“Blackout Nation”

Oct 25, 2009 AFC Column, Features / Columnists

We all have been experiencing blackouts almost daily in Guyana. We are becoming known as the “Blackout Nation”. Many have complained that even with good internal wiring, surge protectors and other protective equipment, our properties are still being destroyed, from TVs to computers, to other assorted electrically, powered appliances and equipment, at our businesses and homes. Not to mention the horrific spate of fires – which according to some eye witnesses- were the result of burning electrical wires on utility posts. We pay our electricity bill every month as a contract that GPL must provide electricity for us on demand 24/7. How many of you have experienced this? How many of you have lost major appliances due to the power surges?? How many businesses lost customers? Those of you who can afford it have to buy generators and fuel to replace GPL. We are not compensated for this and the fuel adjustment clause in our bill only works in one direction, that is, upwards, even though fuel prices have dropped significantly. GPL spent millions renting generators from friends, now the company claims it has no money to upgrade its systems in a timely manner.

A few months ago, GPL paid GUYSUCO over $100M for providing electricity to the grid. There has been no public transparency on this transaction. How is this transaction documented? What is GUYSUCO charging GPL? Who is making a profit on this transaction between two government-owned entities? Are there any cost savings which should be passed on to customers based on this transaction? This is a high number to be floating between two government-run entities without any accountability. Money is being spent in areas of training at GPL in excess of $40M in a manner that is not justified by the electric power industry best practice numbers.

Alternative Energy – Why the Failure by Our Government?

The PPP Administration has failed miserably in developing a viable energy program for our nation. We all pay the price everyday with the high cost of electricity and fuel prices. One would think that developing a comprehensive energy plan for Guyana would have been a priority item instead of the President globetrotting seeking to constrain Guyana’s development under a low carbon strategy that is not integrated with Guyana’s national development strategy, and whose implications have not been discussed by a wide cross-section of the Guyanese society as is necessary in this major initiative.

A comprehensive energy plan for Guyana would focus on an increased role for renewable energy in Guyana’s energy mix, with hydro-power being considered to be a renewable energy source. An energy plan for Guyana also has to consider the importation of hydro-power from our neighbors, as well as the role of ethanol. A major driver of decisions on Guyana’s energy future has to be a focus on low carbon which is good for Guyana. However, the low carbon perspective must be driven by Guyana’s self interest first and maintaining our right to choose our sustainable development path.

Thus, an essential component of an energy plan for Guyana is the role of renewable energy. In this area, technologies using wind and solar power are immediately applicable to Guyana. The lack of an interconnection policy by GPL for net metering is an indication of the slow pace at which the government is moving in relation to encouraging investment in wind turbines and solar panels for generating electricity. Guyanese entrepreneurs and citizens nevertheless are going forward with renewable energy projects to supplement the intermittent electricity supply.

The high price to customers of electric power supplied by GPL makes renewable sources of electricity very viable in Guyana. However, even with lowered prices renewable energy would still be a viable option. With an interconnection protocol established customers should be able to sell their excess renewable energy to the GPL to supplement its output. Also these renewable sources are ideal for some of the dispersed communities and individuals in Guyana’s interior.

Guyana can also seek to develop large scale hydro-power which is also seen by us as a renewable source of electricity. The challenge for the project which would change Guyana is the flooding, and possible population relocation that would be necessary. Guyana would also need to develop a national grid to distribute the power generated to current population concentrations as well as to potential population concentrations. As the grid is built out and the dam is being constructed we might be able to negotiate agreements to get hydro-power from Brazil. Given Venezuela’s territorial claim getting hydro-power from that country seems a long shot and not currently in Guyana’s best interest.

In relation to wind power, the option of having turbines off shore needs to be examined carefully. Off shore wind power can help especially in the context of supplying power at peak times. This is one of the options for Guyana to explore in relation to decentralized electricity generation. Offshore wind has the potential to deliver substantial quantities of energy at a price that is cheaper than most of the other renewable energies. The bottom line is that this must be one of our immediate energy policy initiatives to supply power before large scale hydro power comes online. Development of our renewable energy sources is also insurance against future rises in the prices of hydrocarbon. It also reduces foreign exchange outlays in the absence of domestic supply of fossil fuel and fosters energy independence.

What really does this PPP administration do for a living?
The AFC proposes a 10 point Energy Plan:
As discussed above, Guyana’s Energy Plan has to be underpinned by investment in climate-friendly energy development and deployment. We understand as has been recognized in many countries that Guyana needs to rely on green technologies to help solve the critical energy and environmental problems facing the country. The AFC sees these as the key elements of Guyana’s energy planz:
1. Help create new green jobs by strategic policy choices to catalyze private efforts to build a clean energy future.
2. Within 10 years reduce oil imports by 50%.
3. Encourage use of fuel efficient cars for Guyana, including prohibiting the import of cars older than eight years.
4. Ensure 10 percent of our electricity comes from renewable sources by 2013, and 25 percent by 2015.
5. If oil and gas is found in Guyana’s territory, have a national discussion on whether Guyana’s best interests will be served by the development of a Guyanese oil and gas industry.
6. Promote all renewable energy sources.
7. The promotion of ethanol production.
8. Development of a smart grid linking the major population centers of the country
9. Prioritize a feasibility study of the option of developing large hydro facilities in Guyana as against importing electricity generated from hydro power from our neighbours
10. Encourage energy efficiency; including the establishment of green building standards for Guyana to help Guyanese reduce energy use in their homes and businesses.
For more information on the AFC visit: www.afcguyana.com or call 226-0181.