Howai: Energy diversification, renewable energy key to Trinidad and Tobago sustainability

News Ryan Hamilton-Davis 22 Hrs Ago

Central Bank Governor Larry Howai -

Central Bank Governor Larry Howai highlighted TT’s renewable energy policy and its plans for diversification as critical elements to ensuring TT’s sustainability.

He was speaking at the second day of the Institute of Chartered Accountants of TT (ICATT)’s annual international finance and accounting conference on November 21.

He said while TT’s economic activity rebounded in the second quarter of 2025, financial conditions were, while favourable, still volatile.

“This improvement was attributable to a notable surge in energy sector activity, which countered estimations of reduced activity in the non-energy sector and domestic price pressures remain relatively contained,” he said.

“In addition, the new fields being currently developed will add some stability to oil and gas production and foreign exchange inflows, in the years ahead.”

Taking note from the International Energy Agency, Howai said the energy outlook is set against a backdrop of major shifts in energy policies and markets along with geopolitical strains

“As an energy-based economy TT has been directly impacted by energy price volatility, which has affected macroeconomic fundamentals through energy revenues, energy exports, and international reserve inflows.

He noted that crude oil prices have fluctuated between a low of US$39 per barrel in 2020 and a high of US$94 in 2022 but he said the average oil price for the year to date stands at $66.

“At the same time, the global energy transition toward renewable energy sources signals a long-term structural shift that we cannot ignore. Downward pressure on oil prices will persist if global oil inventories rise. The availability and free flow of LNG to Europe as well as the quantity and timing of US gas production are expected to be the key drivers of natural gas prices in the short-run,” Howai said.

In the 2025/2026 budget, Minister of Finance Davendranath Tancoo estimated the oil price at an average of $73.25 per barrel.

Howai said despite the nuances, the Central Bank’s monetary policy remains unchanged for 2025.

“At its last meeting in September 2025, the Monetary Policy Committee maintained the Repo rate at 3.50 per cent – unchanged since March 2020. Considering domestic and external factors, monetary policy in 2025 has been focused on amplifying liquidity and supporting economic growth.”