In Trinidad and Tobago, there has historically been a large dependence on oil and natural gas usage and production. Traditionally, reliance on these nonrenewable energy sources drove the country’s economy, accounting for about 36% of its nominal Gross Domestic Product (GDP) in 2022. In 2021, 99% of Trinidad and Tobago’s electricity was generated from natural gas. This highlights the country’s heavy reliance on fossil fuels and the growing need to diversify its energy sector. Renewable energy, however, offers an opportunity to strengthen energy security while supporting long-term economic sustainability. Government initiatives and growing investments in renewable energy aim to reduce the country’s dependence on fossil fuels while expanding opportunities for cleaner energy production.

Through renewable energy initiatives, green hydrogen development and support from international organizations, Trinidad and Tobago is working to build a more diversified, resilient and sustainable energy future. Expanding renewable energy could also create new jobs, encourage economic growth and strengthen long-term opportunities for the communities most affected by changes in the traditional energy sector. This article will explore why the country is transitioning toward renewable energy, the organizations supporting these efforts and how renewable energy investments could strengthen the economy while improving long-term sustainability.

Why Trinidad and Tobago Is Diversifying Its Energy Sector

Oil and natural gas have been a significant part of Trinidad and Tobago, especially economically. For decades, the country has relied on oil and natural gas production, yet now the gas fields are mature, creating a decline in production. According to the International Monetary Fund, natural gas production fell by 17% between 2010 and 2019, while crude oil and condensate production declined by 40% during the same period. As production has decreased, exports of liquefied natural gas and petrochemicals have also declined.

The government has encouraged the development of new oil and gas fields; however, the projects are expected to be very timely. Additionally, the global transition toward renewable energy and the impacts of climate change are prompting Trinidad and Tobago to diversify its energy sector and invest in cleaner energy sources.

Because the country’s economy is so closely tied to the energy sector, fluctuations in oil and natural gas production can affect economic stability. The World Bank notes that efforts to expand renewable energy are part of the country’s broader transition toward a low-carbon economy. This can help build a more resilient economy that better supports communities over the long term. A stronger renewable energy sector could also create employment opportunities in construction, maintenance and clean energy industries while supporting more stable incomes for families.

Expanding Renewable Energy Opportunities

The International Monetary Fund explains that expanding renewable electricity generation could reduce the country’s reliance on oil and natural gas, while lowering greenhouse gas emissions. Trinidad and Tobago’s own authorities have set a target of generating 30% of electricity from renewable sources by 2030. Trinidad and Tobago is also investing in green hydrogen as part of its long-term energy strategy. The government has developed a plan for the next 35 years to create a green hydrogen sector based on renewable energy sources. That sector will be used to produce products like ammonia and methanol. The goal of this program is to decrease the country’s carbon footprint and allow it to export additional amounts of natural gas to meet increasing worldwide demand for cleaner energy.

Organizations are also supporting the country’s transition to renewable energy. The Inter-American Development Bank has partnered with the government through its Sustainable Energy Program by providing financing and technical assistance to advance renewable energy and energy efficiency initiatives. The United Nations Development Programme supports renewable energy development through clean energy projects and policy assistance. Trinidad and Tobago also joined the International Renewable Energy Agency in 2014, giving it access to the agency’s technical expertise and policy guidance to help accelerate its transition to renewable energy.

Looking Toward a More Sustainable Future

Trinidad and Tobago’s warm climate and long dry season provide favorable conditions for expanding renewable energy, particularly solar power. Organizations such as Renewable Power Caribbean are helping support this transition by installing renewable energy systems, providing energy management services and educating communities about clean energy solutions. These efforts can lower energy costs over time and expand access to reliable electricity, creating more economic opportunities for local communities. The country is exploring opportunities to expand wind energy as well. According to the Caribbean Climate Network, a national roadmap identified nine potential onshore locations for future wind projects. That roadmap estimated Trinidad and Tobago has more than 2.5 gigawatts of onshore wind energy potential.

Conclusion

These initiatives could help diversify the economy beyond oil and natural gas while improving long-term energy security, as long as the country keeps investing in renewable energy. A more diversified energy sector may result in a more stable economy that can better support jobs, public services and sustainable development. It could also reduce the country’s susceptibility to changes in the production of fossil fuels and international energy markets. As renewable energy industries continue to grow, they also have the potential to create jobs and strengthen local economies. Continued investments in clean energy and economic diversification have the potential to improve community conditions and create a more resilient future for Trinidad and Tobago.

– India Hairston

India is based in Malvern, PA, USA and focuses on Good News and Politics for The Borgen Project.

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