EPA greenlights US$35M wind project at Hope Beach

Mar 14, 2022 News

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– developers aiming for over 50 percent local ownership

By Kiana Wilburg

Kaieteur News – The Environmental Protection Agency (EPA) has given the green light for the Hope Wind Farm Project, which is estimated to cost approximately US$35M.
According to documents lodged with the regulator, the planned wind farm represents the first substantial utility-scale renewable energy project to be implemented in Guyana. The base-case scenario calls for six wind turbines, each of 4.2MW capacity, for a total 25.2 MW wind farm capacity. The 25.2MW wind farm will generate over 80GWh per year, to be delivered to the Guyana Power and Light’s (GPL) grid according to the terms of a Power Purchase Agreement and Grid Interconnection Agreement.
Importantly, the Hope Wind Farm is a pilot project that will inform all stakeholders on what is required to build and operate a wind farm in Guyana and how to integrate this energy into GPL’s grid. The project will confirm the promising performance of wind energy, reduce the reliance on fossil fuels and its associated emissions of CO2, pollutants, and reduce substantial foreign exchange loss due to fuel imports. The wind farm will generate local jobs in construction operation and maintenance of a renewable energy facility.
Specifically, the project is expected to result in a 10% Reduction in GPL’s fuel oil generation requirement and 10% reduction in pollutants emitted by Georgetown located HFO generators (and impact to the city population), and 10% reduction in GHG emitted which is a significant step towards Guyana’s Paris Agreement commitments.
There is also expected to be a reduction in foreign exchange losses for fuel imports by over US$10 million per year. The leases, all project rights, assets, and liabilities are owned by Hope Wind Energy Inc (HWE), which is a wholly-owned subsidiary of Hope Energy Development Inc (HED), a project development company owned by a partnership comprising Guyanese, Danish and Trinidadian interests. The Environmental Permit application will be held in the name of Hope Wind Energy Inc (HWE).
Once the project is ready to start construction and all financing is in place, Kaieteur News understands that additional Guyanese investors will be invited to participate, with the aim of achieving more than 50% Guyanese ownership of HWE and the project. The developers noted that local ownership of renewable energy projects for the long term is an important consideration in maximising the benefits for Guyana’s economy. Furthermore, this newspaper understands that the Hope Wind Farm leases are for 50 years. It is the expectation of the developers that the site will remain a wind farm generation facility in the foreseeable future.
The PROJECT SITE
The project is poised to be located on a 27-acre state owned lease at Hope Beach (HB), and private leases at Chapman’s Grove (CHG), some 28km and 30km, respectively, SE of Georgetown’s centre. The HB lease is the location of four wind turbines, on the seaward side of the existing seawall, North of the plantations: Hope, Douchfour, Two Friends, Anns Grove, Clonbrook and Beehive. The CHG lease is the location of two additional wind turbines, on coconut plantation lands inboard of the seawall, bounding Unity Village (see Figure 5-1).
The project falls under the jurisdiction of the Grove-Haslington Neighbourhood Democratic Council (NDC). The 50 year HB lease was awarded on March 9, 2007 by the then President of the Cooperative Republic of Guyana, Bharrat Jagdeo, specifically for industrial purposes: the establishment of a wind farm for electricity generation. The open lands between the seawall and the Demerara-Berbice main road at Hope Beach belong to the Hope Estate, and are designated for agricultural use, not to be developed for housing as the area is required as a holding basin for water discharge during heavy rains.
CLIMATE CHANGE AND CLEAN AIR
With most of the population in Guyana living 1m below mean high-tide Guyana is highly exposed to the effects of climate change. The project is therefore expected to reduce 10% of GPL’s Carbon Dioxide (CO2) footprint from power generation, offsetting some 60,000 tonnes of CO2 per year, and reducing harmful pollutants associated with burning of HFO fuels at GPL’s plants in and near Georgetown.
The Environmental Protection Agency (EPA) in a notice to the nation last week said that Hope Wind Farm Project at Hope Beach and Chapman’s Grove, East Coast Demerara, Region Four was approved pursuant to Section 12 of the Environmental Protection Act, Cap. 20:05, based on the following: The Environmental Impact Assessment (EIA) fully complied with the Terms and Scope which were set by the EPA in consideration of the submissions made by members of the public; The EIA had adequately addressed the views and feedback expressed by members of the public and other stakeholders during consultations and the statutory sixty (60) day public review period; The Environmental and Social Impact Assessment (ESIA) adequately assessed the potential adverse effects or risks posed by the project, and the Environmental Mitigation Plan contained therein, proposed appropriate and adequate measures to mitigate the same.

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