Hope Windfarm Project will be publicly traded – consultant

– hopes pilot project leads to increased use of wind in energy matrix

The Hope Windfarm Project, which received approval from the Environmental Protection Agency (EPA) last year, will be a publicly traded venture that will open up opportunities for anyone in Guyana to buy shares.
Dr Frederick Sukhdeo, a consultant with Hope Wind Energy Incorporated, recently sat down for an interview with the state media where he said that the aim is to have a significant portion of the project be owned by ordinary Guyanese.
“We’re looking at investment opportunities from local institutions and individuals, where this company can go more public and shares can be sold for future development to the small man, who can buy a few thousand dollars of shares, a hundred thousand, half a million, whatever it is,” the consultant said.
“The advantage is the rate of return on the investment will be very attractive. We’re hoping that it will come to a minimum of 10 per cent… of course, it is a low-risk investment. We’re almost assured, because of the technology and operational requirements which will be overseen by highly technical people.”
The project will have four turbines on Hope Beach and two at Chapman Grove, East Coast Demerara (ECD). Each mega-turbine will provide approximately 4.2 megawatts of power, for a combined total of 25 megawatts. Sukhdeo was confident that wind farms are an ideal solution to supply most of Guyana’s renewable energy needs.
“We have to conceive, at this stage, that this pilot should metamorphose into bigger things for Guyana. More renewable energy. Cause we want to ensure and we have data… our wind data is showing that we could establish in Guyana, in a few years, almost 90 per cent of the demand for electricity, present and future, from wind farms,” he said.
Last year February, it was announced that a Power Purchase Agreement (PPA) is being negotiated for Guyana to boost its electricity generation capacity with more renewable energy sources such as the Hope Windfarm Project.
During a presentation at the International Energy Conference and Expo in Georgetown, Hope Energy Development (HED) Inc Project General Manager John Sydow, had said the company was currently working with the Guyana Power and Light (GPL) to finalise the PPA.
With six wind turbines along the East Demerara coastline, the Hope Windfarm project is expected to add 25 megawatts of power to the national grid through a nearby substation, thus reducing the power company’s reliance on fossil fuels.
HED has formed a joint venture with international partners to carry out this project, including Vestas Wind Systems – a Danish manufacturer, seller, installer, and servicer of wind turbines. This company will be manufacturing and installing the turbines for the project.
Vestas will also be taking the EPC lead to build the plant and will have a 15-year operation and maintenance contract catering for the performance guarantee of the wind turbines as well as the training of three local technicians. In addition to the wind farm, the project has a 20-megawatt solar farm.
HED is the project developer and is responsible for getting it ready for construction thus undertaking all the risks. However, after two years when the risk element is eliminated, the project will be handed over to low-risk investors.
These include Vestas and Hope Wind Energy (HWE), which is the Special Purpose Vehicle (SPV) with all the assets and will finance the project. HED will be supporting HWE with the operation and maintenance of the substation and lines.
According to Sydow, this investment model is what is typically adopted for renewable energy projects in Europe, the United States, and other regions around the world. (G-8)