Linda Hutchinson-Jafar, Business Writer
The business and industrial district of Trinidad's capital, Port-of-Spain. Prime Minister Patrick Manning is yet to endorse a recommendation by power regulators for a three-per-cent increase in electricity costs. - File
Trinidad and Tobago's state power provider is investing a billion dollars over the next three years to build generating capacity, to keep pace with demand largely resulting from industrial expansion in the energy sector.
Currently, electricity demand is 1,189 megawatts (MW), but experts project a near doubling of that figure to 2,197 MW by 2010 when new heavy gas-based industries come on-stream.
Electricity cost lowest in region
Electricity in Trinidad and Tobago, provided at some of the lowest costs in the region, is a vital incentive for growth in the industrial sector, which consumes 70 per cent of the country's power supplies.
Commercial customers pay US$0.04 per kilowatt hour for electricity, while residential customers pay US 3.5 cents/kWh.
"The growth in maximum demand for energy is expected to grow in the order of 100 per cent in the next five years," said Inderjit Singh, general manager of state-owned Trinidad and Tobago Electricity Commission (TTEC).
He added that more than 1900 MW of combined cycle generation needed to be installed by 2010 to meet the target for projected load reliability.
TTEC has already begun its three-year programme to build capacity to meet increasing electricity demand.
A number of power stations will be developed in key areas of the country, seven high voltage transmission lines are being built and eight more are expected to start in 2010.
In April, 208 MW of new generation capacity was added to the national grid.
Five high voltage sub-stations are also being developed with four more planned by 2010.
"TTEC recognised that the task ahead is enormous," said Singh.
Other projects include the procurement of 60MW of new dual-fuel power in Tobago by 2008 and conversion of a 433-MW gas turbine plant into the more efficient combined cycle plant, which is expected to add 217 MW of capacity by 2009.
Construction of a new station at the country's newest industrial hub at Union Estate in La Brea in the southern region with an installed generation capacity of 670 MW is to be phased in over 2008 and 2009.
Another station at Sea Lots on the outskirts of the capital will also provide new capacity of 415 MW from 2009 to 2010.
But as Trinidad builds capacity, it is also trying to create a culture of conservation.
"Energy consumption per customer right now stands at about 5,000 kilowatts hours per customer per capita," the TTEC official added.
Some 27 per cent of TTEC's revenues come from its 347,000 residential customers, while its 35,000 commercial customers account for 10 per cent.
2,800 overall commercial customers
Commercial customers include 2,800 industrial customers.
Last year, TTEC got approval from the Regulated Industries Commission (RIC) to adjust its rate for industrial and commercial customers for the period June 1, 2007, to May 31, 2008.
RIC suggested that the rates of industrial consumers could increase by as much as three per cent.
If implemented, it would be the second increase to industrial users since last November.
Domestic users, however, continue to enjoy power at US 3.5 cents per kWh, as government has deferred decision on the new tariffs.
Business leaders have already warned that the costs of goods and services will increase with the proposed hike in electricity rates.
Aside from TTEC, the power generation sector includes 13-year-old PowerGen and Trinity Power Limited.
PowerGen, which sells bulk supplies to TTEC under a 15-year power purchase agreement, has three major plants operating at a peak of 700 MW per annum, but which have maximum capacity of 1178-MW.
Trinity, which is owned by a consortium of American companies, has total installed capacity of 22 MW. It sells 195 MW per annum to TTEC under a 30-year agreement.
TTEC is itself exploring the use o energy supply sources, including wind and solar.
