Guyana must not rush, make bad decisions regarding energy mix

Feb 13, 2022 Letters

Dear Editor,

As the Energy Conference gets underway, Guyana continues to experience the phenomenon of blackouts. Only last week, the national grid ran into trouble and they had to bring in experts to diagnose the problem. They had to shut down the five dual-fuel power-generating sets at GPL’s Garden of Eden power plant, to prevent a looming disaster, the Department of Public Information (DPI) said. That’s where we are after 60 years of both PNC and PPP in CARICOM’s richest country. The power monopoly has been a perennial nightmare for the Guyanese people. Supply is unreliable and expensive. GPL is quick to disconnect you for non-payment and slow to reconnect although they charge hefty fees for reconnection. And the Public Utilities Commission gives them a free pass. The script never changes.
We need change in a hurry but we must not make bad decisions that would end up creating and multiplying new problems. The Government is poised to embark on the Amaila Falls project, which was killed by the PNC government after the “Fip” problems. The government is also rushing ahead with the gas-to-shore/gas-to-power project. None of these projects has bipartisan support. Civic society groups and environmental groups have questioned the haste with which the Government is rushing to do these projects despite large question marks about increasing costs, environmental concerns, long-term viability, and its poor governance of oil. While local experts such as Alfred Bhulai argue that solar energy is cheaper than gas or hydro, at this point, the Government prefers the big-ticket items of gas-to-shore and Amaila. There are no big solar power projects on the horizon.
Speaking at the Conference is the Ghanaian President whose country has a bad deal with the gas company. Ghana’s failure to conduct proper gas-to-shore studies resulted in hundreds of millions of US$ in yearly losses. So, I am not sure what the Ghanaian President can tell us, unless he will be saying to our Government don’t make the mistakes that we made. Ghana signed a long-term “take-or-pay” Power Purchase Agreement (PPA) with gas and power suppliers, through which it would have to pay for a significant portion of the produced gas from their fields. Ghana was billed US$250M for unused gas in 2019. Studies say that Ghana is in this situation because it did not sufficiently study the project. Ghana failed to properly assess its energy demand, and is now up to its neck in annual losses. One headline said, “Ghana’s Sankofa gas project – backed by World Bank – brings fiscal pain.” Here in Guyana, there are more questions than answers for the proposed gas-to-shore/power project. We demand full disclosure from the Government. Guyana’s resources belong to the people, not a party. Secrecy fuels the notion that maybe corruption is taking place.
The Suriname President is here also. Maybe some of his smartness can rub off on our leaders. Hope he tells us how they got better “signing bonuses,” bigger royalties, and tax payments from the oil companies.
Similar to the gas-to-shore project, the Amaila Falls project is another rushed project and full disclosure has not been made. Will we buy excess power from the Chinese owners of the Hydro-Project as Ghana did with its gas?
It cannot be that one man in the PPP’s Engine Room is smarter than all of Guyana, and he alone knows what is good for all of Guyana in all things. That would be sad if it were true. “None of us is as smart as all of us.”
We want the Government to be very successful in its endeavours, but we also want the Government to listen to the voice of the people. As KN and Mr. Glenn Lall remind us daily, it’s “Our Wealth, Our Country!” We cannot fund our energy mix and accelerate our development unless Government renegotiates the bad oil contract signed by the PNC so we can get more money. Will our President and VP make a public appeal to Exxon’s Darren Woods who will be in attendance at the Conference? Nation, should they call for renegotiation, proper insurance coverage and a better deal given all the pending lawsuits on taxes, flaring, and environmental concerns? The time for our poor people to get rich is now! Open your eyes people! Take a stand!

Sincerely,
Dr. Jerry Jailall

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