Guyana on the right track with energy transition- Former Colombian Energy Minister

– says much potential exists for gas, other sources of cleaner energy

By Jarryl Bryan

Guyana has received plaudits for its efforts at transitioning to cleaner energy from former Colombian Minister of Mines and Energy, Diego Mesa Puyo, who himself is well versed with cleaner energy sources, having played a key role in Colombia’s own energy transition between 2018 and 2022.
Under the government of then Colombian President Iván Duque, Mesa pushed through laws, negotiated public/private partnerships and spearheaded policies aimed at transitioning Colombia away from fossil fuels, to cleaner sources of energy.

It is a journey that Guyana is very familiar with, and, in an exclusive interview with this publication on Saturday, Mesa, who has since transitioned to the field of academia, noted the parallels between his country and Guyana, and made it clear that Guyana was on the right track with its own efforts.
“I think there are a number of parallels. I would say the most important one is the natural endowment. Both countries are endowed with natural resources that are critical to the power sector. Hydropower, which is the main source of electricity in Columbia. You have a lot of potential for hydropower in Guyana,” he explained.
According to Mesa, who prior to politics worked for the International Monetary Fund (IMF) and after politics, is now a Visiting Fellow for Columbia’s Center for Global Energy Policy (CGEP), Guyana also has much potential for solar Photovoltaic (PV) systems, and last but certainly not least, gas.

“You also have a lot of potential for solar PV in Guyana, which is something that Colombia has been developing quite intensely over the last six, seven years. You also have some potential for wind power, which is something Columbia has been working on.”
“And as you just mentioned, gas power. So as far as the development of the petroleum sector, also being able to use domestic gas resources to replace more expensive and more polluting sources of energy,” he also explained.
He also stressed the importance of having the right environment in place to attract private investment that will push these energy transition projects forward. According to Mesa, Colombia’s own energy transition was done through private investment, though the country already had a significantly robust power sector since the 1990’s.
“The key here is to make sure that you have the right environment in place to bring in investment, develop these resources in a sustainable manner. And again, that’s where I see parallels. Understanding that these resources are critical for energy transition and they need investment to be able to develop them,” Mesa explained.
“The power sector operates according to the market. In 2018-2019, we introduced Power Purchase Agreements for renewable energy that make this sector very attractive for private investment. There were also changes in the legislation, to incentivise investment into solar, wind and battery storage.”
Mesa also reflected on Colombia passing an energy transition law in 2021, which also included other resources like low and zero emission hydrogen, as well as geothermal energy. In other words, public sector policies played a key role in leveraging private investment.
While geothermal energy is contained in the earth’s crust, the depth at which drilling has to occur to access this energy source is often a major factor in how costly this exercise is. Meanwhile, low and zero emission hydrogen is a reference to various energy sources, ranging from using clean energy sources to produce hydrogen and the use of fuel cells, to producing fossil fuel based hydrogen with carbon capture implemented to ensure low emissions.
In Guyana, a number of initiatives have been implemented at all levels to push the energy transition. There is the People’s Progressive Party/Civic (PPP/C) government’s flagship Gas-to-Energy project, which when completed will see a 300MW Combined Cycle Power Plant and a Natural Gas Liquids (NGL) facility being built at Wales, West Bank Demerara (WBD), by the United States (US) based LNDCH4.
ExxonMobil Guyana Limited (EMGL) has already finished constructing the gas pipeline, and the transmission lines and substations required for integration of the project are significantly advanced, with completion anticipated next year. Additionally, a Phase Two that will see another power plant and Natural Gas Liquids (NGL) facility being built out, is also planned.
There is also the 165-megawatt (MW) Amaila Falls Hydropower Project (AFHP), which was the flagship initiative of the Bharrat Jagdeo-crafted Low Carbon Development Strategy (LCDS), during his time in office as President.
Additionally, the government has been embarking on a massive drive to distribute solar PV systems to persons living in hinterland areas, as part of its policy to get more citizens using rooftop solar PV technology to not only provide them with reliable energy and reduce their utility costs, but also to ensure renewable energy is normalised on a national scale.