With financing from the oil and gas sector, billions have been allocated to aid government in its goal of transitioning to cleaner energy options and hydropower and solar farms will be major aspects.
Apart from the proposed Amaila Falls Hydropower Project (AFHP) and the gas-to-shore power generator at Wales, West Bank Demerara, solar farms will be constructed across the region. Farms to a total of 33 MW, according to Minister of Finance, Dr Ashni Singh, will be in constructed in Berbice, Linden and Essequibo. The budget has allocated $1.4b to commence preparatory works.
“With the aim of advancing the transition to cleaner sources of energy, while ensuring that we meet the growing demand for electricity and reduce the cost of electricity by 50 percent over the next five years, Government has allocated $29.4 billion to the energy sector in 2022. Major allocations within this amount include: $20.8b for the Gas-to-Energy project…” Singh said during Wednesday’s budget presentation to loud cheers from his colleagues.
The Minister said $1.1b is budgeted for solar farm interventions in 2022 and will see the completion of the 1.5 MW solar farm at Bartica, 0.75 MW at Wakenaam and the 1.0 MW at Lethem.
Throughout the year, procurement for the construction of new solar farms will also be done. He stated that it is their vision to construct a 0.6 MW solar farm at Leguan and a 0.65 MW farm at Mahdia
The solar farms will be complemented by hydropower plants in Regions 9 and 8.
“We have also advanced the process for the construction of a 1.5 MW hydropower plant at Kumu, and for rehabilitation and upgrade to 700 KW capacity of the defunct Moco Moco hydropower plant in Region 9. Over $600M is budgeted for the construction of both projects in 2022,” Singh said.
He added that over $170 million has been budgeted for the completion of the 150 KW hydropower scheme at Kato and for 30,000 photovoltaic home systems for hinterland and riverain areas.
“These solar mini-grid and off-grid solutions are our most viable options to ensure unserved and underserved hinterland regions are energized,” the Minister stated as he announced over $450m has been budgeted to expand and upgrade the hinterland electrification and power generation capacity through the purchase of generators and the expansion of distribution lines.
While government has been providing for energy efficiency at the institutional level, consumer choices are equally important in reducing the country’s carbon footprint, the Finance Minister said.
He went on to state that an important facet of the development of a sustainable energy sector has been consumer behaviour. He noted that serious discourse on that front has been missing for the past six years, which is why this year government has budgeted for interventions.
“In 2022, we will be providing for the free distribution and installation of over 22,000 LED bulbs and over 12,000 LED tubes in homes, businesses and government buildings at Bartica, Linden, Leguan and Wakenaam. This initiative is anticipated to remove over 500 tons of carbon dioxide emissions from the environment,” he announced to banging on the desk by members on the government side of the house.
With consumers having to play a part in carbon reduction, government will be piloting the installation of fast-charging stations for electric vehicles in Regions 3, 4 and 6. These will be the first of their kind in the country.
These, in addition to the existing fiscal incentives for the procurement of renewable energy equipment, are all part of Government’s plan to influence consumer choice in favour of low- or zero-carbon options.
The electric Nissan Leaf has been the most imported non-fuel type of vehicle in Guyana since the introduction of customs and duty exemptions on electric vehicles.
The vehicles have an 80-kilowatt AC electric motor, which can be fully charged in about eight hours at a 240 volts charging station. However, it may take as long as 20 hours to charge utilising a 110 volts outlet. When charged, the car would have an 80 km driving range.
