BLUEPRINT – Energy and Environment

Nov 28, 2008 Features / Columnists

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Peter R. Ramsaroop, MBA

INTRODUCTION

We here in Guyana are in a very unique position to ensure at least 15 percent of our electricity comes from renewable sources by 2013, and 25 percent by 2025.
We have talked about alternative energy for mega years, and no government, so far, has been able to move it to the next step.  One of the failures of this government was to allow a small company (Synergy Inc) to negotiate a hydro plant deal that wasted two years and now cannot get off the ground.
With renewed interest now from others, we may still be able to get a project started shortly.
The environment and employment are key factors as we develop new sources of energy. I have advocated, for example, changes on our duty taxes on cars to solicit the importation of hybrid cars into Guyana. What is also now needed is a comprehensive Energy and environment plan for our Nation.
I recommend the government make this a high priority for 2009.

ENERGY
We must continue to provide short term relief to consumers such as the reduction of fuel taxes and lower transportation cost.  Help is greatly needed in reducing our electricity bill.
We need to attract new bids on our Hydro Project. They are key components of a contract that we need to give to a company in order for them to put the US$800M such a project will cost.
a. Ensure a minimum of 20-25% Returns
b. A charge between $0.12c -0.155US a Kilowatt. Anything less will prohibit an investment.  In the Synergy deal the Government insisted on a .07c which showed a lack of understanding on what companies need in order to justify a substantial investment. They need to raise that cap significantly.
c. Compare to what we are paying now for electricity, we have lots of room for negotiation.
d. Government must also partner with Amerindian communities to ensure compliance and allow them to share in the development stage within their communities.
We have also advocated policy changes in other sources such as ethanol and wind power. Previous columns and policy papers expand on the areas necessary to kick start these projects. We are now very concerned that we are four years behind in the ethanol project we proposed in partnership with Brazil.   Brazil is the leading exporter of ethanol and most of their vehicles run on 85% Ethanol and 10% gasoline.
This will help our rising fuel prices if we can diversify from just sugar to added value in alternative energy.

ENVRIONMENT
The global greenhouse gas emissions should be less than 20 billion tonnes of carbon dioxide equivalent by the year 2050. There have been discussions on where Guyana fits in this arena and we can play a major role.
This opens the door again for the right negotiations.  The President should not be globe trotting and selling our forest for the little amount he has proposed.  We must first engage in a national conversation with all stakeholders and especially our Amerindian communities.
We just cannot subscribe to the model when our economics does not sustain itself, thus we have to raise our prices to protect our forest.  Yes I am advocating we hold out for the highest amount we can get.
We have to be able to make up for future investment we would lose in selling our timber and other agriculture projects.  The developed world has other means of creating economic stability; for us not to cut down our trees we must be well compensated.
Yes, we must stand strong and I hope the President takes heed that we as a nation must not sell cheap.
We want to be good environmentalists, but we must also face reality on what our economics will justify.
This should become a national issue and I urge all Guyanese to pay very close attention to this topic over the next few months.
It is in our national interest that we craft a policy that supports the environment but also the reality that in order to do so, significant investments will be needed in areas of economic development or we will need to continue to sell our forest.

CONCLUSION
As the readers will note, most of my columns outline policies of Vision Guyana’s Blueprint for the nation.   It is my hope that you keep copies of these columns and use it for debate and discussions purposes on current policies proposed by Government.
Vision Guyana’s goal has always been to try to influence change today, not tomorrow.   It is our hope that you get involved on these two critical issues of Energy and the Environment.
It is also very important that we keep the Amerindian communities at the forefront as they will be most affected by these discussions.  We must ensure their right while developing our nation for the benefits for all of us.
Let us work together, government and the people, to ensure that we solve energy while protecting the environment. Solving energy will put our nation on the road to economic recovery. I am willing to work with Government to ensure this component is solved.
Until next time, “Roop”.

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