More incentives needed to transition to renewable energy – Jagdeo

…says Guyana determined to stay on course of transition

Amid mixed success on the global stage when it comes to reducing carbon emissions and ensuring that the world transitions to renewable energy, Vice President Bharrat Jagdeo has emphasized that more effort is needed to incentivize this transition to renewable energy.
The Vice President made these comments during his recent press conference, where he was asked about recent comments from Saudi Aramco Chief Executive Officer Amin Hassan Naser that the energy transition across the world is fading and that plans to phase out oil should be abandoned.
While Jagdeo acknowledged that the world has indeed not been phasing out fossil fuels in a satisfactory manner, he made it clear that the answer was not to just give up. Instead, the Vice President noted the need for incentives to accelerate this transition.
“We believe that the transition has to take place where countries like ours, are allowed to move forward with our investments. This might be a fact. That the energy transition is fading. But it doesn’t follow that we must abandon our plans to phase out fossil fuel over time.”
“Or phase down the use of fossil fuel overtime. We need to work now to incentivize the energy transition. And therefore, if that happens, we can return to the task of phasing down the use of fossil fuel,” Jagdeo said.
The Vice President meanwhile noted that a just transition to renewable energy, one that would remain faithful to global commitments made by the developed world, should start with the phasing out of coal.
“A significant part of the world, particularly the developed world, because the developing world still has some reliance on coal. But the developed world should phase out the use of coal. There were moving to ban coal. The UK has now been reopening new coal mines. So that’s very polluting,” Jagdeo opined.
Guyana has been one of the leading advocates in the world for a just transition and for reducing carbon emissions. Back in 2008, Guyana was the first developing country to produce a Low Carbon Development Strategy (LCDS), maintaining one of the world’s most intact tropical forests, the world’s lowest deforestation rate and sporting more than 19.5 gigatons of carbon dioxide equivalent.
Financing for climate services has been a key cornerstone of Guyana’s message, with Guyana even co-chairing the carbon markets working group of the Forest and Climate Leaders Partnership, consisting of 30 countries.
Domestically, work continues on ensuring a transition to more renewable energy and the easing of the dependence on fossil fuel. This year, work will commence on a 10-megawatt solar farm in Berbice, an eight-megawatt solar farm in Essequibo, and a 0.6-megawatt solar farm in Leguan. Government will be spending $4.8 billion to finance these projects.
Solar power generation increased with the commissioning of a 1.5 MW solar farm in Bartica in 2023 while works have advanced on the 0.65-megawatt solar farm in Mahdia. The latter will be completed within the first quarter of this year.
Solar photovoltaic (PV) mini-grids were also installed in 21 communities such as Baramita, Capoey, Kwebana, Orealla, and Siparuta in 2023. These mini grid systems now provide renewable electricity to 285 public and community buildings.
In 2024, over $350 million has been budgeted for new mini grid systems in several areas including Awarewaunau, Katoka, Maruranau, Nappi, and Yupukari. At the household level in the off-grid hinterland and riverain communities, 26,398 solar panels were delivered, bringing electricity to many of these homes for the very first time. In 2024, a further 3,602 solar panels will be distributed.
For the longer term, sustainable power from the 165 MW Amaila Falls Hydropower Project (AFHP) will also augment Guyana’s energy mix. A revised request for proposals was launched in 2023 for which 22 firms responded. Four of these submitted pre-qualification documentation – which are currently being evaluated.
Meanwhile, work on the mini-hydropower facilities in Kumu and Moco-Moco were substantially advanced. This year, $1.3 billion is budgeted to complete these facilities. To improve reliability by reducing the voltage drop and network losses, as well as provide access of electricity to over 475 new households, $180 million is also budgeted to upgrade the primary distribution networks at Ituni, Kumaka and Kwakwani. (G3)