Inter-American Development Bank (IDB) approved a loan of U.S. $60 million to help Trinidad and Tobago, a major oil producer, to begin a process of transition to a more efficient energy grid, sustainable and clean. This loan, the first in a programmatic series of three operations, strengthen the legal framework and to contribute to the consolidation of a more sustainable energy sector, with emphasis on renewable energy, greater efficiency, transparency and accountability.
Also, the financial transaction will support the development of new policies and standards to promote energy efficiency and measures that serve to increase the environmental sustainability of alternative fuels such as natural gas and compressed natural gas (CNG).
Finally, production and promote efficient and rational use of fossil fuels, as well as strengthening the institutional capacities that will encourage the use of sustainable energy. Also will support the implementation of various public education campaigns.
“The program will promote a sustainable energy framework that will guide the exploration, exploitation, utilization and monetization of energy resources, where energy efficiency, renewable energy sources, like solar water heaters, for example, alternative fuels, carbon reduction and innovation play a strategic role, “said the head of the IDB project team, Natasha Marzolf.
By supporting these measures, the program will contribute to the efforts of Trinidad and Tobago to reduce their emissions of greenhouse gases.
Under this program, the authorities develop a “Green Paper on Energy and Minerals Policy in Trinidad and Tobago”, which will shape the energy regulatory framework, which will then undergo a public consultation process that will get feedback .
The program includes a series of taxes and tax incentives to promote the import and installation of wind turbines and solar water heaters, as well as conversion kits for vehicles that can operate with GNC.También consider the creation of incentives for companies conducting energy audits and implement other energy efficiency measures.
Similarly, the program will support the efforts made regarding the implementation of various campaigns of public education and awareness activities on energy. Also help develop a plan to establish a Center for Caribbean Renewable Energy, which will help to spread throughout the region the principles of cleaner energy.
The loan has a term of 20 years with a grace period of five years and variable interest rate based on LIBOR.