Unlocking our energy potential

Mar 03, 2017 Editorial, Features / Columnists

With the average cost of electricity currently many times higher in Guyana than in most of the developed countries, such energy costs are not only a daily financial hardship for most of the people, but compound the effects of the constant power outages, especially in the rural areas, that have for decades wreaked havoc on the nation.
Add to that the shocking development of value added tax on electricity and one can well understand why the cries for mercy have become so much louder.
Over the years there have been innumerable complaints countrywide about refrigerators, computers and other electrical appliances being damaged from surges in voltage following the restoration of power. It has been discouraging to say the least.
While a drop in oil prices had for a time released some of the financial burden on the people, it also represented an opportunity for the government to look into strategies for increasing energy security in the country from different sources.
For the last two decades, the respective administrations have not meaningfully invested in clean energy such as wind or solar. There was a failed attempt to harness the Amaila Falls which would have cost the taxpayers over US$1 billion. This would have been an excessive burden on the people for generations to come.
Furthermore, there was no conscious effort to reduce the cost of electricity, either through more efficient line production and consumption, or through the reduction of theft. Serious endeavours must be made to reduce the inefficiencies in the country’s energy systems.
Most small Caribbean states, including Guyana, depend almost entirely on petroleum to supply their total electricity needs. However, this country has not achieved near-universal electrification, where almost all homes are connected to an electrical grid. And except for Trinidad and Tobago which has oil and gas, the rest of the CARICOM states depend solely on the PetroCaribe agreement with Venezuela for their energy needs.
The availability and reliability of energy services remains crucial to sustainable development of the country, where only 58 per cent of the population has regular access to electricity. The persistent border dispute between Guyana and Venezuela essentially derailed Guyana’s PetroCaribe deal. That fortunately came at a time when oil prices were at their lowest.
Guyana certainly has the capacity to produce diverse and large renewable energy sources, including not only solar, but also wind, geothermal and biomass. While solar and wind are intermittent, they can be used in combination with renewable geothermal power or clean natural gas energy to power the nation. But with little or no investment in those energy areas, oil-based electricity generation will continue to dominate for some time. However, modernizing the electrical distribution and grid systems and making buildings more energy efficient, as well as replacing old equipment and appliances with high efficient ones and LED light bulbs, will definitely save energy.
These reforms are critical to improving the business climate. For instance, for the last decade, Guyana’s ranking in Doing Business Indicator did not improve, partly because it did not make electricity less expensive as a result of lower production cost. Many donors and investors are supporting these reforms, and this is why the government must develop a new architecture for energy security in the country.
This new system would not only provide greater access to electricity across the country, but it would also help to identify concrete steps that the country needs to attract investments for sustainable energy initiatives. This should be the commitment by the administration to make the energy sector more efficient, sustainable and ‘green’. It is just the first step to unlock the country’s energy potential. Now is the perfect time to build on any sort of momentum to make Guyana self-sufficient in energy.

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