload.Furthermore,
76
TheNALISbuildingwasfinallyremovedduetoaninternaldecisionatNALIS.
104
thephilosophyoftheconsortiumwastogiveopportunitiestoseveralcompaniesinorderforthemto
gainexperienceandunderstandthecorrectproceduresneededtocarryoutenergyauditsbasedon
internationalenergyauditingstandards.
Theselectionprocessforthefirstauditsthereforeallowedaninitialoverviewofthequalificationsof
thefirmsintheenergyauditmarketinT&T,thusprovidingabaselineforcreatingashortlistforfurther
tenders.
5.6.3 Auditsupport
Theconsultantssetupasoundtechnicalstructuretosupporttheimplementationoftheaudits.The
consortiumimplementationteamwerealsosupportedbytheMEEAwhowerecloselyinvolvedinthe
selectionofthebuildingsandtheelaborationoftheaudits.
AnenergyauditexpertwaschosenfromLKS,aspartoftheconsultantteam,whohasexperiencein
the implementation of complex audit projects. He supervised implementation and guaranteed the
qualityoftheenergyaudits.Hismaintaskswere:
1. Supporttheevaluationoftechnicaltendersandselectionprocessofauditfirms.
2. Provide guidance for the execution of the energy audits depending on the type of buildings
selected.
3. Supervise, guide and assist the audit firms throughout the implementation process providing
individualsupportaccordingtoauditingexperience.
4. Provide quality control of the audit reports and organize feedback loops with selected
consultants.
5. ImplementacapacitybuildingworkshoponenergyauditsinTrinidad(topicsselectedbasedon
theexperiencesfromtheinitialaudits).
Energyauditsupervisor
(AndrewFerdinando)
Technicalsupportthroughthe:
Teamleaderandprojectmanager
(DetlefLoyandJohannaKlein)
EnergyEfficiencySpecialist(Haz
Samuel)
LocalMEEAconsultant(LaurenMia
Britton)
Localfirm1
Localfirm2
Localfirm3
105
5.6.4 GuidelinesforEnergyAudits
As part of the implementation process, guidelines for energy audits in the context of T&T were
developedaspartoftheToR.Theguidelinessupportedtheenergyauditorsintheimplementationof
Level2audits,andarebasedontheprinciplesoftheAmericanSocietyofHeating,Refrigerationand
AirConditioning Engineers (ASHRAE).77 Reference was also made to the ISO 50001 energy
management.
Theguidelinesincludethefollowingspecifiedcomponentactivities:
Endusebreakdown;
Detailedanalysis;
Costs&savingsforEEmeasures;
Operations&maintenancechanges.
Thedocumentproposes"processandscopeoftheenergyaudit",whichincludesalistofdatatobe
collected,anddeliverablesaswellasa"suggestedstructureoftheenergyauditreport".
Withinthedatacollectionsection,bothpassiveandactivesystemsarehighlightedinordertoobtain
fullinformationonthedemandandconsumptionofthebuildings.
ThedevelopedguidelinescanbeusedbytheESCOcommittee,aswellastheMEEAasguidancefor
conducting an energy audit (please see Appendix H: Guidelines for Energy Audits for the full
guidelines).
Additionally,amplifiedguidelinesonpassivesolutionsandawarenesswereissuedforthepilotproject.
These guidelines were then developed into a series of presentations that formed the focus of the
capacitybuildingworkshopsgiventoboththeauditorsandrepresentativesoftheGovernment,local
banks and building managers. Presentations and the capacity building report are available upon
requestfromMEEA.
5.6.5 ResultsoftheAuditingProcess
Detailedfindingsandconclusionsofeachauditedbuildingcanbeseeninthefinalreportsavailable
uponrequestfromMEEA.
However,theresultshavebeensummarizedtoofferanoverallindicationofwhereenergysavings
potentialsexistinTTandonwhatscale.
5.6.5.1
GeneralObservations
The energy saving potential is high in all the selected buildings. In all the resulting reports, energy
savingsofover25%havebeenclaimedthroughimplementingEnergyConservationmeasuresorRE
measures that have a payback time of under 5 years. In some cases, such as the only recently
constructedTowerCMinisterialbuilding,upto45%energysavingscanbeachievedimplementingthe
proposedmeasures,whichcanbepaidbackinjusthalfayearbasedonexistingconsumptioncosts.
77
ThereferencedocumentisASHRAE:ProceduresforCommercialBuildingEnergyAudits.SecondEdition.
106
Energy savings are equivalent to an average of 1,033 metric tons of CO2 emission reduction per
building.
Theexistingenergyconsumptioninmostofthebuildingsisfarhigherthanincomparablebuildingsin
moderate climates. It is clear from the reports that a lack of comparative data for T&T or similar
countries makes benchmarking difficult; however, the results imply that climatic, passive and
operationalinfluencesaregreatlyaffectingtheconsumption.Theseareareas,whichmustbetackled
apartfromsimplyupgradingactivesystems.
In all the buildings audited, common issues have been identified when it comes to energy
consumption.Themajorconsumptionisairconditioning:from40%to89%(TunapunaAdministrative
BuildingComplex)oftheoverallenergydemand.Itisthisareathatneedstobetackled,whenitcomes
tomakingthebuildingsmoreenergyefficientandfallsinlinewiththeaboveobservationaboutclimate
influencingthedemandforenergy.
OneofthemajorreasonsforexcessiveenergyconsumptionandlowEEispoorenergymanagement,
which contributes to a large percentage of the overall building consumption. Even without costly
substitutionoftheexistingactivesystems,buildingownerscouldgreatlyreducetheirannualenergy
billsbyturninglightsandACunitsoffwhenoccupantsarenotinthebuilding.Thisisespeciallycritical
inthecaseofACsystemsthatcontributetotheprincipalproportionofenergyconsumptioninevery
buildingaudited.
Anotherfundamentalissueofhighimportance(asreflectedbytheresultsoftheauditreports)isthe
buildingdesignandthebuildingenvelope.Thelatterisoftennotappropriateforreducingthecooling
load,andasaresultincreasesthedemandforenergyconsumption.Thisfactoriscriticalasitrelates
tothesizingofcoolingsystemsandmustbecarefullyconsideredwhenretrofittingolderbuildingsas
active systems can be installed in passive spaces and solar gains can be overlooked in newly
constructedbuildingdesigns.
Tonameafewexamplesofincreasedenergydemandfrompassivegains;theauditshaveidentified:
Spaces which have air conditioning running with shutters, but no glazing in the windows,
causingalossofcoolairtotheoutsideandinfiltrationofwarmairfromtheexterior.
Largeroofsurfacesthathavenothermalinsulationincorporated,causingincreasedthermal
conductivityaswellashavingdarksurfaces(highalbedos),whichreducethepossibilityfor
reflectingsolarradiation.Bothofwhichimpliestheoversizingofcoolingsystemstomeetthe
extrademandfromheatgains.
Lightingzoningthatdoesnotrespondtoincomingnaturaldaylight.Thezoningoftheartificial
lightingcircuitsaretoolargeorinadequateresultinginlightsswitchedoninareaswhichcould
takeadvantageofnaturaldaylight.
Large glazed facades that have insufficient solar protection causing direct solar heat gains.
Curtains and internal blinds are often used however this does not impede solar radiation
enteringthespaceandreducesthepossibilityofaccessingdaylight.
Other important issues are related to the operational management and the implementation of EE
measures:
Inmanybuildings,theownersinternalorganizationalstructuremeansaseparationofresponsibilities,
which makes decisionmaking difficult. Although some public buildings are occupied by various
entities,theGovernmentpaystheelectricitybills.Thebuildingssystemsarethereforeoperatedand
maintainedbyotheragents.Thisstructuremeansthatthereisnodirectrelationshipbetweenhow
107
efficientthebuildingisandhowmuchitcoststorun,whichcomplicatesthedecisionmakingprocess
whenitcomestoimplementingEEmeasures.
Mostbuildingshavejustoneelectricconsumptionmeterfortheentirebuildingorcompound,this
meansitisdifficulttorelateconsumptionpatternstospecificendusefacilitiesorapplications.Thisis
problematic,asexcessiveconsumptionorwastageisdifficulttoidentifywhenauditingandmonitoring
thebuilding.Inordertoprovideanaccuratebreakdownofthebuildingsconsumption,dataloggingis
requiredfordifferentendusesectors.
5.6.5.2
SummaryofAuditConclusions
ThefollowingTable28gatherstheconcludingenergyconsumptionfindingsandrecommendationsof
eachoftheaudits.Theenergysavingsthatwouldarisefromimplementingtheproposedmeasuresas
a percentage of the overall annual building consumption are expressed along with the cost of
implementationandthetimeitwilltaketorecovertheinvestmentsthroughcostreductions(simple
paybacktimes).
DetailedfindingscanbeobtainedfromtheauditreportsavailablewiththeMEEA.
108
Table28:Summaryofauditfindings
Shortsummaryoffindings
Proposedsavings,
costandpayback
ThisEnergyAudithasidentifiedfiveEE Measures(EEMs)andRE Measures(REMs).Theimplementationofthe

recommendedmeasureswillresultinanestimatedannualenergysavingof5,019MWh(3,513metrictonsCO2).
Theseare:
45%
US$117,448
0.6years
Building
TowerCMEEAbuilding
SpeysideSchool
Additionalrecommendationsweremadeforbehaviouralchangestoachieveenergysavings.
Pilotproject.
ThisEnergyAuditidentifiedelevenEEMeasures(EEMs)andREMeasures(REMs).Theimplementationoffourof
therecommendedmeasureswillresultinanestimatedannualenergysavingof182.3MWh.(128metrictons
CO2).Thesewereidentifiedas:
PortAuthority
AdministrativeBuilding
RectifyBuildingManagementSystemtoallowschedulingofequipmentoperation;
RectifyBMSSystemtoallowvariationinchilledwaterflowrate;
ImplementanEnergyManagementSystem(EnMS);
ImplementLightingManagement;
InstallagridconnectedPhotovoltaic(PV)systemcombinedwithmotionsensorstopoweremergency
stairwaylighting.
LightingRetrofitsandControls;
ApplyPlexiglastowindows;
InstallHighEfficiencyDCInverterMiniSplitUnits;
InstallPVsystemtomeetnewlightingdemand.
ThisEnergyAudithasidentifiedsixEE Measures(EEMs)andRenewableEnergyMeasures(REMs).The
implementationoftherecommendedmeasureswillresultinanestimatedannualenergysavingof1,449MWh
(1,014metrictonsCO2).Thesewereidentifiedas:
ShadeexposedCondensingUnits;
InstallProgrammableTimerstocontrolallAirConditioningSystems;
109
56%
US$187,189
17.1years
52%
US$188,495
3.7years
PortofSpainGeneral
Hospital
ThisEnergyAudithasidentifiedfourteen EnergyConservationmeasures(ECs)butnoRenewable
EnergyMeasures(REMs).Theimplementationoftherecommendedmeasureswillresultinanestimatedannual
energysavingof1700MWh(1,190metrictonsCO2).Thesewereidentifiedas:
THAAdministrative
Building
CreateanEnergyManagementSystem;
RepairRefrigerantPipeInsulation;
InstallaPVsystemcombinedwithmotionsensorstopowercorridorlights;
RetrofitT12tubestoT8tubes.
ReplaceallT12fixtureswithnewT8fixtures.
Replace4lampT8fixtureswithT5lampswithhighfrequencyballastfactorandreflectors.
Replaceoutdoorlightingfixtureswitha70WphotocellcontrolledLEDwalllights.
Replaceincandescentlampswithcompactfluorescentlamps.
Installtimersinhightrafficareasandexternalcorridors.
Installoccupancysensorsinlowtrafficareaswithlittlenaturallighting.
Installindoorphotosensorsinareaswithsufficientdaylight.
ProgramprogrammablethermostatsforpackagedACunitsfornighttimeandweekendsetback.
IncreasesetpointtemperaturesonsplitandpackagedACUnits.
Installdoorthresholdsforallexternaldoorsofairconditionedrooms.
Replacehollowcoredoorswithsolidcoredoorsforallexternaldoorsofairconditionedrooms.
ReadjustsensorforslidingdooroverXRayreception.
Airsealingofbuildingenvelopewhereleaksarepresentinwindows,doors,andwalls.
CentralductHVACsystemwithhumiditycontroltoreplaceallsplitunits.
OperationalandBehaviouralGuidelinesarealsoincludedcoveringHVACandlightingoperationand
maintenanceaswellasawarenesscampaigns.
ThisEnergyAudithasidentifiednineEnergyConservationMeasures(ECMs)butnoRE Measures(REMs).The
implementationoftherecommendedmeasureswillresultinanestimatedannualenergysavingof336MWh
(236metrictonsCO2).Thesewereidentifiedas:
CreateanEnergyManagementPlan;
110
29%
US$38,816
2.2years
40%
US$111,163
Nooverallfigure
given
NationalTreasury
Building
ThisEnergyAudithasidentifiedelevenEnergyConservationMeasures(ECMs)butnoRE Measures(REMs).The
implementationoftherecommendedmeasureswillresultinanestimatedannualenergysavingof574MWh
(402metrictonsCO2).Theseinclude:
UTTSanFernando
Campus
ConductRegularPreventiveMaintenance;
InstallaBasicEnergyManagementSystem;
SealWindowLeaksandACPenetrations;
ReplaceWindowFilm;
ReplacetheExisting20and30tonSplitSystems;
Clean/ReplaceHVACAirFilters;
AirDistributionTestandBalanceofBuildingSpaces:
LightingandLightingControlsRetrofit.
CreateanEnergyManagementPlan;
ConductRegularPreventiveMaintenance;
InstallaBasicEnergyManagementSystem;
SealWindowLeaks;
ReplaceWindowFilm;
SealDuctworkLeaks;
RepairFilterRacksandClean/ReplaceAirFilters;
InstallAutomaticDooratPensionsAdministrationPublicEntrance;
InstallDoorSweeps(Brushes)onMainEntranceDoor;
AirDistributionTestandBalanceofBuildingSpaces;
LightingandLightingControlsRetrofit.
ThisEnergyAudithasidentifiedten EnergyConservationmeasures(ECs)andRenewable Energymeasures(REs).

Theimplementationoftherecommendedmeasureswillresultinanestimatedannualenergysavingof623MWh
(436metrictonsCO2).Theseinclude:
Install30gallonsolarhotwatersystemforcafeteria;
RetrofitallT12fixtureswithT8lamps,ballasts,andreflectors;
ReducequantityofT8fixturesinclassrooms;
Installastronomicaltimeclocksforallexteriorcorridorlighting;
Installoccupancysensorsinallclassroomsandoffices;
111
28%
US$124,341
Nooverallfigure
given
29%
US$89,780
3.4years
Installindoorphotosensorsinareaswithmuchnaturallightingfordaylightharvesting;
InstallVariableSpeedDrivesandprogramprogrammablethermostatsforpackagedACunitsfornighttime
andweekendsetback;
IncreasesetpointtemperaturesonsplitandpackagedACUnits;
Reduceinfiltrationbysealingairleaksindoors,windows,andwallscampuswide;
CentralductHVACsystemwithhumiditycontroltoreplaceallsplitunits.
OperationalandBehaviouralGuidelinesarealsoincludedcoveringHVACandlightingoperationand
maintenanceaswellasawarenesscampaigns.
ThisEnergyAudithasidentifiedsevenEE Measures(EEMs)&RE Measures(REMs).Theimplementationofthe

Tunapuna
AdministrativeCampus recommendedmeasureswillresultinanestimatedenergysavingof626.6MWh(439metrictonsCO2).These
include:
Sealoverthecounteropeningswhennotinuse;
RepairthedoorclosertoTTPostentrance;
Installprogrammabletimerstocontrolallairconditioningsystems;
CreateanEnergyManagementSystem;
Installpowerfactorcorrectioncapacitorbanks;
Shadeexposedcondensingunits;
Repairrefrigerantpipeinsulation.
112
55%
US$10,339
0.41years
5.6.6 ShortcomingsandConclusionsoftheAuditingProcess
5.6.6.1
Shortcomings
Initialbids
TherelativelylownumberofcompanieswithexperienceinenergyauditinginT&Tcomplicatedthe
selectionprocess,withresultingbidsthatwerehardtocompareforthefollowingreasons:
Extremevariationinthepriceofthebids
Variedexperiencedemonstratedbyteammembers
Lackofreferencesofsimilarwork
InpreparingtheTORforthebidstheconsultantteamalsocameacrosstheproblemoflittleavailable
information about each building. Generally, building owners do not have full sets of drawings or
technical information about the buildings systems. Ideally this information should be available to
includeintheTORdocumentation.
Duetotheneedtoamplifythecapacityforenergyauditingintheregion,thebuildingsweredistributed
betweenthreecompanies.Althoughsomeofthesecompaniesreliedonexternalinternationalauditing
experts, as it was felt that their inclusion would encourage and improve the capacity of the local
experts.
Audits
The initial draft reports focused purely on the efficiency of active systems without also analysing
passiveissueswhichtheConsultantsbelieveisessentialinordertoprovidecompleteenergyaudit
reportsinT&T.Theenergyconsumptionnotonlydependsontheefficiencyanduseofthemachinery
installedbutalsoontheenergydemandofthebuildingandthemanagementofthesesystems.
Thethermalenvelopeisanothersystemthatneedstobedescribedandanalysed.Combiningthiswith
climaticstudiesprovidessolutionsforreducingtheenergydemandofthebuilding.Auditorsfocused
onartificiallightingandACasthemainconsumptionsourceswithouttakingnoteofimprovementsof
thebuildingenvelopewhichcouldhavereducedthecoolingandlightingload.
ItwasalsodetectedthatauditorshadlittleexperiencewithcomparingtheEEofelectricalequipment
andmakingsuggestionsforreplacementofinefficientappliances.
Itisalsovitaltoinvestigate,stateandanalysethewaytheactivesystemsaremanaged,whichmeans
getting adequate information from building users and service personnel. In many cases this
information was not provided, however this is not simply a shortcoming of the auditors but also a
failingbythebuildingmanagerstoprovidetheinformationsolicited.
Tosummarizewhereimprovementscouldbemade,thefollowingpointsshouldbementionedapart
fromtheissuesonpassivesolutionsandoperationalmanagementcommentedbeforehand.
Knowhowaboutinsulationmaterial(effectandapplication)anddifferentwindow
specificationsneedstobeimproved.
Recommendationsfornoinvestmentmeasuresneedtobebasedonrealisticscenarios.
Efficiencyofexistingelectricalequipmentneedstobeassessedandcomparedwithnew
equipmentonthemarket.
Recommendationsshouldincludeguidanceforprocurementofofficeequipment.
113
Summarieshavetobewrittenfromthedecisionmakersperspective.
Assumptionsforcostsofmeasuresareoftennotwelljustified.
Capacitybuilding
Inordertoprovideguidanceontheshortcomingsdetectedinthefirstauditsandtoprovidecapacity
buildingforthelocalmembersoftheauditingteams,theconsultantteamorganizedworkshopsthat
coincidedwiththestartofthesecondbatchofaudits.TheworkshoptitledBuildingEE:Gettingthe
mostoutofauditingdemonstratedwhatacompleteauditreportshouldcontainandplacedspecial
focusonawarenessandpassivemeasures.CapacityBuildingReportandpresentationsareavailable
withtheMEEA.
5.6.6.2
Conclusions
TheseshortcomingsarenormalandunderstandableconsideringtheearlystagesthatT&Tfindsitself
inrelationtoanalysingandimplementingEE.Thereisnoexistingmarketforenergyauditsandsoitis
not surprising that there is a shortage of professionals with experience in carrying out complete
optimalauditreports.Thewordcompletemustbereiterated,becauseinsomecasesauditorswent
beyondwhatwasexpectedofthem,forexamplemeasuringloads,CO2 contentinroomair,etc.and
thefactthattheoverallreportswerelateorincompleteshouldnottakeawayfromtheseefforts.
Theshortcomingsshouldnotbeabarrierbutinsteadprovideinsightforfutureimprovements.The
conclusionscanbeveryconstructiveforguidingtheESCOcommitteeinprovidingasolidfoundation
forafutureauditingmarket.Theenergyauditorswerekeentolearnandrespondedconstructivelyto
the consultant team's suggestions, which demonstrates their enthusiasm to form part of a future
wherebuildingenergyconsumptionanalysisiscommonplace.
Althoughnotthoroughlycomplete,thefindingsoftheauditorsareveryvaluable.Inallthebuildings
which have been audited common denominators have been identified when it comes to energy
consumption.ThisimpliesthatEEpotentialisveryhighandthroughthemeasuresproposed,large
energysavingscanbemadeasindicatedinthesectionabove.
Inthefinalpresentationsgiventothebuildingownersbyeachauditingteam,theparticipatingbuilding
managers or representatives expressed their gratitude for this whole exercise and demonstrated
willingnesstoimplementatleastthoserecommendationswithshortpaybacktimes.
InviewoffutureauditingprogramsandprovidingconstructiveadvicefortheESCOcommittee,the
followingpointscanbehighlighted:
AlthoughASHRAEproceduresareagoodguidelineforbuildingsintheUS,incountriessuchas
T&T it is important to include requirements for analysing passive issues to reduce building
energydemand.
ESCOcommitteeneedstoemphasizetheneedfortheanalysisofthebuildingenvelopesso
thattheycanbecorrectlyunderstoodandexamined.
Requirementsfordataloggingofthedifferentsystemsmustbeincludedinordertoprovide
accuratedisaggregationofenergyconsumptions.
Building managers should have complete information on their electricity bills and building
specifications. They should be encouraged to set up a data bank with all the relevant
114
informationontheirbuilding,includingtechnicalinformationonallmajorelectricequipment
(capacity,brandetc.).
Building managers need to be guided and included in the process of auditing; not only in
providingthenecessaryinformationfortheauditorsbutalsoencouragingthemintheuptake
ofauditrecommendationsandmakingbuildingusersawareofenergysavingpotentials.
Inordertoencouragebuildingmanagerstocarryoutenergyauditsontheirbuildings,itwould
behelpfultoinstallincentives(e.g.fixedamountsofgrantsperairconditionedfloorspace).
In order to avoid the wide ranging and very high priced bids experienced in this project, it
wouldbeadvisedthatonlymaximum(capped)priceforenergyauditsareaccepted.
TheresultsoftheauditsandtheobservationsmadebytheConsultantsinthevariousmissions
demonstrate that large reductions in energy consumption could be made with greater
awarenessandbetteroperationalmanagementoftheactivesystems.Thisissueshouldnot
onlybehighlightedinauditreportsbutalsoreiteratedtobuildingusersandservicepersonnel
throughawarenesscampaigns.
Itisimportantthatemphasisisplacedoninternalawarenessprogramswhichcanbevaluable
toolstohelpengagestaffinmakingthebuildingsmoreenergyefficient.Theseprogramscan
also provide building managers with an internal structure to encourage better energy
managementanddecisionmakingforimplementingenergysavingmeasures.
The implementation of the identified measures requires financial frameworks that induce
themtobecarriedout.Policymakersneedtosupporttheauditprocesswithincentivesand
guidelines to ensure that on receiving the recommendations, building managers are
encouragedtoimplementthemeasures.
ThereareanumberofbarrierspresentinT&T,whichmeanthatsuccessfulauditingfollowed
byimplementationofenergysavingmeasureshasadistancetotravel.Goodexamplesand
showcasesareneededinordertostimulatethemarket.Theseshowcasescanbemonitored
toverifyifexpectedresultsaremet.
Thefollowingrecommendationsarealsomadewithviewtoimprovingthecapacityoftheauditorsto
carryoutenergyaudits:
TheconsultantteamrecommendsthatauditorsundertakesomespecifictrainingonEEaspects
with regard to building envelopes (learn about insulation material, window specifications,
optionsforshading,naturalventilationetc.)
5.6.7 NextSteps
5.6.7.1
Whatneedstobedonewiththefinalauditorsreports?
Thereportsdeliveredbytheauditorsneedtobepassedontothebuildingmanagersofeachselected
building. Building on the initial interest demonstrated by each manager responsible for
implementationofEE,itshouldbeencouragedthatatleastaproportionoftheidentifiedmeasures
arecarriedout.
115
InthecaseoftheTowerCMinisterialBuilding,itwouldbeagreatopportunitytocarryoutallofthe
ECMsandREMsasademonstrationprojectshowing"whatcanbedone"andsettinganexampleto
others.Ascommentedbeforehand,implementingalloftheidentifiedmeasureswouldresultinahuge
annualenergysavingof5,019MWh,whichcorrespondstothemitigationof3,513metrictonsCO2.
Duetotheexistinghighenergypricespaidannually,thecostofimplementingthesixECMsandREMs
wouldberecuperatedinonly7months.
Simplybyimprovingtheenergymanagementwithinthebuilding,whichwouldensurethatlightsare
turnedoffatnightandintheweekend,wouldreducetheenergycostsconsiderablyandactasa"dark
beacon"forenergyawarenessinthecity.
5.6.7.2
Howcanthisstepbesupported?
Guaranteeingthattherecommendationsarecarriedoutineachbuildingwillnodoubtrequirecertain
supportfromtheMEEAandESCOcommittee.
Firstly,inensuringthatthereportsreachthecorrectpeopleatbothtechnicalanddecisionmaking
levels.
Secondly,itisvitalthattherecommendationsarefullyunderstoodbytheseagents,inorderthatthe
correctmeasuresaretakentoachievethepredictedenergysavings.
Thirdly, considering the high initial costs of many of the energy saving measures it will be very
importanttoimplantfinancialmechanismsandprovideincentives.Thisisprobablythemostimportant
point,asthecostofcarryingoutthemeasureswillhighlyinfluencedecisionmaking.
Fourthly,itwillbeimportantthattheimplementationprocessispursuedandthebuildingmangers
feelsupportedthroughout.
Finally, the results of implementing the measures must be registered, firstly by monitoring the
improvedenergyconsumptionandsecondlybyshowcasingtheresults.Themostpowerfuladvocate
forEEandpromotingenergyauditswillbereallifeexamplesofhowimplementingidentifiedmeasures
cangreatlyreducetheannualcostsofthebuilding.Theseresultsshouldsupportawarenesscampaigns
to promote further audit programs and greater energy conservation. The resulting monitored data
shouldalsobeusedtosetupdatabanksofenergyconsumptioninpublicbuildingsinordertoprovide
benchmarksforfurtherauditing.
5.6.7.3
Whatneedstobedonewiththeauditingconclusions
ThehighlightedconclusionsmadeintheprevioussectionshouldbeaddressedbytheESCOcommittee
inordertoguaranteeasolidbaseforfutureauditingandEEprograms.
BoththecommitteeandtheMEEAshouldsupportthesefindingsbyprovidingguidelines,trainingand
programsthatguaranteeanunderstandingofthepotentialofenergyauditsandsetupatechnical
capacitytobothcarryoutcompleteauditsandimplementtheidentifiedmeasures.
Inordertofacilitateboththeuptakeoffutureenergyauditsandimplementationoftherecommended
EEandREmeasures,itwouldberecommendedthatsupportisprovidedthroughfinancialincentives.
There are a number of international examples that can be analyzed in order to reach the most
appropriatemechanismforT&Tforallbuildingtypologies.Theseoptionscouldbediscussedwithin
theESCOCommitteewithinterestedbanksinordertosetupmechanismsforprivatebuildingowners.
116
See Appendix I: International Examples of Marketbased Financial Mechanisms for EE for further
information.
117
RenewableEnergy
The following chapter takes an indepth look at the potential and the challenges with regards to
differentREtechnologiesinT&T.TheconsultantshaveanalyzedthepotentialforsolarPVsystems,
windenergy,biomass,wastetoenergy,differentoceanenergytechnologiesandothertechnologies,
suchasconcentratedsolarpower.
6.1 Establishmentofmechanismsforfeedingenergyintothegrid
Asapreconditiontobeabletofeedenergyintothegriddifferentoptions,includingFeedinTariffs,
NetMetering, NetBilling, Renewable Portfolio Standards and Competitive Bidding have been
analyzed.
6.1.1 FeedinTariffs
As has been outlined by (MEISTER, 2012), fixed feedin tariffs (FIT) for renewable electricity have
shownconsiderablesuccessinmany countries (seetheexampleoftheUnitedKingdom inthebox
below).Asofearly2013,71countriesand28states/provinceshadadoptedsomeformofFITpolicy.
DevelopingcountriesaccountforthemajorityofcountrieswithFITsinplace,amongthosecountries
withonlyrecentlyadoptedFITschemes,suchasUganda(seeboxbelow),JordanandthePhilippines
(REN21,2013).Nevertheless,itshouldbepointedoutthattheestablishmentoffeedintariffsaloneis
noguaranteeforasuccessfulREdeployment.
Othersupportingfactors,whichareasimportantasguaranteedfinancialreturns,includethecostand
timeofadministrativeproceduresforreceivingconstructionandoperationpermissions.Inanumber
ofcountries,highfeedintariffshaveshownnopositiveeffect,duetosubstantialbarriersonthelegal,
technicalandadministrativeside.E.g.unclearandexaggeratedenvironmentalrequirementscanblock
projectsindefinitelyandincreasecoststosuchanextentthattheycannotbecompensatedbyeven
generous feedin tariffs. It is therefore necessary to look at the installation of feedin tariffs in an
integratedmannerandatthesametimepublishguidelinesaroundallissuesofthepermissionprocess,
the technical requirements for grid integration, payment schemes or the requirements of the grid
operator.etc.
FeedintariffsintheUK
In addition to the Renewables Obligation existing since 2002 that requires electricity suppliers to source a specified
proportionoftheirelectricityfrom(primarilylarger)renewableenergysources,theUKintroducedanewsupporting
schemeforsmallerrenewableelectricitysystemswiththeEnergyActof2008.AFITschemebecameeffectivefromApril
2010forallnewqualifyinginstallations,includingthosethathadbeeninstalledafterJuly15,2009.Oldersystemswere
onlyeligibleforareducedFITrateiftheyhadbeenregisteredundertheRenewableObligationbyMarch31,2010.The
FITschemereplacestheRenewableObligationasthemainmechanismofsupportforREinstallationswithamaximum
capacityof50kW.Operatorsofinstallationsover50kWto5MWhaveaoneoffchoiceofapplyingundertheFITorthe
RenewableObligation.TheFITisadministeredbytheenergyregulatorOfgem.
A FIT is paid for every kilowatthour that is generated from selected renewable energy sources as well as by micro
CombinedHeatandPower(CHP)units,beitforownuseorforexporttothegrid.Anykilowatthourfedintothegridwill
getanadditionalbonuspayment.TheFITcanbeappliedforallREfacilitiesusingbiogasandforwind,hydropowerand
solarPVsystemswithamaximumcapacityof5MW78.Itisdifferentiatedaccordingtothesize(capacity)oftheplant.In
addition,theFITforPVinstallationsvariesdependingonotherfactors:alowerrateispaid,ifthepowerissuppliedtoa
buildingwithoutanenergyefficiencycertificateinthebandAtoD;amediumrateapplies,iftheoperatorowns25or
78
Forcommunityownedprojectstheupperlevelhasbeenraisedto10MWinJuly2013.
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morePVinstallationsregisteredforFITpayment.Specificsiteconditions,e.g.windspeedorsolarirradiation,arenot
takenintoaccount.FITsarepaidfor20yearsforalltechnologiesandareadjustedannuallybytheretailpriceindex.
Thebonuspaymentforelectricityexportsissetasafloorpriceinthelegislation,whichisalsolinkedtotheretailprice
index.Anyoperatorcanoptoutofthisfixedpricingschemeandnegotiateabettertariffwithhiselectricitysupplier,who
mostcertainlywillonlyacceptthisoptionforlargersystems.Aslongassmartmetersarenotyetcommon,exportsare
deemedtobe50%ofallelectricitygeneratedforPVandwindinstallationsupto30kW.Ifexportsareconsideredtobe
higher,operatorscanuseseparateexportmeters.
CustomersusingsolarPVorwindturbineswithupto50kWneedtoensuretheyuseMicrogenerationCertification
Scheme(MCS)certifiedequipmentinstalledbyanMCScertifiedinstaller.79
SystemsoperatingunderFITshavetoberegisteredwithOfgemafterinstallationandanapplicationhastobesubmitted
toanyelectricitysupplierparticipatingintheFITscheme(FITLicensee)outofalistofcurrently16differentcompanies.80
The extra costs incurred, including administration costs, are spread equally among all Licensed Electricity Suppliers
accordingtotheirmarketshares;theycanrecoverthepaymentsfromtheircustomers.Itispredictedthattheextracosts
by2020willbeintherangeofUS$16annuallyfortheaveragecustomer.Themainsupplierofelectricitytoacertain
facilitydoesnothavetobethesamecompanythatreceivesthegeneratedREelectricity.
Defaultdigressionlevelshavebeensetlegallyforthedifferenttechnologies:3.5%quarterlyforsolarPVand5%annually
for all other RE electricity. Those levels can be lowered or increased, depending on the deployment rate of each
technology,e.g.forPVsystemsofupto10kWpthedefaultcorridoris100200MWquarterly;forlowerinstallationrates
thedigressioniszero,forinstallationsabove200MWthedigressionisdoublingforeveryadditional50MW,uptoa
maximumof28%81.Furthermore,thegovernmentmayreviewanytarifflevelsonanannualbasistoensurethatthey
areachievingthedesiredoutcomes.
ThecumulativecapacityofallREsystemsstimulatedbytheFITschemehadreachedabout1,800MWbySeptember
2013.About70%ofthecapacityhasbeeninstalledinthedomesticsector.
Withmorethan350,000systemsandatotalofalmost1,500MWuntiltheendof2012,solarPVisthemostsuccessful
technology.Thelargemajorityofthosesystemsareinstalledinthedomesticsector.Despitethoseresults,ithadbeen
previouslyanticipatedthatevenahighercapacityratewouldbeachieved.Andin2013therateofcapacityincrease
sloweddownconsiderably.
Furtherinformation:
Ofgem,FeedinTariff:Guidanceforrenewableinstallations(Version5;19April2013)
WebsiteofFeedinTariffsLtd.:www.fitariffs.co.uk
DepartmentofEnergy&ClimateChange,UKSolarPVStrategyPartI:RoadmaptoaBrighterFuture,October
2013
Settingtherightlevelforfeedintariffscanbeatediousandtimeconsumingprocess.Thegeneral
principleofcostcoverageiseasytounderstand,butsincecostfactorsareoftenvolatileanddepend
onsizeandtechnology,itisdifficulttofindtherightpathbetweenoverandunderpayment.Amore
pragmaticapproachissuggestedbystartingwithamoregenerousremunerationpaymentthatmay
bedownsizedanytimeifitprovestobesuccessfulorifcostshavechangedconsiderably.Frequent
adjustmentsoffeedintariffsaretypical,inparticularinthefieldofsolarelectricitywherecostshave
79
www.microgenerationcertification.org.TheMCSisaninternationallyrecognizedqualityassurancescheme,supportedbytheUK
DepartmentofEnergyandClimateChange.MCSstandardsarepredominantlybasedoninternationalandEuropeanstandardsalready
inexistence.
80
NotethatnotallLicensedElectricitySuppliersactiveontheUKmarketofferFITs,butthosewithmorethan250,000domestic
customersarerequiredtojointheFITscheme.
81
Infact,thedeploymentrateforthiscapacityrangeofPVsystemshasbeencontinuouslybelow100MWwithinaquarteryearuntil
September2013,exceptintheveryfirstperiodofMaytoJuly2012.
119
dropped considerably in recent years. It is therefore necessary to keep the market under close
observationandregisteranyshiftatthepricefront(seeboxabovefortheUKexample).
ForT&T,itissuggestedthatconcentrationbeplacedatthemomentontheintroductionoffeedin
tariffsforwindandsolarelectricityasthesourcesofREthathavethelargestpotential.Inparticular
solarPVcaneasilybeexploitedbysmalldomesticoperatorsaswellasonalargerscalebycommercial
andindustrialentities.Additionally,adifferentiationaccordingtotheplantsizeisfurthersuggested
andacapacitycaprecommendedforthefirstbatchofsolarinstallationsastheircostsmayinfluence
overallelectricitygenerationcosts,althoughwithaverylimitedimpactatlowcapacityvolumes.
GETFiTinUganda
SeveralAfricancountries,amongthoseUganda,TanzaniaandKenyahaveesablishedfeedintariffsintherecentpast.
Usuallythosefeedintariffsaretoolowtoreallyattractprivateinvestment.Inordertoremovethisbarrier,adonor
financedpremiumhasbeenintroducedunderthenameGETFiTinUganda,initiatedjointlybytheGermanDevelopment
BankKfWandDeutscheBank.Theprojectwasofficiallylaunchedon31May2013.Itwillsupportapprox..125MWor
upto15projectsofgridconnectedrenewableenergywith120MWeachwithinthenext5years.
AselectricitytariffsinUgandaarealreadyamongthehighestintheregion,afurtherburdenputontheshouldersoffinal
consumerswasnotseenasaviableoption.Furthermore,investorsconfidenceisatstakeduetotheliquiditycrisisof
stateownedutilities,notonlyinUganda.Debtandequityfinancingisthereforehardtoget.TheGETFiTpremiumon
topofthealreadyexistingfeedintariffstructurewillbepaidoncetheREplantisoperating.Furthermore,theGETFiT
programmeconsistsofaGuaranteeFacilitytosecureagainstofftakerandpoliticalrisk,aswellasaPrivateFinancing
Mechanism that will offer debt and dequity at competitive rates.It is a mechnamis to improve the risk profile and
commercialviabilityofnewREprojects,initiatedbyprivateinvestors.
TheintentionoftheGETFiTschemeisthatitwill"kickstart"investmentinsmallscalegridconnectedrenewables,but
itisexpectedthatthe"premium"willnolongerbenecessaryafterprivateinvestorsconfidencehasbeenestablished.
TheGETFiTisinfirstplaceintendedtoopenupanewandinnovativemarket,beforesuchsupportbecomesunnecessary
due tosufficient market size and lower generation costs. Payments of thepremium will be availed on agrant basis,
followinganopenandtransarentRequestforProposalprocess.Thepremiumiscurrentlyonlypaidforsmallscalehydro,
biomassenergyandbagassecogeneration.Othertechnologiesorsourcesareforthemomentnotincludedormaynot
needanyadditionalsupportduetoalreadyhighregularfeedintariffs(e.g.US$0,362perkWhsolarenergy).
Forfurtherinformation,see:DeutscheBank,GETFiTinUganda,November20,2013andwww.getfituganda.org.
Details could be established for giving priority to selfconsumption of renewable electricity, while
limiting the amount of electricity supplied to the grid (see agreement on the new interconnection
policyinGrenadain(GRENADA,2012).Thetimeofpaymentshouldnotbelessthantenyearsand
allowinanycaseforasecurereturnofinvestment.Feedintariffsaremainlyaguaranteeforfinancing
institutionsandinvestorsandshouldhelptocopewiththehighinitialcostsofrenewabletechnologies.
Ashasbeenoutlinedinthesectiononwindandsolarenergy,thecapof100kWforfeedintariffsper
projectasproposedin(MEISTER,2012)iscontraproductive,asitwouldinfactlimittheapplicationto
solarelectricsystems,sincethestandardsizeofwindturbinesnowadaysonthemarketisintherange
of1.53.0MW.Smallerwindturbinesexistaswell,buttheirspecificcostsarehigh(seeFigure1in
(MEISTER, 2012)) and the maintenance required does normally not allow their application by
homeownersorcommercialentities.
6.1.2 NetMetering
Netmeteringschemes,whichwouldvaluetherenewableelectricityselfconsumedorexportedtothe
gridona1:1basisincomparisontotheelectricitypurchasedfromtheutility(aswidelyappliedinthe
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U.S.andmorerecentlyintheDominicanRepublic,thePhilippinesandBrazil,seeboxbelow).Such
schemesexistinatleast37countries,butarenotadvisableinT&Tundercurrentconditionswithhighly
subsidized and therefore low consumer tariff rates. To produce electricity at competitive costs, PV
investmentswouldneedsignificantfinancialandfiscalincentives,intheorderofsubsidiesgrantedto
electricitygenerationfromnaturalgas.
Thesolarpowergeneratedinexcessoftheownerselectricityconsumptionisfedintothegridthrough
anetmeter,whichisabidirectionalenergymetercapableofregisteringbothimportandexportof
electricity. This net generation is then credited to the owners account and adjusted subsequently
againstimportsfromthegridoveradefinedperiodoftime(socalledbanking)orevenreimbursed
atthelevelofconsumptionratesincaseofapositiveexportbalance.Ontheonehand,netmetering
istechnicallyeasytorealise,becauseitworkssolelyasanaccountingprocedureandrequiresnospecial
metering. On the other hand, this mode of renewable energy incentive places the burdens of
pioneeringrenewableenergyprimarilyuponfragmentedconsumers,whodonothavethebargaining
power,whennegotiatingwithutilities.
Netmetering regulations vary strongly from country to country, mainly with respect to the period
withinwhichcreditscanbeusedforcompensationofpurchasedelectricity(e.g.relatingtovarying
seasonalpeaks).
NetmeteringinBrazil
BrazilhasintroducedinApril2012anetmeteringschemeforrenewableenergypowerplantsoflessthan1MW.These
arecategorizedintomicrogenerationfordomesticpurposes(<100kW)andminigenerationforcommercialandother
purposes(>100kW)andcomprisehydro,solar,biomass,qualifiedcogenerationandwind.Technicalrequirementsfor
theimplementationofthisschemewerecompletedbythedifferentdistributioncompaniesinDecember2012.
Underthenetmeteringscheme,excesspowerexportedtothegridisbeingcreditedagainsttheconsumptionofthe
succeeding36months.Creditinformationisincludedintheinvoiceofthecustomer;acashcompensationforanypositive
balanceattheendofthecreditingperiodisnottakingplace.ItisthereforerecommendedthatPVsystemsaredesigned
to not exceed the own average electricity demand. Public agencies and companies with subsidiaries that choose to
participatemayalsousetheexceedingelectricityproducedinoneoftheirfacilitiestoreducethebillofanotherunit.
Inaddition,forallREinstallationsoflessthan1MWtheadministrativerequirementshavebeensubstantiallysimplified.
Thisentailsexpeditingthereviewandprocessingofapplicationswithinareasonabletimeframe,requiringdistribution
companies to conduct interconnection studies at no cost to customergenerators and simplifying contractual
arrangements.Regulationsalsodeterminethatwhileonsiteinfrastructureandmeterupgradesaretheresponsibilityof
thecustomergenerator,thedistributionutilityhastopayforroutinemaintenanceofthemeter,includingtestingand
eventualreplacement.
Thenetmeteringprogrammeisfurthersupportedwithtaxbenefitsforrenewabletechnologies,inparticularforsolar
PV, with reducedimportdutiesformodulesof12%andVATexemptions.Althoughtheclimaticconditionsare quite
favourableandelectricityratesarerelativelyhighinBrazil,thecurrentlevelofinstallationcostsinmostpartsofthe
countryareprohibitiveforacompetitiveoperationofPVsystems,inparticularthoseofsmallersize.Attheendof2013,
atotalof131REsystemshadbeengridconnectedorreceivedpermissionunderthenetmeteringscheme.
6.1.3 NetBilling
NetBillingcanbeseenasaspecialformatoffeedintariffsforelectricityfromintermittentrenewable
energy sources (wind/solar). But while the latter are usually established on the basis of actual
generationcostsfromtherenewableelectricityfacilitytoallowforareasonablereturnoninvestment,
netbillingtariffsareorientedoncostsoftheexistingandfuturegenerationpatternusingconventional
fuels.Howthesocalledavoidedcostsarebeingcalculatedvariesfromcasetocase.Someschemes
takeintoaccountthatrenewableenergymaybeabletoreplacehighcostpeakloadgeneration,while
121
other do not. It is also disputed, if avoided costs should be based on the average of the existing
generationparkorifmoreweightshouldbegiventomostrecentcapacityadditions,evenincluding
capacitiestobeaddedinthefuture,thatusuallyimplyhighercosts.Jamaicahasintroducedamodel
fordeterminingavoidedcostsandpaysa15%bonusontopofthisamountforallrenewableelectricity
fedintothegridbyprivateoperatorsofupto100kWfacilities.82
InthecaseofT&T,avoidedcostsunderthecurrentnaturalgaspriceregimefortheelectricitysector
aretoolowtoallowforaneconomicaloperationofintermittentrenewableenergygeneratorsusinga
netbilling reimbursement scheme. Even if most of the electricity would be used inhouse, the low
electricitytariffswillinhibitareasonableoperationfromaneconomicperspective.Substantialother
financial or fiscal incentives would be needed to drive down capital and financing costs to achieve
competitiveness.
6.1.4 CompetitiveBidding
Forlargescalewindandsolarplantswewouldrecommendtoconsidertenderschemes(alsocalled
auctionsorcompetitivebidding),whichhavebeensuccessfullyintroducedinSouthAfrica(seebox
below)andBrazil,amongothercountries.Byearly2013,atotalof43countrieswereidentifiedwith
usingcompetitivebiddingforlargeREadditions,with30ofthesecountriesclassifiedasuppermiddle
incomeorlower(REN21,2013).AlsoJamaicain2013hascalledforbidstosupplyrenewableenergy
fromsolarandwindfacilitiesandwillsignlongtermcontracts(20yearPowerPurchaseAgreements)
withprovidersthatofferedlowestpricesandcompliedbestwithtechnicalrequirements.
Tendering schemes range from technologyspecific to technologyneutral; include varying levels of
capacity(somesettingvolumecaps);occasionallysetpriceceilings;andoftenincludevariouscriteria
forprojectselection,sothatpriceisnottheonlyormostimportantfactor,asinthecaseofSouth
Africa.
Suchbiddingproceduresrequireprimarilyagoodpreparationonthesideoftheinvitingentity(e.g.
theregulator)andgoodknowledgeofthesubjectforassessingthetechnicalandfinancialproposals.
Callscanbesiteandcapacityspecific,sothattheyfitperfectlyintogenerationexpansionplansand
useexistingresourcesadequately.Ofcourse,thereisariskofpricedumpingamongcompetitorsand
thepossibilityofrealizationfailuresordelays,iffinancingisnotsecured.
SouthAfricaRenewableEnergytenders
SouthAfricareliesmorethananyothercountryintheworldonindigenouscoalforelectricitygenerationandhasalso
oneofthelowestelectricityconsumertariffsglobally.Nevertheless,themostrecentelectricityplan83containsambitious
targets for renewable energy: 8,400 MW each of wind power and solar PV and 1,000 MW from CSP, out of a total
projectedsystemcapacityofaround90GW,by2030.Nottheleast,thisobjectivewillassistinreducinggreenhousegas
reductionssignificantly,whichthegovernmentpledgedtoachieve.
In2009,theenergyregulatorNERSAannouncedrenewableenergyfeedintariffsforarangeoftechnologies.However,
despiteapressingdemandforelectricity,therewaslittleinterestintheoriginalFITrates.NERSAthereforeraisedthe
rates,doublingtheFITforwindandeventreblingitforconcentratedsolarpower.Ratesweredesignedforarealreturn
onequityof17%withfullinflationindexation.Furthermore,thepaymentperiodwasextendedfrom15to20years.
Nevertheless,inearly2011,twoyearsafterFITshadbeenfirstannounced,nopowerpurchaseagreementshadbeen
signedwithESKOM,themajorstateownedelectricityproviderandofficialpurchaserofallREFITelectricity.Onereason
for this has been probably that no real procurement occurred, that licensing and permission procedures remained
unsolvedandthatESKOMwasnotreallywillingtopurchaseelectricityatpricesfarabovetheirowngenerationcosts.
82 www.myjpsco.com/netbilling/
83 DepartmentofEnergyIntegratedResourcePlanforElectricity20102030,FinalReport,25March2011.
122
Furthermore, some parties considered that the preferential treatment of RE electricity was unconstitutional in an
environment that is based mainly on the competitive procurement of electricity supplies with regard to private
producers.
ThegovernmentthereforedecidedtoreplacetheFITschemewithrenewableenergybids(competitivetenders)that
havedrawnconsiderablecompetitionfrominternationaldevelopers.ThenewRenewableEnergyIndependentPower
ProducerProcurement(REIPPP)programwasstartedinAugust2011.Theprogramismainlyusedtotenderinstallations
withmorethan5MWeach,butacapacityof100MWisreservedforsmallscaleprojectswithbetween1and5MW.It
isconsideredtoendin2016,afteramaximumoffivebiddingrounds.Themaximumcapacityvolumetobetenderedhas
beenfixedat3,725MW,including1,850MWofwindand1,450MWofsolarPV.
Sofar,threeauctionshavetakenplacein2011,2012and2013.Thefirstauctionwasnotcappedintermsofcapacity
(exceptfortheoverallmaximum);thesecondroundhadacapof1,044MW,thethird(whichendedonAugust19,2003)
of 1,166 MW. In the third and second round, the maximum capacity was set per technology, so that there was no
competitionacrossdifferentREsources.Mostcapacityhasbeenawardedinthefirsttworoundsforelectricityfromwind
energy(1,196MW)andfromsolarPV(1,098MW).AllsolarPVprojectsarelargegroundmountedinstallations,ranging
insizefrom5to75MW.Theaveragecontractpricehasdecreasedconsiderably:fromUS$ct14.3perkWhforwindin
2011toUS$ct11.2perkWhin2012andfromUS$ct34.5perkWhforsolarPVin2011toUS$ct20.6perkWhin2012.
Pricesvariedin2012from10to12US$ctperkWhforwindand17to22US$ctperkWhforsolarPV.Allthoseprices
alreadycontainaninflationindexandwillnotbeadjustedduringthecontractedperiod.Despitelowerpricesinround
two,itisstillexpectedthatrealreturnsonequityarestillwellabove10%.Themajordifferencebetweenthetwoauctions
was, that in round one the ceiling prices (being about equal to the former FIT rates, except for solar PV) had been
disclosedtothepublic,withpriceoffersgenerallyclosetothelimit.Whileinroundtwotheceilingpriceswerekept
undisclosed,leadingtomorecompetitionincombinationwiththecapacitycap.
The selection of projects is following a twostep approach. In the first step, compliance with general financial and
technicalcriteriaaswellaswithminimumthresholdrequirementforeconomicdevelopmentandotherrequirementsis
checked.Forexample,winddevelopersarerequiredtoprovide12monthswinddataandagenerationforecast.The
economic development requirements are complex, incorporating 17 sets of minimum thresholds. Wind projects for
example,havetodemonstratethatatleast12%ofcompanysharesareheldbyblackSouthAfricansandanother3%by
local communities. At least 1% of the revenues have to be donated for social purposes. Furthermore, a minimum
thresholdwassetforthelocaleconomiccontent.Onlybidderssatisfyingallcriteriainthefirststepcouldproceedinthe
evaluation.Inthesecondstepbidpricescountedfor70%,whiletherestwasweightedbyprojectedjobcreation,local
content,enterprisedevelopmentandotherfactors.Allselectedbiddershavetoapplyforagenerationlicensewiththe
regulator.
AllprojectsarecontractedbyEskomunderaPowerPurchaseAgreement(PPA)andafixedpricefor20years.Allcontracts
outofthefirstauctionround,includingPPAandimplementationagreementswiththegovernmenthadbeensignedby
November2012,afterapartlylengthyadministrativeprocess.Contractsforprojectsfromroundonewerefinalizedin
May2013.Thoseprojectsarenowunderimplementationwiththecontractedofroundtwotobecommissioneduntil
theendof2014.Itneedstobeseen,ifallprojectswillberealizedorsomemayfailduetofinancialhurdles,lackof
constructionpermissionsorforotherreasons.Ifallworksoutasplanned,theREIPPPprograminitsfirstphasecould
triggeraninvestmentvolumeofuptoUS$15billionuntiltheendof2016.
Criticspointoutthattheverystringentcriteriaforthebiddingcontest(e.g.therequirementforlocalcontent)leadto
hightransactioncostsonthesideofthebidders.Thiscouldalsobeoneofthereasonswhythecontractedpricesarestill
significantlyhigherthaninotherpartsoftheworld.Hightransactioncostswerealsofacedonthesiteofthegovernment
thathadtorelyonexternaladvisors.SizeandcomplexityoftheREIPPPprogramputconsiderableconstraintsonlegal
andfinancialadvisoryservices.Ithasalsobeenremarkedthatthestringenteconomicdevelopmentcriteriacouldeasily
leadtohighercostsinastillsmallandnoncompetitiveREmanufacturingmarket.
InDecember2012,thegovernmentpublishedanewIPPProcurementProgramthatcallsforprocuringanother3,200
MWofREcapacity,aswellmainlyfromwindandsolarPV,tobeoperationalbetween2017and2020.
Furtherinformation:
www.ipprenewables.co.za
AntonEberhard,FeedinTariffsorAuctions?,in:viewpointNo.338,April2013,publicationoftheWorldBank
AdeleGreyling/Eskom,RenewableEnergyIndependentPowerProducerProcurementProgrammeAnEskom
perspective(presentation),27July2012
123
IRENA,RenewableEnergyAuctionsinDevelopingCountries,2013
InthecaseofJamaica,thecompetitivetenderorganizedbytheOfficeofUtilitiesRegulation(OUR)in
2013calledfor115MWofREelectricityonaBuild,OwnandOperate(BOO)basisandatsizesofat
least100kW.Outofthelargenumberofproposals(28intotal,ofwhichtwoforwind,oneforbiomass
and25forsolarenergy)onlythreebiddersqualifiedforenergyonlysupplywithatotalcapacityof78
MW,comprising58MWwindenergyand20MWsolarenergy.Theproposeddeliverypricesranged
fromUS$0.129toUS$0.188perkWh.Noneofthebidsweresubmittedinrequestoffirmcapacity
(e.g.frombiomassenergy),forwhich37MWhadbeenreserved.
6.1.5 RenewablePortfolioStandards
Renewable Portfolio Standards (RPS) are binding mandates for utilities or consumers to either
generate,sellorpurchasecertainquantitiesoftheirtotalelectricityvolumefromrenewableenergy
sources.InthecaseofT&T,settinglegaltargetsforT&TECtodiversifyitselectricitymixawayfromthe
current 100% dependency on natural gas, would be the easiest and best way to achieve the
Governments renewable energy objectives. T&TEC would have the possibility to either generate
renewableelectricitythroughowninvestmentsorpurchasethepowerfromindependentproducers.
Ofimportancewouldonlybethetotalamountandshareofrenewableelectricityfedintothepublic
grid.Inthismostsimplescheme,nodifferentiationwouldbemadebetweenvariousrenewableenergy
sources,whileamoretargetedapproachcouldalsoestablishobjectivesforspecificcontributionsfrom
windorsolar,forexample.
Inanycase,thesettingofRPStargetsneedstoberealisticandcoveratleastaperiodoffiveyearsinto
thefuturewithprogressiveincreasestoallowforlongtermplanning.Closemonitoringofprogress
achievementswillbenecessaryandmechanismsneedtobeconsideredincasethattargetsarenot
being met. Chile has established a mechanism, whereby utilities not complying with their RPS
obligationsareheavilypenalized.ThiscouldbeasuitableapproachforT&T,whichneedstobefurther
discussed.RICcertainlycouldusesanctionswithregardtotariffincreases,asithasdoneinthepast.
However,tounderstandifRPSareaviableoptionwithoutburdeningtheGovernmentsbudgethasto
beinvestigated.AbetteralternativecouldbethatRICistakingoverresponsibilityfortenderingRE
projects for private investors, in case that T&TEC is not capable of meeting the Governments
objectives.
6.1.6 TheDevelopmentofPowerPurchaseAgreements
Power Purchase Agreements (PPAs) are in principle contracts between operators of generation
facilitiesandtransmissionordistributionoperatorsforthepurchaseofelectricityfedintothegrid.
Whilesuchcontractsmaynotbenecessaryfortheoperationofsmallscalegeneratorswithdefined
feedintariffs and clear rules and standards defined in a regulatory framework, PPAs may be a
necessaryrequirementfordefiningtheobligationsandresponsibilitiesofbothpartiesinthecaseof
larger RE generators. It is recommended that model PPA contracts are designed in order to make
potentialinvestorsawareoftheirfuturedutiesandtoallowfor arapidnonnegotiableagreement
betweenoperatorandutility.
PPAstypicallycontainclausesonthesafeoperationandliabilityforanydamagesoccurringoneither
side,theymayrequestaforecastoftheanticipatedmonthlygenerationtoallowforbetterplanning
onthesideofthegridoperator,theywilldefinecommunicationsonplannedoutages,mayreferto
standards that need to be fulfilled and will as a minimum establish rules for measuring and
124
reimbursingthedeliveredelectricity.Theymayfurtherdefineresponsibilitiesforinterconnectingthe
systemandmaintainingsuchinterconnectionandhowcostsarebeingsharedforconnectionlinesand
possibleneedsforstrengtheningexistinggridsandinvestingintotransformers.
ThecontentandrequiredprecisionofanyPPAdependsinfirstplaceontheleveloflegalframeworks,
standardsandnormsalreadyexisting.Whateverhasbeendefinedelsewhere,forexamplewithregard
to interconnection and parallel operation of RE power plants, will not have to be specified and
repeatedin aPPA.Ifthe substantialeffortneededforestablishingsuchstandardsandnorms(and
keepingthemuptodate)isreallyworthwhile,willnottheleastdependonthenumberofinstallations
expectedtobeaffected.Ifonlyafewinstallationswillbeconnectedinthefuture,itmaybeeasierand
faster to include the main technical requirements in the PPA and revise such model agreements,
whenevernecessary.84
6.2 GenerationCostsforOnshoreWindFarmsandSmallscalePVSystems
6.2.1 LevelizedCostofEnergy(LCOE)Background
Thelevelizedcostofenergy(LCOE)istheconstantunitcost(perkWhorMWh)ofapaymentstream
thathasthesamepresentvalueasthetotalcostofbuildingandoperatingageneratingplantoverits
lifetime.ThereareseveraldifferentmethodsusedtocalculatetheLCOE,ametricusedtoevaluatethe
costs of generation for energy projects and the total system impact of design changes. The
methodologyusedforthisanalysisisfullydescribedin(SHORT,1995).Itisusedinseveralstudiesby
theU.S.NationalRELaboratory(NREL)andothermajorresearchorganizations.
TherearefourmajorinputsintotheLCOEequation:Thefirstthreeinstalledcapitalcost(ICC),annual
operatingexpenses(AOE)andannualenergyproduction(AEP)enablethisequationtorepresentthe
systemimpactsofdesignchanges.Thetotalcostsoffinancingarerepresentedbythefourthmajor
inputfixed charge rate (FCR) or capital recovery factor (CRF)that determines the amount of
revenuerequiredtopaythecarryingchargesonaninvestment.Thisdetailedsplitofcostsisrequired
whenanalyzingthetrendsandcomparingdata,astheseinputsdependontheregionsorlocationof
theinvestment.Thecurrencyandyearwillbegivenwheneverinflationneedstoberemovedfromthe
calculation,andconvertedtocomparablevalueswhenrequired.Furthermore,thereneedstobea
distinctionbetweenrealandnominalLCOE,astheymaydiffersignificantly.
Noanalysiswillbevalid,ifitisnotbasedonsoundandconsistentdata.Thisholdsparticularlytruefor
thecomparisonbetweenrenewableenergies,suchaswindandsolarpower,asinthisreport,aswell
asthecomparisonwithconventionalpowerplants.Theunderlyingassumptionswillbepointedoutas
clearlyaspossibleinthisreport.Anarticlecitedin(JARGSTORF,2011)isagreatexampleofhowwrong
assumptions can lead to opposing results, if dispatchable and nondispatchable power plants are
comparedandunrealisticcapacityfactorshavebeenassumedandareconfusedwithavailabilityofa
plant.
84 AnexampleforastandardizedPPAcanbefoundhere:http://ppp.worldbank.org/publicprivatepartnership/library/tanzania
standardizedsmallpowerpurchaseagreementmaingridconnection
125
6.2.2 WindPower
6.2.2.1 Global Development
Windpowerisanaturalresourcethathasbeenexploitedbyhumanssinceapproximately200B.C.,
whenthewindwheelwasinventedinmoderndayIran.In1888,windmillswereusedforthefirsttime
to power generators for electrifying isolated farms in the rural midWest of the United States.
However,thelargescaleconstructionofhorizontalaxiswindturbinesisamorerecentphenomenon
asFIGURE30outlines:
Figure30:Globalcumulativeinstalledwindcapacityfrom19962013
Source:GWEC,2014
The figure clearly shows a strong growth in the past 17 years, with an average increase of
approximately20%perannum(butalsowithlowergrowthratesinrecentyears).Attheendof2013
some318GWofwindpowercapacityhadbeeninstalledglobally.Morethan70%ofthiscapacitywas
concentratedinonlyfivecountries:China(91GW),USA(61GW),Germany(34GW),Spain(23GW)
andIndia(20GW).Thereareseveralreasonsforthisstormydevelopmentofwindpower:political
strategies,supportingmechanismsandincreasedcompetitivenessagainstothersourcesofelectricity
beingtheobviousthree.
Electricityfromwindenergyhasreachedsignificantpenetrationsharesinanumberofcountries:In
Denmarkitcontributedwithmorethan28%tothegenerationmix(basedonelectricityconsumption
in2012),inPortugalandSpainwithmorethan18%(seeFigure31).
126
Figure31:Windpenetrationratesindifferentcountries
Itisexpectedthatintheyearstocomemorethan45GWwindcapacitywillbeinstalledannually.By
theendof2017,totalcumulativeinstalledcapacityshouldhavepassed500GW(GWEC,2012).
6.2.2.2 Status of wind energy use in the Caribbean
At the end of 2013, more than 230 MW wind power had been installed on Caribbean islands. The
countries resp. islands using wind energy at utility scale were Aruba (30 MW), Bonaire (11 MW),
Curacao(30MW),Cuba(12MW),DominicanRepublic(85MW),Guadeloupe(26MW)andJamaica
(39MW).Others,suchasGrenada,areplanningtoinstallwindturbinesinthenearfuture.Asmall
projectof2MWisintheprocessofpreparationwithsupportbytheEuropeanUnionforthetinyisland
ofCarriacou.Cubahasordered51MWwindturbinesforafarmthatisplannedtobeinauguratedin
September2015.JamaicaswindoperatorWigtonWindfarmwillconstructanotherwindfarmof24
MWtobecommissionedbyAugust2015,followingatenderin2013thatselectedthreebiddersfora
totalof78MWREelectricity,amongthoseanotherwindfarmof34MW.Thelargestwindfarminthe
Caribbean with 77 MW is operated by the publicprivate enterprise EGE Haina in the Dominican
Republicsince2013,generatingabout220GWhannually.
Todate,windpowerisnotusedinT&T.However,themainREchoiceforbulkelectricitygeneration
forthenationalgridiswindpowerandatargetof5%ofthepresentpeakdemand(or60MW)by2020
isassumedtoberealisticandachievable,accordingtotheNationalRenewableEnergyCommittee.
Inthepast,onlyoneexperimental10kWwindturbinewasinstalledin1994/95inBacolet,Tobagoby
T&TEC.Itrevealedsomefavourableresults,buttheprojectwasshortlived.
6.2.2.3 Type and size of turbines
The following chapters will focus on the economics of wind power, from which political initiatives
shouldbedrawn.ToarriveataLCOEpredictionforT&T,theNRELbaselinecaseoutlinedin(TEGEN,
2012)willbeadjustedtoreflecttheparticularlocalconditions.
127
The wind turbines that have caused the large increase in installed capacity are all threebladed
horizontalaxisturbines,withratedpowerinexcessof500kW.Recentdevelopmentsreachcapacities
ofbetween5.0and8.0MW.Thereareplansforturbinesasbigas10MW,butthesewillbemainly
dedicatedtooffshorepurposes.Inthepast,projectsintheCaribbeansuchastheWigtonandMunro
windfarmsinJamaicahaveusedrelativelysmallwindturbinesofbetween750and900kW.Inother
cases,windturbineswereinstalledthatcanbeloweredatanytimetoprotectthemfromhurricanes.
Mostcurrentprojectsareaimingforsizesofbetween900kWand3MWwhichinplaceswithlarge
cranesavailablehasbecomethestandardsizeforwindturbines(JARGSTORF,2011).Thedetailed
analysis in (TEGEN, 2012) assumes a 1.5 MW turbine. However, as all numbers are calculated by
considering the energy production throughout the lifetime, the exact size of the turbine is not so
importantwhenperformingLCOEcalculations.
6.2.2.4 Installed capital cost
Thespecificcostsofwindturbineshavedecreasedinthepast,eventhoughnotataconsistentlevel,
andthereisstillconsiderabledisagreementoverwhyexactlythepriceforinstalledcapacityhasvaried
in the way it has. A comparison of turnkey prices and installed capacity worldwide and their
developmentwithtimeindicatesalearningbydoingeffectandshowsthatthewindturbineindustry
hadalearningrateof14.4%intheU.S.inthepastthreedecades(LANTZ,2012).
Thelearningrateappearstohavetailedoffbetween2001and2009,asFIGURE32highlights.
Figure32:HistoricalwindenergycapitalcostsintheUnitedStates
Source:WISER,2013
Thereisconsiderabledebateanduncertaintyovertheexactreasonsforthisstrongpriceriseafter
2002. Market forces, such as higher raw material prices, increased labour and energy costs and
improvedprofitabilitycertainlyplayarole,butareductioninthelearningratemayalsobetoblame
fortheincrease.Pricesfellagainsince2010andthistrendisexpectedtocontinue,butagainthisfall
isfromelevatedpricesinpreviousyears,thereforetheexactperspectivesremainunclear.
128
AlthoughinstalledcapitalcostsareveryimportantwhencalculatingtheLCOE,thereareotherfactors
thatmustbelookedatindetail.Infact,LCOEofwindpowerhaveevendecreasedduringtimesofrising
installedcapitalcost,becausethemoreexpensive(perMWinstalled)andlargerturbinesachieved
highercapacityfactorsbyreachinghigheraltitudewinds.Thereforetheelevatedcostswereoffsetby
an even greater benefit in energy production. In 2010, the average installed costs had been US$
2,155/kilowatt(kW),whichthencamedowntoaboutUS$2,000/kWin2011.
FIGURE33givesanoverviewoftheinstalledcapitalcostdistributionofawindturbine.Thishelpsto
understandthetrendsandtoanalysetheimpactofcertainparameters,suchastransportorfinancing.
Figure33:Distributionofcapitalcostofawindturbinebysectors
Source:TEGEN,2012
TodeterminethecapitalcostinT&Tonemustfirstestablishthecoststhatarelikelytodifferfromthe
origin of this assessment, in this case the United States. These are the costs for roads and civil
construction,turbinetransportationandassemblyandinstallation.Thedifferenceismainlyduetoa
lack of infrastructure in T&T where the effort to move large oversized trucks would most likely be
higherthaninothernationsastheconsequenceofalackofmajorroadsincertainregions.Onthe
otherhand,partscanbeshippedtomajorportsandhandledtherewithease,reducingthedistance
requiredtotravelonland.
A major constraint is the likely unavailability of large cranes near the site and the lack of trained
assemblycrews.Thisisamajorcostfactor.Exactvaluesaredifficulttoobtain,butonecanassume
thatthecostofinstallationwilleasilydoubleifnottriple.Thismayreduceveryquicklyasmorewind
turbinesareinstalledintheCaribbeanandinT&Tinparticular.Butthelongerseatransportandlarger
amountofrequiredcivilworksalsoremainelevatedcostfactorsinthefuture.Unlessmoredetailed
dataareavailableitisassumedthattheoverallcostofinstalledcapitalwillthereforeincreasebyabout
10%.Thisisamajoruncertaintyandonlyadirectquoteforaparticularprojectortheobviouslynot
publicly available cost breakdowns from previous wind parks in the Caribbean can provide a more
reliablevalue.
129
6.2.2.5 Annual operating expenses

AnnualoperatingexpensesareassumedtobeUS$34/kWorUS$10/MWh(WISER,2011).Thevalue
dependsonhowthemaintenanceisscheduledandbywhomitisperformed.Thefirstwindturbines
installedinT&Taremostlikelygoingtobeservicedfromabroadandwouldthereforeincurhigher
maintenancecosts,butasthenumberofwindturbinesintheCaribbeanincreasesthosecostswill
quickly decrease. As no specific information on maintenance contracts to companies abroad is
available, the value was left unchanged. As the LCOE is rather insensitive to the annual operating
expensesduetotheirsmallcontributioncomparedtoinstalledcapacityandcapacityfactor,thiswas
deemedacceptable.
6.2.2.6 Capacity factor
Thecapacityfactoristhepercentageoftimeapowerplantorwindturbinewouldhavetorunatfull
capacitytoreachitsactualannualpoweroutput.TheNRELbaselinecaseassumesacapacityfactorof
38%foronshorewindturbines(WISER,2012).Thisisaratherhighvalueforonshoreplantsandreflects
theimportanceofthecapacityfactorontheLCOE.Ingeneralahighcapacityfactorisreachedinareas
withconsistentlystrongwinds.FIGURE34showsthevariationofannualwindspeedswiththeseasons.
Asthemapreveals,T&Tliesinanareawithstrongwindsallyearround.ThesouthernCaribbeanin
generalhasparticularlyhighaveragewindspeeds.ThedetailedwindmapofGrenadashowsmedium
annualspeedsof6.5to7.0m/sattheshoreataheightof30m(JARGSTORF,2011),whilewindfarms
intheCaribbeanhavemainlyhubheightsofbetween5070mandthereforebenefitfromevenhigher
velocities.
Thisisreflected inthecapacityfactors ofwindfarmsintheCaribbean,whichachieve30 35%in
Jamaica,2834%inSurinameand40%inBonaire.Thereisatradeoffbetweencapacityfactorand
installedcapitalcostastowerheight,rotordiameterandgeneratorsizeallaffectelectricityproduction
and installed capital cost. It is up to the detailed planning to determine the optimal size of these
parameters.Thisanalysiscanonlyassumethatplannersarecapableofdoingso.
As outlined earlier, the trend in wind turbines is towards increasing capacity factors, even at the
expenseofhighercapitalcosts.However,localweatherconditionsalsoplayapartindeterminingthe
capacityfactorofawindturbine.Usingtheabovementionedfiguresandcomparingthemtothose
usedintheNRELwindenergyreport(WISER,2012)onequicklyrealizesthatavalueof38%seems
realisticallyachievableinT&T.
Thepossiblelackoflargecranesandsufficientaccessroadsmaylimittheconstructionofwindturbines
inT&Tandthereforeitisunlikelythatverylargewindturbinesachievingevengreatercapacityfactors
arearealisticoptionatleastatthebeginningofawinddeploymentprograminthecountry.Theextent
to which these factors restrict very large wind turbines needs further investigation. However, the
excellentmetrologicalconditionsduetothetradewindsmakehighcapacityfactorsachievableeven
withsmallerwindturbines.
130
Figure34:Annualaveragewindspeeddistribution
Source:ZAAIJER,2012
Unfortunately,theabovefiguredoesnotcontaininformationonthealtitudeatwhichthisspeedwas
computed;thereforeitshouldbeusedwithcaution.Butitdoesclearlyshowthebeneficialpositionof
thesouthernCaribbeanwithrespecttoconstanttradewinds,aresourcewhichshouldbeexploited.
Inthisregard,thejustrecentlytenderedwindresourceassessmentforT&TbytheNationalEnergy
Corporation(NEC)isaveryusefulandmuchneededactivitytoassessthewindpotentialinparticular
alongtheEastcoastofTrinidadmoreaccurately.Onlythencanthetechnicalandeconomicpotential
ofwindpowerforT&Tbeassessedinmoredetail.
6.2.2.7 Discount rate
Thediscountrateisusedtoconvertfuturecoststoapresentvalue.However,itisveryimportantto
notethatthediscountrategivenbybanksisnotthediscountrateinvestorsandplannerswilluse.
Thereforebothvaluesaregivenintheresultssection.Discountratescanbeconvertedfromrealto
nominal,andviceversa,withthefollowingformula:

1
1
wherednisthenominaldiscountrate,dristherealdiscountrateandeistheinflationrate.
UsingthisdiscountratetheCapitalRecoveryFactor(CRF)canbecalculatedaccordingtothefollowing
formula:
131
wheretisthenumberofyearsanddthe(nominalorreal)discountrate.
SomepublicationsalsousetheFixedChargeRate(FCR),whichtakesdepreciationandcorporatetax
intoaccount.

whereTisthemarginalcorporateincometaxrateandDthepresentvalueofdepreciation.
ForadetailedanalysisofLCOEonaprojectbase,theattachedspreadsheetprovidedbyNRELisvery
useful.However,asitrequiresprojectspecificinformationandinvestordecisions,itisnotsuitablefor
ageneralestimateofLCOE.ThustheselectedmethodatthisstageisthesimplifiedLCOE.
Therealdiscountrateusedinthisreportis4.75%asgivenbytheCentralBankofTrinidadandTobago
onDecember6th,2012.Thenominalrateis14.55%,usingtheOctober2012inflationrateof9.35%.
ToconvertfromUS$2010toTT$2012afactorof6.78wasused,basedon6%inflationsince2010anda
currencyconversionof6.4TT$toUS$1.0,whichwasapproximatelytheexchangerateJanuary2013.
6.2.2.8 LCOE of wind power systems in T&T
With these assumptions and estimates we can calculate the LCOE for T&T for 2012 and then
extrapolatetheinformationusingtheLCOEpredictionsfromthesummarystudyaboutthefuturecost
ofwindenergy(WISER,2012).AsFIGURE35reveals,thespreadbetweenthestudiesisconsiderable,
butlookingatthe20thand80thpercentilerange,itshowsthatapricedropof5to15%isexpecteduntil
2015against2010levels.Thisisinlinewiththereportedcostsfrom2011and2012.
Figure35:ScenariosofLCOEdevelopment
Source:WISER,2012
132
ThereforeforthepredictionofthefutureLCOEdevelopmentinT&Tthispricedropwillbetakeninto
account.Usingthevaluesestablishedearlierwegetthefollowingresults:
Table29:PredictionoflevelizedcostofwindenergyinUS$/MWh
yearof
installation
Levelizedcostofenergy(real)incurrency/MWh
maximum(80th
minimum(20thpercentile)
mean
percentile)
US$(2010) TT$(2012) US$(2010) TT$(2012) US$(2010) TT$(2012)
2012
47.4
321.6
57.2
388.0
72.6
492.5
2015
43.9
38.9
297.5
263.7
54.5
50.6
369.6
343.4
71.2
69.0
482.7
467.9
2017
year
of
installation
Levelizedcostofenergy(nominal)
minimum(20thpercentile)
mean
maximum(80th
percentile)
US$(2010) TT$(2012)
US$(2010)
TT$(2012)
US$(2010)
TT$(2012)
2012
89.2
605.3
101.3
687.2
118.2
801.8
2015
82.5
559.9
96.5
654.5
115.8
785.8
2017
73.2
496.3
89.6
608.1
112.3
761.7
TheassumptionsaresummarisedinTABLE30(seealsoAppendixJ:CurrentElectricityGeneration
CostsforOnshoreWindFarms).
Table30:AssumptionsforLCOEcalculation
Parameter
minimum
Installed
1,800
12,211
capitalcost US$(2010) TT$(2012)
Lifetimein
25
years
LCOEchange
7.5%
in2015
LCOEchange
18%
in2017
average
2000
US$(2010)
13,568
TT$(2012)
maximum
2,200
US$(2010)
14,924
TT$(2012)
20
15
4.75%
2.0%
11.5%
5.0%
Shortcomings:
Noreductioninpowerproductionovertimehasbeenconsidered;
Pricesfortheperiodafter2012arestillspeculativewithnoharddataavailable,butreduced
turbinecostsduetoincreasedglobalcompetitionmayyieldverylowICC;installedcostsas
lowas1,600US$/kWhavebeenreportedrecently(TEGEN,2012).
133
6.2.2.9 Conclusions and Recommendations for next steps

Workneeds tobedoneinT&TtoassessLCOEmoreaccuratelyandtoestimatethe economicand
technicalpotentialandimpact,including:
Performdetailedwindmeasurementsatpotentialconcretesites,basedonthenationalwind
resourceassessment;
Usemethodsasrecommendedin(JARGSTORF,2011)tofindpotentialsites;
EstablishlegislationthatallowswindfarmstobeoperatedbyIndependentPowerProducers;
Establishasupportschemeforthepromotionofwindfarmsaslongassubsidiesfor
conventionalpowerhavenotbeenremoved;
Addresstheneedforprioritygridaccesslegislationandtheuseoftaxincentivesandother
financialsupport.
Designtechnicalguidelinesforgridconnectionandoperationofwindturbines.
Assessimpactongridstabilityandcapacityifrelevantlevelsofwindenergyarefedinto
distributionortransmissionlines.
Theproposedcontributionof60MWwindenergyby2020,willresultincapitalcostsofaboutUS$108
million,exclusiveofconnectioncosts.Doublingthesharetoamorereasonableandachievable120
MWwouldleadtoinvestmentsofUS$216million.Theannually368GWhproducedwouldreduceCO2
emissionsbyupto257kt,dependingonthesystemoffossilfuelpowerplants,whosegenerationwill
besubstituted.
Comment:TherecentsuggestionforafeedintariffinT&T(MEISTER,2012)isagoodstartingpoint,
butthesuggestedcapacitycapof100kWforwindpowerdoesnotreflecttheactualneedsandis
contraproductive.IfT&Twantstopromotewindpoweritshouldnotestablishsuchacaponwind
turbinesizeswhichwouldpreventthecountrysabilitytogainfullbenefitofthisREresource(seealso
chapter6.1.1andfollowing).
6.2.3 Photovoltaics
6.2.3.1 Global Market Development
In2012alone,investmentswithatotalvolumeofUS$140.4billionweremadeinthePVsector,down
by11%againstthepreviousyearduetofallingprices,butstilloutperformingallotherREtechnologies.
Outofthisvolume,US$51.7billionwerespentindevelopingcountries,namelyinChina(BLOOMBERG
2013).TheworldscumulativePVcapacitysurpassed100GWinstalledelectricalpowerduring2012,
achievingjustover102GWattheendoftheyear(EPIA,2013).Anestimated31GWwascommissioned
in2012alone,similartothefigureayearago,althoughthestrongEuropeanmarketdeclinedforthe
first time against the previous year. Germany was the top market in 2012, with 7.6 GW of newly
connectedsystems,followedbyChina(estimated5GW),Italy(3.4GW),theUSA(3.3GW),andJapan
(estimated2GW).
In 2013, the picture looked slightly different, according to the European Photovoltaic Industry
Association(EPIA,2013),withatotalinstalledcapacityof37GW,andChina(11.3GW),Japan(6.9GW)
andtheUS (4.8GW)leading thecharts.AnalystsofDeutscheBank expectthatthe marketof new
134
installationswillrisetobetween45and50GWin2014,anearly50%increaseagainsttheanticipated
implementation figure in 2013. Depending on future framework conditions, it is assumed that the
globalannualPVmarketwillreachbetween48GWand84GWin2017(EPIA,2013).IntheEuropean
Union,PVcovered2.6%ofthetotalelectricitydemandin2012,whileitwasalreadycloseto5%of
gross electricity consumption in Germany. Within only five years, PV has gained the number one
positionofgenerationcapacityadditioninEurope(FRAUNHOFER,2013b).
Betweenearly2009andearly2013,levelizedcostsofPVinstallationswithcrystallinesiliconcellsfell
by5758%,whilethosewiththinfilmcellsdroppedby44%,inthefaceofferociouscompetitionand
oversupplyinthesolarmanufacturingchain.
SpotmarketpricesforcrystallinesiliconmodulessoldontheEuropeanmarketinOctober2013ranged
from0.51/W(US$0.69/W)forproductsfromIndiaandSoutheastAsiato0.73/W(US$0.99/W)for
productsfromJapanandSouthKorea.85
PricesforfullyinstalledsystemscontinuetofallintheU.S.marketthatismostrelevantforT&T.Inthe
secondquarterof2013,residentialsystempricesweredowntoUS$4.81/Wwithsubstantialvariations
fromstatetostate(Figure36).InmaturesolarmarketsoftheU.S.,finalinstalledpriceswereinthe
US$4/Wrange.NonresidentialsystempriceshavefallentoUS$3.71/W,averageutilityscaleprices
camedowntoUS$2.10/W.Onthewhole,installedPVpricesvarygreatlynotonlystatetostate,but
also project to project. Even within a single state, installed costs varied by more than US$ 2/W.86
Accordingtoarecentanalysis,socalledsoftcosts87accountedfor64%ofresidentialsystemprices,
57%inthecaseofsmallcommercialsystems<250kWand52%forlargercommercialsystems.This
meansthatalargeproportionofthetotalvalueisaddedatlocalornationallevel,evenifthehardware
(namelymodulesandinverters)arebeingimported(NREL,2013).
85
www.pvxchange.com
PVmagazine11/2013,basedonGTMResearch
87
Also referred to as BalanceofSystem (BoS) costs; includes acquisition, planning, permission fees, labour cost for
86
installation,taxes,developer/installerprofitetc.
135
Figure36:AverageinstalledpricebymarketsegmentintheUS,Q22011Q22013
InGermany,installedpricesarefarlowerthanintheU.S.,mainlyduetoamoreadvancedsolarmarket.
Prices for small residential systems of between 3 and 10 kW have decreased from about US$
18,900/kWp88in1990toanaverageofaboutUS$2,160/kWp(rangingfromUS$1,755to2,430/kWp)
at the end of 2012. Further price reductions are expected from lower soft costs (for planning,
installationetc.)andscalingeffectsofhighermodulemanufacturingrates.Largegroundbasedutility
scale systems of various MW now achieve installed prices of between 1,000 and 1,400 /kWp in
Germany(FRAUNHOFER,2013a).
FraunhoferInstituteforSolarEnergySystemsinFreiburg/Germanycalculatedthatlevelizedcostsfor
newPVsystemslocatedinsouthernSpainwithasimilarsolarirradiationasinT&Tarenowinthe
range of 6.5 to 10 ct/kWh (US$ct 8.8 to 13.5/kWh), depending on the size of the installation
(FRAUNHOFER,2013a).
6.2.3.2 Background information
Photovoltaicpowergenerationistheconversionofsolarradiationintoelectriccurrentandisnamed
aftertheenablingeffectthatwasfirstobservedbyBecquerelin1839.Thecreationofthefirstmodern
solarcelliscreditedtotheBellLabin1955anddevelopmentsincethenhasbeenextensive(Figure
37).
88
kWp=Kilowattpeakpower,istheoutputofaPVmodulemeasuredunderStandardTestingConditions.
136
Figure37:Evolutionofphotovoltaiccellefficienciesunderlaboratoryconditions
ResearchersattheGermanFraunhoferInstituteforSolarEnergySystemsachievedanewefficiency
worldrecordof44.7%fortheconversionofsunlightintoelectricityinSeptember2013usinganew
cellstructurewithfoursolarsubcells.
Commerciallyavailablecrystallinesiliconproductsnowreachconversionefficienciesofupto20%with
average values of 15%, whereas the less efficient, but for some time cheaper thinfilm technology
reaches efficiencies of between 6 and 11%, with peak values of 1213% for common market cells
(FRAUNHOFER,2013a).Buttheexactefficiencies,justasforwindpower,areonlyrelevantintermsof
size of the system and its relation to the energy yield. What determines the LCOE is the power
productionperinstalledcapital.Itisbestnottogetdistractedbyefficiencyvaluesofphotovoltaiccells
andinsteadfocusonthepriceperkWmodulecapacity,theannuallyproducedamountofelectricity
perinstalledkWandthereductionofthepoweroutputoverthelifetime.
Whilewithwindpowerturbinesitisacceptabletoneglectthetrendofreducedpoweroutputover
lifetime,asitisminimalandfurtherreducedwithregularmaintenance,PVcellsshowadegradation
ofbetween0.1and0.5%peryear.Therefore,thistendencyofloweroutputovertimeshouldbetaken
intoaccount.Foradependableanalysis,thisreportwillusetheguaranteedminimumperformanceat
theendofthelifetimeastheactuallyachievable.Thisisaworstcasescenario,butconsideringthe
corrosivetropicalandmaritimeenvironmentprevailingonT&T,thisseemstherightassumptionto
consider.
Furthermore, the energy production is calculated for a PV panel facing South at a 15% incline, the
recommendedangleforlocationsclosetotheequator.Solartrackingisnotconsidered,duetothe
complexitythiswouldaddtotheanalysisandthegeneralunsuitabilityfortropicalregionsandtheir
highirradiance.Ingeneral,trackingdevicesdonotoffergreatgainsintermsofLCOEandtherefore
can be lumped with the fixed systems. Furthermore, their global market share is small (except for
137
singleaxistrackers),thusleadingtoreducedeconomiesofscaleandgenerallyworseLCOEexceptina
fewspecialcases.
Asinthewindcase,theLCOEiscalculatedbasedoninstalledcapitalcosts,theannualmaintenance
andoperationcostsandtheenergyproduced.Again,theexactplantsizedoesnotmatter,northesite
specificvaluesastheanalysiscanonlyuseaveragevaluesexpectedforcertainconditions.
6.2.3.3 Installed capital cost (ICC)
Theinstalledcapitalcost89variesgreatlyandunlikewindpower,largerplantstendtobecheaper(see
above).Therefore,itisadvisabletolookatacertainbandofsizesbeforeproceedingwiththeanalysis.
ThisreportlooksatsmallerscalePVsystemsdefinedasbetween1and500kWpasthisisthetypical
rangeofrooftopinstallations.
The main contributions to ICC are the module cost, the cost of the inverter and other electric
equipmentand installation.Duetothe compactnatureofthe modules, transportation israrelyan
issue,noristhereneedforlargecranesorotherspecializedequipment,whichmightdriveuptheprice
inneworremoteareas.
Thecostofthemoduleisnowusuallybelow1US$/WpandthereforeonlyafractionofthetotalICC,
butasmodulecostshavevariedsubstantiallyrecently,predictionsonthefuturecostdevelopmentis
difficult. The general trend shows strong cost reductions, but the dependence of the market on
subsidiesandthuspoliticalsupportmakemodulecostsvolatile(IRENA,2012b).
Invertercostsarealsodecreasing,butneitherinsuchadrasticwaynorarethepricesfluctuatingas
heavily.AveragewholesalepricesforPVinvertersareUS$550/kWpforsmallersystems(<5kWp)and
slightlyloweratUS$400/kWpforlargersystems(WHOLESALE,2012).90
Installationcostsaresignificant,especiallyinanewmarket,suchasT&T.Eveninmaturemarkets,
suchastheU.S.,profitmarginsof30%fortheinstallerarethenorm.Thisismainlyduetoalackof
competitionandhighpricesofthegoodsinstalled.IntheUnitedStates,installationcostscontribute
US$1,300perkWptothebasecase,accordingtoanNRELanalysisofFebruary2012,butinT&Thigher
costsofuptoUS$2,000perkWpseemmorelikely(GOODRICH,2012).Thisvaluereliesheavilyon
estimatesandtheeffectswillbeoutlinedintheresultstoisolatethisunpredictablefactor.However,
asthesearecoststhatstaywithinthelocaleconomy,onemustconsidertheopportunitytoestablish
aprofitablesectorforcontractors.
Asthenextfiguredemonstrates,onlybetween48%(forcommercialsystems>250kWp)and36%
(residentialsystems)oftheICCarehardwarecosts(modules,inverter,cablesetc.)intheU.S,withthe
remainder being soft costs for supply chain, profits, sales tax, permission, installation etc. Detailed
analysesofthedifferenceinICCbetweentheU.S.andGermany,whichisconsideredtohaveawell
developedPVmarket,revealedthatGermaninstalledpricesin2011wereonlyabouthalfofthosein
theU.S.,whereaveragesoftcostsforsmallscaleresidentialPVsystemsmadeupUS$3.34ofthetotal
ICCof$6.19perWp(SEEL,2012).OnthemorecompetitiveGermanmarket,thesesoftcostsweredown
toonlyUS$0.62leadingtoasystempriceofjustUS$3.00perWp!Thisexamplehighlightshowstrongly
89
90
Alsoreferredtoassystempricesorinstalledprices.
FraunhoferInstituteforSolarEnergySystemsisgivinghigherpriceswith1520ct/Wpforstringinvertersupto100kWp
and1020ct/Wpforcentralinvertersandlargersystems(FRAUNHOFER2013c).
138
thecompetitivenessofthemarketandtheavailableexperienceoftheinvolvedplayersinfluencethe
ICC.
Figure38:ContributionstoinstalledcostofresidentialandcommercialPVsystemsintheU.S.
(firsthalfof2012)
Source:FRIEDMAN,2013
Asthecomparisonfigureabovehighlights,thecostcontributionsforthesoftcostshareheavilydepend
on the size of the project, while hardware costs were quite similar for all sizes. This explains the
previously mentioned difference in LCOE depending on size, and highlights the importance of the
aforementioneddifferentiationwhencomparingLCOEs.
6.2.3.4 Annual operating expenses (AOE)
The operating expenses of PV systems are minimal and proportional to the installed capacity, and
thereforedonotvarywiththeenergyproduction.TheaveragevaluegiveninstudiesisUS$24/kWper
annum and is expected to decrease slightly over the next five years (OEI, 2012).91 Additional
expenditurescouldoccurincaseofvandalismandtheftandifsafetyandprotectionmeasureshaveto
beapplied.
6.2.3.5 Energy yield
Thehighcapacityfactor92isthemainargumentforPVsolarsystemsintheCaribbean,asiteasilyoffsets
the higher initial cost of installation caused by a young and emerging market. Because there is no
marketyetinT&T,itisdifficulttoobtaindatafromrealPVsystems,whicharethemostreliablesource
91
92
FraunhoferInstituteofSolarEnergybasesitscalculationsonhigheroperationalcostsof35/W(47US$/W).
Capacityfactororcapacityutilisationfactoristheratiobetweenthetheoreticalannualmaximumoutputofaplantand
therealoutput.
139
of performance information. For future use, a database listing of PV system energy yields and
influencingfactorswouldbeausefultooltoestablishtheLCOEofaplannedsystem.
Due to this lack of data, meteorological software was used to establish estimates for cloud cover
intensity,solarirradiationdensityandduration(GAISMA,n.d.).Thetotalsolarirradianceon1mof
horizontal surface (GHI = Global Horizontal Irradiance)93 is given as 1,761 kWh/yr at Crown Point
Airport and therefore similar to the conditions in southern Spain.94 Crown Point Airport weather
informationwillbeusedasrepresentativeforthewholeofT&T.ThevaluesforotherlocationsinT&T
aresimilar(withsomeexceptionofthemountainareas);therefore,thisisafairassumption.
TheoverallsystemefficiencyofasiliconbasedPVsystemwithhighqualitymodules95andaninverter
withlowlossesisassumedtobe12.2%.ThisleadstoaspecificenergyyieldinT&Tof1,450kWh/kWp.
Therespectivecapacityfactoristhen16.5%.Forthissystemaperformanceratio96ofmorethan81.5%
isassumed,whichisconsideredasgood.97Toreflecttheinfluenceofdegradationduringthe25year
operation,a10%reductioninaverageoutputoverlifetimewasconsidered.Asaresult,thespecific
electricityoutputwasconservativelyassumedtobe1,300kWh/kWp.
ItshallbenotedthatthecapacityfactorisnotgenerallyusedinPVsystemcalculations,asitislargely
meaninglessforsuchelectricitygenerators.ThespecificannualyieldinkWh/kWpisamoresuitable
factor.However,forcomparingdifferentmethods,itwillbeusedherebytranslatingthespecificyield
intothecapacityfactor.
6.2.3.6 Discount rate
Thediscountratesusedarethesameasthosedocumentedinthewindpowersection,astheseare
independentfromthetechnology.ThecostofcapitalisgenerallyakeyfactorintheLCOE.Areportby
EPIAstatesthatthecostofcapitalhasagreaterimpactontheLCOEthanmoduleprices,insolationat
thesiteandplantlifetime(EPIA,2011).
6.2.3.7 Results
DuetothecomplexdevelopmentofthePVmarket,asimpleanalysisliketheoneforwindpowerwas
not possible. Several factors can have significant impact on the LCOE and they may change
independentlyfromeachother.Thus,thisanalysiswouldrunriskofbeingincorrectifallfactorswould
bebundled.Therefore,threeestimatesbasedondifferentassumptionsofmodulepricesareusedand
thenforeachmodulepricetheLCOEwiththreedifferentinstallationcostshasbeencalculated.The
calculatedLCOEwasthenextrapolatedusingthe20th,medianand80thpercentileexpectationofthe
LCOEchange.TABLE31summarizestheresults.AllpricesareinUS$2012.
AstheGermanexampleshows,pricesusedintherightmostcolumnarenotunrealisticandcanbe
usedforcurrentLCOEconsiderations.However,asthepricesofPVmodulesareveryvolatiletheother
two estimates representing a broader spectrum of module prices are more appropriate for
93
94
GlobalHorizontalIrradiance(GHI)isthesumofDirectNormalIrradiance(DNI)andDiffuseHorizontalIrradiance(DHI).
Source:MeteoSyn(MeteorologicalSoftware)developedbyValentinEnergieSoftware.
95
Forcalculation,theuseofSanyoHIT210Nmoduleswasassumed,witharatedpowerof210W,amoduleefficiencyof
16.7%andasizeof1.26m.
96
Performanceratioistheratiobetweenthesystemoutputatthea/csideoftheinverterandthenominalcapacityofthe
modulebasedonstandardconditions.Lossesoccurduetodeviatinginsolationandtemperaturesagainstthestandard
values,shadingofmodules,dirtonthemodulesurface,reflectionsaswellaselectricallosses.Typicalsystemshave
performanceratiosofbetween80and90%.
97
UsingthesoftwaretoolPVSolSoftwareExpert5.5(R4version).
140
policymaking considerations, while the best possible option demonstrates what is possible
nowadays.
TheassumptionsformodulepricesandinstallationcostsleadtoanLCOEbetweenabout29and14
US$ct/kWhat2012prices.
6.2.3.8 Development trends in the region
With the mediumterm objective of achieving 25% RE use by 2025 and adequate framework
conditions,suchasanetmeteringschemeforprivatesolarelectricitygenerationthatstartedinJune
2011,theDominicanRepublichasbecomeamajordestinationintheCaribbeanforsolarinstallations
fromrooftopsizestolargegroundmountedsystems.Bymid2013,atotalof6MWsolarPVhadbeen
realizedunderthenetmeteringagreement,reachingfromsmallresidentialsystemstolargersized
installationsonhotels(suchasthe267kWplantontheHotelDominicanaFiestainSantoDomingo),
factoriesandthe1.5MWfacilityatCibaoInternationalAirportinSantiagodelosCaballerosserving
about 50% of the airports electricity needs. The construction of a solar farm with 50.6 MW peak
capacitywasstartedin2012nearthecapitalSantoDomingo.Theregionsbyfarlargestsolarfarm
withacapacityof64MWbegancompletionin2013.Theelectricitygeneratedwillbesoldundera
Power Purchase Agreement to the state utility CDEEE. The country passed a law to incentivize the
growthofRE:itwaivesimportdutiesforREequipment,allowsforthewritingoffof40percentofsales
tax on electricity sales from renewable sources for 10 years, and makes the tax on equipment
deductibleupto75percentforthatsameperiod.
A1MWgroundmountedsolarplanthasbeencommissionedinOctober2013onSt.Kittsjustnextto
therunwayoftheairport.TheUS$2.5millioninvestmentwith3,500panelsisoperatedbythePort
Authorityandpartofagovernmentplantoachieve60%ofelectricitygenerationfromgreensources
by 2015. The plan includes solar street lighting and the installation of solar systems at the
governmentsheadquarters.Furthermore,aTaiwanesecompanyhassettledasmallmanufacturing
facilityfortheassemblyofsolarkitsandpanels.AlsoinOctober2013,asmallersolarfacilityof72kW
cameintooperationontheroofofamajorretailstoreonSt.Kitts.Theprojectwasfacilitatedbya
governmentpolicytoremoveimportdutiesonallREequipment.
OnGrandCayman,partoftheCaymanIslands,theutilityCUCselectedtwogroundmountedsolar
projectsof5MWeachforrealizationafterabiddingprocess.Theplantswillsellalltheirelectricityto
CUCatafixedpriceandshouldcommenceoperationin2015.Atotalof31companieshadresponded
witharound50proposalstotheoriginalrequestforbidsaskingforthedeliveryofelectricityfromwind
andsolar.
Facinghighelectricitycostsandahugedebtburden,PuertoRicoisseekingtoexpanditsrenewable
electricityportfoliofromamere1%shareto6%bytheendof2014and15%by2020underitsRE
Portfolioobligation.Thecountryisalreadyhometoalargesolarplantwith24MWandinvestment
costsofUS$96thatwasinauguratedin2012inthemunicipalityofGuayamaandsellselectricityunder
a20yearPowerPurchaseAgreementforUSct13perkWh.Itnowintendstocreateincentivesforthe
installationofsolarsystemsonschoolsandotherpublicbuildings.Severalplantshavealreadybeen
installedoncommercialbuildings.Ahugegroundmounted52MWiscurrentlyunderrealizationinthe
Eastoftheisland.ItwillsellallelectricitytothestateutilityPREPAandcanservetheneedsofabout
130,000homes.
Jamaicahasselecteda20MWsolarfarmoutofawellattendedcompetitivebiddingprocesswith20
proposalsfromlocalandinternationalcompanies,forrealizationin2015.Theimplementationofa
netbillingschemeintroducedin2012forsmallscaleinstallationswithrelativelylowratesforexcess
141
electricitysoldtotheutilityhasnotbeentakenupmuch,asconditionswerenotattractiveforinvestors
(seechapter6.1.3).
6.2.3.9 Recommendations for PV
TherecommendationsforactivitiesrequiredtobedoneinT&Tareasfollows:
Establish a database where PV system operators can log the performance and capacity
factorsofsystems.Thiswillenablebettercalculationsforfutureinvestors.
DuetoalackofPVsystemsinT&Tthatwouldrevealthespecificenergyyieldofsystems,the
Meteorological Service of Trinidad and Tobago should acquire and provide local solar
radiationdataandalloweasyaccesstothisinformation,especiallytoreflectlocalconditions
onthedifferentcoastalsidesoftheislands.
Currentlyhighergenerationcostsshouldnotbeseenasdeterrenceastheprofitfromthis
costcontributionremainsinthelocaleconomy.
Establishment of a data base where PV system operators can log the performance and
capacityfactorsofsystems.
100roofsPVprogramme
PViscompetitiveinT&Tinthelongrun,sonotimeshouldbewastedtoputinplacemeasuresthat
willpromotePVinstallationsthatcoulddrivedownlocalinstallationscosts,asseeninGermany.The
initialuptakeofPVhomesystemsshouldbestimulatedwitha100roofsprogramme(upto5kWp)
thatwillprovidearelativelyhighamountofdirectinvestmentsubsidy(aboutUS$2,000perkWp).With
anaverageof3kWpbeinginstalledthiswouldamounttoatotalsubsidyofUS$600,000.Theprivate
investmentcouldberemuneratedover20yearswithafixedrate(excludinginflationadjustment)of
about10US$ct/kWh,thusintherangeofthefullcosts(excludingsubsidies)forconventionalelectricity
generationinT&T.
SuchatargetedprogrammewithlimitedcosteffortscouldefficientlypromotesolarPVtechnologyand
stimulatetheestablishmentofanewmarketaswellascreateawarenessamongthegeneralpublic
aboutthepotentialofsolarelectricity.Asimilarprogrammetargeting1000roofshasbeenthestarting
pointofablossomingPVindustryandmarketinGermanyintheearly1990s.
142
Table31:LCOEforPVsystemsinTrinidadandTobago
Module
US$/kWp
Inverter
NRELbasecasemodule
High
Medium
MedianIRENAmodule
Low
3,200
High
Medium
Low
High
Medium
Low
2,080
950
US$/kWp
Installation
US$/kWp
2,000
1,660
1,320
2,000
1,660
1,320
2,000
1,660
1,320
ICC
US$/kWp
5,700
5,360
5,020
4,580
4,240
3,900
3,450
3,110
2,770
AOE
US$/kWp
24
Capacityfactor
16.5
Discountrate
4.25
Operationallife
years
25
CRF
0.066
Systemefficiency
Spec.solaryield (kWh/kWp)
500
12.2
14.0
1,300
LCOE2012:
US$ct/kWh
28.8
27.1
25.4
23.1
21.4
19.7
17.4
15.7.
14.0
LCOE2015:
US$ct/kWh
26.9
25.3
23.7
17.6
16.3
15.0
LCOE2017:
US$ct/kWh
25.9
24.4
22.8
16.2
15.0
13.8
143
BestPossibleoption
1 Installationcostsvarydramatically,buttheywilldependsignificantlyontheeconomyofT&Tandlocalmarketconditions;anypredictionofthedevelopmentwillbeinaccurateandbeyond
thescopeofthisanalysis.
2 CFR=CapitalRecoveryFactor
3 Forthebestpossibleoption,nopredictionofmodulecostdevelopmentandinstallationcostshasbeendone.
Inflation:9.36%/a
Realdiscountratedr=4.25(quotedbyCentralBankofTrinidadandTobago)
Nominaldiscountratedn=14.55%
144
6.3 OffshoreWindEnergy
6.3.1 Statusofoffshorewindenergy
ThefirstwindturbinethatisconsideredtobeoffshorewaserectedinNogersund,Swedenin
1990.Morerecently,therehasbeenasurgeofoffshoredevelopments,mainlyinEurope,but
alsoinChina,SouthKoreaandJapan.TheUSandothercountriesareexpectedtofollowvery
soon(Figure39).
Figure39:HistoricalGrowthoftheGlobalOffshoreWindMarket
Source:NAVIGANT,2013
Bytheendof2013,2,080offshoreturbineshadbeeninstalledandgridconnectedinEurope,
withatotalcapacityof6,562MW,in69windfarmsinelevencountries(EWEA,2014).Almost
allprojectshavebeenrealizedinjustsixcountries:UK(56%),Denmark(19%),Belgium(9%),
Germany (8%), Netherlands (4%) and Sweden (3%). The average wind turbine size is 4 MW,
wherebyasignificantnumberofnewturbinesisnowintherangeof5MW.Duetothehigh
costsforinterconnectionandlogistics,averageoffshorewindfarmscompletedin2013arefairly
largewith485MWandmediumdistancetoshoreisintherangeof30km.Similarinstallation
rates(closeto1,600MW)asin2013arealsoexpectedforthefollowingtwoyears.
Offshorewindpowerhastwomajoradvantagesthatinthelongrunwillmakeitaveryimportant
sourceofelectricity.Thesearethehighercapacityfactorsthatareachievedduetothestronger,
145
steadierwinds.Andduetotheirdistancefromthecoast,theyarelesslikelytoproducenotin
mybackyarddebatesandarethuseasiertoimplementforbothdevelopersandpoliticiansalike
(ZAAIJER, 2012). But they have also disadvantages and face significant challenges: long
submarineinterconnectioncables,difficultterrainforfoundationsindeepwaterandmovement
ofpartsandroughconditionsforregularmaintenanceandrepairs.
6.3.2 Costsofoffshorewindpower
The increased capacity factor promises cheap production in the long run, but currently the
difficulties with maintenance, availability and reliability as well as the more expensive
constructionmakeoffshorewindpowersignificantlymoreexpensivethanonshorepower.
According to the latest publication of IRENA on renewable power generation costs, offshore
wind farms are much more expensive than onshore and cost US$ 4,000 to 4,500 per kW
installed,withthewindturbinesaccountingfor44%to50%ofthetotalcost(IRENA,2012a).In
thepastyears,projectcostshaveshownagenerallyincreasingtrendduetoamovementtoward
deeperwater sites, increasing site complexity and higher contingency reserves (Fehler!
Verweisquellekonntenichtgefundenwerden.).Forprojectsinstalledin2012,averagereported
capital cost was US$ 5,384/kW (NAVIGANT, 2013). In the future and with growing learning
experience,capitalcostsareexpectedtodecreasetoUS$2,500to3,000perkW.
Figure40:ReportedCapitalCostsforGlobalOffshoreWindProjectoverTime
Source:NAVIGANT,2013
146
TheLCOEofoffshorewind,assuminga45%capacityfactor98andO&McostsofUS$0.035per
kWh,isbetweenUS$0.15andUS$0.17perkWh.ItdropstoUS$0.140.15perkWhwhenthe
capacityfactoris50%.ThehighO&McostsaddsignificantlytotheLCOEofoffshorewindfarms
andcostreductionsinthisareawillbecriticaltoimprovingtheirlongtermeconomics(IRENA,
2012a).
Thereforetherecentinterestinoffshorewindpowerisnotsomuchdrivenbyeconomicreason,
butmorebypoliticalsupportandtheexpectationthatexperiencewilldrivedowncosts.Justas
ithasbeenthesituationwithonshorewindpowerandPV.
ButforthecaseofT&TitistooearlytoestimatetheLCOEofoffshorewindpower,asnoteven
onshorewindpowerisdevelopedandinuse.Onemustnotethatallnationswherethereisan
interest in offshore wind power have had significant previous experience with onshore wind
energy.Thealreadymentioneddifficultieswithmaintenance,reliabilityandmonitoringofwind
turbinesrequireastepwiseapproachwithfirstgainingknowledgeonland.
6.3.3 Offshorewindpowerandrisksofhurricanes
However,intheCaribbeanthereisyetanotherissuethatsofarhasbeenoverlookedinEurope,
but is posing a significant risk to US based developments: the threat from hurricanes and
cyclones. A recent research paper suggests that a significant number, up to 50%, of wind
turbines in areas at risk could be damaged from Hurricanes during their expected 20year
operationallife(ROSEA,2012).
Asstatedinthesectiononwavepower(chapter6.7),thepredictionofpeakoffshoreconditions
isverydifficultastheextremesmaybeveryhighbutrare.AndeventhoughT&Tisnotinanarea
withveryregularHurricaneimpacts,therehavebeenwindspeedextremesinthelast20years
andthereisnothingtosuggestthatthiswillchangeinthenext20years,sothisriskmustbe
considered.
6.3.4 Environmentalimpact
Thevisualpollutionbyonshorewindfarmsandpossiblenegativeeffectsontourismmayalso
beconsidered,whilemovingtowardsoffshorewindpower.Theeffectofoffshorewindfarms
onthemarinelifeisstillnotwellunderstood,withsomestudiessuggestingbenefits,whileitis
certainthattheconstructionphasecanbeharmfultolocalmarinelife(WILHELMSSONA,2006).
6.3.5 Offshorelocationavailability
To benefit from a deduction in visual impact, the turbines must be placed at a considerable
distancefromtheshore.AsmentionedinthesectiononOTEC(chapter6.7.3),deepwatercan
befoundclosetoTobagomakingitunsuitableforoffshorewindpower,asfloatingstructures
arestillintheresearchphase.Trinidadhaslessslopeinthesurroundingoceanfloor,withdepths
oflessthan20mstillfound5kmoffshore,makingitpotentiallysuitable.
98
Newoffshorewindprojectshavecapacityfactorsbetweenabout38and50%.
147
6.3.6 Conclusionsandrecommendations
Offshorewindpowerwill beasignificantsourceof electricityin thefutureintheworld,but
before T&T can start to exploit this resource, the onshore market should be developed, as
experiencegainedwithwindturbinesonlandisessential.
Furthermore, the report on the LCOE of onshore wind power and experience from other
Caribbean islands show that onshore wind power in T&T can already expect a rather high
capacityfactorasthecountryliesinanareaofverysteadywindsandallpotentialsitesarein
closeproximitytothecoast(JARGSTORF,2011).
This very good onshore wind power potential should be first developed before thoughts are
giventooffshorewindpower.
Oneoftheproblemsontheislandsislandavailabilityandthatinthiscaseoffshoremightbea
viablealternative.Thismightbeoneofthemajordrivingforcestoconsideroffshorewindpower
fortheCaribbeanislands,likeinT&T.Butasoffshorewindrequiressubstantialtechnological
andlogisticalinputsespeciallyintransport,construction,commissioningandO&Mitisstrongly
suggestedtofirstgetexperiencewithonshorewindpowerandtowaitatleastfor510years,
untiltheworldwideexperienceonoffshorewindpowerledtoreducedcostsandbettersupport
schemesfortransport,construction,commissioningandO&MoutsideofEuropeandtheUS.
In addition, as offshore wind power is still in an early development stage worldwide and its
deployment has just started mainly in Europe, it requires strong and long lasting technology
supportschemesbygovernmentsandevenstrongerengineeringcapabilitiestoovercomethe
technologicalchallenges.ThereforeitisnotadvisableforT&Tatthisstagetouseitsresources
onthistechnologydevelopment.
If T&T wants to prepare the field for offshore wind, it might enter into a first evaluation of
potentialsitesinthecoastalareasaroundtheislandsandassesstheirsuitabilityforoffshore
wind power and start clarifying if other environmental concerns exist for future use. Wind
assessmenttoestablishthecapacityfactorshouldbepartofthatevaluation.
6.4 PotentialforSolarWaterHeating
6.4.1 Introduction
Solarenergycanplayasignificantroleinsavingfossilfuelswhichwouldnormallyhavebeen
divertedtowaterheating,andsubsequentlyinmitigatinggreenhousegasemissions.InT&T,hot
waterispredominantlygeneratedbyusingelectricity.TheapplicationofLPGforwaterboilers
isratherlimited.ThesituationisthereforedifferentfrommostotherCaribbeanislandswhere
LPGplaysamajorroleinthisconsumptionsector.DuetothelowtariffsforelectricityinT&T,
theuseofhotwaterinthedomesticsectorforsanitaryreasonsisalsomorewidespreadthan
onotherislandsandthepercapitaconsumptionislikelytobehigherthanelsewhere.
AccordingtoareportbytheSolarHeatingandCoolingProgrammeoftheInternationalEnergy
Agency(IEA),bytheendof2011thetotalinstalledcapacityofSolarWaterHeaters(SWH)in56
countriesrecordedwas234.6GWth,correspondingtoatotalof335.1millionmcollectorarea.
Theannualcollectoryieldofallwaterbasedsolarthermalsystemsinoperationbytheendof
148
2011was195.5TWh.Thiscorrespondstoanenergysavingequivalentof20.9milliontonsofoil
andemissionabatementof64.1milliontonsofCO2.Theinstalledcapacityinthesecountries
representsmorethan95%ofthesolarthermalmarketworldwide(MAUTHNER,2013).Between
2000and2011theglobalannualinstalledglazedwatercollectorareaincreased7fold(FIGURE
41).In2011alone,atotalcapacityof48.1GWth,correspondingto68.7millionmwasinstalled.
In2012,thetotalinstalledsolarthermalcapacityinoperation(268.1GW)wasonlyslightlylower
thanthecumulatedworldwidewindpowercapacity(282.6GW).
Globally,85%oftheoverallcapacityinstalledwasusedfordomestichotwaterinsinglefamily
housesand10%wasattachedtolargerhotwaterconsumerssuchasmultifamilyhouses,hotels,
hospitals,schools,homesforelderlypeople,etc.InLatinAmericathemarketwasdominatedby
singlefamilyhousesystems(77%)amongallnewinstallationsin2011,whilesystemsformulti
familydwellings,tourismandpublicpurposesononehand,andsolarprocessheatontheother
hand only reached 22 and 1%, respectively. As in most regions with warmer climates and
relativelylowincomelevels,90%ofallsystemswithglazedwatercollectorsinoperationinLatin
Americabytheendof2011,havebeenthermosyphontypes,whileonly10%werepumpedsolar
heatingsystems.
For end of 2012, preliminary estimations expected a worldwide capacity of solar thermal
collectorsof268.1GWthor383millionm.Thiscorrespondstoanannualcollectoryieldof225
TWh, which is equivalent to savings of 24.0 million tons of oil and 73.7 million tons of CO2
respectively.Thenumberofjobsinthefieldofproduction,installationandmaintenanceofsolar
thermalsystemshasbeenestimatedtobeintherangeof420,000.
Figure41:Annualinstalledcapacityofglazedsolarcollectorsworldwide
Source:MAUTHNER,2013
149
AmongtheleadingcountriesworldwidewasBarbadoswith321.5kWthper1,000inhabitantsat
the end of 2011 (FIGURE 42). T&T is not included in this group of countries as the SWH
penetrationisstillrelativelylow.
Figure42:Totalcapacityofglazedflatplateandevacuatedtubecollectorsinoperation,endof2011
Source:MAUTHNER,2013
For T&T, the upward trend of the oil price in the last few decades has led to a significant
advantageandincreasedeconomiccompetitivenessasthestatesnaturalresourcescanbesold
atpremiumpricesorpreservedforfutureuseinsteadofunnecessarilyexhaustingthesupplies
whenalternativesareavailable.Thisreportreviewsandanalysesthepotentialforsolarwater
heatinganditsapplicationforT&T.Itfurthermakesrecommendationsforitsdeploymentinthe
residential,commercialandhotelsectors.
CurrentlytheapplicationofSWHinT&Tisverylimited,differentfromanumberofotherislands
intheCaribbean,wherefossilfuelsandsubsequentlyalsoelectricityarefarmoreexpensive.
About55%ofall SWHsystems within CARICOMarecurrentlyinoperationinBarbados, with
majorsharesalsoinJamaica,St.LuciaandtheBahamas(seeFIGURE43).AllSWHinT&Tsofar
are imported models as no local manufacturing exists. It is estimated that the number of
installedSWHinT&Tisonlyoftheorderofafewhundreds.
150
Figure43:SolarWaterHeatingpenetrationinCARICOMstates
Source:GARDNER,2012
6.4.2 SolarResources
T&Tlieswithinabeltwherethesolarinsulationlevelsarerelativelyhigh(FIGURE44),providing
an invaluable indigenous resource which can be harnessed and developed to overcome the
unnecessaryusageofitsfossilfuelreserves.
Figure44:Worldmapofpotentialsolarpower(solarinsolationinkWh/m2/day
151
FIGURE 45 give a closeup view of the annual levels of Direct Normal Irradiance (DNI) in the
Caribbean,whileFIGURE46givestheannualvaluesforaflatplatetiltedatlatitude.Thesemaps
indicate that the average solar irradiance for T&T lies in the range of 5.06.0 kWh/m2day.
Because T&T is situated near the equator, the DNI values are close to the Global Irradiance
valuesonaninclinedsurface,foroptimalperformanceofsolarenergysystems.Thisisconsistent
withactualreadingstakenfromtheweatherstationlocatedatthecampusoftheUniversityof
theWestIndies(UWI)inSt.Augustine,Trinidad.
Figure45:SolarinsolationmapoftheCaribbeanDirectNormalIrradiance
Source:OEI,n.d.
152
Figure46:SolarinsolationmapoftheCaribbeanGlobalSolarRadiationtiltedatlatitude
Source:SWERA,n.d.
ThegraphsinFIGURE47showthemediumdailysolarradiationatUWI/TrinidadforaJanuary
andJuly2011.Solarradiationmeasurementsweretakeneveryfiveminutesandaveragedover
the corresponding periods for each day. While the readings were taken at the UWI in St.
Augustine,theinsolationlevelsarequitesimilarformostofT&T.Thesegraphsprovideconcrete
evidenceoftheexcellentconditionsforsolarthermalsystemsonbothislands.
Furthermore,FIGURE48andFIGURE49showforcomparisontheDailySolarRadiationaveraged
over a month for both a horizontal surface and an inclined plane for a twentytwo year
measurement period. These graphs also consistently show values ranging from 4.9 to 6.4
kWh/m2dayonahorizontalsurfaceand5.5to6.4kWh/m2dayonaninclinedsurfaceforoptimal
yearroundperformance.Therefore,forahorizontalsurfacetheannualaveragesolarradiation
is5.3kWh/m2day,andforaninclinedsurfaceitis5.9kWh/m2day,indicatingasmalldifference
of0.6kWh/m2day.
Thismeansthatthepotentialforsolarwaterheatersintermsofavailableresourceisexcellent.
However,beforeembarkingonaprojectwhichinvolvestheuseoflargequantitiesofhotwater
forcommercialorindustrialpurposesitwillbeimportanttoconductamoredetailedresource
assessmentatthespecificsite.
153
Figure47:AverageDailySolarRadiationatUWI,Trinidad
July2011
1000,0
900,0
900,0
800,0
Averaged Solar Radiation (W/m^2)
Averaged Solar Radiation (W/m^2)
January2011
800,0
700,0
600,0
500,0
400,0
300,0
200,0
600,0
500,0
400,0
300,0
200,0
100,0
100,0
0,0
12:00
0,0
12:00
700,0
4:48
9:36
2:24
7:12
12:00
4:48
4:48
9:36
2:24
7:12
12:00
4:48
Time Intervals (5mins)
Time Intervals (5mins.)
Source:OwngraphsusingdatafromWeatherStationatUWI
All the graphs indicate that conditions in terms of resource are favourable for effective
deploymentofsolarwaterheatersinT&Tformostoftheyear.Insulationlevelsarerelatively
highyearroundandthussuccessfulwaterheatingusingsolarenergycanbeguaranteed.
Figure48:AverageSolarRadiationonahorizontalsurfaceineachmonth
AverageSolarRadiation(kWh/m/day)
7
6,5
6
5,5
5
4,5
4
Jan
Feb Mar Apr May Jun
Jul
Aug
Sep
Oct
Nov Dec
Source:SOLAR,2012
154
Figure49:AverageSolarRadiationonanInclinedSurfaceineachmonth
AverageSolarRadiation(kWh/m/day)
6,5
6
5,5
5
4,5
4
Jan
Feb Mar Apr May Jun
Jul
Aug
Sep
Oct
Nov Dec
Source:SOLAR,2012
6.4.3 TechnologyofSolarWaterHeaters
SolarWaterHeating(SWH)isoneofthesimplestapplicationsofsolarenergyuseandhasgained
experienceinmoderntimesnowforseveraldecades.Methodsofharnessingsolarenergyhave
improvedovertheyears,makingtheconversionespeciallyefficientthroughimprovedglazing,
better insulation of collector and tank and application of selective coating of the absorber,
among other technical innovations. Welldesigned SWH systems are therefore capable of
covering most, if not all hot water needs in tropical climate conditions, where medium solar
irradiationishighandthedifferentialbetweenthetemperaturesofwaterinflowandoutflowis
relativelylow.Itsapplicationcanthereforeleadtosignificantsavingsthroughthedisplacement
offossilfuelbasedelectricitygenerationorothersourcesofenergy,suchasLPGthatareusually
appliedforwaterheating.
Thetechnologyforsolarwaterheatingisfullydevelopedandcontinuouslylendsitselftofurther
enhancement.Therefore,giventheresourceandthestateoftechnology,thepotentialforsolar
waterheating(SWH)ishigh,bothintermsofitsapplicationandfeasibilityformanufacturing.
Solarwaterheatingisaveryreliabletechnology,ifthesystemisproducedandinstalledwith
proper quality and the sizing is properly quantified. Maintenance for SWH systems is usually
minimal.
The most common systems in the Caribbean are thermosiphon SWH with an open loop
circulationofthewater.Thesesystemsarealsocalledpassiveastheyrelycompletelyonheat
drivenornaturalconvectiontocirculatethewaterorheatingfluidthroughthesystem.These
systemsusuallycomeinanintegratedformwiththetanksdirectlyattachedabovethecollector,
butthetankandcollectorcanalsobeplacedseparatedfromeachother.WhilepassiveSWH
systemsarelessexpensive,theirefficiencyissignificantlylowerthanthatofactivesystems.
Ifthetankisplacedbelowthecollector,e.g.atgroundlevelorinabasement,itbecomesan
active one, as it now requires the use of a pump for the circulation of the water. If static
155
reasonsarenotpreventingit,allsystemsarenormallyplacedontheflatortiltedroof,where
sufficientspaceisavailableandshadingmightbelessofaproblem.Waterpressurefromthe
mains needs to be high enough to transport water from the ground onto the roof. And the
distancebetweentankandconsumptionpointneedstobesufficientlyhighsothatthehotwater
canreachitsfinaldestinationbygravityflow,withouttheuseofapump.
Both, active and passive systems can be direct (openloop) systems, which circulate potable
waterthroughthecollectors,orindirect(closedloop)systems,whichuseaheatexchangerthat
separatesthepotablewaterfromtheheattransferfluidthatcirculatesthroughthecollector.
ActivesystemsarestilllesscommonintheCaribbean,althoughtheyareoftenbettersuitedfor
largersystems,asinhotels,andforaestheticreasons.Inthiscase,thecollectorscanbeinstalled
inhomogeneousfieldsontherooforsubstituterooftiles,whilethewellinsulatedstoragetank
islocatedinamaintenanceroom.AlsoclosedloopsystemsarenotsocommonintheCaribbean.
Thesesystemsoperate witha closedcirculationofwater(orotherliquid)between tank and
collector.Thefreshwaterisheatedwithinthetankthroughaheatexchanger.Thesesystems
areadvantageousasthequalityofliquidintheinnerloopcanbecontrolledandparticlessuch
ascalciumwillnotplugtheabsorberpipes.Theyrequirethereforelessmaintenance,butlose
someefficiencythroughtheexchangeofheatbetweenthetwocircuits.
MostcollectorsusedintheCaribbeanareoftheflatplatetype,i.e.theabsorberandcirculation
tubesformaflatareathatis housedinaglasscoveredandsealed casing.Lesscommon are
evacuatedtubecollectors,wheretheheatpipeisinsertedinavacuumglasstube.Thevacuum
reducesthe convectionheatlossesto theambience,therebyincreasing the efficiencyof the
collector.Vacuumtubecollectorsalwaysruninaclosedcyclemodeandthereforeneedaheat
exchanger. These collectors have efficiency advantages in colder climates, but do not offer
substantialextraenergygainsunderCaribbeanconditions.
To allow for high energy gains the optimal positioning of the collector is determined by the
latitude.Formaximumsolargains,thecollectorshouldbetiltedat90%ofthelatitudeandbe
orientedfacingtheequator.Therefore,forlocationsintheNorthernhemisphere,thecollector
shouldbetiltedfacingdueSouth.Whileexistingroofsmaynotalwaysofferthebestsolutions,
forcountrieslyingclosetotheequator,suchasT&T,inabilitytocorrectlyorientthecollector
willnotnecessarilyresultinexcessivelosses.Itisalsopossibletousesoftwareprogrammesto
calculate the energy lost in the case that nonoptimal conditions are the only choice for
installation.
SomeSWHareofferedwiththeoptiontoinstallanelectricbackupheater,eitherdirectlyinthe
storagetankoratanypointbetweentheSWHandtheshowerheadorfaucet.Theneedforsuch
an option certainly depends on the expectations of the consumers. Securing hot water
availabilityatanytimemightbemoresensitiveinluxuryhotelsthaninthedomesticsector.For
properlydesignedandpositionedSWHthecoverageofwaterheatedbythesunwillbecloseto
100%inT&T.99Ofcourseitcanneverbepreventedthatanumberofovercastdaysorfailureof
thesystemmayleadtoadeficitinhotwatersupply.
Inmostcasesthefrequentuseoftheelectricalboostershouldbediscouraged.Thosedevices
with a capacity of 1.5 or 3 kW impact severely on the peak power demand. It is therefore
advisabletoavoidelectricalbackupheatingandinsteadprovideanadequatevolumeofhot
99
AccordingtoJ.Husbands,awelldesignedhotwatersystemwillefficientlyprovide95%ofthehotwaterneedseffortlesslyfor
mostoftheyear.
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waterusingsolarenergyinawellinsulatedstoragetank.Ifboostersarekeptpermanentlyin
theonposition,anyfailureofthecollectormaynotbedetectedsinceavailabilityofhotwater
willnotbeinterrupted.
6.4.4 ConsumptionofHotWater
Wefirstwanttoseehowmuchenergyisusedtoheatup10U.S.gallons(37.85litres)ofwater.
Thetemperatureoffreshwaterisnormallybetween25and27CinT&T.Toheat10U.S.gallons
upto60Cabout5,400kJor1.5kWhthermalenergyareneeded.Thisisalsoabouttheelectric
energy required if a passthrough heater near the point of consumption is being used. An
efficientandwellpositionedSWHsystemmayhaveanoverallefficiencyofaround40%.100The
assumptionofaninsulationof5kWh/mdayisalsomade.Thus,toheatthe10gallonsofwater
by34Konsuchadaywouldrequireasolarcollectorareaofabout0.75m.
Theaforementionedexampleisintendedonlytogivearoughindication.Theenergyavailable
fromthesunandtheperformancecharacteristicsofsolarcollectorsvaryinacomplexwayand
generalisationsshouldbeusedwithcaution.Ascanbeseenbelow,inpracticesolarcollectors
intendedforapplicationintheCaribbeanaresomewhatsmallerdimensioned.
6.4.4.1 Domestic sector
TheGovernmentofTrinidadandTobagorecommendsthedimensionsasshowninFIGURE50
for hot water requirements depending on the size of the household and the related sizes of
storagetanksandcollectorareas.Itshouldbenotedthatthehotwaterdemandsmentioned
here appear very generous with daily consumption of 20 to 30 gallons per person based on
temperaturesof5060C101.Takingthelowerwaterconsumptionfigureintoconsideration,the
electricity consumed by a 4person household will be 12 kWh daily (or about 4,380 kWh
annually)justforwaterheating.Astheaverageelectricityconsumptionperhouseholdforall
energyservicesisonlyabout16.5kWh/dayinT&T,suchfigureshavetobehandledwithcaution.
Besideslowerhotwaterconsumptionvaluesinpractice,itcouldalsoindicatethatbyfarnot
everyhouseholdisequippedwithelectricalwaterheating102.
Figure50:DimensionsofSWHsystems
Source:MEEA
100
Forcomparison:ThecompanySolarDynamicsofBarbadosstatesthatitscollectorhasaperformanceofabout2.7
kWh/mday,notcountingthelossesthroughtankandpipes.
101
Lowervolumesof1520gallonsperpersonanddayarementionedin(LOY,2005).TheFloridaSolarEnergyResearchand
EducationFoundationcalculatesdailyusageof20gallonseachforthefirsttwooccupantsand15gallonsforeachadditional
occupant.
102
Accordingto(GARDNER,2012)onlyabout75,000householdsinT&Thavedomestichotwater.
157
Thermosiphon systems are offered normally in standard packages, expressed by the storage
tankvolume.Typicalsizesforcollectorsrespectivelystoragetanksvaryfrom50to80gallons.
Therelatedcollectorareamayvaryslightly,dependingontheclimateconditionsforwhichthe
system has been designed and the solar coverage rate desired. If solar energy should cover
almost all hot water needs the ratio between collector area and tank volume needs to be
increased.Itisthereforenotunusualtofind80gallonsystemsthatarecoupledwitha4.5m
collector.
Importantforthehotwaterconsumptionistheflowrateofshowerheadsandfaucets.Older
showerheadshaveflowratesinexcessof5gallonsperminute.In2010,theU.S.Departmentof
Energyrecommendedshowerheadswithaflowrateof2.5gallonsperminuteorless.TheU.S.
EnvironmentalProtectionAgency(EPA)foritsparthaspublishedguidelinesforwhatitdefines
asWaterSenselabelledshowerheads,whichmaynotusemorethan2.0gallonsperminute
andmuststillprovideabettershowerexperiencethanconventionaldevices.TheEPAestimates
thatanaveragehouseholdcouldsavemorethan2,300gallonsorover300kWhelectricityper
yearbyinstallingsuchhighefficientshowerheads(EPA,n.d.).
6.4.4.2 Commercial sector
Thecommercialsectorisperhapsoneofthemostcriticalareasforrapiddeploymentofsolar
water heaters as it provides a ready market. This sector includes hotels, hostels, hospitals,
universities/schoolsanddormitories.
Hotwaterandairconditioningaretwomainrequirementsforguestcomfortinthehospitality
industry.SWHscanbeemployedtoservicetheneedsforhotwaterandsolarassistedcooling103.
According to J. Husbands, the daily volume of water needed to achieve guest comfort is 40
gallonsforatwopersonroomwithshowers,and60gallonsroomswithwhirlpoolorothertubs.
Therequiredtemperaturesforavoidanceofharmfulbacteriainthepipesare55to60C(135
to140F).ThiscanbeeasilyachievedwithawelldesignedSWHsystem.
AccordingtotheMinistryofTourismthereare6,300hotelandguesthousesrooms,thenthis
leadstoapotentialof3,150SWHs,assumingtwopersonsperguestroom.Mosthotelsalsooffer
swimmingpoolsfortheirguestsandmanyprovideheatedJacuzzi.Hotwaterforbothofthese
facilitiescanalsobeprovidedbysolarcollectors,withdesignsvaryingaccordingtoapplication.
Hospitals/clinics utilize large quantities of hot water on a daily basis for sterilization, baths,
kitchen/cookinguse,andothers.Theseprovideanevengreaterpotentialthanthehotelsector.
InT&T,mostschoolsdonothavedormitories,butthefewthatdo,togetherwithUniversityHalls
ofResidence,utilizeasignificantquantityofhotwateralsoonadailybasis.Alloftheseprovide
areadymarketforlargescaledeploymentofSWHs.Dependingonthedistributionpatternof
hotwater,thesystemscouldbeeithermodularorbeinstalledwithalargecapacitysingletank.
6.4.4.3 Industrial sector
TheindustrialsectorisoneofthekeyareasforpossibletargetingofSWHs.Preheatingofwater
using SWHs provides a huge benefit for companies as this significantly reduces the overall
electricity cost for water heating operations. SWHs can be used as a heat source for solar
assistedcoolingsystems.Thefoodindustryisonewhereproperhygieneiscompulsory.Solar
103
Solarcoolingisnotatopicofthisreport,butcouldbefurtherlookedatwithinalaterversion
158
waterheaterscanbeeffectivelyutilizedinnumerousareasinthefoodindustry.Onesucharea
is in the Dairy industry. Most of the hot water demands occur at the dairy processing plant.
EmploymentofSWHsindairyprocessingcanresultinlargesavingsforcompanieswhichwould
normallyutilizepetroleumbasedfuelsforprocessing.
Clotheslaundryisanothersectorwhichutilizeslargequantitiesofhotwaterfortheiroperations.
SWHscanprovideheatforfeedwaterfortheboilerswhichrunthelaundry.
6.4.5 Costs
TypicalcostsofSWHinT&TrangefromapproximatelyUS$1,000to3,000dependingonthe
typeandorigin.TheevacuatedtubecollectorstypicallyoriginateinChinaandaresoldatabout
US$1,000to1,250.ThereareonlyafewoftheseinstalledinT&T,andwhiletheyarecheaper
thantheotherdesigns,theirlifespanhasnotbeentestedinT&T,aswellasthereareproblems
withbreakageoftheevacuatedtubes,andreplacementcanincreasethecostoverall.Theprice
of the SWHs manufactured in the Caribbean range from approximately US$ 1,800 to 2,400,
depending on manufacturer and size of the water heater. Some of these SWHs are
manufacturedtoahighstandardandhaveproventooutlastsomeoftheSWHsimportedfrom
outsidetheCaribbeanbothintermsofperformanceanddurability.SomeoftheSWHsimported
fromoutsideoftheregioncancostsignificantlymore,sometimesclosetoUS$3,000.
Calculationsindicatethatanaveragefamilyoffourcanuseapproximately12kWhofelectricity
perdayforwaterheating(seeabove).Usinganaveragecostof6US$ct/kWhinT&T(2009tariff),
theannualcostisUS$263(TT$1,577)asopposedtoUS$1,605inBarbados.
At an average cost of US$ 2,200 for an 80gallon capacity standard thermosiphon SWH, this
wouldindicatethatthepaybackperiodisapproximatelyeightyears.Withthetaxcreditof25%
onthecostofaSWH,uptoamaximumofTT$10,000offeredbytheGovernmentofTrinidad
and Tobago, the payback period would be reduced to six years. Prices vary considerably
depending on origin and quality of the product. In Barbados the systems will pay back for
themselvesafteronly1.5years.WelldesignedandmanufacturedSWHswilloperateformore
than15yearswithoutmajorproblems,addingfurthersupportfortheirviability.
Inthetourismsector,eachhotelroomrequiresapproximately2,000kWhofenergyperyearto
satisfythehotwaterneeds.AtaveragecostsofUS$ct6.5perkWhforelectricity,thecostfor
hotwaterisUS$130perroomandyearinT&T.Withsimilarcostsassumedfortheinstallation
of SWH systems as in the residential sector, solar energy is not costcompetitive against the
establishedwayofwaterheatingundercurrentpricingconditionsandwithoutmajorincentives.
6.4.6 CostComparison
FIGURE51showsacomparisonofvarioustypesofwaterheatingsystemsintheUSA.Whilethe
priceofelectricityintheU.S.isdifferentfromtheoneinT&T,itisstillrelativelylow,asisthe
case in T&T. The comparison is therefore generally appropriate for T&T as well. The "total
annualizedcostofownership"isthecosttoinstall,maintain,fix,replace,andoperatethewater
heatingsystemovera30yearperiod.Ineconomicsterminology,thisistheannualizedvalueof
thelifecyclecost.
Fromthecomparisonbelow,itbecomesclearthatnaturalgasisthecheapestoftheoptions,if
infrastructure allows a direct supply of final consumers. Clearly, going electric is not a good
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optionsincethecostissignificantlyhigherintheU.S.T&Tiswellendowedwithnaturalgasas
feedstockforitselectricitygeneration.Nonetheless,thesuppliesarefinite,anditmakesgood
economicandenvironmentalsensetoconservetheremainingresourceswherealternativesare
possible.
FIGURE51highlightsrelativepricesaloneanddoesnottakeintoaccountenvironmentalfactors
and external costs. Hybrid systems of solar collectors and natural gas backup, as they are
common in the U.S. and Europe, will have much less impact on the environment than
conventionalheatingsystems.Theiremissionofgreenhousegases(GHG)andotherpollutants
willbesignificantlylowerthanequivalentsystemsbasedonfossilfuels.
Figure51:Costcomparisonofvariouswaterheatingsystems
Source:ENERGYGUY,n.d.
6.4.7 EnvironmentalBenefits
Dependingonthesize,adomesticSWHsubstitutesbetween2,000and3,600kWhelectricity
annuallyandconsequentlyoffsets1.4to2.5tonsCO2underT&Tconditions.Withamedium
valueof2.0tonsCO2andanassumedcoverageof25%ofallhouseholds(equivalenttoabout
100,000 households), the use of SWH systems in the residential sector would mitigate CO2
emissionsbyabout200,000tonsannually.
AccordingtotheMinistryofTourism(MOTTT,2010),T&Thadapproximately6,300hoteland
guesthouseroomsin2009.Onaverageifan80gallonSWHservicestwohotelrooms,then3,150
SWHswouldbenecessaryfortheaccommodationsector.Usingagainarealisticaverageoffset
of2.0tonsofCO2persystemannuallyimpliesatotalabatementofapproximately.6,300tons
CO2peryearforallhotelrooms,assumingfulloccupancy.Undernormalcircumstances,50%
roomoccupancyismorerealistic,inwhichcasethetotalabatementwouldbeapproximately
3,150tonsofCO2peryear.
WhilegloballyT&Temitsonlyasmallpercentageofgreenhousegases,intheCaribbeanitisby
farthelargestemitterofGHGs.ThereforethroughtheuseofSWHs,T&Tcantakeitsfirststeps
toreductionofdangerousGHGemissionsandtakeitsresponsibilitytotheregionseriously.
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CarbonabatementfromsolarwaterheatingforvariouscountriesisshowninTABLE32. The
countrywhichsituationcomparesclosesttotheT&ToneisMexico.Thetablealsoshowsthe
differenceofcostspersystemwhichareparticularlyhighintheCaribbean,MexicoandSouth
Africawithlessdevelopedorrelativelysmallmarkets.ChinaofferslowpricedSWHsystems,but
very often lacking quality and only lasting for a limited time period. The carbon abatement
dependsontheCO2emissionfactoroftheexistingelectricitysystemorwhateverenergysource
forwaterheatingwillbesubstituted.The3.2tonsCO2foran80gallonSWHsysteminthecase
ofBarbadoshavebeencalculatedonthebasisofafullydieselreliantandrelativelyinefficient
powersystem,butmightbetoohigh.
Table32:Carbonabatementfromsolarwaterheatinginselectedcountries
Source:MILTON,2005
OneoftheearliestinitiativesinT&TwasthejointconveningbyBPTT,theUniversityoftheWest
IndiesandtheCaribbeanSolarEnergySociety(CSES)ofSATIS2003SustainableApplications
forTropicalIslandStatesaregionalbiannualconferencewhichfocusedonREasapathwayto
energy security. At this conference, various recommendations were made regarding
implementation of RE technologies in T&T. Included among these was solar water heating
(Haraksingh,2003)
Coincidentally,theTrinidadandTobagoBedandBreakfastAssociation(TBBA)hadpresenteda
proposaltoUNDP/GEFSmallGrantsProgramme(SGP)forsupporttowardsapilotprojecton
greening the TBBA through the introduction of SWH systems. The MEEA was sufficiently
stimulatedtopursuethedevelopmentoftheSWHindustrybytheintroductionofapilotproject
onSWHsfortheTTBA.ItwasnamedtheSolarWaterHeaterProjectanddevelopedunderthe
UNDPGEF/SGP.TheprojectagreementwassignedinJanuary,2006,andincludedinthelistof
stakeholderswerebpTT,theTourismDevelopmentCorporation(TDC)andtheTobagoHouseof
Assembly(THA).TheprojectfocusedonsixhosthomesinTrinidadandfiveinTobago.TheSWHs
installedinTrinidadwereadifferenttypefromthoseinTobagoandoriginatedfromoutsidethe
regionasopposedtothosefromTobago,whichweremanufacturedintheregion.
Thereweremanytechnicalandlogisticalchallenges,rangingfromplumbing,electricaletc.to
designoftheSWHsemployed.Nonetheless,allthehomesreportedsuccessfulwaterheatingby
solar energy. Two components of the assessment were establishment of baseline data and
monitoringofelectricitycosts.Unfortunately,assessmentoftheeconomicimpactfellshortas
theprojectwasprematurelybroughttoanend.Nonetheless,allthehosthomeownersreported
asignificantdropintheirelectricitybills.
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SomeoftheotherbenefitsoftheSWHprojectincludedawarenessbuildingontheapplication
ofsolartechnologiesinT&T.Sincemostofthehosthomeownerswereunawareofthetechnical
aspects of SWHs, the project and stakeholders involved benefitted from two technical
workshops on solar water heating facilitated by the Chair of the Monitoring and Evaluation
committeeoftheproject,bothinT&T.
Lessonslearntfromthisprojectincludedtheimportanceofprovisionofsoundtechnicaladvice
fromthestartoftheproject,theneedforproperinstitutionalarrangements,theurgentneed
foradequatetrainingandcapacitybuildingintheSWHindustrytoenhancethelocalcapacityto
servicetheindustry,andpubliceducation.
6.4.8 CurrentFiscalIncentivesforSWH
Byamendingseveralfiscalacts,theGovernmentofTrinidadandTobagohasputthefollowing
incentivesinplaceatthebeginningof2011:
25% Tax Credit on SWH (up to a maximum of TT$ 10,000.00 acquired for use by
households);
0%VATonSWHs;
150%WearandTearallowanceforSWHs;SWHplant,machineryandequipment;
ConditionaldutyexemptionsforSWHmanufacturers.
WhiletheseincentivesdefinitelystimulatedsomegrowthintheSWHindustryinthelasttwo
years, the uptake has been slow both from the business perspective as well as from the
consumeracceptancepointofview.Whileascientificsurveyonthenumberofnewinstallations
has not been done, some information was gathered from informal discussions with business
personsfromtheindustryaswellassomeconsumerswhohavenewinstallations.Afewsmall
businesses mushroomed across the country, but more importantly two major companies
establishedpresencehereinthecountry.Theamountofbusinesstheygeneratedduringthe
last one and a half to two years remains to be evaluated as information has not yet been
gatheredandcollated.
6.4.9 BarriersandRecommendations
Financing
For T&T, one of the major barriers is the low cost of electricity, coupled with still
insufficient/inadequateincentivesandrebatesforSWHapplication.Thepolicyframeworkdoes
notalloweasyaccesstoSWHloans.Theinitialinstalledcostofanaveragesizedsolarwater
systemwith80gallon(approximately$10.000to$12,000TT)isprohibitive,inparticularforlow
incomehouseholdswhichwouldinsteadgenerallyusethefarlessexpensiveandeasilyavailable
electric showerheads. In addition, hot water may not be a priority for homes with limited
financialresources.
LoanschemesarenoteasilyavailableforSWHsystemsandevenmiddleincomefamiliesarenot
fully convinced about the value of their application. If further incentives are offered by the
162
Government,banksandotherinstitutionsmayforeseelessofarisktoimplementloanschemes
forSWHs.
PublicAwareness
Whiletheeconomicreturncanbeattractiveinthelongterm,publiceducationaboutthisisnot
yet in place to encourage the uptake of SWHs. Informal surveys indicate a severe lack of
awarenessaboutwhatisaSWH,howitoperates,theadvantagesofusingaSWHasopposedto
afossilfuelpoweredheaterintermsofenvironmentalconcerns,theimportanceoflifecycle
analysis,thelongtermeconomicbenefitstobederivedandgenerallackofunderstanding.The
free market situation and the lack of disincentives for the purchase of electrical heaters is a
majordeterrenttothepenetrationofsolarwaterheatingsystemsinT&T.
Architecturalpreferencesforthetraditionalsystemscanalsobeafactorinconsideringrooftop
SWHssincesomearchitectsdonotlikeSWHsplacedontherooftopsforaestheticreasons.
QualityAspects
Therearealsotechnicalbarriersofvaryingnaturewhichpersist.Soundtechnicaldesignsleadto
highqualityproductswhichunfortunatelytranslateintohighercosts.T&Tisstillnotsufficiently
equippedwithanadequatetechnicalworkforcewithcompetenciesindesign,installationand
maintenance.ThisisanintegralcomponentoftheSWHbusiness.Thisdeficiencyoftenleadsto
alackofconfidenceanddistrustamongconsumers.
Lackofconfidenceinlocallymanufacturedproductsandoverconfidenceinimportedproducts
can lead to undermining of the local manufacturing capacity. On the other hand, discerning
customerscandetectthatinferiorqualitygoodsimportedfromothercountriesareallowedto
enterthecountrysincestandardsarestillunderreviewforsuchproducts.Thisdichotomyleads
toadoublenegativeeffectontheindustry.
InT&Tthenumberofexpertsavailabletoadequatelyservicethemarketisinadequate.Asa
result,newentrepreneursactingonlyassalespersonsareopeningupSWHbusinesseswithout
the capacity to technically advise and service the business. This can lead to lack of public
confidenceintheSWHbusinessanddiminishacceptanceofthetechnology.
Recommendations
Inordertomakeasignificantimpactintermsofavoidedcostforelectricityforwaterheating
and also in terms of CO2 emissions, a penetration of about 10,000 SWH systems in the first
instance would need to be realised. This could take approximately two years to materialise.
UsingtheincentiveschemethatBarbadosadopted,T&Tcouldseeasimilargrowthtothatwhich
tookplaceinthe1980sinBarbados.Toachievesuchanobjective,theGovernmentshouldenrol
a specific programme for the market introduction of SWH that contains different elements:
incentives,capacitybuilding,awarenessraising,standards,testingetc.Examplescouldbetaken
from the Mexican PROCALSOL programme (CONAE, 2007) or the Tunisian PROSOL project
(TRABACCHI,2012)amongothers.
Furthermarketstimulationcouldbeachievedthroughadditionalsupport.Theseshouldinclude
thefollowing:
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AnenablingenvironmentforSWHpenetrationmustbecreatedbytheGovernment.This
must ensure longterm fiscal and regulatory framework for both manufacturers and
consumers.
100%TaxCreditonSolarWaterHeaters(uptoamaximumof$12,000.00TTacquired
forusebyhouseholds)forthefirstfiveyearsofitsimplementationtojumpstartthe
industry.
Government can work by setting example: In the shorttomedium term, all new
Government housing complexes and public buildings (such as hospitals, clinics and
schoollaboratories)thatutilizeasignificantvolumeofhotwatershouldbeequipped
withSWHforallthehotwaterneedsoftheestablishment.
OlderGovernmentsocialhousingestablishmentsshouldberetrofittedwithsolarwater
heaters.
Mandatory requirement of SWH installation for all those establishments with a high
consumption of hot water, such as hotels, restaurants, hospitals etc.; for new
constructedbuildingseffectiveimmediately,forexistingbuildingsafteragraceperiod
(seeexampleofMexicoCity).
Dedicatedeffortstowardspubliceducationshouldbegivenpriority.
Established NGOs and champions for SWHs should be allowed a greater level of
prominencethroughpublicforumsforsensitisingthepublicatlarge.
Choiceofmanufacturingoptionsmustbedonelargelybyascertainingqualityproducts
overandbeyondotherfactors.
Government must work with manufacturers to ensure that high quality products,
certified and labelled by the Trinidad and Tobago Bureau of Standards (TTBS), are
developed;thiswillensurenotonlycustomersatisfaction,butalsoconfidenceinthe
solarwaterheaterbusiness.
Ifspaceformanufacturingisaproblem,Governmentshouldbeabletoleasetheland
spacenecessarytopotentialmanufacturerstoestablishaproductionplant.
Governmentcanalsoassistinotherways.Theseincludethefollowing:
Governmentmustencourageinnovationthroughcompetitionswithattractiveprizes.
Highertaxes/penaltiesforelectricwaterheatersshouldbeimposedtomakeSWHprices
and benefits more attractive to the consumer. Once the cost of the electric water
heaters are substantially higher than at present, investment in SWHs would become
moreattractive.
Removal/reductionoftaxesforSWHswilldefinitelygiveaboosttotheindustry.
Government should institutionalise a system of certification for all SWH installations

throughoutthecountry.
Carbontradingcouldbeconsideredasafurtherincentivetostimulatethepenetration
ofSWHs.
The average man on the street is unaware of EE and greenhouse gas emissions.
Government can assist by providing sensitization programmes to the public through
collaborationwithspecialistsandexpertsintheseareas.
164
FurtherstimulationoftheindustrycanbeachievedbyincludingrelevantareasofSWH
Technology into the curriculum for Technical/Vocational training, and engaging the
appropriatespecialistsinthisregard.
Continuous research and development are important for competitiveness of the

industry.Both,governmentandprivatesector,canworkwithacademicinstitutionsto
furtherdevelopnewtechnologies/designsthatsupportGHGemissionsreduction.
CurrentlythereisnosysteminplaceforcollectingdataonSWHinstallations.TheMEEA
shouldconsiderestablishinganindependentbodytodevelopandmaintainadatabase
of SWH manufacturing, sales and installations. This will enhance the ability to better
understand the currentstatusof theSWH marketin thecountry,andtoanalysethe
effects,includingtheenvironmentalbenefitsofreducedgreenhousegasemissions,of
SWHdeploymentandusage.
6.4.10 PotentialandOpportunitiesforLocalSWHManufacturing
HighlightingthesuccessoftheBarbadoscase(seeAppendixK:SolarWaterHeating)illustrates
that there is huge potential for solar water heating in T&T, especially since the insulation
conditionsaresimilar.However,themainsignificantdifferenceisthepriceofelectricityinT&T
whichisabouteighttimeslowerthaninBarbados.Nonetheless,T&Thasasignificantadvantage
over Barbados in that with the countrys wealth in natural gas resources for electricity
generation,manufacturingisarealpossibility.LabourcostsinT&Tarerelativelycheaperthan
inBarbados.Inaddition,someoftherawmaterialswouldalsobemoreeasilyavailablethanin
Barbados.AllthisamountstohighpotentialandfavourableconditionsformanufacturinginT&T.
6.4.11 CapacityBuilding
Oneof the majorproblemsin T&Tregarding SWHislackoftrained personneltoservice the
industry.Thereareonlyacoupleofcompanieswhohavetechnicianstrainedininstallingand
servicingtheSWHindustry.Thisunderlinestheurgentneedfortrainingandcapacitybuilding
programs in T&T at different professional levels. The UWI has conducted limited training
workshopsinsolarwaterheatingtechnology.However,thereisneedtowidenthetargetgroup
topreparetheworkforceforapossibleexpansionoftheSWHindustry.Inparticular,training
needstobeconductedforvariouscategories/groupsofpersonnelwhowouldbeintheSWH
manufacturingandinstallationindustry.
Althoughsometrainingworkshopshavebeenconductedgreatertrainingatdifferentlevelsis
required and should be directed to managers, consumers, financiers, technicians, teachers,
policymakers,GovernmentofficialsdealingwithSWHs(customsofficers,andothers).
6.4.12 StandardsforSWHSystemsinT&T
Experiencesinothercountrieshaveshownthattheimplementationofqualitystandardsplayan
importantroleinsupportingthedisseminationofSWHtechnologyinthelongrun.TheTrinidad
andTobagoBureauofStandards(TTBS)haspublishedtwodocumentsonSWHsystemssofar
and is currently working on a third. The first, TTS 106:2012, deals with Solar Water Heater
SystemsDesignandInstallationRequirements,andthesecond,TTS/EN129751:2012,deals
165
with Thermal Solar Systems and Components Solar Collectors Part 1: General
Requirements.
TheinformationfromthesedocumentsistheresultoftheworkoftheSpecificationCommittee
forSolarWaterHeaterssetupbytheTrinidadandTobagoBureauofStandardsandchairedby
Professor Gurmohan Kochhar of the Faculty of Engineering, UWI. This Committee comprises
representatives from other relevant government ministries, the Regulated Industries
Commission, private companies, the University of Trinidad and Tobago, and the Bureau of
Standards.
TTS106:2012
ThefirststandardisbasedlargelyontherequirementsspecifiedintheFSEC(FloridaSolarEnergy
Centre) Standard 10410 Florida Standards for Design and Installation of Solar Thermal
Systems.ItalsobenefittedfromtheadoptionofstandardssetupbytheBarbadosNational
StandardsInstitute (BNSI),theBritishStandardsInstitute (BSI)andStandards Australia (SA)/
StandardsNewZealand(SNZ).Thisdocumentisintendedtoassistmanufacturers,importers,
distributors and consumer groups as a reference in the adoption of solar water heating
technologyinT&T.
Thestandardcomprehensivelyoutlinesthescopeoftheworkregardingtherequirementsfor
thedesignandspecificationofindividualcomponentsandtheinstallationofsolarwaterheater
systems.Itstatesthenormativereferences,thetermsandconditionsforthepurposesofthe
document, and the design and installation requirements. It also details the requirements for
reliabilityanddurabilityofthesystemsandcomponents,safetyrequirements,operationand
servicingindicators.Theneedfordocumentationintermsofprovisionofmanualsandproper
labellingforthesystemshasbeenhighlighted.
Section 4.7.1 states that Pumps, fans, ducts, piping and other components shall be sized to
carrytheheattransferfluidatdesignflowrateswithoutsignificanterosionorcorrosion.Itis
notsomuchthedesignflowrateswhichwillimpactonthecorrosion,butthequalityofthe
components.Alsobecauseitisaclosedcomponent,thestoragetankisespeciallyglasslinedto
prevent corrosion and properly designed systems include a sacrificial anode which attracts
corrosion,ifany.Thissectioncanthereforeberemovedandreplacedifnecessary.
Section 5.14 states that Underground piping subject to vehicular traffic shall be installed to
withstandtheadditionalloadingbythistraffic.Thetrenchesandbackfillshallbefreeofsharp
objectsincontactwiththepipe.ThisconditiongenerallydoesnotapplytoT&T,especiallyin
the caseof domesticinstallationswherethe piping wouldnormallybeincorporatedintothe
existing plumbing for the homes. It may of course be important for largescale commercial
installationswheresignificantundergroundpipingmaybecomenecessary.
TTS/EN129751:2012
StandardTTS/EN129751:2012iscompulsoryanddealsspecificallywithsolarcollectors.This
standard was adopted from the European Committee for Standardization (CEN) standard EN
129751:2006+A1:2010 Thermal solar systems and components Solar collectors Part 1:
General requirements, and modified for T&T conditions and purposes. Manufacturers,
importersanddistributorswouldbeexpectedtoadheretotheserequirements.
166
CENstarteditsworkforstandardsonsolarthermalcollectorsandsystemsbackin1994withthe
operationofanewlysetupTechnicalCommittee.FortheelaborationofEuropeanTechnical
Standards,correspondingnationaldocumentsaswellasinternationalstandards(ISO)havebeen
takenintoconsideration.Comparedtothethenexistingstandards,theEuropeannormshave
incorporated new features such as quality and reliability requirements. Besides the standard
mentionedhere,CENhaspublishedseveralotherstandardsforsolarthermalproducts,among
thoseaboutthedesignandmanufacturingofdifferentsystemsandrespectivetestmethods.
Thegeneralterms,scopeandnormativedefinitionshavebeenmodifiedforrelevancetoT&Tin
thisstandard.UnderDurabilityandReliability,Safety,Collectoridentificationtheclauseshave
beenlargelyreplaced,incorporatingISO98061:1994(TestmethodsforsolarcollectorsPart1:
Thermal performance of glazed liquid heating collectors including pressure drop), ISO 9806
2:1995(TestmethodsforsolarcollectorsPart2:Qualificationtestprocedures)andISO9806
3:1995 (Test methods for solar collectors Part 3: Thermal performance of unglazed liquid
heating collectors sensible heat transfer only including pressure drop), and statements
regardingsnowloadhavebeeneliminatedforirrelevance.
A section on compliance is also included and this largely deals with a certification mark and
relevantdocumentationacceptabletoTTBS.SincetheEuropeanstandardisgenerallyforming
thebaseofthenewlocalstandard,themodificationsmadeaccordingtotheT&Tsituationare
relevantandadequate.
Ingeneral,standardsTTS106:2012andTTS/EN129751:2012arecomprehensiveandsufficient.
ItneedstobeseenandfurtherevaluatedtowhatextentTTBSwillabletoperformconformity
testsandwhichequipmentandstaffcapacitywillbeneededtoenterintosuchundertaking.To
ensurecompliancewiththestandards,theMEEAisplanningtosetupaspecialcommitteeto
investigateadherence to thestandards.Theyalsoplanto establishatestingfacilityforsolar
waterheaters.
6.4.13 Conclusions
ThepotentialforSWHsinTrinidadissufficientlylargeistermsoftheresourceanddemandfor
waterheaterstosafelyestablishviableindustrybothforimplementationandmanufacturing.
TheSWHindustrywillbenefitT&Tinnumerousways,namely:
ThroughmanufacturingofSWHs,T&Tcouldcreateanexportmarketintheregionand
beyond.
Thecreationofjobsandbusinessopportunities.
Tomitigatesomeoftheeconomiceffectsofthecurrentdeclineinpetroleumreserves.
Contributetoimprovementsinlivingstandards,incomelevels,healthandhygiene,and
environmentalprotection
The commercialandindustrialsectors inT&Trepresentan excellent targetforlarge

scale deployment of SWH systems, as the need for hot water is crucial to their
operations
TheenvironmentalbenefitsgainedwillplaceT&Tinapositivelightwithrespecttothe
restoftheCaribbean.
167
ThedevelopmentoftheSWHindustryprovidesanassuranceforfutureinvestmentsin
REtechnologies.
WiththerightincentivesandpeoplesacceptanceofSWHs,theindustrycanflourish,as
wasthesuccessstoryofBarbados.
168
6.5 WastetoEnergy(WtE)
T&Tiscurrentlyplanningtodiversifyitsenergymixtoreducetheenvironmentalimpact(e.g.
greenhouse gas emissions) and economic risks associated with the dependency on a single
sourceofelectricitygeneration. Inkeepingwiththis,the GoRTThasdecidedtoevaluate the
potentialforRE.
Like most countries worldwide, T&T also faces increasing problems with the disposal of its
MunicipalSolidWaste(MSW).AsthestandardoflivinginT&Tincreases,sotoodoestheamount
ofMSWgenerateddaily.Theexistingdisposalfacilitiesaresimpledumpsiteswithoutproper
environmentalprotection,leadingtoincreasingenvironmentalpollutionofsurroundingsurface
and ground water. In addition, these landfill sites are operating far beyond their originally
plannedcapacityandshouldhavebeenclosedyearsago.
Duetothedifficultiesinestablishingnewlandfillsitesasaresultofthelimitedavailabilityof
landspaceinTrinidad,andtheprobableresistanceoftheresidentsclosetotheseproposednew
sites,thecurrentdumpsitesarestillinoperationwhichisincreasingtheenvironmentaldamage.
AnidealsolutionforsolvingtheMSWproblemwhileprovidingT&TMSWintoenergy.Thisis
standardinmanycountriesandregionssuchasintheEuropeanUnion,theUSA,Japan,China,
etc.
Inthisregard,afactfindingmissionwasconductedtopreliminarilyinvestigatethepotentialfor
WastetoEnergy(WtE)inT&T.
6.5.1 LimitationsofthisChapter
Duetothelimitedtimeinwhichthisfactfindingmissionwasconducted,thefindingshaveto
beregardedwithcertainlimitations:
a) ManyofthepublisheddataonwastemanagementinT&Tarebasedonestimationsof
theauthors.Duetothetimeconstraints,alldatathatcouldnotbeverifiedpersonally
duringthemissionwereacceptedfromreferenceliteratureifplausible.
b) DuetotheverysmallamountofMSWinTobago,WtEisnotafeasibleoptionforthis
island. The feasibility of transporting the waste to facilities in Trinidad could be
investigatedinafurtherstudy.
c) Only MSW has been considered. Nonhazardous Industrial Waste and Commercial
Wastehavebeenexcludedatthispoint.
d) Pricesforequipment,maintenanceandoperationarebasedoninternationalpractices.
ForexactpricesforT&T,additionalinquirieshavetobemade.
e) Economicfeasibilityisassessedwithestimationsbasedonavailableinformation.
169
6.5.2 CurrentSituationofWasteManagementinTrinidad
6.5.2.1 Waste Generation, Collection and Disposal
Trinidadcurrentlygeneratesanestimated2,000tofMSWperday(SMWCOL).Consideringa
populationof1.3millioninhabitants,thisequatestoapercapitagenerationofapproximately
1.5kg/person/day.
WastecollectioniscarriedoutbyanumberofprivatecollectioncompaniessuchasB.K.Holdings
Ltd.ThesecompaniesareawardedconcessionstocollecttheMSWinspecificareasinTrinidad
andtransportthewastetothelandfills.Inaddition,thesecompaniesalsocollectwastedirectly
fromlargerproducersofwastesuchascompanies,restaurantsandmarkets.
WastedisposalinTrinidadisexclusivelyhandledbySWMCOL(TrinidadandTobagoSolidWaste
ManagementCompany).
SWMCOLisa100%stateownedenterprisewhichisinchargeofthefinaldisposalofMSW.
Forthispurpose,SWMCOLoperatesthefollowingthreelandfills(FIGURE52):
-
BeethamLandfill(approximately1,000t/d);
ForresParkLandfill(approximately500t/d);and
GuanapoLandfill(approximately500t/d).
SinceSWMCOLispaidanannuallumpsumtreatmentbudgetinsteadofatippingfeebasedon
theamountofdisposedwaste,disposednoneofthethreelandfillsprovideoverscalestoweigh
theactualamountofincomingwaste.Therefore,therearenomeasuredvaluesfortheamount
of MSW delivered to the landfills. The above listed amounts of disposed waste have been
estimatedbySMWCOLfromcountingthenumberofarrivingtrucksmultipliedbyanestimated
averageloadofMSWpertruck.Thisleadstoalargepossibleerrorwithregardtotheavailable
amountofMSWforWtE.
ForthedisposaloftheMSW,SWMCOLreceivesvaryingannualbudgets.For2011thebudget
was approximately TT$ 70 million. Based on an estimated value of 700,000 t/a MSW, the
treatmentcostsarecurrentlyapproximatelyTT$100/t.Sincethistreatmentfeeonlycoversthe
treatmentatthelandfillsitebehindthegate,thisTT$100canbeconsideredequivalenttoa
gatefeeortippingfee,andhasbeenusedfortheeconomicfeasibility.
InadditiontotheGovernmentbudget,SWMCOLalsoreceivesadditionalincomefromprivate
wastegenerators.
All landfills operated by SWMCOL are simple dump sites without protective liners, leachate
collectingsystemsandtemporarycovers.Additionally,theselandfillsareoperatingfarbeyond
theirassignedcapacityandweresupposedtobeclosedseveralyearsago.Theyarecurrently
operatingundertemporarypermitssincetheallocationofnewlandfillspaceisdifficultmainly
duetothelimitedavailabilityoflandspace(typicalforsmallislands).
170
Figure52:LocationsofSWMCOLlandfills
Source:SWMCOL,n.d.
Figure53:PlanViewofBeethamLandfill
Source:PicturetakenfromGoogleEarth
171
ThesituationattheBeethamLandfillisparticularlynotideal,asitislocatedinacoastalswamp
areawhichismostunsuitableforwaste(FIGURE53).Thelandfillshouldhavebeenclosedsince
2003butisstillacceptingapproximately1,000t/dMSW,leadingtocontinuingencroachment
into the swamp land. This situation has already led to significant contamination of the
surrounding environment. Additionally, due to the proximity of the dump site to the sea,
contaminationofthefoodchain(fish,shellfishetc.)canbeexpected.
ByemployingSWMCOL,allofTrinidadsMSWiscurrentlyunderthecontroloftheGoRTT.This
isanexcellentstartingconditionforWtEprojects,asnolongtermdisposalconcessionswith
privatecompaniescanblocklargeramountsofwasteforWtEprojects.
ForaquantitativeevaluationoftheWtEpotentialinTrinidad,adetailedanalysisoftheactual
amountofMSW/dayhastobecarriedout.
6.5.2.2 Waste Composition and Usability for Waste to Energy

ForeveryWtEproject,thecompositionoftheMSWisofutmostimportance.Thisdetermines
thecalorificvalueandinformsonthemostappropriatetechnologyforeachrespectivecase.
Thoroughwastecharacterizationstudiesarethereforeofgreatimportance.Suchstudiesshould
coveratleastonecompleteyearsincethecompositionofMSWusuallychangessignificantly
throughouttheyear.Forexample,awastecharacterizationcarriedoutduringthedaysafter
Carnivalismostlikelynotrepresentativeofthewastecompositionthroughouttherestofthe
year.Seasonalharvestscanalsoleadtosignificantchangesinwastecomposition.
Such comprehensive studies are also important to understand the changes in the waste
compositionandanticipatepossiblefuturechanges.Sincethesechangesinwastecomposition
willaffecttheincinerationbehaviouroftheMSW,itisveryusefultobeabletopredictfuture
changesandtheireffectontheWtEfacility.
Table33:WastecompositionatthethreeLandfillSites(1995)Composition1995
Source:SWMCOL,n.d.
Unfortunately, there have only been 3 isolated waste characterization studies conducted in
Trinidadin1995,2007and2010.Fromthesestudies,onlythedatafromthe1995and2010
studieswereavailableforthisreport(TABLE33andTABLE34).
172
Table34:WasteComposition2010
Source:SWMCOL,n.d.
In2009,K.Singhetal.publishedastudyonthetechnicalandeconomicfeasibilityofplasma
gasificationforTrinidadandTobago.Thestudyisbasedonacalorificvalueof16MJ/kg(SINGHA,
2009).Thisvalueisconsideredasunrealisticallyhighandwillthereforenotbeusedinthisreport.
Figure54:TypicalDisposedMSWinPortofSpain
Forcomparison,MSWinEuropeandtheUS,whichalsocontainsonlyasmallorganicfraction,
usuallyhasacalorificvalueof911MJ/kg.
The waste characterization from 1995 has to be considered with great caution. It can be
assumedthatthewastecompositionhaschangedoverthepast17yearsduetotheeconomic
173
development of T&T as well as changes in the consumer behaviour. Additionally, the figures
derivedforeachofthethreelandfillsareinconsistentandmayshowsignificanterror.
The2010wastecharacterizationwhichhasbeencarriedoutbyCBCLLtd,aCanadianconsulting
company, is more consistent and corresponds well with observations made during the fact
findingmission(CBCL,2010;see547).
Figure55:DisposedMSWatBeethamlandfill
Figure56:Organicloadsfromplantations,marketsandgardenscaneasilybeseparatedfrom
remainingwaste
TheMSWofTrinidadshowsasurprisinglysmallorganicfraction(<28%).Thisfigurecorresponds
toinvestigationsofMSWcarriedoutduringthefactfindingmission.TrinidadsMSWisavery
drywasteconsistinginlargepartsofplastic,foamboxesandothernonanthropogenicmaterials.
This composition corresponds more to European types of MSW more than to other tropical
countries.
6.5.2.3 Scavengers
Likeinmanycountries,scavengersformapartoftheinformalwastetreatmentsector.Atall
landfills in Trinidad, scavengers are separating valuable materials (mainly metals) from the
incomingMSW.Electricalappliancesandcablesareburntwithoutprotectioninordertogather
themetals.
174
Contrarytoothercountries,thescavengersinTrinidadarenotseparatingplasticmaterials(due
tolackingrecyclingpossibilities).
Scavengers may strongly resist any industrialized waste treatment facility if they lose their
incomesources.Inthisregard,alternativeearningpossibilitiesneedtobecreatedforthem.
One option could be the assignment of a dedicated presorting area where the waste is
dumpedonspeciallydesignedfloors.Afterpresorting,thewasteistransferredintothewaste
bunker. This would provide the GoRTT with an option which possibly provides better health
protectionforthescavengers.
6.5.2.4 Future Changes in Waste Composition

TheGoRTTiscurrentlyimplementingtheBeverageContainersBillwhichinthenearfuturewill
introduceadepositsystemforallbottlesandothercontainersofbeverages.Consequently,it
canbeexpectedthenumberofpolyethylenebottlesinparticularwilldecreasesignificantly.This
willleadtochangesinthecalorificvalueofthewaste.Toestimatetheeffectofthenewbillon
thecalorificvalue,furtherstudiesneedtobedone.
6.5.3 InvestigatedTechnologies
Prior to the factfinding mission and based on information from publications and available
reports, a set of technologies was selected that could be technologically and economically
feasibleinthecaseofTrinidad.
Fromthesetechnologiesthemostsuitableoptionwasselectedbasedontheresultsofthefact
findingmission.
6.5.3.1 Moving Grate Incineration
MovinggrateincinerationisthemostwidelyusedtechnologyforWtEworldwide.Ithasbeenin
useforover50yearsandthetechnologyhasbeendevelopedtoastatethatguaranteesreliable
operationandahighlevelofenvironmentalprotection.
SincemovinggrateincinerationiscapableoftreatingMSWwithawiderangeofcompositions,
ithasbeenappliedinbothindustrializedanddevelopingcountries.
ThemaindisadvantageofmovinggrateincinerationisthatitrequireslargeamountsofMSW(>
300t/d)inorderitsoperationtobeeconomicallyfeasible.Thisisbecauseoftheexpensiveflue
gascleaningsystemrequiredforthistechnology.
Theseconddisadvantageisthattheelectricityoutputofmovinggrateincineratorssignificantly
drops with increasing moisture content of the waste. In this regard, MSW containing large
amountsoforganicwasteorothermaterialswithahighmoisturecontentcancauseserious
problemsforenergygeneration.
175
6.5.3.2 Gasification
Gasification which refers to the combustion of fuel with understoichiometric amounts of

oxygenhasbeenverysuccessfulforbiomassgasification.Thesesystemshavebeeninoperation
since1935,andthetechnologyhasdevelopedtoverystable,reliableandstateoftheart.
ThisisnotthecaseforMSWgasification.DuetothehighlyheterogeneouscompositionofMSW,
itsfrequentlychangingcompositionandhighmoisturecontent,MSWisnotsuitablefordirect
gasification.WhilethereareanumberofcompaniesofferinggasificationsolutionsforMSW,the
direct gasification of untreated MSW is still facing serious technical problems and cannot be
recommendedforWtEprojects.
AnalternativesolutionisthegasificationofRefuseDerivedFuel(RDF).RDFisadriedandpre
treatedfuelderivedfromMSW(seechapter6.5.3.5).Duetothepretreatment,thefluctuations
in the composition in RDF are significantly smaller, the calorific value is significantly higher
(approximately16MJ/kg)andthemoisturecontentissignificantlylower(usually<15%).
However,gasificationofpureRDFiscurrentlynotpossibleduetoseveretarproblems.Smaller
plants (operating with a capacity < 30 t/d) with blends of approximately 50% RDF and 50%
biomasshavebeenoperatinginseveralcountries,especiallyinSouthandSoutheastAsia.There
arenolongtermexperiencesavailabletodate.
Themainadvantagesofgasificationplantsare:
-
The significantly smaller construction area needed for the plant when compared to
movinggrateincinerators;
Thelowerinvestmentcostsforthefluegascleaningsystem;and
Noboilersystemsandturbineswhicharedifficulttomaintainarerequiredforelectricity
generation.
6.5.3.3 Plasma Gasification

Plasmagasificationandplasmaassistedgasificationarecurrentlywidelyadvertisedtechnologies
forthetreatmentofMSW.Thesetechnologiesoriginatefrommetalmeltingprocessesandhave
beenprovensuccessfulfortheincinerationofhighlytoxicindustrialwaste(hazardouswaste).
ParticularlywithregardtotheeconomicfeasibilityforMSWgasification,anumberofincorrect
statementsarecirculatingaboutplasmagasification:
Inreportsonthenumberofoperatingplants,oftenalsoincludedaremetalsmelters,
hazardous waste gasification plants etc., although the process shows significant
differencesandtheeconomicdataareentirelydifferent.
ThecalorificvalueofMSWisoftenexaggeratedinordertoachieveeconomicfeasibility
(oftenthevalueof16MJ/kgcanbefound).
Thenumberofplantsthathavebeenshutdownduetotechnicaloreconomicproblems
arenotpresented.
Thefollowinggivesanumberoffactsaboutplasmagasification:
176
Globallythereisonlyonefullindustrialscaleoperationalplasmagasificationplantin
Japan.Othersaresmallplantswithcapacitiesoflessthan50 t/d (USA,Canada).The
plasmagasificationplantinJapanhasbeenbuiltduetospecificexistingGovernment
regulations.
The initial investment, as well as the operation and maintenance costs for plasma
gasificationissignificantlyhigherthanforgrateincineration.
Plasmagasificationrequiressignificantlymoreenergyfortheprocessthanincineration,
therebyreducingthetotalenergyoutput.
Thereisverylittleinformationpublishedabouttheperformanceoftheplantsleaving
doubtsabouttheirtechnicalandeconomicperformance.
Operationrequireshighlytrainedtechnicians.
Plasmagasificationshouldonlybeconsideredfortypesofwastewhichareverydifficulttotreat.
SincetheMSWinTrinidadisaveryeasytotreatstandardMSW,lessexpensiveandmoreproven
technologiesshouldbeapplied.
6.5.3.4 Pyrolysis
PyrolysisisthecombustionofMSWunderexclusionofoxygen.Ithasbeenadvertisedwidely
overthepastfewyearsasanalternativetreatmentmethodforthethermaltreatmentofMSW.
Energygenerationbypyrolysisconsistsoftwoconsecutivesteps.Inthefirstprocessstep,the
pyrolysisreactionproducesamixtureofoil,synthesisgas(amixtureofcarbondioxide(955%
byvolume),carbonmonoxide(1651%),hydrogen(243%),methane(411%)andsmallamounts
ofhigherhydrocarbons)(BROWNSORT,2009)andtarfromhydrocarbonsintheMSW.These
threeproductsarecombustiblefuelsandcanbeconvertedinthesecondstepintoenergyby
differenttechnologies,e.g.specializedgasengines.
ForMSW,pyrolysishasanumberofsignificantdisadvantagesthatmakeitunsuitableforthe
treatmentofMSW:
Thetechnologycannotcopewithfluctuationsinthewastecomposition.
Thethreedifferentoutputmaterialsofthepyrolysisprocessi.e.gaseous,liquidandsolid
fuelsrequiredifferenttechnologiesfortheircombustion.
Sincetherearenoexistingcommercialreferenceplants,thereisnoexperiencewiththe
operationofsuchplantsonanindustrialscale.
6.5.3.5 Mechanical Biological Treatment (MBT) plus Gasification

Priortothefactfindingmission,itwasconsideredthattheMSWinTrinidadshouldcompriseof
alargeorganicfraction,ashasbeenexperiencedinmosttropicalcountrieswithasignificant
agriculturalsector.
Duetothehighorganicfraction,themoisturecontentinthewastereducesthecalorificvalue
ofthewaste,thusmakingincinerationlesseffective.
177
InordertoincreasethecalorificvalueoftheMSWandutilizetheorganicfractioninthemost
efficientwayforenergygeneration,MBTprovidesasuitabletreatmentmethod.
In Mechanical Biological Treatment (MBT) the organic fraction of the MSW is converted into
biogas which can be used in gas engines to produce electricity. The high calorific fraction is
convertedintoRDF,analternativefuelwithanincreasedcalorificvaluewhichissuitablee.g.for
gasificationitismixedwithothermaterialssuchasbiomass.TheRDFcanalsobeusedasan
alternativefuelinconventionalincineratorsforpowergenerationorasasubstituteforcoalin
cementkilns.
Fromtheenergygeneratedfromthebiogasprocess,usuallyapproximately5060%willbeused
tooperatetheplant.Theremainingenergyplustheenergygeneratedfromthecombustionof
theRDFcanbesoldtothegrid.
Ingeneral,approximately1toffreshMSWwillgenerate280330kgofRDFwithacalorificvalue
between14and16MJ/kg.
6.5.3.6 Summary Thermal Conversion Technologies
As seen in TABLE 35, the most reliable technology is currently the conventional combustion
(movinggrate)technology.
A combination of MBT and gasification may be an option only for waste with high moisture
contentorwastecompositionsthataredifficulttoincineratedirectly.
Table35:ComparisonofThermalConversionTechnologies
Characteristics
Conventional Gasification
Combustion
Plasma
Gasification
Pyrolysis
Applicabletounprocessed
MSWwithvarying
composition
Yes
No
Yes/No
No
Commerciallyprovenwith
relativelysimpleoperation
andhighdegreeof
reliability
Yes
Commerciallyprovento
alimiteddegree,more
complexthan
combustion,requires
additionofbiomass
No
No
Reasonablyreliablesetof
performancedata
Yes
Limiteddataavailable, Limiteddata
Limiteddata
operationalproblems available,operationalavailable,operational
havebeenreported
problemshavebeen problemshavebeen
reported
reported
Source:ownelaborationbyJochenAmrehn
6.5.4 SuggestedTechnology
Based on the findings at the Beetham landfill, investigations of MSW in Port of Spain and
consideringthelimitationsoutlinedinChapter6.3.1,thefollowingsolutionissuggested:
178
ThemostsuitabletechnologyforTrinidadisthemovinggrateincineratortechnologycombined
withsteamturbinesforelectricitygeneration(FIGURE57).
Reasonsforthisrecommendationinclude:
TheMSWinT&Tisadrywastewithlessthan30%organicfraction.Thistypeofwasteis
an easily combustible waste and does not require special technologies for pre
treatment. Larger deliveries of organic waste can be easily rerouted, e.g. to new
compostingfacilities.
Movinggrateincinerationisalongestablishedandwellunderstoodtechnology.There
arealargenumberofexperiencedengineeringcompaniesthatprovidethistechnology.
There are a large number of experienced engineers available worldwide that can
supporttheoperationofmovinggrateincineratorsduringthestartingphase.
T&T has a large number of industrial engineers that can easily be trained to operate
movinggrateincinerators.
179
Figure57:SchematicCrossSectionofaMovingGrateIncinerator
Delivery and Storage
Energy Generation
Incineration
Flue Gas Treatment
Source:ZVAWSn.d.
Figure58:SuggestionforaManualPresortingArea
*Wasteisdumpedintheassignedsortingareas.Valuablematerialsareremovedandtheremainingwasteis
transferredbyaconveyorsystem(1)tothewastebunker.
Sorting Area
5
Sorting Area
1
Sorting Area
2
Sorting Area
6
1
Sorting Area
3
Sorting Area
7
Sorting Area
4
Sorting Area
7
To waste bunker
To waste bunker
180
To provide scavengers with an alternative source of income generation and collect valuable
materials,apresortingareacouldbeestablished(Figure58).Thiswouldavoidconflictswith
theinformalsector.Inalaterphase,thissortingareacouldbereplacedbyanautomaticsorting
machine(e.g.Trommelsieve,magneticseparator,eddycurrentseparatoretc.).
As mentioned above, this recommendation is based on the limited information available. To
provideadetailedrecommendation,additionalassessmentshavetobecarriedout(seechapter
5.3.2).
6.5.4.1 Expected Energy Generation
ThereiscurrentlynodataavailableonthecalorificvalueoftheT&Twastethroughouttheyear.
Estimations of the calorific value are therefore based on the only available waste
characterizationfrom2010andobservationsmadeduringthefactfindingmission.
Sincethecalorificvalueisthemostimportantfactorinadditiontotherespectiveefficiencyof
theWtEplantindeterminingtheenergyyieldofaWtEplant,thepossibleerrorinthecalculation
oftheenergyyieldisregardedasveryhigh.
Basedonthewasteanalysisandobservations,thecalorificvalueofT&Twastecanbeestimated
tobeapproximatelyequivalenttothatMSWinEuropeorUSA,i.e.between8and11MJ/kg.
Withanestimatedoperationof7,500h/aandanestimatedamountof700,000t/aofMSWin
TrinidadandTobago,theelectricitygenerationcouldbeintherangeof30to50MW.
Thehigherrormarginof50%resultsfromthelimitedinformationaboutthecalorificvalueof
theT&TMSW,aswellasfromuncertaintiesresultingfromdifferentplantdesigns.
Byapplyingcombinedcyclesinsteadofusingthesteamforprocessheatthisenergyyieldcanbe
increased.
6.5.5 EconomicFeasibilityofWtE
In addition to the technical feasibility of WtE in Trinidad, the economic feasibility is of great
importanceforsuccessfulimplementation.
MSWincinerationprovidesthefollowingfoursourcesofincome:
Tippingfeeforthetreatmentofthewaste(fromcommunitiesorcompanies);
ElectricitygeneratedfromtheMSW;
Steam(canbesoldtoindustriesrequiringprocessheat);and
Separatedrecyclingmaterials,suchasmetals,bottomash,etc.
Particularly for tropical countries, the main sources of income are from the first two items:
tippingfeeandelectricity.Utilizationoftheothertwoformsofincomecansupporttherevenue
oftheplantandcanbeusedtoreducethetippingfeeand/ornecessaryGovernmentsubsidies.
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6.5.5.1 Economic Models
UnlikemanyotherformsofREprojects,theeconomicfeasibilityofWtEprojectsshouldnotbe
evaluatedonacommercialbasisonly.
WtEalwayshastobeconsideredasanintegralpartofthewastemanagementandtreatment
conceptofa cityor community.Highinvestmentandoperation costsmakeasuccessfuland
sustainableoperationunderpuremarketconditionsimpossible.
Asaconsequence,WtEalwaysrequiresGovernmentsubsidiesinoneformoranother.
Globally,mainlythreedifferenteconomicmodelsareemployed,whicharediscussedbelow.
TippingFeeBasedModel(Examples:Europe,USA,andJapan)
Thismodelhasbeenmainlyimplementedinsomeindustrializedcountries.Itisparticularly
wellsuitedforcountrieswheretheWtEfacilitiesareoperatedbystateenterprises,butthe
modelalsoallowsprivateinvestmentaswellasBuildOperateTransfer(BOT)projects.
ThismodelstronglyemphasizestheroleoftheWtEasanintegralpartofthecountryswaste
managementconcept.Assuch,itisalsoabletofinancetheincinerationprocess.
Inthetippingfeebasedmodel,themainsourceofincomefortheWtEplantisderivedfrom
ahightippingfee,e.g.paidbythecityadministrationtotheoperatoroftheincinerator.
Income from electricity is only regarded as a topup to partially support the costs for
maintenanceandoperationoftheplant.
ThetippingfeeusuallyrangesbetweenUS$60andUS$200pertonofMSW.Theheightof
the tipping fee hereby depends on amongst other things, the respective business model
(Governmentowned, BOT, BuildOwnOperateTransfer (BOOT), etc.) and the technology
applied.
AdderBasedModel(Example:Thailand)
Incountrieswhereahightippingfeecannotbeimplemented(e.g.forpoliticalreasons)the
AdderBasedModelcanbeimplemented.Inthismodel,theGovernmentintroducesafeed
intarifforaddersystem,inordertosupportvariousformsofRE.
ForWtE,whichusuallyincludesbothenergygeneratedfrombiogasfrommixedMSWand
energy generated from fresh MSW or RDF, an adder is introduced where the energy
generatingorganizationreceivespaymentforeachkWhsoldtothegrid.Thepriceispaidper
kWhandisintendedtosubsidizethehigherinvestmentandoperatingcostsforREprojects.
The Power Purchasing Agreements (PPAs) for such projects depend on the height of the
adderandareeffectiveforaperiodof7to10years.
In this model the tipping fee is kept low and only partially supports maintenance and
operationoftheplant.Themainsourceofincomeisfromsellingelectricitytothegrid.
ThefeedintariffinThailandforWtEiscurrently3.5Baht/kWh(US$0.10)whichispaidon
topoftheusual2.5Baht/kWh(US$0.075)fornonREpowergeneration.Onislandswhere
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dieselpowered plants are replaced by RE power plants, an additional 1 Baht/kWh (US$

0.028)canbeapproved(DEDE,2010).
ThePPAsforWtEprojectsinThailandlast7yearsandarenotextendable.Afterthistimeonly
thenormalelectricitygenerationpricewillbepaid.
GovernmentOwnedModel(Example:China)
The third model requires extensive investment on the Governments side. The initial
investment for installation of the WtE plant is fully provided by the Government. The
operator(stateenterpriseorprivateinvestor)onlycoverstheexpensesforoperationand
maintenancefromtheincomereceived.
Thismodelneitherrequireshightippingfeesnortheintroductionofafeedintariffscheme
forRE.
6.5.5.2 Preliminary Economic Feasibility Estimations for T&T
DuetoalackofavailablefiguresfromT&T,thefollowingestimationsforthecostsofaWtEplant
have to be considered with great caution. Operation and maintenance costs for a WtE plant
stronglydependsontherespectivelocalconditions.Tobeabletoestimatetheoperationand
maintenancecosts,additionalinvestigationshavetobecarriedoutinT&T.
TheinvestmentcostsforaWtEplantbasedonmovinggratetechnologycanbeestimatedtobe
between US$ 65 and 80 million for a capacity of 500 t/d, i.e. 160,000 t/a, including
commissioningandstartup.
Theoperatingcostsconsistamongothersoffixedcosts,e.g.capitalcharges,salariesforstaff,
insurances,permitsetc.andvariablecosts,e.g.consumables(inparticularchemicalsrequired
forthefluegastreatmentsuchasCaO,activatedcarbon,ammonia),disposalcostsforresidues
(ashes and materials sorted out in the arrival hall) and operating costs for the wastewater
treatmentsystem.
Since the operating costs of the incinerator in Phuket (Thailand) are unusually high due to
inefficientoperation,theoperatingcostsformovinggrateincineratorswereestimatedbased
ondatafromsimilarprojectsinSoutheastAsia.Costsforthedisposaloftheresiduesarenot
includedinthecalculation.
WithintheUnitedKingdom(LONDON2008),operatingcostsrangebetween:
US$85and110/tforaplantsizeof<100,000t/acapacity;
US$80and110/tforaplantsizeof150,000t/acapacity;and
US$70and80/tforaplantsizeof150,000200,000t/acapacity.
TheWorldBankReportMunicipalSolidWasteIncineration:ADecisionMakersGuide(WB,
2000)statesdifferentoperatingcostsforthesameplantsizesmentionedabove:
US$48/tforaplantsizeof<100,000t/acapacity;
US$40/tforaplantsizeof150,000t/acapacity;and
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US$3840/tforaplantsizeof150,000200,000t/acapacity.
Thisreportdoesnotindicatewhethercapitalcostandinsurancesareincluded.
ThesetwoexamplesshowthestrongregionalvariationsintheoperatingcostsforWtEplants.
Thus,withoutfurtherstudiesitisnotpossibletoestimatetheexactoperatingcostsforT&T.
Incomebasedonthecurrentsituation
Forthecalculationoftheincomefromtippingfee,theannualtreatmentbudgetofSWMCOLin
2012(approximatelyTT$70million)wasconsideredasatippingfee.
Withatotalof700,000tofMSWtreatedin2012theaveragetippingfeeisapproximatelyTT$
100orapproximatelyUS$15perton.Thecurrentpriceofelectricityfortheresidentialsectorin
T&TstartsatUS$0.04/kWh.
EconomicFeasibilityforthesuggested500t/dPlant
ThefollowingcostestimationswereadaptedfromquotationsofChinesetechnologyproviders
forWtEplantsinSoutheastAsia.
Cost:
Initialinvestment:
Operatingcost:
(Excludesdisposal(excl.disposal,depreciationandinterests)
US$6580million
US$35million/a
Income:
Incomefromtippingfee:160,000t/a*US$15=
US$2,400,000/a
Incomefromelectricity:8MW*7500h/a=60,000,000kWh/a
US$2,400,000/a
(Lowestimation)
or
Incomefromelectricity:
12MW*7500h/a=90,000,000kWh/a US$3,600,000/a
(Highestimation)
Totalincome:
US$4,800,0006,000,000/a
Incomefromtherecoveryofrecyclingmaterialsandtheutilizationofsteamwasnotconsidered.
Summary:EconomicFeasibilityforT&T
Inthebestcasescenario(12MWelectricitygenerationandlowmaintenancecosts),income
fromelectricitygenerationwillbarelycovermaintenanceandoperatingcostsoftheplant.
The tipping fee itself will not provide sufficient income to ensure a reasonable Return on
Investment(ROI)fortheplant.
Thepreliminaryeconomicestimationshows:
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- ItisobviousthatunderthecurrentconditionsWtEprojectsarenoteconomically
feasible.
- InordertomakeWtEprojectsinT&Teconomicallyfeasible,itisveryimportantto
assesstheexactcostsanddevelopanappropriateeconomicmodel.
- ToimprovetheeconomicfeasibilityofWtEplantsinT&T,possibleutilizationofthe
steamshouldbeinvestigated.
6.5.6 CurrentObstaclesfortheImplementationofWtEprojects
Asthefirstfeasibilityestimationshaveshown,WtEprojectsarenoteconomicallyviableunder
currentconditions.
Themainobstaclesincludethefollowing:
1. ThepriceofelectricitygenerationinT&Tisverylow.Incomefromelectricitysalewill
not be sufficient to achieve a reasonable ROI for the investment, as well as ensure
sufficientincomeformaintenanceandoperationoftheplants.
2. Withthecurrentsubsidiesforelectricityfromnaturalgas,alternativeformsofenergy
generationincludingWtEcannotcompete.
3. RegulationsinT&Tlimitthepossibilityofprivateinvestorsforelectricitygeneration.In
ordertoallowfeedingelectricityintothegrid,T&TECmustbemajorityshareholderin
theprojectbasedontheexistingregulations.Thislimitstheattractivenessforprivate
investors.
4. Thecurrentwastedisposalfeesaretoolow(approximatelyTT$100/t)tofinanceand
maintainWtEplants.
5. Thereisastronginformalsector (scavengers)workingatthe landfillsitesgenerating
income for their families. These scavengers will resist technical waste treatment
technologies in the case where these technologies will eliminate their sources of
income.
InordertoovercometheexistingobstaclesandfacilitateWtEinT&T,anumberofstepsneed
tobetaken,whichareoutlinedbelow.
1. The GoRTT has to decide whether WtE should be operated either by Government
agencies,oriftheprivatesectorshouldbeinvitedtobuildandoperateWtEplants(e.g.
BOT,BOOT).
2. InthecasewheretheprivatesectorisinvolvedinWtE,thefollowingshouldbedone:
a. WtE should be regarded as a form of RE and an appropriate feedin tariff
mechanismhastobeestablished(e.g.similartotheoneinThailand);and
b. restrictionsforprivateinvestorstosellelectricitytothegridshouldbeeasedto
allowprivateinvestorownershipormajoritysharesfortheproject.
3. IftheGovernmentshouldtakeresponsibilityfortheestablishmentandoperationofWtE
plants,thefollowingshouldbedone:
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a. AbudgetfortheconstructionoftheWtEplantsneedstobeallocated;and
b. atippingfeeshouldbeintroducedthatcoversoperationandmaintenanceof
theplant.
4. Asolutionfortheintegrationoftheinformalsectorhastobedeveloped.
5. TheGoRTThastodevelopaPublicRelations(PR)campaigninordertopromoteWtEto
thepopulation.
6.5.7 SuggestedImplementationStrategy
BasedontherecommendationthattheWtEsysteminT&TshouldbebasedonMovingGrate
Incineration andoncurrentlyavailableinformation,thefollowingimplementationstrategyis
recommended.
As a first step, the GoRTT has to make a decision on the establishment of WtE in T&T. This
includesdecisionsonthetechnology,theownershipandoperationofsuchprojects,thefinancial
modelsandtheenvironmentalstandardstobeapplied.
As a second course of action, the GoRTT should develop a PR strategy to invite public
participation in the WtE concept. This will reduce later conflicts during the approval and
operationofWtEprojects.
Parallel to this, the biomass from markets and restaurants should be redirected to a new
composting plant. Apart from increasing the calorific value of the MSW, this concept will
producehighqualitycompostwhichcanbeusedeitherinagricultureorpublicparks.
In the final stage, MSW incineration power plants should be established at the sites of the
current landfills with approximately the same capacity as the current landfills. This will have
importantadvantagessuchas:
-
The waste collection system does not need to be changed, so that well established
routingsandcollectionschedulescanbemaintained;
Thelandfillshavegoodconnectionstomajorroads;
The land is owned by the Government, so that no land acquisitions which may face
publicarerequiredopposition;
The land is already used for MSW disposal reducing the risk of public resistance
(especiallyifaccompaniedbyawellpreparedPRcampaign);and
Existingwastefromthelandfillcanbeslowlyaddedtothefreshwasteforincineration,
therebyreclaimingthelandandreducingenvironmentalcontaminationofadjacentland
andwaters.Theoldwastecanbetransferredtotheplantwithsimpleconveyorsystems.
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Figure59:SuggestedLocationofFirstIncinerationPlant
3
1
ProposedplantlocationatBeethamlandfill(1).Theplantislocatednexttoamajorhighway(3)andtopowerlines(2
nottoscale).Oldwastefromthecurrentlandfillcanbeadded(4).
Source:OwngraphbasedonGoogleMaps
Inordertoestablishthetechnologyandprovidethetimeneededtotrainrequiredengineers,
theimplementationofthefullprogramshouldbecarriedoutstepwise.Atfirst,asmallerMSW
incinerationpowerplantwith500t/dcapacity(50%ofthearrivingwaste)shouldbebuiltat
Beethamlandfill(FIGURE59).Thisplantshouldbedesignedsothatinthefutureanextension
of the plant to 1000 t/d can be easily done. Waste bunker, filter and delivery infrastructure
shouldbeplannedaccordingly.
Withthisplant,experimentsshouldbecarriedouttodetermineasuitableamountofexisting
wastefromtheoldlandfillthatcanbeaddedtothefreshMSW.Sincethereisadistillerylocated
close to the Beetham landfill site, the possibility of providing process heat (steam) to this
distillery should be investigated. After successful operation of the plant for 23 years, the
extensionoftheBeethamplantandtheconstructionoftwoWtEplantsattheForresParkand
Guanapolandfillscanbeplanned,basedontheexperiencesofthefirstplant.
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6.5.8 WtEinotherIslandCountries
6.5.8.1 Existing plants
Bermuda
BermudaisaselfgovernedterritoryoftheU.K.withapopulationof68,000people.Thewaste
generationis80,000100,000t/a,withacalorificvalueof911MJ/kg(i.e.similartoT&T).Since
1994,aMSWMovingGrateIncinerator(TynesBayWasteTreatmentFacility)hasbeenoperating
inBermuda,withamaximumcapacityof96,000t/aandanaverageamountofMSWincinerated
of68,000t/a.Electricityoutputis18,000MWh/a(i.e.approximately2.5MWcapacity).Own
consumptionis40%andincludesaReverseOsmosisdesalinationplant(BARRIGA,2011).
Ashisdisposedasconcreteblocksinthesea.
Comment: This disposal method is questionable and should be investigated carefully before
applyingite.g.inT&T.
In2009,dioxinandfuranemissionsexceededthelegallimitsindicatingeitheroperationalor
technicalproblemsattheplant.
Martinique
MartiniqueisanoverseasterritoryofFrancewithapopulationof403,000peopleandaMSW
generationof375,000t/a(2009).ThecalorificvalueoftheMSWislessthan8MJ/kg,indicating
alargefractionoforganicwastewhichisrathersurprisinggiventheexistenceofan18,000t/a
biomassWtEplant.TheMSWincineratorhasacapacityof112,000t/ageneratingapproximately
45,000 MWh of electricity annually (i.e. approximate capacity of 6.2 MW). Parallel to this,
Martiniqueisstilloperatingthreeunregulatedlandfillswhichreceiveapproximately260,000t/a
MSW(BARRIGA,2011).
St.Barthlemy
St.BarthlemyisanoverseasterritoryofFrancewithapopulationof8,900peopleandaMSW
generationofapproximately9,700t/a.
Asmallincinerator(cyclicoscillatingkiln)hasbeenoperatinginSt.Barthlemysince2001,with
anenergygenerationof20,000MWh/athermal.Theenergyisusedtooperateadesalination
plantwithacapacityof1350m3/d.Thereisnoelectricitygeneration.Thereasonforestablishing
aWtEplantwastheacutelackoffreshwateronSt.Barthlemy.
ResiduesaretransportedtothecapitalandstoredinaClass1landfill(BARRIGA,2011).
6.5.8.2 WtE plans
PuertoRico
PuertoRicoisanunincorporatedterritoryoftheUSAwithatotalpopulationof32.7millionand
awastegenerationofapproximately11,100t/din2007(COLUMBIA,2007).LikeotherCaribbean
island nations, Puerto Rico is rapidly running out of landfill space for its MSW. From the 28
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existinglandfillsonlyafewmeetinternationalstandards.Estimationspredictthattheexisting
landfillswillbeexhaustedby2018.
The Government of Puerto Rico is planning to shut down all landfills that have not fulfilled
international requirements by the end of 2014, to reduce the environmental impact of the
landfills.By2020only4landfillsareplannedtoremainopen.WhilepreviousU.S.Governments,
e.g. under President Bush, have supported the concept of WtE in Puerto Rico; under the
GovernmentofPresidentObama,thepolicyforPuertoRicohasshiftedfromWtEtoreducing
MSWandlandfilling.
In May 2007, a study on the WtE potential in Puerto Rico has been carried out by Columbia
UniversityfortheU.S.EnvironmentalProtectionAgency(EPA),whichshowedgoodpotentialfor
WtEinPuertoRico(COLUMBIA,2007).ThestudystronglyrecommendsanearlyPRcampaignto
promoteWtEamongthepopulation.Publichearingshavebeencarriedoutin2011and2012for
twoMSWincineratorplants(AreciboandBarceloneta)withatotalcapacityof2,016t/danda
proposedenergygenerationof77MW(Carol,2012)(USEPA,2012).
St.Kitts
St.Kittshasapopulationof39,000peoplewithawastegenerationofapproximately130,000
t/a.In2012,aMSWincinerationplantwithacapacityof64,000t/aor130t/dhasbeenproposed
by Naanovo UK as a BOOT project at the landfill site Bassaterre (information based on
NAANOVO,2012).
ThecontractwillallowNaanovotooperatetheplantfor25yearsafterwhichtheplantwillbe
transferredtotheGovernment.Inadditiontofreshwaste,oldwastefromthecurrentlandfills
willalsobeburnt.Naanovoexpectsanenergygenerationofapproximately78MWfromthis
plant.Theproposalisstillintheapprovalprocess.
Comment:GiventheMSWcompositionofthewasteinthisregionthisestimatedenergyyieldis
fartoohigh.
Jamaica
Withapopulationof2.7millionpeople(2010),Jamaicageneratesapproximately1.21.3million
t/aMSW.Approximately7075%ofthiswasteiscollected.CurrentlyJamaicamaintains8non
sanitarylandfillsandtwomaindisposalsites.ThesiteatRivertonreceivesapproximately60%
ofJamaicasMSW(545,000t/a),whiletheRetirementsitereceivesabout20%,i.e.219,000t/a.
In2010,theMinistryofEnergyandMiningofJamaicapublisheditsNationalWasteFromEnergy
Plan20102030(JAMAICA,2010).Inthisplan,theGovernmentofJamaicaannouncedaplanto
establish WtE plants as a part of its RE program. In 2009, a Memorandum of Understanding
between Petroleum Corporation of Jamaica (PCJ) and Cambridge Project Development was
signedtobuildtwowasteincinerationplantswithatotalelectricitygenerationcapacityof65
MW.Theplantshavenotyetbeenconstructed.
InAugust2012,a newconsortiumwasannouncedbetweenBritish companyNaanovoand a
JamaicanbusinessmantobuildaMSWincinerationplantattheRivertonsite.Theprojectcosts
areestimatedtobeaboutUS$140180million.
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Mauritius
Mauritiushasapopulationof1.3millionpeople,i.e.approximatelyequivalenttothepopulation
ofT&T.Wastegenerationin2008was425,000t.Basedonthewastecomposition,alowcalorific
valueoflessthan8MJ/kgcanbeexpected.MauritiushasplannedaMSWincinerationplant
withatotalcapacityof300,000t/athatwillgenerate160,000MWh(22MW)ofelectricity.The
expectedinvestmentcostsareapproximatelyUS$200million.
UnitedStatesVirginIslands(V.I.)
The Virgin Islands is an unincorporated organized territory of the USA with a population of
109,000peopleandaMSWgenerationof133,000t/a.Since2009,AlpineEnergyGroup(AEG)
hasproposedaWtEprojectcomprisingofanRDFprocessingplant,combinedwithcombustion
andenergyrecoveryplant.Theproposedenergygenerationis20MWwith16MWavailablefor
supplytothegrid.Theprojectstillfacesresistancebythepublic.
Comment: Based on 400 t/d fresh MSW and the additional energy requirements for the RDF
processingplant,theproposedenergygenerationseemstobeunrealistic.
TheV.I.WasteManagementAuthorityhasguaranteedAEGaminimumof400t/dMSWand
signedaPowerPurchasingAgreement(PPA)tobuyatleast16MWatUS$0.100.14/kWh.The
agreementhasbeensignedforaninitial30yearoperationwithtwopossibleextensionsof10
yearseach.
In2011,theNationalRenewableEnergyLaboratory(U.S.DepartmentofEnergy)publisheda
feasibilitystudyonWtEfortheVirginIslandsstressingthebeneficialroleofWtEaspartofthe
nationalMSWmanagementsystem.
6.5.9 SuggestedFollowUps
Whethertheexistingtreatmentfacilities,e.g.atKaizenEnvironmental(e.g.stabilization
processanddisposalfacilities),aresufficientforthesafedisposalofflyandfilterashes
from the incinerators should be determined, i.e. stabilization process and disposal
facilities(e.g.atKaizenEnvironmental).
Emission standards for exhaust gas and effluents from MSW Incinerators should be
established. If standards are taken from other countries, these standards have to be
adaptedtothespecificsituationinT&T.
Acomprehensivewastecharacterizationstudyhastobecarriedoutcoveringatleast9
months.Thestudyshouldincludethoroughassessmentsofthecalorificvalueofthewet
and dry MSW. Furthermore the chemical composition has to be analysed, i.e. ash,
sulphurandchloridecontent,acidity,etc.Possibilitiestoincreasethecalorificvalueby
sourceseparationshouldalsobeidentified.
Astudyofcompositionandstatusoftheoldwasteatthethreelandfillsshouldbecarried
outtoinvestigateitspotentialforcoincinerationattheWtEplants.
TechnicalspecificationsforMSWincinerationpowerplantsshouldbedeveloped.
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Ithastobeanalysedhowmuchofanincineratorpowerplantcanbebuiltlocallyand
howmuchoftheequipmenthastobeimported.
Variouseconomicmodelsshouldbecalculatedbasedonexactfigures(afterthewaste
characterizationanalysishasbeencompleted).
Theconsultantshavedevelopedabudgetforundertakingtherelevantfollowupswithregard
toWtEproposed.Itisplannedthatthedetailedwastecharacterizationstudyasdefinedbythe
consultantswillbeundertakenbytheMEEA.
6.5.10 Conclusions
WastetoEnergyisanattractivesolutionforT&T.Itwillassistin:
SolvingthewastedisposalproblemofTrinidad;and
ProvidinganadditionalsourceofenergyfortheenergymixofT&T.
T&T MSW is suitable for direct incineration (moving grate incineration) without further pre
treatment.Standardincinerationtechnologycanthereforebeused.Thecalorificvaluecanbe
estimatedtobeintherangeof8to11MJ/kg(basedontheexaminedMSWduringthemission).
Withthecurrentsubsidiesforelectricityfromnaturalgasandwithoutsubsidiesforelectricity
from MSW and/or a significant increase in the tipping fee for MSW, WtE is economically
infeasible.
ThecurrentcollectingsystemandtheGovernmentmonopolyforMSWtreatmentareperfect
startingconditionsforWtEprojects.InordertoevaluatetheeconomicandsocialaspectsofWtE
in T&T, the GoRTT has to consider the economic benefits of WtE for the recultivation and
reclamation of the contaminated areas at the current landfills, as well as the mitigation of
additionalenvironmentalandhealthdamagescausedbycontinuingimproperwastedisposal.
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6.6 BioenergyUseforElectricityGeneration
6.6.1 EnergyPotentialofdifferentResources
6.6.1.1 Solid Biomass
Solid biomass resources are residues and/or byproducts from agricultural or forestry
operations.Theyareavailableatthefieldlevel104,attheprocessinglevelandattheenduse
level.Higheraccumulationsarealwayspossibleatdownstreamprocesses,e.g.bagasseatsugar
millsorricehuskatricemills.Fieldresiduesneedtobecollectedandtransportedfirst,which
reducestheireconomicpotential.
Resources in downstream operations can be used for the internal energy demands at the
processingfacility(asheatfordryingforexampleorsteamforprocessuseorevenelectricity)
andpossiblyforexportsofanysurplus.Theotheroptionistheuseofresourcesinaspecifically
assignedconversionfacility.
Usually (and internationally) solid biomass resources are converted to electricity and steam.
Surpluspowercouldthenbeexportedtothenationalgridandsubstituteconventionalelectricity
generation.Otheroptionsfordecentralizedutilizationofbiomassaregasificationanduseofthe
gasinageneratororbiogasproductionandasimilaruseforpowergeneration.
AgricultureinT&Tcontributeswith0.3to0.4%totheGDPintotal(figuresavailableuptothe
year 2009 in: CSO, 2009) and is therefore only a minor sector. In the following sections, a
screeningofpotentialresourcesisdoneforthedifferentclassifications.
FieldResources
TheagriculturalproductioninT&TisshowninTABLE36.Mostoftheagriculturalproductsare
vegetablesandfooditemsforlocalconsumption. Thecurrentproductionfor the threemain
staplefoodsis2,273tonsofrice(paddy),3,150tonsofsweetpotatoand5,454tonsofcassava.
Thefieldresiduesofthese3itemsarericestraw,cassavarootandstemandsweetpotatoleaves.
Theresiduetoproductratio105forthesethreeexamplesmaybeinthevicinityof1.0forrice
straw,0.2forcassavaand0.1forsweetpotato.Thisgivesatheoreticalpotentialof2,273tons
ofricestraw,1,091tonsofcassavaresiduesand315tonsofsweetpotatoleaves.
ThetotaltheoreticalamountoffieldresourcesforthemainstaplefoodsinT&Twouldresultin
some3,600tonsofbiomassperyear.Withanaveragecalorificvalueof13GJ/tandusingsimilar
assumptionsasforthebiomasspowerplant(seechapter5.4.1.4andatheoreticalcofiringina
10 MW power plant) an overall power capacity of 370 kW would be available from these
resources.Thetotalamountisfartoosmalltojustifyacollectionandtransporteffort.Theeffect
onthenationalpowerproductionisnegligible.
Thedecentralisedoptionforbiomassresourcesisagasificationprocess.Smallestsizeonthe
marketisaround50kWelectricalcapacity.Thistechnologywouldneedroughly300to350tons
104
Fieldlevelreferstoagriculturalproduction.Forforestryproductsthismeansinsidetheforestarea,forenergycropsthisrefers
totheoriginalplaceofproduction.
105
NospecificresiduetoproductratiosareavailableforT&T,internationalaverageshavebeentaken.
192
ofbiomass(betterdry)foracontinuousoperation(4,000h/yearwith25%electricalefficiency
oftheCHPand66%gasificationefficiency).Gasificationofstrawandotherfieldresiduesisby
farnotstateoftheartandcannotberecommended.Also,oneprojectofthatsizealonewould
absorb10%ofthetotaltheoreticalpotential.
The National Food Production Action Plan (MFLMA, 2012) foresees increases in acreage and
tonnageofthethreemaincommodities.Riceshouldgrowonadditional1,700hawithsome
5,227 additional production, cassava with 12,728 t and sweet potato with 9,940 t. Using the
aforementionedconversionrates,thisplanwouldresultinanadditionaltheoreticalpotential
forfieldresiduesof5,227tofricestraw,2,545tofcassavaand994tofsweetpotato.Intotal,
the plan might add 8,760 t of biomass material on the field (theoretically a further 900 kW
installedcapacity).
Theotherfieldresidueswouldhaveevenlowerpotentials(mostlyvegetables);althoughalsofor
thesecommoditiesexpansionstrategiesexist.
Table36:Productionofkeycommodities
Source:MFMLA2012
Processingandenduse
Weconsiderthesamecommoditiesthathavebeenanalysedinthepreviouschapter.Paddyrice
woulddeliverricehuskatthemillinglocation.Theratioisonly0.3tofhuskpertofpaddy.For
cassava and sweet potato only the peel and outer skin remain of the further downstream
processingandendusepreparation.Atpresent,thetheoreticalpotentialisnothigherthan680
tofricehuskandbetween500or1,000tofpeels.
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One option related to processing and enduse is the coconut industry. Byproducts are the
coconuthusk(morewetandfibrerich)andthecoconutshell(aftercopraproduction).However,
copraproductionissteadilydeclining(TABLE37).Withamaximumof1,000tofcopra,onecan
expectsome1,000tofshellsandsome2,000tofhusks.
Cocoaandcoffeeareproducedinsmallquantitiesandthusprovideonlylimitedpotentialfor
biomassenergyutilization.
Otherstaplefood,mostlyrootcrops,arerarelyprocessed(e.g.intocassavaflour).Onlythepeel
and skin would be a resource, which may amount to a maximum of 1,000 t/year. In total, a
maximumamountof5,000t/yearseemsfeasible.Duetoalowerqualityinpossiblecombustion
orgasificationprocesses,theequivalentpowervalueofthisresourceis560kW(basedon7,000
hoursoperationperyear).
Table37:Productionofcommercialagriculturalgoods
Year
2005
2006
2007
2008
2009
Sugar,kt
88.7
70.6
66.7
37.6
31.8
Cocoa,t
914.8
569.4
598.1
574.4
516.9
Coffee,t
100.7
94.3
166.4
166.5
18.9
Copra,t
1,263.0
1,320.0
522.0
469.9
58.8
Source:CSO,2012
Potentialatdecentralisedprocessingcentres
During the factfinding mission, one point of discussion was the decentralised processing of
agriculturalproducts.Itwasestimated,thatsocalledagroprocessorscouldgeneratevolumes
ofbyproductsinrangesof10t/dayatalargeroperationor5t/dayatasmallerlocation.
Additional resources are banana peels, corn cobs and overaged roots. However, the self
assessment for the total quantity seems too high, as under this assumption total yearly
production would sum up to more than 5,000 t/a. This is nearly the estimated value for the
nationalpotential.
Itseemsthattheagroprocessorsonlyfollowaseasonaloperationandthe10t/dayrespective
5t/dayareonlyavailableoncertaindaysoftheyear.Thegasificationtechnologyforacapacity
of 50 kW needs roughly 2 t/day of material. Theoretically the amount from agroprocessors
couldfeedonegasifier(butnotonacontinuousbase).
Forestryandforestryproducts
T&Thasatotallandareaof512,800ha.Thedistribution(forTrinidadalone)isshowninTABLE
38.Nearly70%ofthelandareaisforested(CSO,2012).Thereareothersourcessayingthatthe
forest area in total is around 250,000 ha, out of which some 60,000 ha are protected, some
15,000haareplantations,i.e.managedforests,and127,000haarenaturalforests(FAO,2012).
For forestry, the potential biomass can be divided into field resources and processing by
products.Fieldresourceswouldbetheextractionofwoodfromforests.T&Thasonlyasmall
areaofforestryunderamanagementscheme.Mostoftheforestareasareprotectedandconsist
194
ofnaturalvegetationforest.Nopotentialisseenforbiomassdirectlyproducedfromforest,i.e.
loggingforfirewoodorwoodchippingduringforestmanagementactivities.
Table38:TrinidadLandCover
Classification
Urban
Agriculture
Forest
Grasslands
Wetland
Water
Area,ha
31,525
110,565
351,819
4,159
11,479
1,454
Source:CSO,2012
Second source are byproducts from the wood industry. These are sawmilling waste and
woodchipspluspotentiallogwoodorsawnwoodinsmallerpieces(shavingsetc.).Accordingto
differentsources,theforestryindustryinT&Tproducessome50,000m3ofroundwood(TITTO,
2012).Approximately60%arecuttings,sawdustandwoodchips.
Allowing a 50% ratio for other uses (materials, energy), the maximum potential from the
sawmillingindustrycouldbebasedon15,000m3roundwoodequivalent.Thisisestimatedto
be7,500tofbiomassmaterial.Alsoherethetotalvolumedoesnotleadtoaquantity,whichis
inrangesofabiomasspowerplant(resultsinequivalent840kWofayearroundpowerplant
operation).
Summaryofpotentialforsolidbiomass
InTABLE39theoverallpotentialofsolidbiomassisshown.Italsocontainsthefictiveelectrical
capacityofthosespecificresourcesasanindicationofthemagnitudeoftheresource.However,
thisisonlyatheoreticalfigure.
Table39:Summaryofsolidbiomasspotentials106
Source
t/year
kW
Fieldresidues,straw,stems,etc.
3,600
370
Expansionplanforagriculture
8,760
900
Processingandenduse.Peels,shells,husks
5,000
560
Forestry,byproductsofsawmilland
furniture
7,500
840
24,860
2,670
Totaltheoreticalpotential
Itcanbeseen,thatthetotalpotentialwith24,860tperyearisratherlimitedandconsistsof
verydispersedandunstructureditems.Theestimatedequivalentinelectricalcapacitywouldbe
only2,670kW.
106
Ownassessment;volumesaccordingtopreviousanalysis,electricalcapacityincludesdifferentconversionprocessesand
conversionefficiencies.Calculationexampleforthefirstline:3,600tonsofmaterialwithacalorificvalueof3.6MWh/tand
20%theoreticalconversionefficiencyusedduring7,000hoursperyeargivesacapacityof370kW.
195
6.6.1.2 Liquid Biomass
Liquidbiomassisbasicallysourcedfromliquideffluentsfromanimalproduction.Thesecanbe
convertedtobiogasusingtheanaerobicfermentationprocess.Morepotentialforbiogasisseen
frompigeffluentsincomparisontoruminants.Alsomostoftheruminantsareheldonafree
grazingproductionmethodandtheeffluentsarenotcollected.Thestatisticsfor2004indicatea
largepopulationofpigscomparedtootherlargeranimals(TABLE40).
Table40:AnimalpopulationinT&T
Source:CSO,2012
Morerecentstatisticsindicateatotalpigpopulationofsome40,000heads.Thefiguresfor2009
are obviously mismatched in TABLE 41. The total population is managed on more than 300
farms,whichgivesanoverallaverageofabitmorethan100pigsperfarm.Thedistributionfor
thedifferentfarmsizesisshowninthefollowingtable.Nearly2/3ofthepigsaregrowninfarm
sizesbiggerthan500animals.
Table41:PigPopulationinT&T
Period
2005
2006
2007
2008
2009
Total
pig
population
(1)
36 352
40 686
43 502
40 225
38 206
Size of farm (Number of pigs)

1 20
(2)
1 128
1 289
1 134
1 496
18 700
21 30
(3)
382
920
664
988
5 501
31 50
51 100
(4)
1 078
1 312
1 624
1 410
5 432
(5)
2 318
2 323
2 249
3 081
1 936
101 500
(6)
4 866
5 004
6 686
6 981
6 038
501
and over
(7)
26 580
29 838
31 145
26 269
599
Number
of
farms
(1)
248
272
288
348
339
Source: table 35 and 36 from agrarstat.xls, download from CSO.gov.tt

Source:CSO,2012
A very rough calculation for the potential biogas production from pig excrements has been
developed.Thereareverydifferenttechnologiesavailableandeachprojectmustbeassessed
onitsowncharacteristics.Onaverageandusingadvancedtechnology,onecouldexpect20m3
to35m3ofbiogasperdayper100fatteningpigs.Thiscouldbring2.5to3.5kWonelectrical
capacityper100pigs.Usingsimpletechnology,productivitywouldbelessandcouldbeinthe
vicinityof10m3biogasperdayandamaximuminstalledcapacityof1kWper100pigs.
196
Thetotaltheoreticalpotentialwithadvancedtechnologyfor40,000pigscouldbebetween1,000
and1,400kWofelectricalcapacity.Simpletechnologywoulddeliverapotentialof400kWon
thenationalscale.
Thefarmvisitedduringthefactfindingmissionhadatotalof6,500pigs.Accordingtoabove
estimationsanadvancedsystemwoulddeliver160to200kWelectricity,asimplesystemonly
65kW.TherearetwootherlargerpigfarmsinT&T,alltherestareofsmallersize.Theindividual
powerproductioncapacityatthesefarmswouldberatherlimited.
Itisaquestionof,whethertheproducedpowerwouldbeenoughtosupplyelectricityforthe
farmoperation,besideshavingpotentialforexportingpowertothegrid.Theserelativelysmall
biogasplants(advanced technology)wouldproduceelectricityforpricesbetween20and30
USct/kWh.Thereislittleincentivefor thesubstitutionofgridelectricityonthefarm,evenif
investmentcostsarereducedbyemployingsimplesystems(withlessproductivity).Apossible
feedintariffmustalsobehighenoughtoattractinvestments.Theoverallpotentialhowever,is
rathersmalltojustifyaspecificmechanismforbiogasalone.
Biogas technology on a smaller scale has additional benefits besides the energy production
(odourreduction,bettermanurequality,preventionofwaterpollutionetc.).Thiscanbetaken
intoaccountinassessingthesituationofmediumandsmallscalepigfarms.Introductionofthe
biogas technology would have combined benefits. In this sense, the necessary incentive
programmewouldbesociallyorenvironmentallymotivatedandnotdrivenbytheenergyissue.
6.6.1.3 Agroindustrial Activity
Beside of the assessment of primary agricultural production, industrial activities have been
analysed.TABLE42liststhenumberofbusinessestablishmentsinthreeconsecutiveyearsby
sector. Sectors for potential biomass energy activities include the sugar industry, food
processinganddrinks,aswellaswoodandrelatedproducts.
The sugar industry is no longer in production; the possibility for an energy cane option is
discussedinchapter6.4.4.Therearemorethan300businessesactiveinfoodprocessingand
drinks. These would form an industrial sector with a potential for residues and byproducts.
Morethan200entitiesareactiveinthewoodandrelatedproductssector.Thepotentialhas
beendiscussedinchapter6.4.1.4.Allotherindustrieswouldhavenoconnectiontopotential
biomassresources.
197
Table42:NumberandtypeofbusinessinT&T
Source:CSO,2009
CanningFactory
Duringthefieldtrip,thelargestcanningfactoryinT&Twasvisited.Theirsolidresiduesaresent
tothelandfill(overlapwiththewastestudy).Inmostcasesthematerialisofbiologicalorigin
with differing qualities. The overall volume may reach up to 1,500 kg per day, but this is a
seasonalactivity,whenfreshfruitsoringredientsareused.
Thereisnorationaleforsettingupbiomassutilizationatthatfactory.Oneoptioncouldbethat
thematerialisusedinabiogasplantofanotheroperator(apigfarmincreasingtheoutput).
Otherwisethepotentialisincludedinthewastegenerationsectorandisassessedinchapter6.3
WastetoEnergy.
DistilleryandBrewery
Twolargerindustriesremain,whicharedistilleryandbeer.Averageyearlyproductionofproof
alcoholisof10milliongallons(averagefor3years)andsome50millionlitreofbeer.Allother
commoditiesinTABLE43havenopotentialorhavebeenanalysedalready.
198
Table43:Differentcommoditiesandproductionfigures
Source:CSO,2009
The distillery was contacted by email and phone. They reported that the idea for biogas
production from distillery waste was discussed and no longer pursued. The potential biogas
would not satisfy the energy demand for the distillery (boiler for steam for distillation and
process).Acalculationhadrevealedthatabiogaspotentialattheirdistillerystandsat13,287
Nm3perday.
Presently,thedistilleryliquidwasteissenttothecommunalwastewatertreatmentplant.Based
ontheaverageproductionof10milliongallon,aquickestimationgivesapotentialfor18,000
Nm3ofbiogasperday(withreferencetoaprojectinJamaica).Takingthequotationfromthe
distilleryandassuminga35%electricalefficiencyforabiogasengine,thedistillerycouldproduce
1,000kWofelectricity.ThecalculationwithfiguresfromJamaicarevealsevenapotentialof
1,500 kW. This would be up to now the biggest potential for biomass energy in T&T at one
specificlocation.
Alsothebreweryprocesshaspotentialforwastewatertreatmentandbiogasproduction.Asite
visitwasnotpossibleduringthefactfindingmission.Thereforeananalysisbasedonsecondary
datahasbeenprepared.Theproductioncapacityis50millionlitresofbeerperyear.Fromthe
wastewaterstreambiogascanbeproduced.
Usingaveragefiguresfromcasestudiesandliterature,abiogasproductionofbetween140,000
m3and270,000m3peryearispossible.Thiswouldtranslate(ifallbiogasisusedinagasengine)
intobetween50and75kWofelectricalcapacityonacontinuousbase.Thebiogaspotentialat
thebreweryismuchsmallerthanatthedistillery.
The total potential (theoretical maximum) is 3,475 kW at the upper level by using advanced
technologies. The realizable potential would be much smaller. The lower level reaches only
2,150kWorevenonly1,550kWassumingsimpletechnologyforbiogasatpigfarms(Table44).
199
Table44:Potentialsforbiogas
Capacity(kW)
Source
lowerlevel
upperlevel
Pigfarmadvancedbiogas
1,000
1,400
Pigfarmsimplesystems
(400)
(400)
Distillery
1,000
1,500
Brewery
50
75
100
500
2,150
3,475
Agroindustrynotyetidentified
Totaltheoreticalpotential
6.6.1.4 Energy crops
Atheoreticalevaluationisdoneforthesetupofabiomasspowerplant.Backgroundisthesugar
production history in T&T. Energy cane could be produced on part of the land, which was
formerlyassignedtosugarproduction.Intheyear2000,thetotalareaundersugarcanewas
some11,000ha.
BasedonthecommoditystatisticsinTABLE36andTABLE43,productionofsugarwas88,700t
in2005. Usingthesugartocaneratioofroughly10,thistranslatestoaproductionofcanein
thevicinityof800,000to900,000tonsofcaneperyear.Basedonanaverageyieldof65tof
caneperha,thiswouldmeanaplantingareaof13,000ha.Bothsourcesrevealsimilarresults
andmagnitudesfortheprevioussugarcanearea.
Energycanecouldbeproducedwiththesametechnologyandwithsimilarproductionmethods
assugarcane.Alsoyieldcouldbeonthesamelevel.Basedonthisassumptionaprojectcould
bedesignedasfollows:
Installedelectricalcapacity
Overallelectricalefficiency
Operationaltime
Calorificvalueofenergycane
Demandforenergycane
Yieldofenergycane
Areademand
Productioncostforelectricity
10MW
20%
7000h/year
8GJ/t
150,000t/year
65t/ha
2,300ha
US$ct10to13/kWh
(atUS$20to30/tforenergycanedeliveredatpowerplant)
Thisoptionwouldneedroughly1/5oftheprevioussugarcaneproductioncapacity.Duringthe
fieldtripitwasnoticedthatinthesugarareatherearestillabandonedandnonproductiveplots
of lands. The ownership has changed, but an upcoming demand would spur any new
developments.However,thesituationwouldneedaclosemonitoringnottocounteractwith
foodsecurityoptionsandplansinT&T.
200
AllowingaprofitofUS$ct2.0/kWhfortheinvestor,thenecessaryfeedintariffforabiomass
powerplantbasedonenergycropswouldbeintherangeofUS$ct12to15/kWh.
6.6.1.5 Total Potential
Thetheoreticalpotentialfromsolidbiomassis370kW(asexplainedthisisthevirtualelectrical
capacityoftheresources)atthefieldandanother560kWattheprocessinglevel.Another900
kW at field level are possible if agricultural extension would be successful. The theoretical
potentialfromforestindustryisat840kW.
Biogascanbeproducedfrompigmanureandfromlargeindustrialproductionareas.Thepig
industrymightcontribute1,000to1,400kWinT&T.Twoindustriescouldgenerateupto1,500
kWfrombiologicalwastewater.onebiomasspowerplantfuelledbyenergycanecouldproduce
10MWofelectricity,if2,300haofenergycanecanbeplanted.
Therealizablepotentialismuchsmallerthanthetheoreticalpotential(TABLE 45).Onasmall
scale there is no feasible potential. On a mediumscale level small biogas plants could be
realized.Thepotentialforsolidbiomassistoosmallforindividualprojects.Thisbiomasscould
beutilizedinexistingbiogasplantsorinonelargepowerplant.Onalargerscalethedistillery
andthebrewerycouldinstallbiogastechnology.Thethreelargepigfarmsalsohaveapotential
inarangeof200to300kWofinstalledcapacity.Thebiggestcontributionwouldcomefroma
newbiomasspowerplant.
201
small
medium
large
Table45:Summarymatrixforbiomassuse
Theoretical
Potential, kW
Agriculture
None
Co-substrate for
biogas or co-firing at
biomass power plant
None
370+900 solid
Agroindustry
None
Co-substrate for
biogas or co-firing at
biomass power plant
Distillery: 1,000 to
1,500 kW; Brewery, 50
to 75 kW
560
solid+1,150/2,
075 biogas
Forestry
None
None
None
Forest Industry
None
Decentralised
gasification or co-firing
at power plant
None
840 solid
Animal production
Biogas in subsistence
agriculture, no power
but multi-beneficial
Medium scale farms

may be 5 to 30 kW
3 farms with potential,

2 times 200 kW, one
time 300 kW
400 or
1,000/1,400
biogas
Energy crops
None
None
One large biomass

power plant with
energy cane, 2,300 ha
10,000 energy
crop
6.6.2 ManufacturingCapacity
There is very limited scope for additional manufacturing capacity in the segment of biomass
energy. Acompletebiomasspowerplantisalargeindustrialprojectandamaximumofone
plant would be required in T&T. Components like turbines and boilers would need to be
imported from the international market. Local production would be the steel and concrete
worksinsuchaninstallation.
Largebiogasplantsfacethesameproblemaslargepowerplants.Theyareuniqueandwould
have no replication on the island. Every biogas plant is custom made and according to the
specificsituationmanufacturedanderected.Keycomponentslikemixers,feeders,plasticcover
oreventhecombinedheatandpowerplantwouldbeimported.Localcontentareagainsteel
andconcreteworks.Therewould be nomarketforstandardizedequipment intheregion or
worldwide,whereT&Tcouldcompete.
Smaller biogas plants live from the support of the later owner. Due to the overall financial
situation, the farmer is required to construct and erect the biogas plant partly with his own
resources.Thefarmerscouldbetrainedonthespecificmodelsandsizesofsmallscalebiogas
plants.ThishasbeenexecutedforexamplebytheCaribbeanDevelopmentBank(CDB)andGTZ
202
some20yearsago.107Butalsotheseplantsarehighlyindividuallyplanned.Theyoffernoscope
forstandardizedproduction,themarketinT&Tissmallandexportsseemnotviable.
6.6.3 ProposalsforPilotProjects
Atotaloffourproposalsforpossibledemonstrationprojectscanbemade.Allofthemareinthe
areaofbiogas,butondifferentscales.
Thesinglelargestpotential(uptonow)isforabiogasplantatthedistillery(AngosturaLtd.,the
only distillery in T&T) in a power range of 1,000 to 1,500 kW. This would be an individually
plannedbiogasplant,mostprobablywithinteractionfrominternationalbiogasmanufacturers.
A very rough estimation may give total costs of US$ 4 million if advanced technology is
employed.
Thereispotentialforalargerbiogasplantatoneofthelargepigfarms(only3candidates).One
outofthethreefarmsmightbeconvincedtoinstallasemiadvancedbiogasplant,whichcould
usethepigmanureandcouldbeusedasdemonstrationforcofermentationfromindustrialor
agricultural byproducts. Depending on location and local conditions the output of the pig
manurebasedbiogassystemcouldbeincreasedbyutilisingadditionalbiomassmaterialfrom
agricultureorprocessing.Thesizeoftheplantwouldbeinarangeof200to300kW.
Thenextgroupofpigfarmswithmorethan500pigswouldhavethepotentialforsmallbiogas
systemswithaninstalledelectricalcapacitybetween5to30kW.Alsoherecofermentationis
anoption.Theremightbepotentialforatotalofupto10plants,butrealpotentialmustbe
assessedinmoredetail.Thetechnologysetupshouldbesimpletoallowselfconstructionand
reducedinvestmentcosts.Oneplantcouldbeerectedasademonstrationplantandasreference
forotherinterestedfarmers.
TheChinesedomeorfloatingdomebiogasplantsaremadeforsmalleranimalpopulation.Their
energydeliveryisnotelectricitybutbiogasforcookingandlighting.Thesizeoftheplantandthe
qualityofthebiogassupplywouldnotjustifythegenerationofelectricity.Theseplantshaveno
real impact on the electricity generation, although they would produce RE. The total cost of
theseplantscannotberecoveredthroughtheenergydeliveryassuch.Addedbenefitsarean
improvedenvironmentalsituation.Ademonstrationprojectwouldshowtheadvantageofthis
alternative,butitwouldnotbeanenergydrivenprojectanymore.
6.6.4 GridAvailabilityandGridCapacity
ThegridconnectioninT&Tingeneralisgood.Onlyveryremoteareasarenotgridconnected.
Themaingridconnectingtheindustrialzonesanddensepopulationareashasexcesscapacity.
Newpowerplantswithseveral10MWareeasilyincorporatedandtherewillbeanovercapacity
ofelectricalpowerforthecomingyears.
Theanticipatedbiomassprojectsareallofasmallersize.Theywouldnotcreateanygridcapacity
problem.Eventhebigbiomasspowerplantwith10MWwouldbeabsorbedeasilyandtheplant
wouldbesituatedintheprevioussugarcanearea,whichisverywellconnected.
107
AtthattimetherewasaregionalenergyprojectbyGTZwithCDBaspartner.PilotplantswereinstalledbyGTZ.Afterproject
closurebyGTZtheCDBcontinuedsomeoftheactivities,whichledtoaproposalforabiogasinstallation.
203
6.6.5 TrainingandEducation
ThepotentialforbiomasspowerislimitedinT&T.Realisationpotentialislow,especiallyifno
specialprogrammesorincentivesaremadeavailableforbiomassandbiogas.Itisnotadvisable
toinvesteffortsandresourcesincapacitybuildingiftheoverallprojectionsarenotclear.The
number of possible projects is very low; there is no real duplication effect. Seen from that
standpoint, specific programmes for capacity building would not be sustainable. The larger
projectsarerealizedwithimportedtechnology,thesmallerprojectsrelyonusualcraftsmanship
(concrete,steel),whichisalreadylocallyavailable.
SomeexperienceonbiogassystemsisavailableatUWISt.Augustine.
6.6.6 BaselineCO2Emissions
Biomass and biogas have no present impact on the baseline emissions as no electricity is
producedusingbiomassmaterial.
204
6.7 OceanEnergyforElectricityGenerationanditsApplicabilityforT&T
6.7.1 Introduction
Thepurpose ofthischapteristoprovide uptodateinformationonthestatusquoofocean
energy technologies as well as to give recommendations on the applicability for T&T on the
background of existing natural resources. The ocean energy technologies identified include
electricpowergenerationandcoolingfromwaveenergy,tidalenergyandcurrents,aswellas
oceanthermalconversionandosmoticpower. The powersourcesaredealt withinseparate
sectionsforeaseofreadingandreferencing.
AnoverviewonthecurrentstatusofoceanenergyuseinEuropecanbefoundinOBSERVER,
2014.
Theideaofutilisingtheenergyinwavesisratheroldandthefirstexperimentsweremadeinthe
1940s,buteffortsintensifiedwiththeoilcrisisanddeclinedagainastheoilpricedropped.The
recentincreaseininterestinrenewableenergieshasledtoagrowthinresearchandprojectsin
wavepowergeneration.Duetothishistory,therearemanydifferentproductionmethodsbeing
developed in parallel (CLEMENT, 2002). Over 1000 ideas and concepts for wave energy
converters have applied for patenting or been patented. However, only about fifteen have
reachedastageofmediumscalesea trials.Ofthese,onlythePelamisconcepthas currently
registeredanyhoursofoperationatprototypescale(1:1).Globallyalldeployedwaveenergy
deviceshaveacumulativecapacityoflessthan10MW(OES2012).
Theoreticalbackground
Ingeneralanycoastorbodyofwaterexposedtothewaves,suchasthosethatbuildupacross
theAtlanticduetothelongfetchofthetradewinds,aresuitedtobeharnesse,d.Thepowerof
wavesisgivenapproximatelybythefollowingequation:
/
0.49
whereHistheaverageheightofthehighestthirdofwavesandTisthemeanperiodofthe
waves(Salam2012).
However,thepossibilitytoharnesssaidpowerdependsnotonlyontheheightbutalsoonthe
periodofthewavesandasolutionneedstobetailoredtothelocalconditions.Howdrasticthis
changeis,isbestillustratedbythetableinAppendixL:PowerOutputofthePelamisSystem
showing the rating of the Pelamis system, which will be discussed later. The choice of wave
powersystemdependsverymuchonthetypeofwavesthatoccuratapotentiallocation.
TheCaribbeanisnotanareaofparticularlyhighpotentialfromtheglobalperspective,where
mostresearchhasbeenfocusedontheextremerlatitudesandtheirrougherwaters.However,
smallprojectshavebeenconductedintheBlackSeaandinSriLanka,sothataloweraverage
waveheightdoesnotcompletelyruleouttheusageofwavepower(SAGLAM,2012).
6.7.1.1 Overview on existing Concepts
Therearecurrentlythreedifferentworkingprinciplesthatmostdevisesarebasedon:
205
a)
Overtopping devises which use the energy of the waves to transfer water to a higher
reservoirandusethispotentialenergy.Oneofthemostprominentexamplesofthisisthe
WaveDragonSystem108whichhasundergoneseatrialsattestscales,butnotprogressed
further due to technical and financial difficulties. The working principle of such an
overtoppingdeviseisshowninthesketchinFIGURE60.
Figure60:Deviceworkingontheovertoppingprinciple
Source:Bevilacqua&Zanuttigh,1973
b)
Anotherpromisingtechnologyistheoscillatingwatercolumn(OWC),whichconsistsofa
partiallysubmerged,hollowstructureopentotheseabelowthewaterline.Agoodexample
ofsuchadeviseisthewavepowerplantLIMPETinIslay,Scotland.FIGURE61outlinesthe
workingprinciple. There areafewplantsofthisworkingprincipleoperatingaroundthe
world. Most are in the order of 500 kW or smaller and therefore still classified as non
commercial demonstration units. The fixed structure at the shore makes it very storm
proof,howevertoimprovetheperformanceseveralfloatingOWCdevisesareneeded.A
prototypeunitof800kW(Oyster800byAquamarinePower)hascommencedoperationat
theEuropeanMarineEnergyCentreinOrkneyinJune2012andistobesucceededbya
secondunit.
Figure61:VoithTurbo500kWplantinIslay,Scotland
Source:Voith
c)
Thethirdworkingprincipleisthatofthepointabsorbersthatuseafloattotranslatethe
movementofthewavesintomotionthatcanbeusedtodriveagenerator.ThePowerbuoy
by OceanPowerTechnologies109 and the Pelamis by Pelamis Wave Power Ltd.110 are
examplesofsuchapointabsorberdeviseandarearguablythemostdevelopedconcepts,
108
www.wavedragon.net
109
www.oceanpowertechnologies.com
110
www.pelamiswave.com
206
with several 150 kW buoys deployed and a 500 kW buoy under development for the
Powerbuoy,aswellasprototypescaletestingunderwayforthePelamis(DALTON,2010).
FIGURE 62 shows the Pelamis prototype off the coast of Scotland. Two of those wave
energyconvertersweredeployedin2012attheEuropeanMarineEnergyCentre.
Figure62:PelamisprototypeinconstructionandoffthecoastoftheOrkneyislesinearly2012
Source:IEE,2012
Offshorestructures,suchastheabovementionedpointabsorbers,havetheadvantageofbeing
nearlyinvisibleandthusdonotdamagethelandscape,animportantconsiderationfortouristic
areas, but are a considerable hindrance to naval activities such as fishing in the immediate
vicinity.
Other advantages of wave power is the use of many simple parts, either welded floats or a
concretedamsothatlocalshipyardsorconstructioncrewscanmanufacturetheequipment,
whileonlyafewspecialisedparts,suchashydraulicactuatorsandturbines,needtobeimported.
Thisprovidesopportunitiesforpartnershipswithregionalmanufacturers.
6.7.1.2 Status of Technology
Thereisaconsensusinliteraturethatwaveenergytechnologyisstill,toacertainextent,far
awayfrommaturity,howevertheresearchandcomparisontootherrenewablesourcessuchas
wind suggests that the potentials for improvement is large. Costs are estimated for the first
commercialplantstobeintherangeofUS$0.27perkWh.Areductionincostssimilartowhat
windpowerexperiencedinthepasttwodecades,isexpectedtohappenoverthecourseofthe
nextfivetotenyearsforwaveenergytechnologiesifasignificantcapacitycanbedeployed(OES,
2012).
InEuropealone,some250MWofoceanenergysystemswereinoperation,amongthosethe
Barrage de la Rance commercial plant with 240 MW. All the other projects are smallscale
207
devicesfordemonstrationandpilotinitiatives(OBSERVER,2014)Worldwide,commercialocean
energycapacitytotalled527MWbyendof2012,mostofthisbeingtidalpowerfacilities,with
additionalprojectsinthepipeline(REN21,2013).
6.7.1.3 Potential around T&T
Thepotentialforwavepowerisnotequallydistributedaroundtheworld.TheislandsofT&T
haveacoastallinethatisexposedtotheopenoceanandthereforehaspotential.Unfortunately
nodataontheaveragewaveheightshasbeenretrievablesofar.Beforethegenerationpotential
canbeestimated,theexactwavepowerpotentialwillneedtobeinvestigated.Itisdefinitely
recommendedtoexplorethepotentialforwavepowerbymeasuringwaveheightsandperiods
overalongerperiodoftime,beforereachingaconclusionwhetheritissensibletopursuewave
powergeneration.DuetothepositionofT&Tinthelowerlatitudes,wavepowerwillnotbea
majorsourceofRE,buttheabovementionedadvantagesoflocalmanufacturingcouldmakeit
moreeconomical.
Furthermore,T&Tisnotlocatedwithinthehurricanebeltwhichreducestherisksoffreakloads.
However,themaximumloadexperiencedoutatseaisverydifficulttopredictasthepeakto
averageloadratiointheseaisveryhigh.Itis,forexample,difficulttodefineaccuratelythe50
yearspeakwaveforaparticularsitewithlocalrecordingsofonlyafewyears.
Thisisoneofthemajorissuesforallmarinetechnologiesandthereisnofixapartfromlong
termmeasurementseriesandtheanalysisofhistoricaldata.Dependingontheaveragewave
heightsfoundatdifferentlocations,potentialpartnershipswithoffshorewavepowerproducers
maylookpromising,oralocalresearchanddevelopmentcampaignbyuniversitiesforshore
basedtechnologies.
6.7.2 PowerGenerationfromTideandCurrent
Tidalpowergeneratedfromthepotentialdifferencesduetothemoonsmovementsholdsthe
promiseofpredictablepowergeneratedwithexistingandwellunderstoodtechnologyandis
done on various scales from a few MW to GW all around the world. FIGURE 63 shows the
distribution of tidal energy in the Caribbean, clearly showing the small tidal amplitudes
experienced.
208
Figure63:Seasurfacevariationduetolunartidesinmeters.
Source:EGBERT,2002
6.7.2.1 Possible Technologies for Tidal Power and its Applicability for T&T
Therearethreewaystoharnessthepowerofthetidalmovementofthewatermasses:Dynamic
tidalpower,theconstructionofatidalbarrageandthedirectuseoftidalstreams.
Dynamictidalpowerisanewtechnologyusingadamtocreateapotentialdifference,whichis
then exploited. It doesn't require a very high natural tidal range, but instead an open coast
wherethetidalpropagationisalongshore;itisthereforeunsuitableforTrinidad.ButTobago
maybealocationinthedistantfuture.However,asthistechnologyhasnotyetbeenemployed
anywhere,thetidalrangeistoolowtomakeitasuitablelocationfortheworldsfirstpower
plantofthistype.
Theoldestformofelectricitygenerationfromtidalfluctuationsistheuseoftidalbarrages.The
GulfofPariabetweenTrinidadandVenezuelawouldseemideallysuitedasithasalargeareaof
roughly7800kmandonlytwosmallentrances.Thetidalrangeisratherlowwithamaximum
of4085cm.However,thiswouldstillprovide817GWhofelectricityannuallyassuming30%
overallconversionefficiency.111TheobviouscriticalissuesofbuildingabarrageintheDragons
mouth(intheNorth)andtheSerpentsmouth(intheSouth),suchasshuttingoffthemajor
shippinglanesandpoliticalcontroversieswithVenezuela,andusageofverylowheadheights
makethisonlyanunrealisticpossibility(MOBILE,2012).
Theusageoftidalstreamsorcurrentsforpowergenerationhasseenarecentsurgeofactivity
withlargercompaniessuchasSiemens,VoithHydroandAndritzHydroenteringthemarket.
However, projections for plants of several MW size are currently limited to areas with very
strongtidalflows.Asstatedabove,thetidalrangeandthereforethestrengthofthecurrentsin
T&T is small, just like in the rest of the Caribbean; however, the Serpents mouth does have
potential, not due to tidal movements but because of the discharge from rivers on the
Venezuelan mainland during the rainy season. Navigational charts warn of currents up to 5
knots,butstatethattheseareinconsistentandgivenoexactlocation(DIRECTIONS,2012).
111
Energyproduction:
,whereNisthenumberoftidesperyear(730),theassumedefficiency(30%),the
densityofthewater(1025kg/m),hheightofthehightide(0.6m),AtheareaoftheReservoir(7,800km)andgisthe
accelerationduetotheEarthsgravity(9.81m/s).
209
Further local research is required to assess the exact locations and strength of currents
throughouttheyear.Furthermore,reportsofshiftingsandbanksandsiltindicatebothvariable
but strong currents and a soft, variable seabed. These features will make both, locating the
strongestcurrentsandanchoringequipmenttotheseaflooradifficultprocess.Theseissues
need to be addressed with detailed research to collect sound information on the potential
beforeattemptingtoinstallturbines,asprematurefailuresduetobadresearchandinformation
basearelikelytodiscouragefutureinvestmentsinwhatappearstobeTrinidadsmostpromising
marineresource.
Theimportanceofthestrengthofthecurrentishighlightedbyaquicklookatthephysicsofthe
powergenerationwhichstates that P A v (where Aisthearea,p the densityof the
waterandvthevelocity)andthereforepowerisrelatedtovelocitycubed!
FIGURE64showsanimageofthefirstcommercialtidalstreampowerplantwithitsrotorsraised
abovethesurface.Theplanthasaratedpowerof1.2MWandisinoperationsincelate2008.112
Figure64:SeaGentidalstreamplantinStrangfordLough,Scotland.
ThemanufacturerMarineCurrentTurbines113isnowwhollyownedbySiemensandplansfor
the first larger farms are currently underway. Similar projects have been realized by Andritz
Hydro,whoseprecommercialhorizontalaxisturbineHS1000with1MWstartedoperationin
December 2011, and Voith Hydro, whose similar turbine also with 1 MW is going to start
operationascommercialdemonstratorinsummer2013,bothattheEuropeanEnergyMarine
Centre.
ThematurityofthetechnologyandtheprospectofstrongtidalcurrentsinthesouthofTrinidad
and potentially along the eastern coast of Tobago make this the most promising marine
resource. As stated previously, local research is required to assess the exact locations and
112
Moreinformationonthisprojectatwww.seageneration.co.uk
113
www.marineturbines.com
210
strengthofcurrentsthroughouttheyear.Withthisinformationamorecompleteassessmentof
thepotentialofocean/tidalstreamgenerationcanbemade.
Alocalcompany(GarifunaEnergyLtd.)iscurrentlyintheearlydesignstageforaprojectunder
thenameHYDROFLOW.Theprojectisthoughttoconsistofapairofturbinesanchoredatthe
seabed, with a capacity of 300 kW each. No prototype has been built yet and there is
considerableriskoffailure,asexperiencesfromotherprojectsdemonstratethatproblemshave
beenunderestimatedandcostsforfirstpilotunitswerefarhigherthananticipated(OES2012).
6.7.2.2 Overview on worldwide Tidal Power Systems
Commercialoceanenergycapacitywasabout527MWbytheendof2012,mostofthisbeing
tidalpowerfacilities.
MosttidalpowersystemsareoneoffprojectssuchasthetidalbarrageinIncheon,Koreawith
aplannedcapacityof1,320MWthatisunderconstructionandshouldstartoperationin2017.
Currently,thelargestcommercialoceanprojectwith254MWcameonlineinAugust2011and
isalsolocatedinKorea(SihwaLakeTidalPowerStation),overtakingthenumberoneposition
after 45 years from the tidal power station at the estuary of the Rance River (240 MW) in
Brittany,France.Thetechnologyusedintidalbarrageschemesistriedandtested,butatidal
barrage is not a very sensible scenario for T&T. Tidal stream generators also rely on known
technology, but the offshore structures are notoriously difficult to maintain and very much
affectedbycorrosion.
ThecompanyRWEInnogyiscurrentlyseekingenvironmentalconsentaftersecuringtheseabed
leasefora10MW/70milliontidalstreamplantoffthecoastofWales(AngleseySkerries),
aimingtobeoperationalin2015.Asofearly2013,theplantwasstillawaitingconsentfromthe
WelshGovernment.Thiswouldbethefirstmultimegawatttidalstreamarrayintheworld.The
Seagentidalstreamplantpicturedabovehasbeenoperatingsuccessfullysincelate2008.But
thecompanybehinditstarteddevelopmentin1994.
6.7.3 OceanThermalEnergyConversion(OTEC)
6.7.3.1 Background and Status of OTEC Technology
Theoceanthermalenergyconversionusesthedifferenceinwatertemperaturebetweenthe
surfacewaterandthedeepoceanwater.ThisgradientisthenusedtodriveanorganicRankine
cycleandcanalsoprovidecoolingordesalinatedwater.Thepoweroutputofsuchasystemand
itsefficiencydependsonthemagnitudeofthedifferenceofthetworeservoirs.Thechartin
FIGURE65showsageneraltemperaturecurveofwaterfoundintropicalregions:
211
Figure65:TemperatureprofilegeneratedwithdatafromtheAtlanticOceanAtlas
Source:FUGLISTER,1960
The figure clearly shows the thermocline (between 100 m and 200 m), the layer with the
strongest temperature gradient. The depth of this layer depends on the seasons and, more
relevanttoT&T,ontheperturbationsofthesurfacewater.AnyOTECplantwillneedtohave
accesstoacoldreservoirwellbelowthethermocline.
ThefirstpilotOTECplantwasinstalledin1933inCubaandthefirst1MWcommercialfacility
wasinstalledinIndiain2000,butdespitenonewtechnicaldevelopmentsrequired,OTEChas
thusfarfailedto capitalizeonitspotential. Theearlyprojects wereoftentooexpensiveand
merely considered technology demonstrators, with no followup projects or concentrated
approachesacrossnations.LikeotherREtechnologies,OTECwilldependongovernmentfunding
toinitiallykickoffandreducecosts,butunlikePVorwindpowerithasthepossibilityforbase
loadpowerproduction.
LiteratureevaluatingthefeasibilityofOTECpowerplants,considersadepthof1000masthe
required minimum for an OTEC plant. A landbased solution, such as the OTEC plant at the
InterContinental Hotel in Bora Bora in French Polynesia, thus requires access to deep water
withinafewkilometres.
TheplantinBoraBoraisoneofthefewplantswhichoperatescommerciallyandusescoldsea
watertocooltheairfortheairconditioningsystemdirectly;itdoesnotproduceelectricpower.
This is commercially viable as electricity is extraordinarily expensive on Bora Bora due to its
secludedlocation.
In September 2011, the Bahamas Electricity Corporation has signed a Memorandum of
UnderstandingwiththeOceanThermalEnergy(OTE)Corporationfortheconstructionoftwo
OTECplants.OneoftheplantsisconsideredtodeliverdistrictcoolingfortheBahaMarResort
in Nassau, Bahamas. A loan of IDB of US$ 40 million for this project is currently under
preparation.114
114
Formoreinformationseewww.theonproject.organdwww.iadb.org/en/projects/projectdescriptiontitle,1303.html?id=BH
L1032.
212
6.7.3.2 OTEC Potential in T&T

Astudyin1997byRichardCrewswentintogreatdetailandexaminedallpossiblesitesinthe
CaribbeanconcludingthatT&TisunsuitableforOTECduetothelargedistance,morethan10
km from Tobago, to reach said depth (CREWS, 1997). However, a close look at ocean maps
revealsthatwithin8to10kmoftheNorthEasterntipofTobago,waterofmorethan1000m
depth can be found. Unfortunately no data on the exact location and its variations of the
thermoclineinwatersnearTobagocouldberetrieved.
OneofthebyproductsofOTECpowergenerationiscoldwaterwhichcanbeusedforcooling
purposes. This holds further potential for energy savings, however the distance between
consumerandpowerplantwouldbeaveryimportantfactortoconsiderwhenanalysingthe
feasibilityofanOTECplant.
It can be concluded that the island of Tobago has reasonable geographic features such as a
mediumdistancetocoldwaterandanamplesupplyofwarmoceanwater,butthelackofwell
developedOTECsolutionsmakethisoptionaoneoffprojectunlessalliesforalargercampaign
canbefound.TheCaribbeanandPolynesianislandsareideallysuitedfortheusageofOTEC,due
totheabundanceofwarmoceansurfacewaterandmostlyhighenergycosts.
OTECiscurrentlyonlycompetitiveonsmallislandswhereenergycostsarehighorthereisa
dedicatedinterestinreducingairpollutionandCO2emissionsbyreplacingconventionalpower
plants. As fossil fuels are significantly cheaper in T&T than in other island nations this price
differencedoesnotexist.HenceanOTECprojectwouldnotbefeasibleinT&T.Estimatesfora
10MWOTECplantrangefromUS$ct816/kWh,butthesmallnumberofcompletedprojects
tellsanotherstory(LENNARD).
6.7.4 ConclusionsandRecommendations
Asthereportoutlines,notechnologyisperfectlysuitedorcompletelyunsuitableforusageand
deploymentinT&T,butallhavetheirindividualchallenges.However,aproblemthatisfacedby
allisthelackofsolidinformationaboutconditionsatpotentialsites.
Theproductionofwaveandtidalpowerplantshasincertainareasreachedcommercialstatus.
ThePelamiswavepowersystemaswellasothersmallprojectshavebeenrunningsuccessfully
for several years now and a joint European approach and coordination is bearing fruit.115 In
addition,theIEAtaskonOceanEnergySystemshasbeenworkingsince2001andhasrevealed
severalusefulresultswhichcanberetrievedfromtheirwebsite.116
ThewavesinT&Tarenotwhatwouldbeconsideredlargeenoughfortheimplementationof
wavepowerplants.Butasstatedintheparagraphabove,moredataisneededbeforewave
powerisruledout,astherearesmallerresearchprojectsinareaswithlowerwaves,aswellas
thefirstinstallationsofcommercialoffshorebuoys.
Additionalinformationandstudiesaboutthefollowingphysicalpropertiesareaprerequisiteto
elaborateaquantitativeassessmentofthetechnicalpotentialofthesetechnologiesforT&T:
115
www.euoea.com
116
www.iea.org/techno/iaresults.asp?id_ia=31
213
1. TheaveragewaveheightsoffTobagoandtheEastcoastofTrinidad,
2. CurrentstrengthsintheSerpentsMouthintheSouthoftheGulfofPariaandalong
theEastcoastofTobago,
3. SaltconcentrationsoftheseawaterandtheirvariationsontheEastandWestcoastof
Trinidad.
Ofthethreedifferenttidalpowerschemesonlytidalstreamplantsareasensibleopportunity.
Current tidal power plants have a capacity factor of 0.8 0.85 and operate in very strong
currentscausedbytides.Itremainstobeseen,ifsimilarconditionsoccurintheSerpentsMouth
andalongtheEastcoastofTobagotoenablesensibleusage.
OTEChasgreatpotentialandaninternationaloratleastaregionalapproachintheCaribbean
should be sought. However, with no larger projects globally in existence, OTEC still needs a
significant R&D push before it can provide a sizable contribution. The reward would be a
renewablepowersourcecapableofprovidingbaseloadpowergeneration.
TaskstobedoneinT&T:
1. Researchefforttocollectdataonthestrength,location,directionanddurationof
currentsintheSerpentsMouthandalongtheEastcoastofTobago.
2. ResearchefforttocollectdataonwaveheightsandperiodsofftheNorthandEast
coastofTobago.
3. EstablishlocalOTECR&Defforts.(Thereareseveralpotentialpartnerslikeresearch
organisations,suchasNASA,orcompanieswithexperienceinOTEC,suchasLockheed
Martin,andXenesysInc.,aJapaneseOTECspecialist.)
Atthismoment,duetothelackoflocaldatanotechnicalpotentialfortidal,currant,waveor
OTECcanbegivenforT&T.Allproposedcommercialinitiativesforoceanenergyuseshouldbe
handledwithextremecareandneedtodemonstratetheiroperationalcapacityinrealizedpilot
andprototypeunitswithseveralyearsofservice.
214
6.8
ApplicabilityofConcentratedSolarPower
6.8.1 Introduction
ConcentratedSolarPower(CSP)requiresahighdirectsolarradiation(DNI)toproduceelectricity
atreasonablecosts.FIGURE66showstheyearlysumofDNIintheworld.
Figure66:YearlysumofDNIintheworld
Source:SIEMENS,n.d.
ToproduceelectricityfromaCSPpowerplantwithreasonablecostscurrentlyandinnearterm
future (510 years) requires conditions of a minimum of around 2000 kWh/m DNI. The
CaribbeanandespeciallyT&TdoesnotachievetherequiredlevelofDNI.
TheEuropeanAcademiesScienceAdvisoryCouncilpublishedinNovember2011astudyonthe
potentialcontributionofCSPtoasustainableenergyfuture(EASAC,2011).Thereportdescribes
theactualtechnologicaldevelopments,itsachievementsandthechallengesforthefutureto
makeCSPapotentialcontributiontofuturepowersupply.Itisrecommendedforfurtherreading
onthetechnologyoptions,thecurrentstatusofCSPworldwideandthechallengesahead.
Onecentralstatementfromthisreportis:
In general CSP is a reliable, proven renewable technology for generating electricity.
Currently,electricitygeneratedbyCSPplantslocatedwheretherearegoodsolarresources
costs 23 times that of electricity from existing fossilbased technologies without carbon
captureandstorage.Thisismainlyduetothecostsofthesolarfieldinstallationwhichare
stillrelativelyhigh.Consideringotherrenewableelectricitysources,CSPgenerationcostsare
onaparwithoffshorewind,butaresignificantlymoreexpensivethanonshorewind.In2010,
the average cost per kilowatthour for CSP and largescale PV systems were broadly
comparable.Butcurrently,intensivecompetition,particularlyfromAsia,hasdepressedPV
pricesgivingthemtheedgeoverCSPsystems.Futurecompetitionwilldependonthespeed
ofcostreductionofbothtechnologiesaswellasonthequestionofhowadditionalservices
providedbyCSP(dispatch,capacity,etc.,asdiscussedbelow)willbevalued.
215
TherehasbeenarapidincreaseofCSPinstallationsgloballyinrecentyears.Attheendof2012,
about2,550MWcapacityhadbeeninstalled.MostofthoseplantsoperatinginSpainandU.S.(
Figure67:ConcentratingSolarThermalPowerInstalledCapacity,19842012
Source:REN21,2013
6.8.2 CurrentandfutureCostDevelopmentofCSPTechnology
AccordingtoarecentlypublishedLCOEcoststudyoftheFraunhoferISE(ISE,2012),thefuture
costsofCSPpowerplantswillbedependingontechnologyanddirectradiationbetween0.16
Euro/kWh(LCOEfor2,500kWh/aDNI)and0.30Euro/kWh(2,000kWh/aDNI).
Figure68:LCOEofCSPdependingontechnologyandradiation
Source:ISE,2012
Explanation of FIGURE 68 as it is only available in German: The figure shows the LCOE in
Euro/kWhofdifferentCSPtechnologies(Parabol:Through,Speicher:Storage;Turm:tower)and
differentDNI:Minimum:2,000kWh/aandmaximumof2,500kWh/a).Theyellowareaisthe
216
upperexpectedcostlevel,whiletheblueoneisthelowercostlevel.Themainassumptionfor
thisLCOEisaweightedaveragecostofcapital(WACC)of9.9%andalifeexpectancyof25years.
The U.S. Department of Energy has published its Sun Shot Initiative in 2009 with the aim to
reduceCSPcostsby75%until2020(DOE,n.d.).Ifthatinitiativecanberealizedbybuildingmany
newCSPpowerplantsintheworldinthenextdecade,thenafutureminimumLCOEofUS$0.06
/kWh is expected for Combined Cycle tower CSP with 200 MW capacity and under the
assumptionthatacapacityfactorof66%canbeachievedthroughmoltenstorageandgasfiring.
ButatthemomenttheworldwidedevelopmentoffurtherCSPpowerplantsishamperedbythe
loweringofPVmodulecostsandthetechnologicalchallengesoftheCSPtechnology.Therefore
itremainstobeseen,iftheLCOEoffutureCSPcanbeloweredasexpectedbyDOE.
6.8.3 SummaryandRecommendations
TheLCOEfiguresofCSPsystemscurrentlyunderplanningorunderconstructionintheworld
andtheworldmapofDNIclearlyshowthatinthenearfuture,aslongasthereisnotechnology
breakthroughofCSP,thereisnotechnicalandeconomicpotentialforCSPinT&T.
Therefore, T&T currently has no CSP potential until or unless the technology is further
developed.
217
6.9
RenewableEnergyActionPlan
Asanalysedinchapter6,anumberofREtechnologies,namelysolarPV,windenergy,SWHand
WtEhavegoodpotentialforimplementationinT&T.However,inordertoachieveareasonable
contributionofrenewableenergysourcesintheelectricitysector,astrongparticipationofthe
private sector is essential. This includes not only the investment into large utilityscale
generation plants, but also the installation of small homebased RE facilities for own
consumptionsaswellasforfeedingexcesspowerintothepublicgrid.
Theregulatorybasisforsuchengagementiscurrentlynonexistentandneedstobeestablished,
startingwiththeamendmentoftheelectricityact(seechapter4.2.2).Thisshouldallowfora
widespread,althoughregulated,deploymentofREtechnologies,avoidingbureaucratichurdles
and providing modalities that incentivize the application of RE electricity generation by
offsettingexistingdisadvantagesagainstthetraditionalandsubsidizedgenerationmethod.
Suchnewelectricitymarketruleswouldallowforwheelingofrenewableelectricity,forexample
bytheindustry,fromremotelyplacedwindpowergenerationsitestothemanufacturingfacility,
usingthepublicgridastransportmeansandasstorageforanyexcesselectricitynotneeded
atthetimeofproduction.Itwouldfurtherallowsmallerproducerstofeedanysurplusintothe
gridunderreasonablereimbursementofgenerationcoststhatallowsforanadequatereturnof
investmentduringtheoperationallifetimeoftheirgenerationassets.
WhileNetBilling(chapter6.1.3)andNetMetering(chapter6.1.2)maynotprovideappropriate
financial means for a competitive operation of smallerscale RE technologies under the very
specific T&T conditions with low comparative electricity costs and tariffs, adequate and high
enoughfeedintariffs(chapter6.1.1)couldpavethewayforenteringintotherenewableenergy
age.Suchfeedintariffscouldandshouldbeatleasttechnologyspecific,ifnotevendependon
thesizeandenergyyieldofindividualinstallations,butinanycasebeterminatedforacertain
periodofmarketentryandappropriatelyadjusted,ifinstallationcostsmovedownward.The
generaladvantageoffeedintariffsisthattheyprovideaguaranteeforprivateinvestorstoget
asecurereturnaslongastheirgenerationfacilitiesoperateaccordingtothepredictedenergy
output.
ForlargescaleREinvestmentstheintroductionofauctions(chapter6.1.4)wouldbeabetter
choice, although such tender bidding needs to be well prepared in order to avoid unfair
competition.InthecaseofT&T,itisadvisabletopreselecttheinstallationsites,inparticularin
thecaseofwindfarmsorutilityscalePVplantsandfromthisbasisaskforbids.Evenifother
criteriathancostsmaybedecisiveitshouldinfirstplacebetheinvestoraskingforthelowest
electricity price who will be awarded with a longterm Power Purchase Agreement (chapter
6.1.6).
AstheoverarchingincentiveformeetingtheGovernmentobjectiveofasignificantREelectricity
contribution in the future, it is proposed to establish mandatory annual portfolio standards
(chapter 6.1.5), either for individual RE sources or for all RE technologies combined. Such
standards would oblige T&TEC to either invest into RE facilities on its own or purchase such
power from external operators. The scope of private sector engagement will then to a large
extentdependonthecapacityandbusinessdecisionofT&TEC,whiletheoverallgoalofastep
wiseincreaseofREelectricityintheenergymixwillbemet.
218
ApartfromessentialamendmentstoallowforelectricitygenerationbyotheractorsthanT&TEC
or licensed power producers (chapter 4.2.2) and definition of modalities for grid access and
interconnection,modificationsandadditionstotheexistinggridcodewillbenecessarytoallow
forasmoothparalleloperationofREfacilitiesunderdefinedandcontrolledtechnicalconditions,
inparticularinthecaseoflargerscalegenerationplants.
In order to stimulate the market and create adequate volumes that will help to reduce
installationcostsandenhanceknowledgeamongallparticipants,itisfurtherrecommendedto
consider incentive programmes and introduce adequate fiscal schemes that will make RE
technologiesmorecompetitiveandcurbhighinitialcoststhatareinherentforthemarketentry
ofnewinnovativeproducts.
Table46providesanoverviewofhowaninvestmentplanfortheperiodupto2020couldlook
like and what affect it would have on electricity generation and CO2 reduction. This plan
considersonlysolarandwindbasedtechnologies,asallotherrenewableenergiesareeither
marginalorwillnotyetbeavailableinthisperiod.Itisnoticeablethattheinstallationof100
MWwindpowerand60MWsolarPVwillneedconsiderableeffortsintheupcomingyearsin
ordertomeettheobjectiveofabout4%contributiontoelectricityproductionby2020(already
discountingareducedconsumptionduetoenergysavingmeasures).
Table46:REinvestmentplan20142020
Implementation
Period
Total
Installed
Capacity
(MW)
orunits
100PVroofs
20142015
0.3MW
1.05
4,350
3,045
WindPower
20152020
100MW
200.00
306,600
214,620
SolarPV
20162020
60MW
120.00
87,000
60,900
160.3MW
Project
Total RE power in
2020
Solar
Heaters
Water
20142020
60,000units
Total20142020
117 Basedonemissionfactorof2013.
219
Total
investment
costs
(millionUS$)
Electricity
generationatend
ofimplementation
period
(MWh/a)
397,950
CO2reduction
atendof
implementation
period117
(tons/a)
132.00
120,000
453.05
398,565
BasedonthedetailedanalysisofthepotentialofeachREtechnologyinT&T,thefollowingpolicymeasures,programsandotherrelevantnextstepsarebeing
recommended:
RE
Technology
SolarPV
Potential
High
Financial,fiscalandregulatory
Suggestedprograms
requirements
Introduction of fixed feedintariffs for Establishment of an introductory
gridconnected smallscale generation limited 100Roof Program with
andimplementationofreimbursement capitalsubsidiesoftheGovernment
scheme
Establishment of a solar PV
Introduction of nonbureaucratic programmeforpublicbuildingsusing
permission schemes for smallscale financialmeansoftheGreenFund
generation(RICandT&TEC)
Settingofannualportfoliotargetsfor
Establish costsharing structure for T&TEC to either generate solar
connectiontothegrid
electricity on its own or purchase
suchpowerfromthirdparties
Establish details to provide priority for
self consumption of RE, easy grid
access and priority dispatch of excess
power
Tender schemes for largescale solar
farms (RIC) and design of adequate
PowerPurchaseAgreements
Possiblyupdateorrevisewiringcodeto
incorporate standards for grid
connection and clarify responsibilities
amongstakeholders
220
Otherrelevantactivities
Development and provision of solar
radiation data by the Meteorological
ServiceofT&Ttoreflectlocalconditions
onbothcoastlines.
Training of electricians and electrical
inspectors and introduction of
certificatesforqualifiedinstallers.
Providing information on international
standardsandlabelsforsolarequipment
toinstallersandendusers
Establish register for PV generation
facilities to keep track of existing
installations
RE
Technology
Potential
WindPower
High
requirements
Reduce or abolish import duties and
taxes on all core parts of solar
equipment (in particular panels and
inverters)
Suggestedprograms
Establishmentoffeedintariffsincaseof Establishment of a support scheme

for wind farms, as long as subsidies
smallscalewindturbines
for conventional power have not
Addresstheneedforprioritygridaccess beenremoved
legislationandtheuseoftaxincentives
Setting of mandatory annual
Establish Power Purchase Agreements portfolio targets for wind power
forthecaseofthirdpartygeneration
generation to be fulfilled by either
T&TECs own facilities or through
Design grid codes for interconnection purchasing
from
independent
and operation of individual wind producers
turbinesorwindfarms
Start tender schemes for largescale
Establish a costsharing structure for windfarms,unlessT&TECprefersto
interconnection of wind turbines and investandoperateonitsown
possiblestrengtheningofexistinggrids
Reduceorabolishallimportdutiesand
taxes on wind energy related
equipment
Consider further fiscal incentives for
private investors to reduce costs and
Performdetailedwindmeasurementsat
potential concrete sites, based on the
nationalwindresourceassessment
Design technical guidelines for grid
connection and operation of wind
turbines
Assess impact on grid stability and
capacityifrelevantlevelsofwindenergy
arefedintodistributionortransmission
lines
Analysisofafirstevaluationofpotential
sites for potential offshore wind power
(includingwindassessments)
Introduceknowhowonwindenergyin
universityandcollegecoursesandstart
trainingoftechniciansforconstruction,
operationandmaintenance
Harmonize further grid extension with
potentialwindturbinelocations
221
RE
Technology
Solar Water
Heating
Potential
High
requirements
come on par with conventional power
generation
Improve the current inadequate
incentives (25% tax credit/0% VAT,
150% Wear and Tear allowance,
conditionaldutyexemptions)toalong
term fiscal and regulatory framework
forbothmanufacturersandconsumers.
Develop a 100% tax credit for the first
fiveyears
Establishlegalmandatoryrequirements
of SWH installations for all
establishments with high water
consumption,suchashotels,hospitals,
restaurants
Introduce higher taxes/penalties for
electricwaterheaters
Suggestedprograms
Use SWH for retrofitting of social Establish a system to collect data on

housing and in case of new SWHinstallations,andtoanalyseeffects
constructions
on GHG reductions, deployment and
usage
Collaboration between government
and manufacturers to reach high, Include SWH into technical/vocational
quality products, certified and trainingtocreatecriticalmassofartisans
labelledbyTTBS
for installation and maintenance and
increaseconsumerconfidence
Provide
incentives
for
the
establishment
of
a
local Institutionalize certification of SWH
manufacturing industry as to lower installationcompanies
costsandcreateemployment
Development of a sensitization and
Establish
a
demandside awarenessraisingcampaign
management
in
cooperation
betweenGovernmentandT&TECfor
substitution of electric boilers by
SWH
Provide specific budgets (or the
Green Fund) for the installation of
SWH in public buildings with hot
waterconsumption
222
RE
Technology
WtE
Potential
High
Suggestedprograms
requirements
Developmentofemissionstandardsfor Establish a longterm strategy and
exhaust gas and effluents from MSW programonwastetreatment
incinerators by making reference to
Provide budget and payment
internationalexamples
schemes for incineration of waste
Developmentoftechnicalspecifications andreimbursementofelectricpower
fed into the public grid or thermal
forMSWincinerationpowerplants
energy extracted for productive
Establishment of a legal basis that purposes
redefines the treatment of waste and
providesguidanceforalltypesofwaste Elaborate tender documents for
material (starting from recycling to construction and possibly operation
handlingofcontaminatedashes)
ofanincinerationfacility
Determination if existing treatment
facilities are sufficient for safe disposal
offlyandfilterashes
Implementation of a comprehensive
wastecharacterizationstudy
Implementationofastudyanalysingthe
composition and status of the existing
wasteatthethreelandfillstoinvestigate
coincinerationpotential
Calculationofeconomicpotential(after
implementationofstudies),andanalysis
oflocalcapacitiestobuildanincinerator
powerplant
Elaboration of a fullscale feasibility
studyexaminingtechnicalandeconomic
viabilityofanincinerationplant
Bioenergy
use
Low
Examine if financial or fiscal incentives Potentialdevelopmentoffourbiogas Investigate further biomass potentials,

could stimulate the implementation of demonstrationprojectsatthreelarge e.g. from organic domestic residues, if
biogasfacilitiesforlocalenergyuse
pigfarmsandthedistillery
collected separately from other waste
streams
223
RE
Potential
Technology
OceanEnergy High
potential but
no
viable
technology
options for
themoment
requirements
Suggestedprograms
Implementationofa detailedfeasibility
study to analyse a quantitative
assessment of the technological
potential
Data collection on wave heights and
periodsofftheNorthandEastCoastof
Tobago
Followup
on
international
developments and share knowledge at
R&Dlevel
Concentrated Notexisting
SolarPower
224
Thistranslatesintothefollowingactionandnationalbudgetplanforthosemeasuresthatareidentifiedashavingahighpotential:
SolarPVandWindEnergy
SummaryofTargets
Summaryofobjectives
ShortTerm
MediumTerm
LongTerm
20142020
20202025
20262032
The overall objectives for RE Reach4%ofelectricitygenerationthroughRenewableEnergy(100MWofWind

16%ofelectricitygenerationthrough
interventions:
and60.3MWofsolarPV)
RenewableEnergy
Reach 4% of electricity
SpecificActivities&5yrNationalBudgettomeetTargets
generationin2020and16%
Development of an appropriate legal and regulatory framework to allow for largescale Continue, review and appropriately modify the
by2032
implementationofRE
BudgetResponsibility
orFundingSource
GoRTT
regulatoryframework
BudgetUS$100,000
Establishment of an introductory 100Roof PV Program with capital subsidies of the
Government
Implement,continueandwidentheprogramme
GoRTT
GoRTT/GreenFund
Continuouslyincreaseportfoliotargetstobeable
toreach16%ofelectricitygenerationthroughRE
and installation of registration and monitoring
system
GoRTT/T&TEC/RIC
BudgetUS$600,000
EstablishmentofasolarPVprogrammeforpublicbuildingsusingfinancialmeansofthe
GreenFund
BudgetUS$800,000
SettingandmonitoringofannualportfoliotargetsforT&TECtoeithergeneraterenewable
electricityonitsownorpurchasesuchpowerfromthirdparties
BudgetUS$50,000
Development and provision of countrywide solar radiation data by the Meteorological
ServiceofT&Ttoreflectlocalconditionsonbothislands.
MeteorologicalService
BudgetUS$50,000
TrainingofelectriciansandelectricalinspectorsforSolarPVinstallations
BudgetUS$200,000
225
Introduction
of
certificates
for
qualifiedinstallers.
GoRTT/TTBS/T&TEC/
Technicaltraining
institutions
Perform detailed wind measurements at potential concrete sites, based on the national
windresourceassessment
To be continued, but
preferablyatthecost
ofinvestors
GoRTT/donorfunding
BudgetUS$500,000
Design technical guidelines for grid connection and operation of wind turbines and PV
systems
Adaptation of guidelines depending

experiencesandtechnicalinnovations
on
GoRTT
Could become even more relevant in this phase

due to concentration of wind and solar farms at
certainlocations
GoRTT
Ifassessmentisfavourable,followedbyfeasibility
study and preparation of tender procedure for
offshorewindpower
GoRTT
BudgetUS$100,000
Assessimpactongridstabilityandcapacityifrelevantlevelsofwindorsolarenergyarefed
intodistributionortransmissionlines
BudgetUS$100,000
Prefeasibility analysis of potential sites for offshore wind power (including wind
assessments)
BudgetUS$300,000
3,050,000
160.3
278.565
Introduceknowhowonwindenergyinuniversityandcollegecoursesandstarttrainingof
techniciansforconstruction,operationandmaintenance
GoRTT/UTTand
UWI/Technicaltraining
institutions
BudgetUS$250,000
5YEARBUDGET,US$
AVAILABLERECAPACITY,MW
226
WastetoEnergy
SummaryofTargets
Summaryofobjectives
The overall objectives for RE

interventions:
Reach 4% of electricity
generation at 4% in 2020
and16%by2032
ShortTerm
MediumTerm
LongTerm
20142020
20202025
20262032
Reach4%ofelectricitygenerationthroughRenewableEnergy
Reach16%ofelectricitygenerationthrough
RenewableEnergy
BudgetResponsibility
orFundingSource
DevelopmentofappropriatestandardsandregulatoryframeworkforWtE
BudgetUS$200,000
Establishalongtermstrategyandprogramonwastetreatment
Continue, review and appropriately modify the

regulatoryframework
GoRTT
Implement,continueandfinetunetheprogramme
GoRTT
GoRTT
GoRTT
BudgetUS$300,000
Implementationofacomprehensivewastecharacterizationstudy
BudgetUS$500,000
ElaborationofaprefeasibilitystudyontherealisationofaWtEplant
BudgetUS$200,000
Elaborationofafullscalefeasibilitystudyexaminingtechnicalandeconomicviabilityofan
incinerationplant
BudgetUS$400,000
5YEARBUDGET,US$
1,600,000
227
Tendering
and
construction of an
incinerationplant
GoRTT
SolarWaterHeating
SummaryofTargets
Summaryofobjectives
ShortTerm
MediumTerm
LongTerm
20142020
20202025
20262032
Budget
Responsibilityor
FundingSource
The overall objectives for

Reach150,000unitsof
Reach200,000unitsof
Reach60,000unitsofSolarWaterHeaters
REinterventions:
SolarWaterHeaters
SolarWaterHeaters
Equip about 50% of
T%T households with
Solar Water Heaters
Development of an appropriate legal and regulatoryframework to kick start SWH (Including Continue,reviewandappropriatelymodifytheregulatory
by2032
100%taxallowance)
framework
GoRTT
BudgetUS$1,000,000
UseSWHforretrofittingofsocialhousingandincaseofnewconstructions
MakeSWHmandatoryinSocialHousing
HDC
BudgetUS$300,000
Establish a system to collect data on SWH installations, and to analyse effects on GHG
reductions,deploymentandusage
GoRTT
BudgetUS$50,000
IncludeSWHintotechnical/vocationaltrainingtocreatecriticalmassofartisansforinstallation
andmaintenanceandincreaseconsumerconfidence
Introductionofcertificatesforqualifiedinstallers.
GoRTT/Vocational
trainingschools
BudgetUS$100,000
Establish a demandsidemanagement programme in cooperation between Government and
T&TECforsubstitutionofelectricboilersbySWH
GoRTT/T&TEC
GoRTT/TTBS/Green
Fund
BudgetUS$300,000
Providespecificbudgets(ortheGreenFund)fortheinstallationofSWHinpublicbuildingswith
hotwaterconsumption
BudgetUS$200,000
5YEARBUDGET,US$
1,950,000
120,000
CO2EMISSIONSAVOIDED,
kt
228
LongtermScenarios
InthisChapter,dataavailablefromdeskstudiesisincorporatedintotheanalysisofbaselinedata
toidentifytrendsandassumefutureprojectionsinordertosimulatethelikelyevolutionofkey
indicatorsupto2032.Inordertodoso,aninitialBusinessasUsualScenarioismodifiedin
ordertoestimatetheevolutionofkeyfactorssuchasGDP,oilandnaturalgasproductionand
consumption,electricitygeneration,anditseffectonCO2emissions.
DifferenttrendsaresimulatedtoevaluatethelikelyimpactthesedifferentScenariosmayhave
on key indicators. The resulting trends have been compared against the BusinessasUsual
projections in order to gauge the impact of the proposed Scenario. The five (5) Scenarios
assessedanddiscussedinthischapterarethefollowing:
-
Scenario1:IntroductionofEEmeasures
Scenario2:IntroductionofREcovering2.5%ofgeneratedpowerby2020
Scenario3:IntroductionofREcovering4.0%ofgeneratedpowerby2020
Scenario4:CombinationofScenarios1&2
Scenario5:CombinationofScenarios1&3.
ProjectionsforPopulationandGDPGrowth
PopulationFiguresandProjections
Thepopulationgrowthestimatesupto2030havebeenbasedondataobtainedfromtheUnited
NationsDepartmentofEconomicandSocialAffairs(UNDESA),whichprovidesprojectionsona
5yearperiodbasis.118
Figure69:PopulationfiguresforTrinidadandTobagofrom1990to2030
Population(thousands)
1450
1400
1350
PopulationProjected
1300
Population
1250
1200
1990
2000
2010
Year
2020
2030
Source:UNDESA,2013119
ExpectedContributionofEnergySectortoGDP
118
Populationgrowthratesfor20102015:0.28%;20152020:0.03%;20202025:0.24%;20252030:0,38%(Source:
http://esa.un.org/wpp/unpp/panel_population.htm)
119
The Central Statistical Office was not operational when the data for the Report were required.
ThereforedatafromUNDESAhavebeenused.
229
TheInternationalMonetaryFund(IMF)forecastsupto2017,andtheUnitedStatesDepartment
ofAgriculture(USDA)thereafter,providingthenecessarydatatodrawtheGDPForecastforT&T
upto2032asillustratedinFIGURE70 Theadjustedline,takesintoaccount thereductionin
productionofoilandanincreaseinnaturalgasproduction,withanetreductioninfossilfuel
production in T&T over the coming years. As such, the contribution of the combined oil and
natural gas production to the countrys GDP will down spiral from the current 40% to
approximately14%in2032.
USDAsdataisacontinuationofthefigurespresentedbytheIMF,andassuch,providesthe
continuity required to establish an appropriate projection up to 2032. However, this Report
questionstheseestimatesonthebasisofthecurrentgasandoilreserves.Currentlythegasand
oilsectorareresponsibleforasmuchas43%oftheGDPshowninFIGURE70Withthecurrent
bestreservesestimates,theenergysectorsshareoftheGDPwillexperienceadrop.Thisdrop
is attributed to the reduction in Crude Oil reserves and the inability of NG Production to
compensateforit.However,therearemanyfactorsthatarealsolikelytoaffecttheGDPgrowth,
anotherkeyelementbeingthepopulationincrease,whichhasbeenaddressedintheprevious
section.
TheeffectsoftheEnergySectorssharedepletionarefurtherevaluatedinfurtherchapters.
Figure70:GrossDomesticProduct(GDP)inrealvaluesforTrinidad&Tobago,19902032
120
GDP(BillionUS$)
100
80
60
40
Dollars
20
0
1990
DollarsProjected
1995
2000
2005
2010
2015
2020
2025
2030
2035
Year
Source:IMF2012upto2017,andUSDA,2012
BusinessasUsualProjectiontill2032
This Scenario uses baseline data to establish the current trends, and projects them. Where
appropriate,newconsiderationsaretakenintoaccountinordertoassumeaprojectionupto
2032.Theseconsiderationsincludethefollowingassumptions:
230
Crudeoilproductionwillcontinueitsdecliningtrendfortheentirestudyperiodunless
theinitiativestoarrestthedeclineproofsuccessful120.Whileconsumptionwillcontinue
toincreaseatasimilarratefollowingthetendencyofthepastdecades.
Naturalgasproductionwillcontinuetoincreaseatarateexperiencedinrecentyears,
asnewexplorationBlockshavebeenawardedasof2013,providingsufficientsources
to continue production during the study period. Gas consumption will experience a
similartrendasoilconsumption,andfollowthesametendencyasinthepastdecade.
Electricitygenerationwillcontinuetoincreaseataconstant4.4%annuallywithinthe
studyperiod.Similarly,improvementsinenergygenerationefficiencyhavebeentaken
intoaccount,andassuch,a1%annualefficiencyimprovementhasbeenintegrated.
Forcomparisonpurposes,thisisconsideredaDoNothingScenariointermsofenergy
efficiency, renewable energy and electricity demand, GDP and population growth
trends.
ProjectedOilProduction&Consumption
Whenassessingtheprojectedestimates,thesimulationsanticipatethatthecurrentdemand
willovertaketheproductioncapacitywithintheperioduntil2032.WiththeBusinessasUsual
Scenario,themajorimplicationsarethatT&Twillturnintooilimportingcountryandthatto
maintainestimatedGDPgrowthrates,thenaturalgasproductionwillneedtoincrease.
Figure71:Projectedcrudeoilproduction&consumptionupto2032
Oil(thousandbarrels/Day)
160
Production
140
ProductionProjection
120
Consumption
100
ConsumptionProjection
80
60
40
20
0
1990
1995
2000
2005
2010
Year
2015
2020
2025
2030
120
TherearereportedinitiativesbyMEEAtoarrestthedeclineinCrudeOilproduction.Thisisintendedtostimulatetheexploration
activities and for the development of small oil pools which had been discovered but were apparently not regarded by the
companiesasworthcommercialising.Thereisuncertaintyoverthequantifiableimpactoftheseinitiativesandthereforenot
sufficientlyindicativeforthepurposeofthisstudy.
231
ProjectedNaturalGasProduction&Consumption
Theprojectionfrom2013to2032hasbeencarriedoutconsideringthetendencythatnatural
gasproductionandconsumptionhaveshowninpreviousyears.GoRTTawardednewexploration
andextractionlicensesfornaturalgas,whichmayraisethecountrysreservestonearly50tcf.
The simulation indicates that although these reserves may be sufficient, they will be at a
minimumby2032.Moreover,shouldtherelationbetweenGDPanddomesticenergyproduction
beusedatthecurrent40%share,therecordedreserveswillnotsuffice.Therefore,thisReport
hasexploredtheadjustedGDPgrowthandmaximumenergygenerationfromcurrentreserves.
Figure72:Projectednaturalgasproductionandconsumption
NaturalGas(BillionCubicFeet)
3.500
3.000
2.500
2.000
Production
ProductionProjection
Consumption
ConsumptionProjection
1.500
1.000
500
0
1990
2000
2010
2020
2030
Year
Adjusted GDP Projection for recorded Natural Gas Reserves and decline in
CrudeOilProduction
As previously mentioned, the production of crude oil and natural gas has been a large
contributortoT&TsGDP,withashareofover40%in2013.However,GDPshareisprojectedto
decrease, as crude oil production continues to fall, and the increase in natural gas is not
sufficienttocompensatethisdrop.
The current GDP estimates provided by IMF and the USDA, do not indicate any change with
regardtothelimitsofcrudeoilandnaturalgasreserves.AssumingthatthereferencedGDP
projectionshavenottakenintoaccountthiseffect,theGDPestimatesneedtobeadjusted,as
illustratedin.FIGURE73
232
By2032,thecontributionofconventionalenergyproduction(crudeoil&naturalgas)isexpected
todecreaseto14%ofGDP,fromthecurrentUS$100.2billiontotheadjustedUS$75,9billion
in2032.121
Figure73:GDPprojectionandadjustmentfordeclineincrudeoilandnaturalgasproduction
120
GDP(billionUS$)
100
Dollars
80
DollarsProjected
60
DollarsProjectedAdjusted
40
20
0
1990
1995
2000
2005
2010
Year
2015
2020
2025
2030
ProjectedElectricityDemand(Businessasusual)
Asthecurrentsituationimplies,electricitygenerationmatcheselectricitydemand,giventhat
Trinidad&Tobagodoesnotimportelectricityfromneighboringcountries.
Withregardtoelectricitygenerationinthebaselinestudy,theprojectedlinewasestablished
consideringthatconventionalenergyproductionwillcontinuetogrowatthesamerateasin
recentyears.However,thecurrentbestestimatesfortheoilandgasreservesassumethatthe
current growth rate is not replicable in the future and should be adjusted. The adjusted
assumptiontherefore,includesthemostrecentlyavailablepublicdata.
TheimpactofthesesimulationsontheestimatedfutureGDPhasalreadybeenintroducedin
thepreviouschapter.Theenergygenerationcapacityinthefuturecontradictstheestimated
GDPgrowthunderthecurrentshare.Simulateddataobtainedconsidertheadjustedprojections
of crude oil and natural gas production and revenues. This assumed trend was adjusted to
consideradropintheGDPshare,whichthestudyindicateswillbeapproximately14%fromthe
current43%ofGDP.Therefore,theadjustedsimulationindicatesthatTrinidad&TobagosGDP
willnotincreaseasinthepast,duetolowerrevenuesfromoilandgas,andthatthislowerGDP
mayalsoaffectdemandforelectricity.Hence,consideringallofthesefactors,T&Tselectricity
demandprojectionsmayexperienceadrop,whichby2032willbedownfromtheprojected16.8
TWhtotheadjusted12.7TWh.
121
Forfutureprojectionsregardingcrudeoilandnaturalgasprices,thelackofinformationregardingtheincreaseorfallof
prices,legitimatizestheadoptionofaflatpriceofUS$107perbarrelofoilandUS$4.35percubicfeetofnaturalgasforthe
20yearsthatthisReportprojects.
233
GWh
Figure74:ProjectedelectricitydemandBusinessasUsual
18.000
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
0
1990
1995
2000
2005
2010
Year
2015
2020
2025
2030
ProjectedCO2EmissionsfromPowerGeneration
WithregardtoCO2emissionsfrompowergeneration,thebaselinestudyhasusedthefindings
ofastudythatlinksGDPtopopulationandenergygeneration.122Usingthisrelationship,CO2
emissionscanbedetermined.TheScenariowasdevelopedusingelectricitygenerationfromGDP
projections up to 2032 and using IMF and USDA data for population growth estimates. The
simulationconcludes,thatunderthisScenariotheassumedCO2emissionsin2032willincrease
from 6.04 Mt in 2012 to 11.78 Mt under the projected situation, and to 8.92 Mt under the
adjustedsituation.
The improvements on the generation side, which include the use of combinedcycle
technologies(chapter3.4.1)havebeenincorporatedinalloftheScenarios,asthepurposeof
thisexerciseistocomparetheimprovementsachievedineachScenariowiththeDonothing
situationthatistheadjustedtrend.Itisalsoestimatedthattheseimprovementsaresomeof
themeasuresthatwillhavethebiggestimpactinthereductionofCO2emissions.
Figure75:ProjectedCO2emissionsfrompowergenerationBusinessasusual
14
MtCO2
12
MtCO2Projected
CO2 (Mt)
10
MtCO2Projectedadjusted
8
6
4
2
0
1990
1995
2000
2005
2010
Year
2015
2020
122
Tverberg,Gail,2012:"AnEnergy/GDPForecastto2050"(ourfiniteworld.com),July26,2012
234
2025
2030
(i)
This Report has identified referenced projections for GDP to 2032 as well as
population figures. Following the findings from a referenced study123 that
correlatesrelationshipbetweenGDP,populationgrowthandtheenergysector,
thefutureelectricitydemandcanbecalculated.
(ii)
Currentlydocumentedfossilfuelreservesareconsiderablylowerthanrequired
tomaintainthereferencedGDPratioandgrowthrate.Havingthisconsideration
inmind,theadjustedgrowthratetakesintoaccountthechangeintheshareof
theenergysectorwithregardtooverallGDP,whichshalldropfrom40%to14%.
This is based on the historical trends of the GDP reliance on the Fossil fuel
reserves.124
(iii)
Underthesimulatedprojections,thecurrentoildemandwillovertaketheoil
productionwithintheperioduntil2032.WiththeBusinessasUsualScenario,
themajorimplicationsarethatT&Twillturnintoanoilimportingcountry.125
(iv)
Thesimulationindicatesthatalthoughthenaturalgasreservesmaybesufficient
fortheperiodatsuchrate,thereserveswillbeataminimumby2032.
(v)
The limitations of the current energy sector to ensure the referenced GDP
growthintheprojectionsdemonstratetheneedtodiversifytheenergymatrix
and reduce national demand as well as to diversify the industrial sector to
maintainGDPgrowth.
Scenario1:IntroductionofEnergyEfficiencyMeasures
Scenario 1 takes into consideration new energy efficiency measures applicable within the
residential, hotel and the commercial/industrial sector, which would result in a reduction of
approximately973.3GWhby2020(seechapter5.3.2).Thisrepresentsover9%oftheestimated
electricitydemandforthatyear.Additionally,theScenarioalsoincludestheimprovementsin
thepowerstations,withcombinedcycleprocessesbeingintroducedtoallplants.Thiswould
saveanadditional12%ofthefossilfuelusedforelectricitygenerationrequiredtomeetthe
demandfrom2020andthereafter.Forthefollowingperiod,theScenarioassumesthatthetrend
is to continue until 2032. Should these conditions be met, the proposed EE measures could
potentiallysaveover21%126(seechapter6.2)oftheestimatedelectricityproductionrequired
undertheBusinessasUsual,or3.7TWhofthe16.8TWhoftheprojectedoriginalelectricity
generation.
Figure76illustratesthesimulatedtrend,whichisassumedtokickstartwhentheEEmeasures
areintroducedin2016,assumingthatmostmeasureswillbeintroducedinthefirst34years.
123
124
Tverberg,Gail,2012:"AnEnergy/GDPForecastto2050"(ourfiniteworld.com),July26,2012
Other factors, such as developments in the nonoil and gas sectors, could also result in lower comparative oil and gas GDP
contribution.OilandgaspercentageGDPmaynotalwaysbeafactorofsignificancebutthestudyhasbaseditsfindingsinthe
historicaltrendsofthekeyfactorsofsignificancewhichhavebeenstudiedandpublished(Tverberg,Gail,2012).
125
Importingoilnotonlyunderprocessingagreementstokeeptherefineriesoperating
126
SavingsintheResidential,HotelandCommercial/Industrialsectoryield9.2%oftheestimatedenergydemand,whilesavings
derivedfromtheimprovementsintroducedinthepowerstationswouldyielda12%savingsbyupgradingtoCombinedCycle.
Therefore,theactualsavingsduetoEEwouldbe21.2%(seechapter6.2)
235
Figure76:FossilfuelbasedelectricitygenerationScenario1
18.000
16.000
14.000
GWh
12.000
10.000
8.000
6.000
GWh
GWhProjected
GWhunderEEScenario
4.000
2.000
0
1990
2000
2010
Year
2020
2030
Under this Scenario, energy efficiency measures, which have a direct impact on electricity
consumption in the residential, hotel and commercial/industrial sectors, are accounted for.
Thesemeasures,whichwouldstarttotakeeffectin2017willaccountfora973.3GWhreduction
ofannualelectricitydemandby2020.Thecombinedcycletechnologyreplacingabout50%of
allsimplecyclegasturbines(seechapter3.3.3.2)wouldalsoaccountforanadditional12%drop,
giventhatthecurrentefficiencylevelof26.6%wouldincreaseto38.5%.
ThesemeasureswillconsequentlyreduceCO2emissionsfrompowergeneration.Furthermore,
theimprovedefficiencyofthecombinedcycleplants,whichwouldbeintroducedbetween2017
and2020,willhaveasizeableimpactintermsofCO2emissionsperkWhgeneratednationally.
ThesimulationdemonstratesthatthisfirstbatchofmeasurescouldhaveagreatimpactonCO2
perkWh.Thisisillustratedbythesteepinclinationexperiencedinthefirstyears.Thisisbecause
improvementsinthepowergenerationstationswilllowertheemissionfactorfrom700gofCO2
perkWhcurrentlyto387gofCO2perkWhin2020andonwards(seechapter3.7.2.3).
Asaresultoftheseassumptions,CO2emissionswillbereducedto4.30Mtin2032,asopposed
to11.78Mt,ifnomeasuresareintroduced.
Figure77:CO2emissionsfrompowergenerationScenario1
14
12
CO2 (Mt)
10
MtCO2
MtCO2Projection
MtCO2undersEEScenario
8
6
4
2
0
1987
1992
1997
2002
2007
2012
Year
236
2017
2022
2027
2032
Scenario2:IntroductionofREcovering2.5%ofGeneratedPowerby2020
As of 2013, the GoRTT is looking at introducing RE generation technologies, which could
potentiallyprovide2.5%oftheelectricitygeneratedby2020.Keepingthisconsiderationinmind,
thisScenariosimulatestheassumedimpactthatsuchmeasurewouldhaveontheelectricity
generationfromfossilfuels,aswellastheeffectsontheCO2emissionproduced.
InthisScenario,REisintroducedat2.5%ofgeneratedpowerby2020andprojectedtofurther
escalatethereafteratacontinuous0.3%annualincrease(seechapter4).Theassumedresults
arecomparedwiththeprojecteddataintheBusinessasUsual"Scenario.Figure78illustrates
the results of the simulation and compares the projected electricity generation up to 2020,
whichwouldbeentirelybasedonnaturalgas,withtheScenario,inwhichtheREsharewillbe
2.5%asof2020andupto6.3%asof2032.ThisScenariohasbeencalculatedtolowerthefossil
fuelbasedelectricityto15.8TWhby2032,asopposedtothe16.8TWhundertheBusinessas
UsualScenario.
ThemeasuresintroducedinthisscenarioincludethefollowingREinstalledcapacityby2020:
100MWfromWindPower
60MWfromSolarPV
Furtherinformationpertainingtothesemeasurescanbefoundinchapter7.9.
18.000
16.000
14.000
GWh
12.000
10.000
GWh
8.000
6.000
GWhProjected
4.000
GWhunderREGoRTT
Scenario
2.000
0
1990
1995
2000
2005
2010
Year
2015
2020
2025
2030
REsourcesdonotemitCO2whengeneratingelectricity(orreleaseasmuchCO2astheyhave
previously absorbed in the case of biomass energy). As such, the CO2 emissions from power
generationwillbereducedatthesameratioastherenewablebasedpowergenerationshareof
thetotalpowergenerated.Figure79showsthedifferenceinemissionsbetweentheprojected
baselineandScenario2situations,whichwouldbeat11.78and11.04Mtrespectivelyin2032.
237
MtCO2
MtCO2Projection
MtCO2underREGoRTTScenario
14
12
10
8
6
4
2
0
1985
1990
1995
2000
2005
2010
2015
2020
2025
2030
2035
Scenario3:IntroductionofREcovering4.0%ofpowergenerationby2020
ConsideringtheintroductionofREinT&T,theconsultantsconsideredwhichwouldbetheratio
ofintroductioninordertogenerateasizablemarketshareandopportunitiesforlocalbusiness.
Assuch,ithasbeenestimatedthata4%contributiontoelectricitygenerationby2020would
meet this requirement. This situation, if further escalated, would lead to the generation of
approximately2.7TWhor16%ofthetotal16.8TWhin2032fromREsources.
Figure80belowillustratesthedifferencebetweenthisScenario,andthebaseline.
18.000
16.000
14.000
GWh
12.000
10.000
GWh
8.000
6.000
GWhProjected
4.000
GWhunderREProposal
Scenario
2.000
0
1990
1995
2000
2005
2010
Year
2015
2020
2025
2030
WithregardtoCO2emissions,theamountofCO2producedthroughpowergenerationwould
fallfrom11.78Mtin2032to9.90Mt(refertoFigure81below).
238
CO2(Mt)
14
MtCO2
12
MtCO2Projection
10
MtCO2undersREProposalScenario
8
6
4
2
0
1987
1992
1997
2002
2007
Year
2012
2017
2022
2027
2032
Under this Scenario, energy efficiency measures will be introduced, combined with the
introductionofrenewableenergiesat2.5%oftheelectricitygeneratedin2020,increasingto
6.3%by2032.ThisScenariowouldcombinethepositiveeffectsofScenarios1&2,therefore
reducingelectricitygeneratedfromnaturalgastoabout12.08TWhfrom16.8TWhin2032as
showninFigure82.
GWh
18.000
16.000
GWh
14.000
GWhProjected
12.000
GWhunderEE+REGoRTTScenario
10.000
8.000
6.000
4.000
2.000
0
1990
1995
2000
2005
2010
Year
2015
2020
2025
2030
Similarly,giventhattheshareofelectricitygeneratedfromfossilfuelswilldecrease,theamount
of CO2 emissions will experience a fall due to the energy efficiency and renewable energy
introductionandconsolidation.Figure83illustratesthedifferenceinCO2emissionsunderthis
Scenario, and the baseline, with a difference in emissions of 11.78 Mt under the baseline
conditionsto3.89MtofemissionsunderScenario4conditions.
239
14
MtCO2
12
MtCO2Projection
CO2 (Mt)
10
MtCO2undersEE+REGoRTTScenario
8
6
4
2
0
1987
1992
1997
2002
2007
2012
2017
2022
2027
2032
Year
Similar to Scenario 4, the Scenario presented in this section takes into account the potential
resultsobtainedfromcombiningEEandRE.ThedifferenceisthatScenario5takesintoaccount
theconsultantsproposed4.0%ofRenewableEnergygenerationby2020,and16%by2032.
Initially,theannualgrowthinREgenerationtobe0.5%,whileafterachieving4%in2020,the
annualgrowthwillincreaseto1%.Thiswouldenablethecreationofsufficientmarketsizethat
willreciprocallyleadtolowerspecificcostsandstrengthenexperienceinnewbusinesssectors.
By increasing the annual rate from 2020 to 2032, it is technically and economically feasible
throughtheuseofwindandsolarresources.Figure84clearlyillustratesthedifferencebetween
thebaselineandScenario5withregardtoelectricitygenerationfromfossilfuels,whichwould
bereducedfromthetotalof16.8TWhto10.4TWhin2032.
18.000
16.000
14.000
GWh
12.000
GWh
GWhProjected
GWhunderEE+REProposalScenario
10.000
8.000
6.000
4.000
2.000
0
1990
1995
2000
2005
2010
Year
2015
2020
2025
2030
WhenconsideringCO2emissions,thetrendwillfollowasimilarpatternasthatshownunder
Scenario4;however,giventheincreasedamountofRE,thedifferenceinCO2emissionsbetween
thebaselineandScenario5willbe11.78Mtand3.26Mtrespectively,asshowninFigure85.
240
14
MtCO2
12
MtCO2Projection
CO2(Mt)
10
MtCO2undersEE+REProposalScenario
8
6
4
2
0
1987
1992
1997
2002
2007
Year
2012
2017
2022
2027
2032
While EE measures proposed under Scenario 1 are more efficient in terms of electricity
generation and CO2 emissions in comparison to the RE Scenarios, Scenarios 4 and 5, which
combinetheEEmeasureswitha2.5%REby2020and4.0%REby2020,aretheonestofavour.
Morespecifically,theScenario5indicatesthatasmuchas6.4TWhofelectricitygeneratedcould
beeithersavedwithEEmeasuresorproducedthroughtheuseofREtechnologiesby2032.This
wouldgenerateCO2emissionsatarateof3.26Mtasopposedtothe11.78Mt,ifnoadditional
measures are introduced to reduce the dependency on fossil fuels for the generation of
electricity.
241
Conclusions
Thedifferentchaptersofthereportcontaindetailedrecommendationsonthenextstepsthat
theGoRTTcouldundertaketostrengthenitspolicyandlegalframework,aswellastopromote
EEandRE.
Thefollowingchapterissummarizingsomeoftherecommendationsandproposedmeasures
and provides an overview on those activities that the GoRTT could undertake to promote a
SustainableEnergyfutureforT&T.
PolicyandRegulatoryFramework
Establish clear and measurable targets for RE, with a binding mandate for T&TEC to
incorporateREelectricityfromownorthirdpartygenerationfacilities.
RaisetheREtargettoatleastacontributionof4%inelectricityconsumptionby2020in
ordertocreatesufficientmarketsizethatwillreciprocallyleadtolowerspecificcosts
andstrengthenexperienceinnewbusinesssectors.Inthemediumtermuntil2032,aRE
shareof16%inelectricityconsumptionistechnicallyandeconomicallyfeasiblebyusing
primarilywindandsolarresources.
AmendtheT&TECActtoallowaccesstothegridforoperatorsofREgenerationfacilities,
althoughtheextentandscopeshouldbecontrolledbyT&TECinlinewiththeRegulated
Industries Commission and made dependent on capacity demand and technical
circumstances.
Simplifythepermissionprocessforoperatorsofsmalldistributedgenerationanddonot
requestanylengthylicensingprocedure.Asimpleregistrationprocedureandcontrolby
theelectricalinspectorateshouldbesufficient.
Developafeedintariffforsmallscalewindandsolarelectricityandpublishguidelines
around all steps of the permission process, the technical requirements for grid
integration,paymentschemes,requirementsofthegridoperator,etc.
Usebiddingschemes(auctions)forlargescalewindandsolarelectricityfinancedand
operated by private investors, unless T&TEC is installing sufficient capacity with own
resources.
The initial uptake of residential PV systems should be stimulated with a 100roofs

programme(upto5kWpeach)asastartingpointforthedevelopmentofaPVmarket.
ReviseeligibilitycriteriafortheGreenFundtoallowforinvestmentcoverageofpilot
anddemonstrationprogrammes.
Banincandescentlightbulbsbysettingminimumperformancestandards.
LeadtheinitiativeatCARICOMlevelforaharmonizedapproachonminimumefficiency
standardsandlabellingfordomesticelectricalappliances.
242
Applyenergyrelatedminimumbuildingstandardsinafirststepforsocialhousingand
publicgovernmentbuildings.
Improve internal information exchange and learning at the MEEA through the
developmentofknowledgemanagement.
ClearlydefinerolesandresponsibilitieswithregardstoEEandREwithintheMEEA.
EnergyEfficiency
IntheareaofEE,thedatasituationhasbeenespeciallycomplicated.CurrentuptakeofEEislow,
especially due to the low cost of energy. The government has started a comprehensive
awarenessraisingcampaignthathasstartedattheendof2012andisprovidinganumberof
incentives such as the ESCO/150% tax allowance for energy audits. The Consultants have
extensively advised with regards to the ESCO/tax allowance and provided detailed
recommendations.Guidelinesforenergyauditshavebeendevelopedandanextensivecapacity
buildingprocessforlocalauditfirms,aswellastheimplementationofenergyauditsinpublic
buildings has taken place. The energy audits resulted in possible improvements in energy
consumption of over 25% with an estimated payback time of under 5 years in all selected
buildings.Atthesametime,lessonslearntsuchastheneedforcapacitybuildingforauditorsor
the need for further capacities with regards to passive solutions could be derived from the
audits. Both, the committee and the MEEA should support these findings by providing
guidelines,trainingand programsthat guaranteeanunderstandingofthe benefitsofenergy
audits,supportinexpandingtechnicalcapacitytocarryoutcompleteauditsandimplementthe
identifiedmeasures.
TheConsultantsproposethedevelopmentofspecificprogramsthatspurtheuptakeofEEin
T&T.Someoftheproposalsare:
PromoteresidentialEEprogramsrelatedto
o
o
o
o
PromoteEEinthehotelsectorthrough:
o
o
o
o
Engagingandmotivatingconsumerstoadoptnocost,durableenergysavings
behaviours.
Improvingairconditioningefficiency;
Usingmoreefficientlightingandcontrols;
Usingmoreefficientequipmentandappliancesinroomsandbackofhouse
Encouraginggreenhotelcertification.
PromotionofEnergymanagementforpublicinstitutions.
Additionally,aGEFfinancedprojecthasbeendevelopedthatshouldimprovetheuptakeofEE
inthehousingsector,especiallywithregardstosocialhousing.ClearleadershipfromtheHDC
willbenecessarytomakethisproposedGEFprojectasuccess.
243
RenewableEnergy
AllpotentialexistingtechnologiesforREinT&Thavebeenassessed.PV,SWHandonshorewind
energy are the most promising technologies. To support a generous uptake of these
technologies, detailed technical studies, such as local wind measurements to assess the
expectedenergyyieldsatconcretesites,arenecessary.
At the same time, it will be important to accompany the promotion of RE technologies with
appropriatelegislationtoeasetheiruptake.As,technologiessuchasPVarecompetitiveinT&T
inthemediumtolongterm,notimeshouldbewastedtoputthosemeasuresinplace.
InthecaseofSWH,arelevantpenetrationintheT&Tmarketisnecessary.Asupportingscheme
such as in Barbados, enrolling a program that contains different elements from incentives,
capacitybuilding,awarenessraisingtostandardsandtesting,couldleadtoanuptakethatwould
resultinrelevantamountsofavoidedcostsofelectricity.Atthesametime,itisperceivedthat
T&TcouldalsohavemarketpotentialforthelocalmanufacturingofSWH.
WtEisaninterestingtechnologyforT&T,asitcansolvesomeofthewastedisposalproblemsof
T&T;aswellasprovideanadditionalsourceofenergyfortheT&Tenergymix.However,tomove
forward,ithastobestudiedwhethertheexistingtreatmentfacilitiesaresufficientforthesafe
disposalofflyandfilterashesfromtheincinerators.Emissionstandardsfor exhaustgas and
effluentsfromMSWIncineratorshavetobeestablished.Basedontherecommendationsofthe
Consultants, the Government has foreseen the development of a comprehensive waste
characterizationstudyinitsbudgetfor20132014.
Potentialforbiogasislimited;themostpromisingprojectsarethedevelopmentofabiogasplant
inthedistilleryofTrinidad,aswellasinoneofthelargepigfarms.Othertechnologies,suchas
ocean wave energy would need further detailed assessment to define their exact potential.
However,giventhestatusofthesetechnologies,itseemsmorerelevanttofocusonPV,SWH
andonshorewindenergyforthenearfuture.
244
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offshorewindturbines,ProceedingsoftheNationalAcademyofSciences,109(9),32473252,2012
WILHEMSSONA2006
Wilhelmssona,D.,Malm,T.,&hmana,M.C.:Theinfluenceofoffshorewindpowerondemersalfish,
2006.ICESJournalofMarineScience,775784.
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PotentialforSolarWaterHeating
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ENERGYGUYn.d.
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GARDNER2012
Gardner,D.:StrategiesforAcceleratingtheSolarWaterHeatingMarketinCARICOMStates,
presentationatCSEFIII,September2012
HEADLEY2001
Headley,O.:BarbadosRenewableEnergyScenario:CurrentStatusandProjectionsto2010,2001,Centre
forResourceManagementandEnvironmentalStudies(CERMES),FacultyofScienceandTechnology,
UniversityoftheWestIndies,Barbados
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Husbands,James:HistoryandDevelopmentofBarbadosSolarwaterHeaterIndustry.Presentationat
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LOY2005
Loy,D.,Coviello,M.F.:RenewableenergypotentialinJamaica,June2005
MILTON2005
Milton,S.andKaufman,S:SolarWaterHeatingasaClimateProtectionStrategy:TheRoleforCarbon
Finance;2005,retrievedon24.1.2013:
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Perlack,B.andHinds,W.:EvaluationofRenewableEnergyIncentives:TheBarbadosSolarwaterHeating
Experience,2008
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Trabacchi,C.etal.,2012:SanGiorgioGroupCaseStudy:ProsolTunisia,ClimatePolicyInitiative
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Mauthner,F.andWeiss,W.:SolarHeatWorldwide,MarketsandContributiontotheEnergySupply
2011,Edition2013
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WastetoEnergy(WtE)
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Barriga,M.E.D.andThemelis,N.:ThePotentialandObstaclesforWTEinIslandSettingsNAWTEC19
5443,2011
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Brown,Desmond:Caribbean:TurningLandfillsintoEnergy,2012,retrievedon30.1.2013:
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BROWNSORT2009
Brownsort,PeterA.:UKBRCWorkingPaperNo.5:BiomassPyrolysisProcess:ReviewofScope,Control
andVariability,2009
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Carol,Jeremy:WasteRecyclingNews,retrievedon30.1.2013:
254
www.wasterecyclingnews.com/article/20120823/NEWS01/120829951/publiccommentperiod
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MinistryofLocalGovernment2010
COLUMBIA2007
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MinistryofEnergyandMiningofJamaica:NationalEnergyfromWastePolicy,2010
LONDON2008
GreaterLondonAuthority:Costsofincinerationandnonincinerationenergyfromwaste
technologies,GreaterLondonAuthority,2008,ISBN:9781847811233
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InterviewwithOsuji,Usche,SWMCOL,27.11.2012
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SUTABUTR2010
Sutabutr,Twarath;Choosuk,AdisakandSiriput,Peeraya:DepartmentofAlternativeEnergy
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CSO2009
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TITTO2012
TheInternationalTropicalTimberOrganization:retrievedon30.1.2013from
www.rainforests.mongabay.comandStatusoftropicalforestmanagement2005fromwww.Itto.int
Chapter6.6
OceanEnergyforElectricityGenerationanditsApplicabilityforT&T
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Clement,A.,McCullen,P.,&Falcao,A.:WaveenergyinEurope:currentstatusandperspectives.
RenewableandSustainableEnergyReviews,6,405431.2002
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Crews,R.:OTECSites.AppliedGeoscienceandTechnologyDivisionofSecretariatofthePacific
Community(SOPAC),1997.
DALTON2010
Dalton,G.,Alcorn,R.,&Lewis,T.:CasestudyfeasibilityanalysisofthePelamiswaveenergyconvertorin
Ireland,PortugalandNorthAmerica.RenewableEnergy,443455,2010
EGBERT2002
Egbert,G.D.,&Erofeeva,S.Y.:EfficientInverseModelingofBaraotropicOceanTides.Journalof
atmosphericandoceanictechnology,19,183204,2002
FUGLISTER1960
Fuglister,F.C.:AtlanticOceanatlasoftemperatureandsalinityprofilesanddatafromtheInternational
GeophysicalYearof19571958.1960,Woodshole:WoodsHoleOceanographicInstitution.
IEE2009
Waveplam:StateoftheartAnalysis,2009IntelligentEnergyEurope.
256
IEE2012
Waveplam:StateoftheArtAnalysis,2012IntelligentEnergyEurope.
LENNARD
Lennard,D.:Theviabilityandbestlocationsforoceanthermanenergyconversionsystemsaroundthe
world.RenewableEnergy,359365,1995.
MOBILE
MobileGeographics:PortofSpain,MobileGeographics.Retrieved6.12.2012:
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NGIA2012
NationalGeospatialIntelligenceAgency:SailingdirectionCaribbeanSeaVolumeII.SpringfieldVirginia:
NationalGeospatialIntelligenceAgency,2012
OBSERVER2014
TheStateofRenewableEnergiesinEurope,Edition2013,13thEurObservERReport,2014
OES2012
OceanEnergySystems,AnnualReport2012
OPT2010
OceanPowerTechnologies:OPTPB150Powerbouy.OceanPowerTechnologies,Ltd,2010
PELAMISn.d.
Pelamiswave:PelamisImagelibrary.Retrieved126,2012:
www.pelamiswave.com/imagelibrary
REN21
REN21:Renewables2013,GlobalStatusReport,2013
SAGLAM2012
Saglam,M.,Sulukan,E.,&Uyar,T.S.:WaveenergyandtechnicalpotentialofTurkey.JournalofNaval
ScienceandEngineering,6(2),3450.2012
VOITHn.d.
VoithTurbo:Retrieved5.12.2012,fromTacticalMarcommsLimited:
www.tacticalmarcomms.com/assets/voith_hydro_pic_2.jpg
Chapter6.7
ApplicabilityofConcentratedSolarPower
EASAC2011
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sustainableenergyfuture.Retrievedon30.1.2013:www.easac.eu/:November2011.
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DOEGary,J.:CSPANDTHEDOESUNSHOTINITIATIVE,retrievedon30.1.2013:
www.solarpaces.org/inicio.php.
ISE2012
ISE,F.I.:StudieStromgestehungskostenErneuerbareEnergien.2012,retrievedon31.1.2013:
www.ise.fraunhofer.de/en/renewableenergydata?set_language=en:ISE,Freiburg.
257
REN21
REN21:Renewables2013,GlobalStatusReport,2013
SIEMENSn.d.
Siemens:RetrievedJanuary13,2013:
www.energy.siemens.com/br/pool/hq/powergeneration/renewables/solar
power/hcpv/CPV)Infographic_World_map_2.ipg
258
APPENDICES
AppendixA:LoadCurvesofT&TEC
DailyloadcurvesTue,4thDec2012Sat,8thDec2012:
259
260
261
AppendixB:MapsofTransmissionandDistributionGrids
Tobago
262
Trinidad
263
AppendixC:MethodologyforResidentialBaselineandSavingsEstimates
WehavefewdataontheusageoflightingandappliancesinT&T,butwedohave(i)actualdata
fortheEasternCaribbean127whereelectricitypricesareseveraltimeshigherandincomesand
purchasingpowerlowerthaninT&Tand(ii)someinformationforBarbadoswhichisasimilar
economytoT&TinrelationtoGDPatPurchasingPowerParity(PPP).128
IntheEasternCaribbean(highelectricitypricesandrelativelylowincomes)wewouldexpectthe
uptake of CFLs and energy efficient appliances to be low to moderate. In Barbados (high
electricitypricesandincomesonparwithT&T)wewouldexpectuptaketobebetterthaninthe
EasternCaribbean,sincecustomersdissatisfiedwiththeirbillswouldbebetterabletoafford
the necessary investments to reduce them. In T&T, with very low electricity prices and high
incomes,wewouldexpectuptaketobelow.
Lighting
SurveyresultsfromGrenadaandStLuciaindicatethathalformoreofhouseholdsuseCFLsto
satisfysomeportionoftheirlightingneeds;ontheotherhand,arecentIDBstudy129suggests
thatuptakeofCFLsinBarbadosisverylow(5%).Accordingly,weestimatethatCFLuptakein
T&Tislikelytobeloworevenverylow.
Airconditioning
In 2010, airconditioning was used in only 5.2% of total households in St. Lucia (Saint Lucia
PreliminaryCensusReport2010).
In 2000, airconditioning was used in only 5.9% of households in T&T (2000 National Census
Report). Even allowing for increased incomes between 2000 and 2011 (per capita GDP in
constant2000Dollarsrosefrom$6,311to$10,329),itisnotlikelythatthepenetrationrateis
now over 50%. We therefore initially assumed that the average household does not use air
conditioning.
Weestimatethatabout18%ofresidentialcustomersnowuseairconditioning(seebelow).
Residentialsectorestimates
Residentialsectorestimatesweremadewithdatafromthefollowingsources:
T&TECresidentialsalesdata(kWhsoldandnumberofcustomers)for2009and2010
T&TECapplianceusageguide(publishedin2008basedon2007data)
T&TECBusinessPlan20112016
T&T2000NationalCensusReport.
127
SurveyresultsfromtheEasternCaribbeanEnergyLabellingProject(ECELP),CREDP/GIZ,(2012),
http://www.oecs.org/ecelp/downloads/doc_download/5ecelpactivitiesresultsjc20120903
128
See
http://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?order=wbapi_data_value_2013+wbapi_data_value+wbapi_data_va
luelast&sort=desc
129
SustainableEnergyFrameworkforBarbados,FinalReportVolume1,performedbyCastaliaandStantecforGovernmentof
Barbados/InterAmericanDevelopmentBank,June2010
264
Estimationofresidentialelectricitybaseline
Westartedwiththeaverageresidentialelectricityconsumptionin2009of938kWhpertwo
months(469kWhpermonth)fromtheT&TECsalesdata.
We then looked at the appliance usage guide, a T&TEC list of residential device kWh
consumption per two months (T&TECs billing period) and made a determination, based on
informationfromthe2000nationalcensus(sectionsonhousingstocks&livingarrangements,
and Table 7.16 access to durable goods & services) along with local knowledge, of what
appliancesmightbeusedbytheaveragehouseholdinT&T.Inthisway,wearrivedatalisting
oflighting,devicesandappliancesthathadatotalusageof920kWhpertwomonths,matching
thereferencevalueof938kWhpertwomonths.
Wethencategorisedthe itemsin this listandtotalledtheconsumptionoftheitemsineach
category,whichprovidedtheinitialbaselinenumbersinTable2,fortheaveragehousehold.
Airconditioning
Aspecialconsiderationthenneededtobemadeforairconditioning,whichdoesnotcontribute
toconsumptionoftheaveragehouseholdbutcontributesathigherincomes.Someproportion
ofelectricityisusedforairconditioninginT&Tandweneededtoestimatewhatthatwasinthe
contextoftheoverallpicture.Themethodologywasasfollows:
The T&TEC Business Plan 20112016 presents (in APPENDIX III Residential Consumption
Analysis for 2010 ) a customer consumption distribution table, which shows the numbers of
residentialcustomersusing0100kWhamonth,101200kWhamonth,andsoon,acrosstheir
entire residential customer base. We graphed the distribution up to customers using 10,000
kWhpermonth(Figure86).
The data show that the mean (arithmetical average) and the median consumption are in
adjacentbands.Wealreadyhavetheaverage;whatweareinterestedinis,whathappensabove
that.Goingbacktotheapplianceguide,wemakesomeassumptionsaboutHHsthatuseair
conditioning. First, we take a single 12,000 BTU/h unit as the average quantum of air
conditioning.WethenassumethataHHthatusesthisunitofa/cisalsolikelytohaveatank
typewaterheater,someadditionallightingandappliances,abetter(i.e.:bigger)TVintheliving
room,andsoon.Usingsuchassumptions,wearriveataconsumptionfigureforthenominal
airconditionedHHof1,583kWhpermonth.WeassumethatallHHswithconsumptionabove
thatvalueonthedistributioncurve(andsomebelow)willhavea/c.
Thisestimatedconsumptionfallsatthetopendofthe15011600kWhconsumptionband.The
numberofHHsincludingandabovethatbandis68,173or18.5%ofthetotalHHs.
Basedontheabove,weconcludethatabout18%ofhouseholdsinT&Tuseairconditioningin
2010(comparedto5.9%in2000,perthecensusdata).
265
Figure86:T&TECResidentialCustomerDistributionCurve,2010
Estimationofsavings
Wecalculatedthepotentialsavingsineachofthetworesidentialcases:thehouseholdswithout
airconditioning(basedontheaveragehousehold)andthehouseholdswithairconditioning.
To calculate potential savings, we simply varied the numbers in the baseline lists based on
variousassumptionsandnotedthereductioninconsumptionthatresulted.
Lighting
TodeterminelightingsavingsweassumedallincandescentlampswouldbechangedtoCFLs,so
wechangedthebaselinefromxCFLs+yincandescentlampstox+yCFLsand0incandescent
lampsandnotedthedifference.
Waterheatingandpumping
We assumed a target penetration of solar water heating of 10% across the board. With
appropriateincentivesthispenetrationshouldbeachievablewithin3to5years.
Cooking
MostcookinginT&TisdonebyLPG(93%ofhouseholdsin2000)andweassumenosignificant
electricitysavingspotentialexists.
Refrigeration
Thebaseline(T&TEC)figuresforenergyconsumptionoffridgesandfreezersareveryhigh;such
highfigurescanbeassumedtobeduetoanexistingstockofhighlyinefficientunitscoupled
with very poor consumer behaviour in using them. We assume that baseline figures of this
magnitudeareamenabletosavingsontheorderof60%.Weassumethatonaverage,25%ofall
refrigeration units in use by 2015 will be energyefficient units (to Energy Star certification
standardorbetter),witha60%lowerenergyconsumptionthanthebaselineconsumption.
Laundry
Savings can be achieved by the use of more efficient washers and by changing behaviour
hangingclothesouttodryinsteadofusingdryers.AccordingtotheEnergyStarwebsite,Energy
266
Starcertified,frontloadingwashersuseabout20%lessenergy(and35%lesswater)thanregular
washers.Hangingclothesouttodryuses100%lesselectricitythanusingadryer.Weassume
that25%ofwasherswillbereplacedbyefficientunits(20%lessenergyuse)overthenext5
years.Weassumethataverageenergysavingsduetothesewasherswillbe25%perwasher,
sincethereducedwaterusewillsaveenergyonwaterpumping,andthelargercapacityoffront
load machines means fewer loads to do the laundry. We also assume that households with
clothesdryersalreadyusenaturaldrying(whichisaCaribbeantradition),butperhapsnotas
oftenaspossible,soweassumeapotential10%reductionoverallindryerusefortheseHHs.
Cooling&Ventilation
The only savings here in households without airconditioning will come from changes in
behaviour(turningofffansinunoccupiedbedrooms,forexample).Weassumea29%reduction
here.
Forairconditionedhouseholds,significantsavingsareavailablefromthereplacementofolder,
inefficienta/cunitswithnewer,higherefficiencyunits.Forthepurposesoftheestimate,we
assume that a 2.1 kW unit replaces a 3.6 kW unit and provides an average 38% savings per
year130.Theproblemhoweverwithprojectingresidentialairconditioningsavingsisthat,unlike
othersignificanthouseholddevicessuchasfridgesandwashingmachines,fewhouseholdshave
thematthemomentbutmosthouseholdsaspiretohavethem.Basedoncurrentdataandour
estimates, we expect continued growth in the proportion of households that use air
conditioning. Depending on this rate of growth, any savings to be achieved through better
efficiencycanbeentirelyoffsetbynewinstallations.
Our estimate is that about 68,000 households, which are 18% of the total in 2010, are air
conditioned,upfrom6%in2000.Ifthatestimateiscorrectandifgrowthcontinuesatthesame
rate,afurther67,000airconditionedhouseholdswillenterthesectoroverthenextfiveyears.
Such an outcome will entirely overwhelm any potential savings from the existing or new
installations. Based on this consideration, we estimate no net savings from airconditioning
efficiencyintheresidentialsectorovertheshorttomediumterm.
Appliances
Toestimatethepotentialsavingsavailablefromthiswiderangingcategory,welookedateach
itemonthelistintermsofitspotentialforsavingsbasedonreplacementwithamoreefficient
modeland/orconsumerbehaviour.Weassumedthefollowing:
Laptops30%potentialsavingbasedonbehaviour
Computers40%(behaviour)
Alarmclocknone
Vacuumcleanernone
Blowdryernone
Curlingiron10%(behaviour)
Shavernone
DVDplayer3%(phantomload)
Musicstereosystem3%(phantomload)
TV3%(phantomload)
130
ThesesavingsareproposedforsimilarunitreplacementsinBarbados,seeSustainableEnergyFrameworkforBarbados,
Castalia&Stantec,IDB&GovernmentofBarbados,June2010
267
Table47:EnergySavingCostofEETechnologies
Sector
Detail
Tariffrate
Capacity
Baselinecapacityreplaced
Energysavedperhr
Investmentcost
O&Mcosts
Operatinghours
Lifetimeenergysavings
Annualfinancialsavings
SimplePaybackperiod
Energysavingcost
Energysavingcost
Residential
Res.,Comm.
Unit
US$
kW
kW
kWh
US$
US$
Hrs.
kWh
US$
Years
US$perkWh
US$perMMBTU
CFL
0.048
0.015
0.06
0.045
4.38
0.00
8,000
360
17.28
0.3
0.012
3.56
T8withElectronicBallast
0.05
0.025
0.04
0.015
25.78
0.00
30,000
450
22.50
1.1
0.057
16.79
Table48:EstimatedLightingConsumption,Cost&SavingsforHDCHouses
HouseModel
Bulbs
Average
Hoursrun
Saved
kWh
NumberofBulbs
in:
Average
Baseline
Replacement
Saved
Watts
Day
Year
Year
Bedroom1
1.0
60
15
45
1095
49
Bedroom2
0.7
60
15
45
1095
49
Bedroom3
0.3
60
15
45
1095
49
Kitchen
1.0
60
15
45
1095
49
Livingroom
1.0
60
15
45
1095
49
Bathroom1
1.0
60
15
45
365
16
Bathroom2
0.3
60
15
45
365
16
Porch
1.0
60
15
45
2920
131
Backentrance
1.0
60
15
45
2920
131
Total
7.3
542
Noofhomes
6,500
Costperbulb
TT$28/US$4.37
Totalcostofbulbs
208,542
Totalsavings,kWh
3,523,163
ValueofSavings,US$
169,112
SimplePaybackperiod,years
268
1.2
AppendixD:HighlightsoftheMyEnergy,MyResponsibilityCampaign
(InformationsuppliedbyMEEACommunityLiaisonOfficer,August2013)
CAMPAIGNOVERVIEW
ThelocalenergysectorcontributesthelargestpercentagetoourGrossDomesticProductbut,
based on a recent survey commissioned by the MEEA, it is clear that the average citizen is
unawareofevenbasicinformationaboutthissectorthataffectstheirlivesinsignificantways.
Thisinformationalcampaignisgroundbreakinginthatnopriorattemptshavebeenmadeon
suchalargescaletoinformourcitizenryabouthowtheenergysectorpowerfullyimpactsupon
theirqualityoflife.Inonesense,thiscampaignaimstorectifythisinformationgapwhilealso
promotingEEandencouraginguseofrenewableformsofenergyinwaysthatarebothpractical
andexpenditurereducingforourpopulation.Thishasbecomeespeciallyimportantwithinthe
contextofdecliningtraditionalenergysources,thepartialremovalofthesubsidyfrompremium
gasoline and the opening up of Renewable Energy usage. Bridging this information gap is
especiallyimportantforouryoungpeoplewho,givenadequateinformation,maynowviewthe
energy sector as a potential employer, whereas before, they may have found it cloaked in
mysteryandthereforeinaccessible.
The campaign is a useful resource across the energy sectors corporate social responsibility
programs as the information provided broadly covers the entire sector and also targets key
audiences, primary and secondary school students. The program also generates additional
goodwillamongperipheralaudiencesofteachers,schoolprincipalsandparentsofparticipating
studentsbywayofthebrandedtokensandtheinterestgeneratedintheenergysectorviathe
stateoftheart,interactivewebsite,thatservesasaninformationalhubforthecampaign.
Theeducationalcampaignwillberolledoutinthreephasesandwilltargetschoolagedchildren
betweeneleven(11)andtwelve(12)yearsoldthroughoutthecountry.Eachphasewillrunfor
athreemonthperiodduringwhichtime,theMinistryexpectstovisittwentyfive(25)schools
across T&T, complemented by the communication campaign featured via the print and
electronicmedia.
Phase1:
MyEnergy:Fromwheredoesitcome?
Thefirstphaseofthecampaignseekstomakethepublicawareabouttheimportanceofour
localenergysectorintheireverydaylives.Arecentlyconductedomnibussurveyindicatedthat
mostpeopleknewlittleofhowouroilandgassectorsaffecttheirqualityoflifeinbasicand
significantways.Thisphasefeaturesthoughtprovokingstatementsthatlinkoureverydayusage
ofenergywithourenergysourcesaswellastheircontributiontooureconomy,thussensitizing
thepopulationtothesignificanceofthelocalenergysector.Thecampaignstheme,MyEnergy,
MyResponsibilityseekstointroducetheideathateachindividualisresponsibleforthewise
usageofourresourceswithcampaignmaterialsdirectingaudiencestotheinformationalhub,
www.myenergytt.com.
Supplementingthemediacommunicationcampaign,someeightyteachersinT&Tweretrained
inthedeliveryoflessonsonRenewableEnergyandEnergyEfficiency,soastofurthersensitize
their students on energy issues. These teachertraining sessions, which were held over one
week,werefacilitatedbyUWI,UTTandMIC.
269
Phase2:
EnergyEfficiencybeginswithme
Havingeducatedthepublicaboutthesignificanceofthelocalenergysectorintheirdailyliving,
thesecondphaseseekstoencouragemoreenergyefficientpracticesamongthepopulation.
T&Thasbeenlabelledasoneoftheleastenergyefficientcountriesintheworld.Duetothe
availabilityandrelativelylowcostofelectricity,ourenergyisoftentakenforgrantedbyour
population.Thiscampaignsegmentmakestheindividualdirectlyresponsibleforconservation
of energy. It focuses on the fact that the population generally takes our energy for granted,
resultinginenergyinefficiency,andtakesintoaccountthatourenergycomeslargelyfromfinite
resourcesthatareheavilysubsidizedbytheState.Thecampaignseekstoempowerindividuals
bydemonstratinghowsmallactionscanmakeabigdifferencewhenapproachedcollectively.In
additiontothemediacommunicationcampaign,thisphasewillalsobehighlyinteractiveand
activitybased;itwillbecomplementedbytheschoolsoutreachcampaign.
Phase3:
RenewableEnergy:SharethePowerofNature
The third phase of our campaign highlights the benefits and importance of using renewable
formsofenergylocally,specificallysolarandwindenergy.Thisphasenotonlyhighlightsthe
GovernmentsinitiativesandtaxincentivesforbothusersandinvestorsinRenewableEnergy
butalsoseekstoeducateandinspirepublicparticipationinanationalmovetowardsRenewable
Energyasaviablesource.Thisphasealsoincorporatesamediacommunicationcomponentand
interactiveeventsreinforcedbytheschoolsoutreachprogramme.
Teaching/Tools
The MEEA has already partnered with the National Energy Corporation (NEC) to present the
campaigntosevenschoolsintheirfencelinecommunitiesofLaBrea,Rousillac,Mayaroand
Guayaguayare.
During the interactive sessions, the participating students are engaged via PowerPoint
presentations, video clips, and mini quizzes. They are directed to the core website,
www.myenergytt.com,formoredetailedinformationandarealsogiventheopportunitytoask
questionsdirectlyandleavetheircomments,forwhichtheyarerewardedwithbrandedMEEA
tokens.Duringtheschoolvisits,studentsalsohavetheopportunitytoviewtheToyotaPrius,an
energyefficientvehiclepurchasedbytheMinistry.
270
AppendixE:EstimateofCosts&Benefitsof150%TaxAllowanceProgram
Ourestimationofthelikelycostsandbenefitsofthe150%taxallowanceprogramstartswitha
reviewoftheelectricitysalestothevarioustariffcategories,fromCommercialBthroughtoVery
LargeIndustrialE5.Thesesalesarethencategorizedinaccordancewiththecustomercategories
usedinthetaxallowanceprogram(Table49).
Wethenestimatethelikelyuptakeoftheprogrambyitsprospectivecustomers.Weassume
that, over the first five years, no uptake will occur in the smallest commercial group (i.e.:
commercialcustomershavingademandofupto50kVA);200customersinthesecondgroup
(havingapowerdemandof51to4,000kVA),andsoon,uptoatotalof224customers.Thisis
amodestrateofuptakeanditisconsideredtobeachievableunderthelocalcircumstances(very
low electricity prices with corresponding low financial incentive for implementing EE audits).
TheseestimatesareshowninTable50.
Table51showsthecosts (inforegone taxrevenues)of theprogram,basedonanestimated
expenditure per customer, for procurement of the ESCO and implementation of the
recommendedenergysavingintervention.
Table 52Fehler! Verweisquelle konnte nicht gefunden werden. then shows the benefits in
energy,costsavedandCO2emissionsavoided,assuming15%savingsinthefirstyear,followed
bysavingsof5%,3%,2%and1%(comparedtobaseline)insubsequentyears.
271
Table49:CommercialandIndustrialTariffCategoriesandSales(2011)

Category
Commercial
Commercial
SmallIndustrial
MediumIndustrial
LargeIndustrial
LargeIndustrial
LargeIndustrialStandby
VeryLargeLoad
VeryLargeLoad
VeryLargeIndustrial
VeryLargeIndustrial
VeryLargeIndustrial
B
B1
D1
D2
D3
D4
D5
E1
E2
E3
E4
E5
Source:T&TEC
DemandRange,kVA
Min
Max
Demand
Demand
50
50
350
50
350
350
4,000
4,000
25,000
4,000
25,000
4,000
25,000
25,000
25,000
25,000
25,000
ConsumptionRange,kWh
Minimum
Maximum
Number
25,000,000
50,000,000
75,000,000
100,000,000
25,000,000
50,000,000
75,000,000
100,000,000
38,336
35
2,320
772
14
19
1
3
0
0
0
1
41,501
92%
0%
6%
2%
0%
0%
0%
0%
0%
0%
0%
0%
100%
272
Customers
150%
Allowance
Category
Sales,GWhby
150%
TariffCategory
Allowance
773
773
2
512
1,882
1,368
460
892
1,353
1
321
401
0
1,592
0
870
5,600
5,600
Table50:Estimatesofcustomeruptakeandexpenditureonthe150%TaxallowanceProgram
ProgrammeActivity
TypicalBusinessDescription
ExpenditureEstimates:
Level3EnergyAudit
Purchaseofequipmentonapprovedlist
Installationofequipmentonapprovedlist
Consulting/Technicalassistanceforproject
implementation
TotalEstimatedExpenditure,US$
TotalAllowableExpenditure,US$(Note1)
Estimated150%AllowanceAmount,US$
Totalnumberofcustomersinthesector
EstimatedNoofCustomerstakinguptheAllowance:
Numberofcustomersintheprogrammeyear1
TotalCustomerstakingup
Upto50kVA
Smallenterprise,
familyowned&
operated
5,000
35,000
20,000
7,000
10,000
17,500
60,000
$67,000
$156,000
100,500
38,336
$115,000
$313,000
172,500
3,127
$202,500
$313,000
303,750
34
$835,000
$1,560,000
1,252,500
4
Commercial(B)
0
0
0
0
0
0
0%
LargeIndustrial
VeryLargeIndustrial
4,001to25,000kVA
25,000+kVA
Commercial/
manufacturingenterprise
Largeoil&gassector
productioncompany
10,000
100,000
75,000
25,000
500,000
250,000
10
15
25
50
100
200
6%
0.54%
Note1:"BasedonexpenditurecapproposedbytheESCOCertificationCommittee"
273
3
4
5
5
5
22
65%
Commercial,Small&
MediumIndustrial
51to4,000kVA
Smallmediumhotelor
othercommercial
enterprise
5,000
60,000
40,000
0
1
1
0
0
2
50%
Table51:Cost(Taxesforegone)ofActivityunder150%TaxAllowanceProgram

Commercial(B)
ProgrammeActivity
Total#ofbusinessesinthecategory
Averageexpenditureperbusiness
ProgrammeUptake&Costs(US$):
Year1
Customers
Cost(Taxesforegone)
Year2
Customers
Cost(Taxesforegone)
Year3
Customers
Cost(Taxesforegone)
Year4
Customers
Cost(Taxesforegone)
Year5
Customers
Cost(Taxesforegone)
GrandTotalCostYears15
TotalCorporateTaxRevenue2011,US$
Upto50kVA
38,336
$67,000
0
0
0
0
0
0
0
0
0
0
Commercial,Small&
MediumIndustrial
51to4,000kVA
3,127
$115,000
10
287,500
15
431,250
25
862,500
50
1,653,125
100
3,306,250
274
LargeIndustrial
VeryLargeIndustrial
4,001to25,000kVA
34
$202,500
3
151,875
4
202,500
5
329,063
5
354,375
5
417,656
25,000+kVA
4
$835,000
0
0
1
208,750
1
208,750
0
104,375
0
104,375
1,340,140,054
TotalCostYear1
$439,375
TotalCostYear2
$842,500
TotalCostYear3
$1,400,313
TotalCostYear4
$2,111,875
TotalCostYear5
$3,828,281
$8,622,344
0.64%
Table52EstimatedBenefitofActivityunderthe150%TaxAllowanceProgram
ProgrammeActivity
Total#ofbusinessesinthecategory
BaselineAnnualkWhConsumption
BaselineaverageannualkWhconsumptionper
customer
ProgrammeCustomers&Benefits:
Year1
NoofCustomers
BaselineAverageannualkWhconsumption
kWhSavedperannum(15%)
Year2
NoofNewCustomers
Year3
NoofNewCustomers
Year4
NoofNewCustomers
Year5
NoofNewCustomers
LargeIndustrial
VeryLargeIndustrial
Upto50kVA
38,336
773,000,000
Commercial,Small
&Medium
Industrial
51to4,000kVA
3,127
1,882,000,000
4,001to25,000kVA
34
1,353,000,000
25,000+kVA
4
1,592,000,000
20,164
601,855
39,794,118
398,000,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
10
6,018,548
902,782
15
6,018,548
300,927
25
6,018,548
180,556
50
6,018,548
120,371
100
6,018,548
60,185
Commercial(B)
275
3
0
119,382,353
0
17,907,353
0
4
1
119,382,353
0
5,969,118
0
5
1
119,382,353
0
3,581,471
0
5
0
119,382,353
0
2,387,647
0
5
0
119,382,353
0
1,193,824
0
GrandTotalkWhSavingsYears15
SavingsUS$
SavingsTT$
TotalBenefitYear1
18,810,135
TotalBenefitYear2
6,270,045
TotalBenefitYear3
3,762,027
TotalBenefitYear4
2,508,018
TotalBenefitYear5
1,254,009
32,604,234
1,630,212
10,433,355
AppendixF:StreetLightingPilotProject
A2012studyoftheeconomicsofvariousstreetlightingtypes(ceramicmetalhalide,magnetic
inductionandLED)vs.thedefaulttype(highpressuresodium)forstreetlightinginPortland,
Oregon131indicatesthatalthoughLEDlightingproductsprovidethegreatestannualcostsavings,
their high initial cost result in payback periods of up to 23 years (the payback period of the
inductionlampswasover30years).Theelectricitypriceusedintheanalysiswas9US$cents
perkWh,whichismuchhigherthanthestreetlightingrateinT&T.
UsingthisexampleandfactoringinT&TECslowertariffrate(whichwillincreasethepayback
period)andahighertotalcostofownershipforT&TECsexistinglightingstockoflowpressure
sodiumlamps132(whichwillmakepaybackmoreattractive),wearestillleftwithanunattractive
financialinvestment.Insuchasituation,itisdifficulttorecommendthewholesalereplacement
by T&TEC of the existing lowpressure sodium lamps with LEDs, in the absence of specific
financialsubsidiesforsame.
131
DemonstrationAssessmentofLEDRoadwayLightingHostSite:NECullyBoulevard,Portland,OregonJune2012.Preparedby:
PacificNorthwestNationalLaboratoryforSolidStateLightingProgramBuildingTechnologiesProgramOfficeofEnergy
EfficiencyandUSDepartmentofEnergy
132
NinetyfivepercentofstreetlightinginT&Tislowpressuresodium(LPS).LPSlightingis18%to33%moreefficientthanHPS,
butonlylastabouttwothirdsaslong.BasedonthedatapresentedinthePortlandstudythetotalcostofoperationofHPSis
estimatedtobeapproximately15%lowerthanLPS.
276
AppendixG:SupporttotheESCOcommitteeMeetingNotes
TheconsultantsparticipatedinatotalofthreeECCmeetings,theyhavebeenspecificallyasked
tocometoT&TtodiscussaspectsoftheESCOcommitteewiththeECCatdifferentpointsin
timeandwhilenoformaldocumentsareavailablefromthesemeetings,thefollowingminutes
showtherecurrentparticipationandadviseprovidedbytheconsortium.
MeetingwithECC(September18th,2012)
TheparticipantsadvisedthatanenergyservicecompanyinT&Tis,inpractice,consideredtobe
acompanythatservicestheoilandgasindustryinany/allaspects.Suchservicescaninclude,
butarenotrestrictedto,performingenergyauditsandEEimplementations.
InthecaseofEEprojects,theT&Tenergyservicecompaniesdonotfinanceprojectsforclients
andtherearenoimplementationsofperformancecontracting.Clientsmustbeabletoprocure
theirownprojectfinancing.
Itwasreportedbythelocalparticipantsthatinterestinenergyauditsisverylow,andonlya
smallproportionofauditrecommendationsactuallygetsimplemented.Forexample,under
theCHENACTproject,hotelswereeligibletohavefreeoralmostfreeenergyauditsdone.Hardly
anyhotelstookuptheoffers.Asoneoftheparticipants(ownerofT&Tsmainenergyaudit
serviceprovider)putit,wewerebeggingthemtohaveuscomeinanddofreeenergyaudits
forthem.
Participantsendorsedtheneedforenergyauditorsoperatinginthelocalmarkettobespecially
trainedandcertified.
Incentivesandfinancingofsomesortaredefinitelyneededtodrivethemarket,butitisleftto
beseenwhatincentiveswillbethemostsuitable.
Subsidisationofthelocaloilandgassectorisarealityanditisacceptedthatthereisnoprospect
of the subsidies being removed by a sitting government. The alternative option would be to
provideequivalentsubsidiestogreenenergy.
ParticipantsagreedthattheGreenFundisanexcellentidea,butthattheimplementationand
eligibilityissuesneededtobereviewed.
Inthisregard,oneparticipantproposedthattheeligibilityrulesoftheGreenFundshouldbe
changedtoallowforprofitbusinessestoaccessthegrants.
ItwasnotedbyoneparticipantthatinordertobuildcapacityforEE,startupcompanysupport
andfinancingisrequired.Forexample,aLEEDcoursecostsTT$15,000(US$2,350).Canalocal
architecturalstartupcompanyaccessfinancingfromtheGreenFundtopayforLEEDcourses?
TheNationalGasCompany(NGC)hasaTT$24mfundtosupportnewEEprojectsthatutilise
naturalgas.
277
It was noted that new large commercial and government buildings by default tend to have
internationalinputtothedesignprocessandthereforetendtobedesignedforbetterenergy
performancethanpreviously.
Participants suggested that the public sector should be mandated to have audits and
interventions done on public buildings, covering the aspects of design, building codes and
technologyuseinbuildings.
It was noted that selfgeneration and gridconnection of RE projects is subject to extremely
stringentrules.Thereisnocurrentlegalprovisionundertheapplicablelawsforanyindependent
orautonomouselectricitygenerationwithoutalicense.
DevelopmentofanewpolicyobjectivefortheGreenPaper(October2012)
Policymeasure2dealsespeciallywiththeestablishmentofthecertifiedenergyservicecompany
(ESCO)system,aswellaswiththeintroductionoffiscalincentives.
The primary incentive under key strategy 2 (provide incentives to encourage the growth of
ESCOs) is the 150% tax allowance programme, announced by GoRTT in 2010, but not yet
operationalised.
AsprovidedforunderTheFinanceAct2010,ESCOswillbecertifiedbytheESCOCertification
Committee(ECC)oftheMEEA,oncetherequirementsoftheECCaremet.Intermsofspecific
requirementsandinadditiontothosethatalreadyexist,wewouldrecommendthefollowing:
Thecertificationprocessmustensurethatthetrainingtreatstheaforementionedintegral
viewofenergyefficiency;
Thetrainingmustbesimilartothatrequiredforatechnicaldiploma,withanappropriate
examination;
The training must be strictly personal: it applies to the individual, not the ESCO. If the
trained individual subsequently leaves the company, the ESCOs certification will be
reviewedinthatregard;
CertifiedESCOswillberegisteredinanationalregisterwhichwillbeavailableonlineona
websitemaintainedbytheECC.Throughthiswebsite,customersconsideringtheuseofan
ESCOhavetheopportunitytoreviewrelevantmetricssuchasnumbersandtypesofenergy
auditscompleted,typesofcustomersserved,andsoon.
TheESCOcertificationsshouldbesubjecttoreviewandrenewal.
Relatedtothespecifickeystrategiesunderpolicymeasure2,itisrecommendedtohighlightthe
ultimate objective of an intervention by an ESCO, which is to design and implement energy
savingprojects,ratherthantosimplyconductenergyaudits.
Keystrategya)andb)arethereforeproposedtobeadaptedasfollows:
278
c) provideincentivestoencouragecompaniestoengageESCOstodesignandimplement
energysavingprojects,basedontheperformanceofenergyaudits
d) provideincentivestoencouragethegrowthofESCOs
Theadaptedkeystrategiesforpolicymeasure2wouldreadasfollows:
d) provideincentivestoencouragecompaniestoengageESCOstodesignandimplement
energysavingprojects,basedontheperformanceofenergyaudits.
e) provideincentivestoencouragethegrowthofESCOs;
f)
design and implement training programmes for development of local energy auditing
expertise
MeetingwithESCOCertificationCommittee(21stofMarch2013)
ThemeetingcommencedwithapresentationtotheECCbytheconsultantontheoverviewof
theinterimreportsectiononEE.
ThesecondpartofthemeetingdealtwiththeagendapreviouslycirculatedbyRMaurice(see
attached).Thefollowingsummarizes:
1. ThedefinitionofanESCOshouldbeEnergyServiceCompany,notEnergyService
ProviderCompany.ItwasagreedthattheESCOdefinitionandmodelmustnot
precludetheoptionfortheESCOtofinanceprojectsinthecommercialsector.
2. Theassessmentofenergysavingsshouldbeflexible,basedonmeasurementatsite
leveloratfacilitylevel,dependingonthecircumstances.Somefacilitiesarenot
metered(eg:theentireUWIcampusismeteredatonepointandgetsonebilleach
billingperiod).Ifsubmeteringhastobeinstalled,aminimumperiodmustbedefined
overwhichhistoricalbaselineinformationistobecollected.
Bydefinition,aprojectisnotlikelytohaveahistoricalbaselineenergyconsumption
forcomparison,soenergysavingswouldnotbeassessedattheprojectlevel.
We recommend that the energysaving target should be less than 15%, which is
ambitiousandmaydeteruptakeoftheprogram.Thetargetcanbereviewedovertime
ifnecessary.
We will advise further in this phase of the project on technical requirements for
Monitoring,Measurement&Verificationofsavings:standards,methodology,etc.
ItwasconfirmedbytheTTBSthattheydonothavetheresourcecapacityorcapability
toperformthenecessarymeasurement&verification.
H Samuel suggested that T&TEC could be the M&V agent; it was noted that T&TEC
alreadypossessesthenecessarymeasurementdata(electricitydemand&consumption
data for the prospective customers); they would only need to incorporate the
verificationaspects,whichshouldnotbedifficultforthem.
279
T&TECinthiscasewouldhavetoberuledasnoteligibletoapplyfortheincentive,but
this would not necessarily be a problem. Allen Clarke of T&TEC noted that tax
allowanceswouldinanycaseonlyapplytocompaniesthatmakeaprofitinanygiven
year, which T&TEC does not. Also, it was agreed by the meeting that government
ownedentitiesshould,inprinciple,notneedincentivestheycansimplybemandated
totakeaction.
NodecisionwasmadeonthematterbuttheideawasfavourablyreceivedbytheT&TEC
representative,thechairmanoftheECCandothersatthemeeting.
3. InregardtoEnergyEfficientEquipment,theECCspositionisthat
a) theequipmentmustbenew;
b) theequipmentmustbeinuseattheendofthechargeableperiodforwhich
theallowancesareclaimed.
4. TheECChasproposedcapsontheQualifyingCapitalExpenditureforthe150%tax
allowance(seepage2).ThechairmanoftheECCnotedthattheseareconsideredto
beconservativefigures.
The meeting agreed that the criterion should be the prospective customers kVA
demand,whichisamatterofrecordatT&TEC.
WithregardtothepotentialimpactonGoRTTtaxrevenues,wehadpreviouslydiscussed
thiswiththeBIR.
5. RegardingRegistrationofEnergyAuditors,theECCspositionisthat
a) Audits&implementationshouldconformtointernationalstandards(possibly
includingthenewISO50002whichisunderdevelopment);
b) Level2auditsarerequired;
CADwilladvisefurtherinthisphaseoftheprojectonguidelinesforauditsandnecessary
qualifications of auditors. Mr Richard Oliver (ECC Chair) noted that the CDB has
published guidelines for standardization of commercial energy audits the contact
personisMrKennethHarvey.
It was noted that the ownership status of the audit company must conform to the
requirementsoftheGoRTTslocalcontentpolicy.
6. Othermatterswerediscussedandagreed.Mainpointswere:
a) TheECCwouldnotbeliableforclaimsbroughtagainstthemrelatingtothe
registrationofprospectiveESCOs.Anorganizationsuchastheproposed
energyagencymaybeliable.
Itwasagreedthattheregistration/certificationprocessshouldinanycaseincludeaclausethat
reservestherightoftheECCtorescind,attheirsolediscretion,theregistrationorcertification
ofanyregistered/certifiedESCO.
MeetingwithECCcommittee(July4th2013)
280
MeetingwithECCWorkingGroup
TheECCWorkingGroupwashavingitsregularscheduledmeeting,whichIwasinvitedtojoin
(thedatewasadjustedsomewhattosuit).
My private observation is that the ECC appears to be going around in circles on some basic
matters.
Basicmatterssuchasdefinitionsarestillbeingdiscussedatlength,includingmattersthathad
beenpreviouslydiscussedandwhichIthoughtwereagreed.Oneoftheseisthematterofthe
definitionofanESCOandwhetherthedefinitionmustincludetherequirementfortheESCOto
providefinancingfortheprojectsitundertakes.
My recommendation (again) to the meeting was that the definition must not include a
requirement for financing. I explained that the financing of energy savings projects under
performancecontractsisacomplexbusinessthatcannotyetbeenvisagedasacommonpractice
inT&T.And,theobviousproblemasfarasthe150%taxallowanceisconcerned,is:iftheESCO
providesthefinancing,thensurelytheESCO,nottheclient,shouldgettheincentive?Thisis
clearlynottheintentofthescheme.
Datacollection:
IoutlinedsomeoftheproblemswearehavingwithdatagatheringandMrOliverofferedto
assistinclearingsomeoftheroadblocksifhecould.
IrequesteddatafromtheMEEAregardingtheirbudgetandactualcostsfortheexistingmedial
campaignsthatareinprogress,includingtheirsurveys,etc.Iamtofollowuponthis.
281
AppendixH:GuidelinesforEnergyAudits
1.
Background&Introduction
TheAmericanSocietyofHeating,RefrigerationandAirConditioningEngineers(ASHRAE)defines
three levels of energy audits having increasing complexity.133 This document refers to the
performanceofLevel2audits,withthespecifiedcomponentactivities:
Energyendusebreakdown;
Detailedanalysis;
Costs&savingsforenergyefficiencymeasures;
Operations&maintenancechanges.
2.
Processandscopeoftheenergyaudit
TheauditorisencouragedtobeguidedbytheISO50001energymanagementstandardwhere
applicableintheperformanceoftheaudit.Theauditorwill:
Conductapreliminaryenergyanalysis;
Conductthewalkthroughsurvey;
Measurekeyplant&equipmentoperatingparameters(whereapplicable);
Identifylowcost/nocostrecommendations;
Identifycapitalimprovementsandtheirestimatedcosts;
Analyzecapitalmeasures(costs,savingsandpayback);
Meetwithowner/operatortoreviewrecommendations.
Thescopeoftheanalysisincludesthefollowing:
a) Datacollection
Theauditorwillcollecttherelevantinformationanddataonthebuildingscharacteristics
andenergyuse.Whereappropriate,theauditorwillinstallappropriateinstrumentationto
measure and monitor the performance of specific systems, if possible during typical
operatingconditions.Informationtobecollectedand/orreviewedincludes:
Monthlyutilityorsupplierbillingdata(electricity,gas,water)forthemostrecent24
monthsifavailable;
List of energyconsuming appliances and equipment, their load capacity ratings, an

estimateoftheirtypicaldurationofuseandtheirenergyconsumption;
Building area, with a distinction between airconditioned and nonairconditioned

areas. Asbuilt drawings or direct measurement should be used to provide this
information;
Buildingshape,orientation,locationandbuildingenvelopedetailsandcondition;
Descriptionofmainelectrical,electronicandmechanicalequipmentandsystemsand
133
Thereferencedocumentis:ProceduresforCommercialBuildingEnergyAudits.SecondEdition,ASHRAE
282
theirconditionandperformance;
Descriptionofcontrolsandautomationtypes,conditionandstatus;
Processoperatingproceduresifapplicable;
Buildingoccupantcharacteristics(whatgroupsofpeopleoccupythebuildinginternal
staff,externalcustomers,etc.)andbuildingfunctions(timeofuse,numberofbeds,
occupancyrate,etc.);
Records of building systems' changes and problems in overall operation, including

increasing electrical loads, alterations, additions or use changes and concerns over
powerorenvironmentalquality.
The auditor will liaise as necessary with building owners, operators and service & support
personnel(includingequipmentsuppliers)toobtainspecificinformationwherenecessaryon
systemoperationsandinterfacingwithproposedretrofits.
b)
Deliverables
Theauditorwillprovide:
Adescriptionofthebuilding,buildingsystemsandoperation;
Adescriptionofthemainenergyusingequipmentinthebuilding(age,modeltype,
capacity,hoursofuseetc.,whereapplicable);
A building energy performance index (BEPI) equivalent kilowatthours per square

meterperyear,foreachbuildinginthefacilityifapplicableandpossible;
Abuildingenergycostindex(BECI)forallenergytypesindollarspersquaremeterper
year;
Anendusebreakdownofallenergyconsumption;
A consumption profile for each energy type (for the most recent 24 months if
available),withananalysisofpeaksandvariationsbasedonoccupancy,usagemode
orothervariationfactors;
Alistofenergyconservationopportunities(ECOs)basedontypicalretrofitsandthe
technologies known to be readily available on the market. These ECOs shall be
characterizedas:
o
Opportunitiestoreducetheenergydemand:passivesolutionssuchasreduction
ofsolargainthroughexternalprotection,insulations,reorganizationofinternal
uses,etc.;
Opportunitiestoreduceenergyconsumptionthroughimprovementsinthe
technicalefficiencyofthebuildingsenergysystems,equipmentandappliances;
Opportunitiestoreduceenergyconsumptionthroughchangesinoccupant
behaviour;
Recommendationsforsubstitutingenergysources(e.g.:solarinsteadofelectricwater
heating);
Estimates of investment costs, calculations of energy savings and a simple payback

analysis for all ECOs, recommended combinations of ECOs and energy source
substitution;
283
3.
Suggestions for improvements in operating procedures and establishment of an

EnergyManagementSysteminappropriatecases.
Suggestedstructureoftheenergyauditreport
Thereportshouldinclude:
Titlepageaccordingtotheattachedformat
Tableofcontents
Executivesummary(seetableformatsbelow)
Information drawn from the moredetailed information inthefullreport,preferably
inplainnontechnicallanguage,including:
Summary of baseline energy consumption;
Summaryofresults:
Assessmentofenergyconsumingsystems;
Identification of Energy Conservation Opportunities (ECOs) and the

estimated energy and costsavingsassociatedwitheachoption,alongwith
the related cost of implementing the measures and the expected payback
period;
Recommendationssummarizedintableform.
Introduction
TheIntroductionshouldinclude:
AuditObjectives:aclearstatementthatdefinesthescopeoftheenergyauditin
clearandmeasurableterms;
BackgroundInformation:adescriptionofthelocationofthefacilitywheretheaudit
has been conducted, as well as information regarding facility layout,
products/services provided or produced, operating hours including seasonal
variations(ifapplicable),numberofpermanentstaffworkinginthebuildingand
relevantresultsofpreviousenergysavinginitiatives.
Auditactivityandresults
Thissectionshouldmakereferenceto:
Descriptionoftheauditmethodologyandexecution(techniquese.g.:inspection,
measurements,calculations,analysesandassumptions);
Observationsonthegeneralconditionofthefacilityandequipment;
Identification of an energy consumption baseline in terms of energy types,units

andcostsforthefacility/systembeingassessed;
ResultsoftheauditincludingidentificationofECOs,theestimatedenergyandcost
savings associated with each measure as well as the required investment and
paybackperiodassociatedwitheachoftheECOsidentified.
284
Recommendations
This section should list and describe the recommendations that flow from the
identification ofECOsandmayincludedetailsconcerningimplementation(e.g.need
for major intervention in the building envelope in case of new installations). An
explanation should be provided for recommending or not recommending each ECO
identifiedintheresults.
Appendices
Appendices will include background material essential for understanding the
methodology,calculationsandrecommendationsandmayinclude:
Facilitylayoutdiagrams;
Processdiagrams(inexceptionalcases);
Referencegraphsusedincalculations;
Datasetstoolargetofitwithinthebodyofthereport.
Ifrequested,adraftmonitoring&evaluationplantoguidethebuildingownerinpost
implementationmonitoringandevaluationofthefacility,istobeincluded.
4.
SampleExecutiveSummaryTables
Table1:BaselineEnergyUseandCost
Electricity
Audited System
Description
Units
(kWh/yr)
Cost
LPG
Units
(m3/yr)
Other(Specify)
Cost
Units
Total
Cost
Cost
TOTAL
285
Table2:Energyenduseallocation
EndUse
kWh
Internallighting
Externallighting
Cooling(AC,refrigeration,etc.)
Heating(specifyprocessheat,hotwater,etc.)
Pumps
Fans
Officeequipment&appliances
Miscellaneousequipment
TOTAL
BTU
Table3:Recommendations
PotentialSavings
No Description
Electricity
(kWh/yr)
LPG
(m3/yr)
Otherenergy
(specifytype
andunits)
Cost
savings
($/yr)
Simple
payback
(yrs)
Costto
implement
($)
TOTAL
286
AppendixI:InternationalExamplesofMarketbasedFinancialMechanisms
forEEandREMeasuresintheResidentialSector
The following provides information on international programs that have been successful in
facilitatingtheimplementationofEEandREmeasuresintheresidentialsector.
Althoughmostprogramsareorientatedtowardshousing,thislistcanprovideasourceofideas,
whichcanbeinvestigatedatwill,aboutfinanceoptionstoaccompanythe150%TaxAllowance
alreadysetupbytheESCOcommittee.
Mexico
HipotecaVerde
Green Mortgage is a housing finance scheme developed by the Institute for the National
Workers Housing Fund (INFONAVIT) to encourage the use of energyefficient systems and
technologies for lowerincome households. Families purchasing homes with INFONAVIT are
givenanadditionalgreenmortgage(acreditontopoftheactualmortgagecredit)ofupto
US$1,250, to cover the cost of additional ecotechnologies. The initiative aims to encourage
developers to build homes with energysaving materials and technologies, and the lowrate
mortgage given enables families to save more on their utility bills than the increase in their
monthlymortgagepayment.Todate,over900,000GreenMortgagecreditshavebeengranted,
benefitingoverthreemillionpeople.(WORLDHABITATAWARDS)
http://www.cmic.org/mnsectores/vivienda/2008/infonavit/hipotecaverde.htm
USA
PropertyAssessedCleanEnergy(PACE)Programs
InthePropertyAssessedCleanEnergy(PACE)Programs,EEupgradesarefinancedthroughlong
termloansthatarerepaidviaanannualpropertytaxassessment.LoansunderPACEprograms
aresecuredbyplacinganadditionallienonapropertythatisseniortotheexistingmortgage
debt.PACEfinancingprogramsareparticularlywellsuitedforresidentialEEprojectsbutarealso
applicabletocommercialfacilities.(EU,2010)
http://energycenter.org/policy/propertyassessedcleanenergypace
CleanEnergyWorksProgram
In 2009, this model was introduced via the Clean Energy Works Program (CWEP) in Portland
(Oregon). Under CWEP, singlefamily residential homeowners can receive 100% financing to
implementawiderangeofEEmeasures.Loansareprovidedatattractivelevelsoffixedinterest
rates and are amortized over a 20year period. Customers repay loans through their regular
utilitybill.(EU,2010)
http://www.cleanenergyworksoregon.org/home/
SanDiegoGasandElectricProgram
Theutilitycanprovideitscustomerswithanunsecuredloanthatcovers100%ofEEequipment
andinstallationcosts.Thecustomerthenpaystheloanviaanonthebillsurchargethatisadded
ontotheregularutilitybill.EnergysavingsrealizedfromtheEEprojecttypicallyequalorexceed
287
themonthlyloanrepaymentobligation.Thisisnotanewconcept,withutilitiesinCalifornia,
Connecticut,RhodeIsland,Massachusetts,andotherstateshavingoffereddifferentvariations
ofonthebillrepaymentschemesformorethan10years.
http://www.sdge.com
RuralEnergySavingsProgram
Innovative idea developed by electric cooperatives in South Carolina to address the special
challengesandopportunitiesfacingruralcommunitiestosaveenergy,cuthouseholdutilitybills,
andreducegreenhousegasemissions.Theprogramsupportsstable,highskilledjobsandkeeps
more dollars in the local economy. Through the program, residential EE improvements are
financed withlowcostloans that are repaidthroughcoopmembers electricbills (aprocess
known as onbill financing). The "Help My House" pilot for this program produced very
encouragingresults.Participants'energybillswerecutby34percent,savinganaverageofUS$
288perhomeandyearafterloanpayments.(EESI)
http://www.eesi.org/projects/ruralenergysavingsprogram
TUNISIA
PROSOL
PROSOLprogram,launchedin2005,isbasedonaninnovativemechanismdesignedtoaddress
keyfinancial,technicalandorganizationalbarriersagainstthedevelopmentofthemarketfor
solar water heater. Thanks to this mechanism, PROSOL has initiated a real market
transformationoftheSWHinTunisia.(ADEME,2010)
http://climatepolicyinitiative.org/wpcontent/uploads/2012/08/ProsolTunisiaSGGCase
Study.pdf
PORTUGAL
EfficiencyCreditScheme
ThePortuguesegovernmenthas,aspartofitsNationalEEActionPlan2015,setuptheEfficiency
Credit scheme. This scheme, set up in 2008, offers personal lowinterest rate finance for
households installing a variety of lowcarbon measures. Loans need not be secured, but the
interestrateonsecuredloansishalfthatforunsecuredloans.Theschemeisdeliveredthrough
a number of banks with the Portuguese government supplying funds for interest subsidy.
Furthermore,thereisaprogrammetoreplace1millionlargeelectricappliances(whitegoods),
providinga50EurobonusforthereplacementwithanA+applianceand100EuroforanA++
appliance;oldappliancesmustbehandedoverforrecycling.(EU,2010)
http://www.iea.org/policiesandmeasures/energyefficiency/?country=Portugal
IRELAND
BetterEnergyHomes
TheIrishGovernmentwishestoencouragepeopletoimprovetheenergyperformanceoftheir
homesbyincentivisingthecostofinstallingvariousupgrademeasures.TheBetterEnergyHomes
scheme provides assistance to homeowners to reduce energy use, costs and greenhouse gas
emissionsandimprovethecomfortlevelswithintheirhome.
288
Theobjectivesoftheschemeareto:
Supporthomeownersinmakingintelligentchoicestoimprovetheenergyperformance
oftheirhome;
Reduceenergyuse,costsandgreenhousegasemissions
Buildmarketcapacityandcompetencebydrivingcontractorstandardsandquality
Stimulatingmarketinnovation.
TheincentiveisintheformofaCashGrant.Cashgrantsarefixed,irrespectiveofhomesize,
thoughwhereactualexpenditureislowerthanthegrantvalueonlytheloweramountwillbe
paid.PaymentisbyElectronicFundsTransfertotheapplicantsbank.(EU,2010)
http://www.seai.ie/Grants/Better_energy_homes
BetterEnergyWarmerHomesScheme
ThisschemeaimstoimprovetheEEandcomfortconditionsofhomesoccupiedbylowincome
households.Itengagesregionalcommunitybasedorganisationstoacquireandapplytheskills
tocarryouttheworkwhichincludesatticinsulation,draughtproofing,laggingjackets,energy
efficientlighting,cavitywallinsulationandenergyadvice.(EU,2010)
http://www.seai.ie/Grants/Warmer_Homes_Scheme
SPAIN
PlanRenovedeElectrodomsticos
ElPlanRenovedeElectrodomsticoswasoneofthemeasuresundertheSecondActionPlanfor
EnergySavingandEE20082012.TheobjectiveofPlanRenovewastoencouragethesubstitution
ofolddomesticapplianceswhichwereproducedbeforetheenergylabellingbecamemandatory
withnewenergyefficientones.(IDAE)
http://www.planrenove.info
UK
PayasYouSave
Inearly2010,theUKgovernmentlaunchedthe"Warmhomes,greenerhomes"initiative,which
includes a new form of Green Finance based on a PayasYouSave model (PAYS). The
governmentexpectsthistoprovideapproximatelyonethirdofthefinancingformajorinsulation
andsupportupfrontpaymentsforanyenergysavingecoupgradewithpaybackthroughenergy
savings or microgeneration revenue. Instead of paying for the ecoupgrade upfront,
householderswillbeabletogetfinanceatterm,suchthathouseholderswillbeabletocoverthe
costoftheinstallationoutofbillsavings,andusuallywithafurthermonthlysurplusaswell.
Thefinanceitselfwouldcomefromtheprivatesector,asbanksandothersprovidefundingfor
theecoupgrade,securedagainstfuturesavingsonbills(EU,2010).
289
Fivepartners,frombothpublicandprivatesectors,wereselectedthroughacompetitivetender
process,torunpilotschemes.134Eachproposedandimplementedpilots,withdifferentdelivery
approaches,broadlybasedonthefollowingkeyprinciplesbeingofferedtohouseholders:
PayAsYouSavefundingofupto20,000perpropertyforenergysavingmeasures.
Freeenergyassessmenttoestablishandrecommendsuitablemeasuresandongoing
advicetohelphouseholdersreducetheirenergyconsumption.
Repaymentperiodsuptoamaximumof25years.
Zeropercentinterestrate.
Optionalhouseholdercontribution.
FeedinTariff(FIT)benefitswheninstallingsolarPVpanels.
http://www.energysavingtrust.org.uk
GreenDeal
Greendealisaschemethatcanhelpmakingenergysavingimprovementstoresidentialhomes
orbusinesses,forexample:
Insulatione.g.solidwall,cavitywallorloftinsulation
Heating
Draughtproofing
Doubleglazing
REgeneratione.g.solarpanelsorheatpumps
Youcanmakeenergysavingimprovementstoyourhomeorbusinesswithouthavingtopayall
thecostsinadvance.
YouhavetopaybackthecostoftheimprovementsovertimebecausetheGreenDealisaloan,
not a grant. However, the savings on your energy bills after youve made the improvements
shouldcovertherepaymentoftheloan.
YoucanalsochoosetopayforimprovementsinadvanceusingGreenDealprovidersandcertified
installers.(GreenDeal)
http://www.energysavingtrust.org.uk/Takeaction/Findagrant/GreenDealandECO
134
DepartmentofEnergyandClimateChangeandtheEnergySavingTrust,HomeEnergyPayAsYouSavePilotReview,
September2011
290
AppendixJ:CurrentElectricityGenerationCostsforOnshoreWindFarms
LCOEofonshorewindenergy
ICC
perkW
AOE
perMWh
Capacityfactor %
Discountrate
Operationallife years
CRF:
LCOE2012:
perMWh
LCOE2015:
perMWh
LCOE2017:
perMWh
inflation
9,36%
dn
4,75%
dr
4,22%
dn
0,15
minimum
average
2010US$ 2012TT$ 2010US$ 2012TT$
1,800
12,211
2,000
13,568
10
67.8
10
67.8
38
38
38
38
4.75
14.55
14.55
14.55
25
25
20
20
0.069
0.151
0.156
0.156
3,328.80
3,328.80
3,328.80
3,328.80
47.4
620
103.6
703
43.9
574
98.7
670
38.9
509
91.7
622
quotedbycentralbank
(assumecentralbankquotesrealvalue)
291
maximum
2010US$ 2012TT$
2,200
14,925
10
67.8
38
38
14.55
14.55
15
15
0.167
0.167
3,328.80
3,328.80
120.6
818
118.2
802
114.6
777
AppendixK:SolarWaterHeating
TheBarbadosCase
Barbados has a successful SWH manufacturing industry since the 1970s. The pioneering
company,SolarDynamicsLtd,hadnumerouschallenges,butwasabletoovercometheseand
developasuccessfulindustrywithhighqualityproducts.
Barbadosisfacingtheissueofhighfossilfuelcostsandheavyrelianceonimportedfossilfuels.
Through favourable Government incentives (described in TABLE 53), competition in the
manufacturing business evolved with two other companies entering the market. FIGURE 87
showsthegraphicalchronologyofannualSWHinstallationsinBarbados,highlightingsignificant
economiclandmarks,anddemonstratingtheeffectsoffiscalincentivesintroductionandalso
theirremovalonthegrowth.
Table53:SWHincentivesinBarbados
Government
Incentives
1974
FiscalIncentiveActof1974
Details
1.Eliminationofimporttariffsonrawmaterials
usedtomanufacturesolarwaterheaters
2.Impositionof30%consumptiontaxonelectricwaterheaters
19801992
HomeownerTaxBenefit
3.DeductionoffullcostofSWHinstallationuptoa
maximumofupto$3500Bds.
1993
EliminationofHomeownerTaxDeduction
Eliminationofincometaxdeduction
1996
ReInstalmentofHomeownerTax(amended)
Homeimprovementtaxdeduction(allowinghomeownersan
annualdeductionupto3500BBDformortgageinterest,
repairs,renovation,energyorwatersavingdevices,solar
waterheaters,andwaterstoragetanks)
InadditiontoIncentives
Governmentpurchasedasignificantnumberofsolar
waterheatersforhousingdevelopmentprojects.
Initially80unitswerepurchasedinthemid1970s,and
fourothertransactionsin1980sand1990s
Source:PERLACK,2008,HEADLEY,2001
In addition to the incentives listed above, the Government increased the duties on gas and
electricwaterheaters.Theoilcrisisof1973sparkedofftheinterestinanddevelopmentofthe
SWHindustry.Growthintheindustryisshownpostthe1974incentives,andthesharprisefrom
1980tojustpriorto1992isadirectresultoftheincometaxdeduction.Withthecutin1993,
thegrowthwasslow,andwiththereinstatementoftheamendedhomeownertax,thenumber
ofinstallationsbegantoriseagain.
Unfortunately,informationpost2002isnotavailable.However,alargepercentageofthesolar
waterheatersarepurchasedbytheGovernmentofBarbadosforhousingdevelopments.Itis
reportedthattodayBarbadoshasapproximately55,000SWHsinstalled,withanannualmarket
volumeofabout2,000systems.ThesavingsattodayscostperhomeisUS$1,600peryear,
cumulativeconsumersavingsinthepastmorethanthreedecadeshasbeenroughlyUS$0.5
292
billion. Barbados is saving about 185,000 barrels of oil equivalent in energy and has an
abatementof150,000tonsofcarbonemissionsperyear(HUSBANDS,2012).
Figure87:GraphicalchronologyofannualSWHinstallationsinBarbados
Source:PERLACK,2008
FIGURE88showsthecumulativeinstalledSWHsexpressedinstoragevolumeinBarbadosfrom
1974to2002.Thisgraphalsoshowstheeffectsthatfiscalincentiveshadonthegrowthofthe
industry.
Figure88:CumulativeinstalledSWHstorageinBarbados(19742002)
Source:PERLACK,2008
293
AppendixK:WastetoEnergyContacts
CompaniesandGovernmentagenciesinterviewedandvisitedduringthefactfindingmission:
Organization
MinistryofEnergyandEnergyAffairs
Levels15&2226,EnergyTower
InternationalWaterfrontCentre
#1WrightsonRoad
PortofSpain
TrinidadandTobago
Phone:(868)6266334/6236708
Fax:(868)6250306
www.energy.gov.tt
TheEnvironmentalManagementAuthority
HeadOffice
#8ElizabethStreet,St.Clair
PortofSpain
TrinidadandTobago
Phone:(868)6288042/80445
Fax:(868)6289122
www.ema.co.tt
SWMCOL
TheTrinidadandTobagoSolidWasteManagementCo.Ltd.
34IndependenceSquare
PortofSpain
TrinidadandTobago
Phone:(868)6256678
Fax:(868)6236534
www.swmcol.co.tt
B.K.HoldingLtd.
35PreysalCrownTrace
Freeport
TrinidadandTobago
Phone:(868)6730067
www.bkholdingslimited.com
KaizenEnvironmentalServices(Trinidad)Ltd
RajkumarStreet,MissionRoad
Freeport
TrinidadandTobago,WestIndies
Phone:(868)
kaizentt.com
WasteDisposal(2003)Ltd.
9ConcessionsRoad,SeaLots,PortofSpain,
TrinidadandTobago,WestIndies
Phone:(868)6256746/55467
Fax:(868)6256747
www.wastedisposalsltd.com
Interviewed
Visited
294
AppendixL:PowerOutputofthePelamisSystem
Table54:PowerofthePelamisSystem(inkW)anditsinfluencebyheightandperiodofwaves
Period(T)
Height
(H)
0.5
1.5
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5
10
10.5
11
11.5
12
10
11
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 29 37 38 35 29 23
0
0
0 32 65 83 86 78 65 53 42 33
0 57 115 148 152 138 116 93 74 59
0 89 180 231 238 216 181 146 116 92
0 129 260 332 332 292 240 210 167 132
0
0 354 438 424 377 326 260 215 180
0
0 462 540 530 475 384 339 267 213
0
0 544 642 628 562 473 382 338 266
0
0
0 726 707 670 557 472 369 328
0
0
0 750 750 737 658 530 446 355
0
0
0 750 750 750 711 619 512 415
0
0
0 750 750 750 750 658 579 481
0
0
0
0 750 750 750 750 613 525
0
0
0
0 750 750 750 750 686 593
0
0
0
0
0 750 750 750 750 625
0
0
0
0
0
0 750 750 750 750
0
0
0
0
0
0
0 750 750 750
0
0
0
0
0
0
0
0 750 750
0
0
0
0
0
0
0
0
0 750
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
295
12
13

Support To The Sustainable Energy Program For Trinidad and Tobago (2014)

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Support To The Sustainable Energy Program For Trinidad and Tobago (2014)

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SupporttotheSustainableEnergyProgramme

Institutional strengthening of Government entities for the formulation and

OIL PRODUCTION (BOPD)

3.3.3.3 Development of Natural Gas Reserves

3.7.2.2 Expected Electricity Output

At first glance it seems that the current infrastructure would be sufficient to

Is the current location of a PowerGen gassteam power plant (original installed

Might be subject to either decommissioning (anticipated timescales: year 2015) or

Six transformers (out of a total of 31 interbus transformers) are scheduled to be

Atfirstglanceitseems thatthecurrentinfrastructure(especiallyonce theongoing

Felicity area and Charlieville: installation of two transformers and of switchgear,

St. Joseph / Maracas: provision of an alternative supply to meet increasing load

Implementation of and ensuring compliance with requirements of standards and certification

Energy Info. Mgmt.

Energy Legacy Info.

e) Promotion of a culture of energy efficiency and conservation as elements of a desirable

4.3.2.2 Introduction of fiscal incentives and other mechanisms to facilitate adoption of

4.3.2.5 Encourage EE in industry

T&TEC expenditures associated with operations/purchase of power from power stations,

5.2.1.2 Proposed EE Interventions

5.2.1.3 Estimated Energy Savings Potential

Replacement of T12 fluorescent lamps and magnetic ballasts with T8 lamps/electronic

5.2.2.3 Estimated energy savings potential

5.2.3.3 Estimated energy savings potential

Performance of household energy audits by certified energy auditors (recommended

Implementation of EE improvements recommended by the audit and/or purchase of

Provide incentives to encourage appliance retailers to offer tradein programmes, for

Insulation efficiency for airconditioned spaces, so that cooling is confined to the

select one large and/or prestigious Governmentowned or occupied building to

Increase import tariffs

T&TEC should be obliged to carry out demandsidemanagement programmes, e.g. by

5.5.2.1 Definition of an ESCO

ThisEnergyAudithasidentifiedfiveEE Measures(EEMs)andRE Measures(REMs).Theimplementationofthe

ThisEnergyAudithasidentifiedten EnergyConservationmeasures(ECs)andRenewable Energymeasures(REs).

ThisEnergyAudithasidentifiedsevenEE Measures(EEMs)&RE Measures(REMs).Theimplementationofthe

6.2.2.5 Annual operating expenses

6.2.2.9 Conclusions and Recommendations for next steps

Averaged Solar Radiation (W/m^2)

Time Intervals (5mins)

Time Intervals (5mins.)

Feb Mar Apr May Jun

Feb Mar Apr May Jun

Government should institutionalise a system of certification for all SWH installations

Continuous research and development are important for competitiveness of the

The commercialandindustrialsectors inT&Trepresentan excellent targetforlarge

6.5.2.2 Waste Composition and Usability for Waste to Energy

6.5.2.4 Future Changes in Waste Composition

Gasification which refers to the combustion of fuel with understoichiometric amounts of

6.5.3.3 Plasma Gasification

6.5.3.5 Mechanical Biological Treatment (MBT) plus Gasification

Delivery and Storage

Flue Gas Treatment

6.5.5.1 Economic Models

dieselpowered plants are replaced by RE power plants, an additional 1 Baht/kWh (US$

6.6.1.2 Liquid Biomass

Size of farm (Number of pigs)

Source: table 35 and 36 from agrarstat.xls, download from CSO.gov.tt

Medium scale farms

3 farms with potential,

One large biomass

6.7.3.2 OTEC Potential in T&T

Establishmentoffeedintariffsincaseof Establishment of a support scheme

Use SWH for retrofitting of social Establish a system to collect data on