Guyana plans mega increase in energy production

By Vishani Ragobeer in La Jolla, San Diego
vishani@newsroom.gy

Guyana, the small South American country of 83,000 square miles, is preparing for a massive increase in energy production, a feat its Foreign Secretary Robert Persaud said will be fuelled by natural gas, hydropower, and solar energy.

The Foreign Secretary spoke about the country’s energy plans as he gave the opening keynote address on Wednesday at the La Jolla Energy Conference in San Diego.

“Future energy needs would be supplied through strategic projects such as the transformative Gas to Energy Project, a small oil refinery, the Amaila Falls Hydro project, and a plethora of other renewable energy projects,” Persaud declared.

Importantly, the Foreign Secretary highlighted that the energy production would move from just over 200 megawatts (MW) now to a whopping 3,000 MW, possibly by the end of the decade.

That 3,000 MW figure includes plans for an energy corridor with northern Brazil and Suriname. And it caters to a major increase in energy consumption, including from an envisioned expanded manufacturing sector.

With second power plant on the horizon, Guyana could support neighbours’ energy needs

Persaud, however, noted that Guyana hopes to ‘green’ its energy supply, in keeping with the global energy transition thrust to reduce harmful fossil fuel emissions.

Simply put, Guyana hopes to wean itself off of its dependence on imported fossil fuels and supply about 70% of the energy it needs through renewable energy sources by 2030.

This isn’t a new position for the country that is now producing about 660,000 barrels of oil per day.

In fact, Persaud addressed the dual pursuit head-on.

“… while being cognisant that the carbon footprint of Guyana’s light, sweet crude oil may be as low as 25%, we aim to undertake a clean energy transition, by decoupling economic growth from greenhouse gas emissions and supporting the creation of low carbon jobs and economic opportunities,” he said.

The energy plans in Guyana are a key policy matter.

Guyana has some of the highest electricity rates in the Americas and is heavily dependent on imported fossil fuels, mainly diesel.

Small solar projects are being developed around the country, particularly in rural and hinterland areas, where it is difficult to connect communities to the main power grid known as the Demerara Berbice Interconnected System.

The country is banking on a mega 300-megawatt (MW) gas project that will harness the natural gas produced in the prolific, oil-producing Stabroek Block offshore and generate power at about half the current cost. A second power plant of this nature is already being considered.

The current administration, the People’s Progressive Party Civic (PPP/C) government, has also long pursued a mega hydropower project that is expected to generate about 165 MW of power from the Amaila Falls in Region Eight. A second hydropower project is planned too.

The Foreign Secretary told those gathered at the La Jolla Conference that Guyana believes that a resilient future lies in balancing immediate energy demands with the long-term necessity of safeguarding the environment.

COP28: Guyana champions its low carbon strategy as an int’l development model

Not only is the country embracing renewable energy but Persaud pointed out that the country’s Low Carbon Development Strategy (LCDS), Guyana’s blueprint for development, sets out how the country is maintaining its environmental stewardship.

The environmental stewardship, he pointed out, lies in the country’s forest and biodiversity protection efforts.