Caribbean Investigative Journalism Network (https://www.cijn.org/category/energy/)
Like many small-to-medium scale agro processors, 63-year-old Sandra Craig is eager for a solution to Guyana’s unstable power supply. Since moving from a small “snackette” in Orange Walk, one of the bustling streets in Georgetown, Guyana’s capital, to having her own agro-processing facility in Norton Street, Craig said major expansion could have been on the horizon were it not for the challenges posed by the country’s unreliable grid.
Trinidad and Tobago’s 1.4 million citizens are about to learn how decades of subsidized electric rates are going to cost them dearly. The twin-island republic’s once abundant supply of natural gas has been used to generate electricity for residential, business and industrial customers at far below market prices.
Beginning in the 1970’s, successive governments discounted Trinidad’s electricity costs to everyone. It proved incredibly popular among voters. Today, it is being sold to residential customers at a mere US$ 0.05 per kWh. That lowest tier price is among the cheapest rates in the world. There have been unwanted consequences as the subsidies distorted the markets.
Introduction
In an era of increasing geopolitical upheavals and economic volatility, energy security has become a non-negotiable priority for Caribbean nations. Recognising the importance of achieving this goal, Guyana, Trinidad and Tobago, and Suriname have stepped up to marry their respective strengths and produce a practical blueprint for energy independence. Towards this end, the trio has signed several non-binding agreements over the years. Following high-level discussions at the Suriname Energy Oil and Gas Summit (SEOGS) in June 2023, Suriname and Trinidad and Tobago signed an agreement to establish technical teams to produce feasibility studies on various energy-related issues. Guyana and T&T also signed a similar pact in May 2022, building on another signed in January 2022 with Brazil and Suriname to explore the development of an energy corridor.
Trinidad & Tobago, Guyana sign Energy MOU – MAY 22, 2022 (Guyana’s Department of Public Information photo)
Their political will is also imbued with the efforts of CARICOM, which more than two decades ago endeavoured to have its 15 member states find common ground on devising a strategy for energy security.