Trinidad and Tobago Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Trinidad and Tobago Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • August 2021 •
  • 82 pages •
  • Report ID: 6129732 •
  • Format: PDF
The Trinidad and Tobago solar energy installed capacity registered to be 3 megawatts (MW) in 2020 and is estimated to be around 184 MW in 2026, registering an expected growth at a CAGR of 109.24% from 2021 to 2026. However, the crash of global energy markets amid the COVID-19 pandemic and the growing threat of climate change provide an impetus for a reevaluation of Trinidad and Tobago’s energy security and a concerted diversification of the nation’s energy mix. Factors such as rising environmental concerns, energy security, and increasing focus on renewable energy are expected to be major drivers for the market. However, due to its abundance in natural fossil fuel reserves, the country had one of the lowest electricity rates (USD 0.04/kWh) in the region (recorded in 2014), which is well below the average rate of electricity in the Caribbean nations (USD 0.33 USD/kWh). This further translates into a restraint on the growth of alternate energy sources such as solar energy.

- The gradual shift from energy generation using conventional sources, such as coal and natural gas, to clean energy is expected to drive the Trinidad and Tobago solar energy market.
- Various government initiatives are expected to create a significant amount of opportunities in the market. For instance, under Vision 2030, the government of Trinidad and Tobago pledged to incorporate renewable energy into the country’s electricity mix, which further rendered into tenders and economic incentives for solar energy installations.
- Though, the lack of interest by international companies to develop utility-size solar power projects and increasing adoption of alternate renewable sources in the country are expected to hinder the growth of the market.

Key Market Trends

Increasing Demand for Clean Electricity Generation Expected to Drive the Market

- As of 2020, the electricity generation mix in Trinidad and Tobago is dominated by fossil fuels such as natural gas and diesel.
- However, increasing demand for clean and stable energy is expected to be the primary driver for the solar power generation market in the country. The country has been one of the most active countries in the region, in relation to policies, to reduce greenhouse gas emissions and aim toward cleaner energy.
- Rooftop solar offers the benefits of modern electricity services to households that had no access to grid electricity, reducing electricity costs on islands and in other remote locations that are dependent on oil-fired generation, as well as enabling residents and small businesses to generate their own electricity.
- Usage of local energy sources or distributed generation reduces energy losses due to line loss, i.e., the power lost in the transmission and distribution of electricity over long distances.
- Supporting government initiatives have also aided the growth of the solar energy market in the country. For instance, in February 2020, the government of Trinidad and Tobago floated a tender for 130MW solar power to attract foreign investors.
- Therefore, the aforementioned factors are expected to drive the market during the forecast period.

Lack of Investments to Restrain the Market

- There has been a significant lack of investments by foreign and domestic companies in the country’s renewable energy sector. This has hampered the development of utility-size solar projects in the country. Due to the lack of investments, the solar capacity of the country has remained stagnant between 2-3 MW since 2010.
- Renewable energy projects in Trinidad and Tobago have been limited to the pilot scale. Two 2-kilowatt (kW) off-grid photovoltaic (PV) systems have been in operation at both the University of Trinidad and Tobago and T&TEC’s Mt. Hope compound, and twenty-one 1-kW PV systems have been installed at schools around the country till 2020.
- One of the huge barriers against renewable energy penetration in the country is the heavily subsidized fuel and electricity that creates an uncompetitive economic environment for renewable energy technologies.
- Therefore, the lack of investments particularly in utility-scale solar projects is expected to be a major restraint for the solar power market in the country.

Competitive Landscape

The Trinidad and Tobago solar energy market is moderately consolidated. Some of the major companies operating in the market include AIMS Power, Resscott Ltd, Trifactor Technical Sales and Services Ltd, SolarWorld-tt, and AMBA Energy Limited.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

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