Renewable energy funding will not come by waiting – Bharrat

Natural Resources Minister Vickram Bharrat has posited that it is impolitic to wait for funds to develop renewable energy mechanisms if Guyana is serious about achieving the target of 100 per cent renewable energy by 2050.
At the closing of the International Energy Conference and Expo on Thursday, he explained that the world’s population is estimated to grow by two billion people by 2050, meaning that 20 percent more energy than is used now would be required. Moreover, there are commitments to reach net zero and 100 percent renewable energy by this time.
While maintaining that Guyana’s environmental credentials are second-to-none, Bharrat spoke about the work needed to develop natural resources to meet world targets.
“We have no issue with that (renewable energy targets) as a country. We are fully committed to achieving that. We’re working towards achieving that. But the big question is: How are we truly going to finance that? Renewables cost money. Moving to net zero and cutting emissions cost money. If we are going to sit by and wait for help to come our way, we might be waiting for a long time. It speaks towards Guyana as a country sustainably and responsibly exploring and developing its natural resources,” the Natural Resources Minister expressed.
The big takeaway, he said, is realizing that there will be a space for both renewables and fossil fuel in the near future. However, Bharrat opined that small developing countries must be given the opportunity to supply small markets when the demand drops.
“The big question is: How long will the demand remain at peak or the way it is today? The truth is that the demand will fall at some point in time… The other countries have been producing for decades, or maybe centuries. They would have used their resources to create different sectors to provide a better life for their people. We should accept that our people deserve that kind of life too,” he declared.
An important part of transitioning to renewable energy is upgrading the present Demerara Berbice Interconnected System (DBIS) used by the Guyana Power and Light (GPL), which depends on Heavy Fuel Oil (HFO).
Guyana has projects in the pipeline to help realise its renewable energy vision. Construction on the Amaila Falls Hydropower Project (AFHP) was supposed to start last year, as Government continues to ramp up spending on renewable energy projects as well as upgrades to the Guyana Power and Light (GPL) infrastructure. The expected completion date was to be 2027.
The AFHP will be based on a Build-Own-Operate-Transfer (BOOT) model, wherein the company would supply electricity to GPL Inc at a cost not exceeding US$0.07737 per kWh, and wherein the company would provide the entire equity required by the project and undertake all the risks associated with the project.
The 0.65MW Mahdia Solar Farm is also being financed through a loan from the IDB, under the Energy Matrix Diversification and Strengthening of the Department of Energy (EMISDE) programme. There is also a 1.5MW Bartica Solar Farm which will cost $625 million. (G12)