Dear Editor,
Since independence, Guyana has been stuck in the preconditions for takeoff mode since it relies heavily on electricity generated by thermoelectric power plants for local consumption, which are seen as woefully inadequate to satisfy the demands of the manufacturing sector. This shortage has no doubt pushed large-scale manufacturing users to self-generate for power production. The power plants and self-generators depend entirely on limited and imported petroleum fuel for its operation, thus increasing manufacturing costs. Besides, the power plants require a high cost to maintain and operate.
It is recognized that the unavailability of a cheap and stable supply of electricity and heavy reliance on the thermoelectric power plants in Guyana has proven to be a major setback and disincentive to the manufacturing sector, thus impacting on expansion, job creation, poverty reduction, and economic development as cheaper manufactured, imported goods are available on the local market thus making locally manufactured goods uncompetitive.
The underlying purpose of any energy strategy is to stimulate economic development by securing reliable energy sources as economically as possible. Since energy is an input to other activities, its demand is derived. Consequently, the desirable level of energy production and supply cannot be specified independently of expected activity levels in other areas of the economy. Energy production is, however, not in itself the only requirement for successful development. As important is the necessity for it to be reliably supplied. This latter consideration implies a steady supply, 24 hours a day and 365 days per year and, in the case of electricity, one that is not plagued by voltage fluctuations. Reliable, affordable, and consistent energy supply is therefore critical for expanding the manufacturing sector to support job creation, economic development, and poverty reduction.
Editor, in order to transform Guyana to realize its economic potential and support the growing demand for cheap, reliable and stable electricity supply, an integrated power mix consisting of hydropower, solar and wind sources should be actively pursued.
Yours respectfully,
Mahindra Ishri
