Trinidad and Tobago’s energy consumption culture unsustainable, say experts

THIS COUNTRY’S entrenched culture of excessive energy consumption – fuelled by artificially low electricity prices and decades of policy inertia – remains one of the country’s biggest obstacles to achieving meaningful energy efficiency.

That was the frank assessment of energy policy and industry leaders speaking at the Caribbean Sustainable Energy Conference on June 3 at the Hilton Trinidad and Conference Centre, St Ann’s.

The session, dedicated to strategies for reducing consumption and improving efficiency, made clear that while bright spots exist, the country remains far behind regional peers and global benchmarks.

Dr Mohammad Rafik Nagdee, executive director of the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE), outlined the fundamental issue.

“Because the energy affordability is so significant, it is so low,” he said, noting a habit some have of leaving multiple air-conditioning units on at home throughout the day even when they aren’t needed. There’s little incentive to conserve, he suggested, adding that it has consequences for the entire region’s decarbonisation ambitions.

He cited that TT’s highly subsidised domestic power rates are among the lowest in the hemisphere, a fact that discourages conservation and efficiency upgrades.

“We’re not saying raise prices, but this is where energy efficiency really matters,” he said.

Ten out of 17 Caricom states have adopted minimum energy efficiency regulations, yet TT lags behind on several indicators, Nagdee noted.

Additionally, he flagged the tourism sector as an overlooked opportunity for demand management, advocating for the use of artificial intelligence to optimise hotel energy consumption.

Nagdee stressed that simple behavioural changes – such as moderating air-conditioning use – could significantly ease the country’s energy burden and assist in meeting its Paris Agreement commitments.

Eugene Tiah, president of the Caribbean Energy Chamber, delivered a stark technical assessment of TT’s power system, detailing inefficiencies from generation to end-user.

“Nearly all our electricity is generated from natural gas, and despite years of discussion around energy efficiency, gas consumption for power generation has steadily increased,” Tiah said.

He attributed a temporary dip in 2020 to the pandemic but noted that overall demand continues to rise, particularly in the residential sector.

Between 2010 and 2024, industrial consumption as a share of total demand fell from nearly 60 per cent to around 40 per cent due to the closure of large facilities like the steel plant, while residential consumption surged.

“And that has been growing particularly (because of) air-conditioning loads,” Tiah explained.

On the supply side, Tiah highlighted the inefficiency of the generation fleet. Trinidad Generation Unlimited’s (TGU) combined-cycle plant operates at an efficient heat rate of around 8,800 BTU per kilowatt-hour. In contrast, other plants in the national mix have heat rates as high as 17,000, more than double the gas input for the same output.

He said if we could bring all generation to TGU’s efficiency level, “we could certainly reduce the amount of energy that it takes to produce a kilowatt hour of power.”

Transmission and distribution losses also remain a concern. Tiah noted that while benchmark countries like the United States have achieved five per cent system losses, TT’s losses remain higher; precise national figures are difficult to obtain, he admitted, owing to fragmented reporting. Jamaica also experiences far greater losses, mostly attributed to theft.

A business case for efficiency

Beyond environmental arguments, the speakers stressed the economic rationale for improving efficiency.

Tiah presented a business model showing that a ten per cent reduction in national electricity demand would free up natural gas currently priced to T&TEC at US$1.70 per MMBtu.

If that gas were instead sold to petrochemical producers at a higher price, the country could capture up to US$85 million in net economic gains, assuming favourable commodity market conditions.

“There is some economics in terms of driving more efficiency. So if you're not getting on board because, you know, you're concerned about the environment, surely pure economics should be a driver for you to want to do something.”

Both speakers pointed to existing tools and strategies. Nagdee spoke about policy reform, stronger regulation and public education campaigns.

He also urged TT to align with regional data-sharing initiatives and complete overdue energy reporting updates.

Tiah advocated for accelerating the formal establishment of energy service companies (ESCOs) to implement performance-based efficiency projects, noting that certification criteria for ESCOs had already been drafted.

He also flagged the need for standardised performance contracts and tailored financing products from local banks.

“If you all don't get onto this playing field … very likely we'll just be continuing to have these conversations. We would all be complicit if we see this as someone else's problem. This is our problem. This is our issue. We have to own it.”

The conference’s clear consensus: TT’s energy consumption patterns are unsustainable. But with straightforward policy adjustments, behavioural interventions, and system upgrades, significant efficiency gains are within reach. The choice now is whether the country will act decisively, or continue – in Nagdee’s words – to be “the elephant in the room.”