Tapping into Guyana’s waterways: Hydropower plays key role in energy future

Amidst Guyana’s rise as a global player in oil and gas, the country is strategically rolling out renewable energy options, powering a green revolution, with hydropower being the new focus.
Guyana’s vast water resources position the country to harness power from rivers, creeks and falls. However, due to the remoteness of some potential sites, it is a challenge to readily make hydropower a reality.
Guyana’s hydropower potential, estimated at over 7000 megawatts (MW), positions the country as a leader in renewable energy production in the region. The current renewable power plants just scratch the surface of Guyana’s hydropower generating capacity and potential.
According to the Guyana Energy Agency (GEA) website, there are 67 potential sites for hydropower generation.
“Guyana Energy Agency will continue to assess the potential and suitability of hydropower development based on the location of sites, distance to load centres and the demand at those load centres,” Agency Head, Dr Mahendra Sharma explains.

Within Regions Eight and Nine, homes to predominantly Indigenous People, three hydro-power plants, one recently commissioned and two under construction, are in place to generate undisrupted power to homes and businesses.
These power plants contribute less than 1 per cent of Guyana’s energy supply. However, they represent a significant step toward meeting the country’s 2016 Paris Agreement commitments to reduce greenhouse gas emissions.
Hydropower generation is a part of the Government’s multi-pronged approach to meeting climate commitments and implementing cleaner energy sources. Touted as the most mature, reliable and cost-effective renewable power generation technology, it has four benefits.
The GEA on its website explained, “it is renewable, it produces negligible amounts of greenhouse gases, it is the least costly way of storing large amounts of energy, and it can easily adjust the amount of electrical energy produced to the amount demanded by consumers.”

New era of energy for Central Rupununi
In Lethem, Central Rupununi, Region Nine, where electricity is already being supplied through fossil fuel, the aim is to reduce the township’s dependence on Heavy Fuel Oil energy generation and transition to renewable power generation.
“The aim of the renewable energy (RE) plants is to reduce dependence on fossil-based fuels while maintaining stable and reliable energy supply,” the Guyana Energy Agency Head explains.
The town, which sits on the Guyana-Brazilian Border now has an energy mix system with a 1 MW solar farm, 2 MW diesel generators, and the hydropower plant delivering a total capacity of 3.7 MW. The township power generation capacity will climb to 5.2 MW when the Kumu power plants come online. The aim is to ultimately reduce dependence on fossil fuel for energy generation.

“It is estimated that hydropower and solar PV (photovoltaics)will provide a total of 89 per cent of Lethem’s energy demand,” Sharma noted. An estimated annual savings of close to 26,000 barrels of fuel will be saved from the Lethem Power Grid when the 1.5 megawatts at Kumu, and the 0.7 megawatts in the Moco-Moco Village come online.
The Moco-Moco hydro generating power plant was recently re-commissioned by Prime Minister, Brigadier (Ret’d) Mark Phillips. The first hydropower station commissioned in 1999, generated 500 kilowatts (kW). It became defunct subsequent to a landslide in 2003. The new hydropower plant was supported through financing from the Islamic Development Bank (IsDB)and built by Vidullanka PLC of Sri Lanka.
The Kumu Falls Hydropower plant is scheduled to commence generation by February of next year.
“In Lethem, at your maximum capacity right now, you are only using 2 megawatts. You will have almost two and a half times the amount of electricity that you can use right now… this is the development that we’re talking about, bridging the divide, the development divide, and we have successfully bridged the energy divide with this one project.” The Prime Minister said during the commissioning.
Mayor of Lethem, John Macedo explains the transition is timely and plays an integral role in the town’s rapid development where there is a demand for power. He also explained that the transition will play a part in eliminating low shedding.
Moreover, he said the transition will also make the township an eco-friendly one adding to its tourism package.
“With more than 15,000 tourists yearly we need energy for this sector. Even if it is an hour a tourist is stopping, we need energy for that hour. A reliable and clean energy source can help us to meet that need,” he said.
“I believe this transition is and will be very beneficial for the town because we are experiencing rapid development. It will help every sector of our local economy and help us to be a sustainable and green town,” the Mayor asserted.
The energy transition will also result in residents paying less for electricity. When the township relied solely on fossil fuel generation, residents paid approximately $80 per kW. This was due to the cost of transporting fossil fuel into the region that was factored into the price for electricity.
In addition to power plants in Region Nine, a third hydroelectric plant is being constructed at Kato, Region Eight. These plants collectively will generate over two MW of power to supply the grids of local indigenous communities.
It not only powers the communities but provides a reliable source of electricity on a long-term basis. The topography of Guyana prevents Indigenous communities from being easily connected to the national power grid.

‘Guyana’s energy future is renewables’
Despite being a leading global oil producer, Prime Minister Phillips emphasised in his address to the Caribbean Community (CARICOM) last month that Guyana’s energy future lies in renewables.
Speaking during CARICOM Energy Week, he highlighted the Government’s substantial investments in both utility-scale and small-scale renewable energy solutions aimed at reducing the nation’s reliance on fossil fuel-powered energy sources.
The country is looking to incorporate hydropower, solar, natural gas, and wind into its clean energy sources. This energy mix will lead to more than 500 MW of newly installed capacity for residential and commercial users and foster energy transformation.
Guyana’s push towards cleaner energy is not only on international climate obligations but also on its revised 2030 Low Carbon Development Strategy (LCDS), from which money is earned through the sale of carbon credits.
The LCDS states energy demands of the country are projected to increase fivefold the current energy demand by 2030. Currently, at a peak, the country requires approximately 205 MW of power. By 2025 the energy demand is projected to increase to 407 MW.
Using the multi-pronged approach, in which hydropower is a cornerstone, to bridge away from heavy fuel oil, greenhouse gas emissions are projected to stay relatively flat, even as the energy demands increase.
Moreover, with the integration of hydropower into the energy mix, the Government not only aims to meet climate targets but also to mitigate the environmental impact of fossil fuels, balancing energy expansion with ecological preservation.
Addressing concerns about the environmental impacts of hydroelectric dams, Sharma said Environmental Assessment and Management Plans were prepared for hydro stations and environmental permits were secured.
In his explanation, he dismissed cause for concern and said in Region Nine “The two hydro stations have weirs and not dams or reservoirs. While a dam stores water for release at times of need, the weir allows continuous natural flow while diverting some water for power generation.”
Sharma further explained that the power plants in Region Nine are run-of-river (RoR) hydropower plants, which have significantly lower environmental impacts compared to dam-based projects.
“Unlike dams, ROR plants avoid large reservoirs, preserving aquatic ecosystems, minimising habitat loss, and maintaining natural river flows. There is no stagnant water to generate methane and there is less impact on water quality and sediment flow. These projects require less land and there is no displacement of communities and cultural sites,” he clarified.
A similar model is used for the Kato,0.15 MW project along the Chiung River. While these hydropower projects contribute to global commitments, their immediate impact on Guyana’s hinterland communities is equally significant.”
For a local community, especially in Guyana’s hinterlands where power generation is limited, a project of this magnitude provides improved access to electricity from a renewable source (reliable and clean), reduced reliance on fossil fuels for energy generation, reduces in carbon emissions and promotes local employment and skills development, enhances community development, education delivery and healthcare among others.

Hallmark of Hydro Power
Meanwhile, the Government has repeatedly stated the Amaila Falls Hydropower Project (AFHP), which is the hallmark of hydropower in Guyana, will be constructed despite the many delays.
“The Government of Guyana is currently reviewing proposals for the development of a 165-megawatt hydropower plant on the Kuribrong River, Region Eight, under a Build, Own, Operate, and Transfer (BOOT) model,” Sharma explained.
Last December four companies, Rialma S.A. (Grupo Rialma) from Brazil, China International Water & Elec. Corp, Lindsayca CH4 Guyana Inc, and a group made up of OEC, GE Vernova and Worley tendered their proposals.
The Request for Proposals (RFP) outlines the Scope of Works for the development of a 165 MW hydropower project. This includes the construction of a hydro dam, power plant, and associated infrastructure; a 270-kilometre double-circuit 230 Kilovolts (kV) transmission line from Amaila to Sophia; 230 kV substations at Linden and Sophia; a 23-square-kilometre storage reservoir; and upgrades to access roads and bridges, comprising 85 kilometres of new roads and 122 kilometres of existing roads.
The developer will assume all geotechnical risks and provide guarantees related to the reservoir, dam, and transmission towers. Under the BOOT model, firms are required to specify the cost per kilowatt-hour (kWh) for power delivered to Sophia, Georgetown, over a 20-year BOOT period commencing from the commercial operations date. The developer will bear all project costs up to commissioning, after which ownership will transfer to the Government at no cost. Proposals must detail assumptions, including capital costs, equity, debt, and operating expenses.
A 2030 completion date is touted for the project which has the potential to supply up to 90 per cent of the country’s electricity needs.
When online, the projected fuel savings are 1,570,500 barrels of heavy fuel oil per year. The benefits to the grid will be a reduction in the use of fossil-based energy sources, cost savings, energy security and environmental benefits, the Energy Agency Director stated.