The government is currently developing a Feed-In-Tariff (FIT) programme that will allow Guyana Power and Light (GPL) customers with renewable energy systems of up to 1.5 mega-watts (MW) to supply the 13.8 kV distribution networks.
A FIT programme is a policy mechanism designed to promote the uptake of renewable and low-carbon electricity generation.
The government’s plan was disclosed in an IDB’s request for Expressions of Interest (EoI) for a consultancy to determine the renewable energy hosting capacity limits in the GPL distribution system as well as to develop a distribution code for Guyana.
The hiring of a consulting firm is intended “to support the GPL in their grid modernisation (smart grid deployment) which will accommodate intermittent renewable energy systems into the grid. This consultancy is estimated for a period of 6 months to be completed by end of April 2023,” IDB said.
The EoI was issued last Tuesday, the same day that the government sealed the deal for 33 mega-watts (MW) of solar power financed by US$83.3 million in funds from Norway, which derived from a ground-breaking forest protection accord signed between Georgetown and Oslo in 2009.
It is unclear whether the FIT programme is part of this project that will see Guyana Utility Scale Solar (GUYSOL) Photovoltaic (PV) Programme, which will see eight utility scale photovoltaic solar projects totalling 33 MW bringing affordable and clean energy to targeted communities in Guyana.
Each facility will be connected to the 13.8 kV primary distribution network in the respective areas. That the programme will provide 27,000 households with affordable, clean energy and is expected to benefit over 70, 000 households.
According to IDB, among the many emission reduction strategies mentioned in the Low Carbon Development Strategy-2030 is the encouragement of distributed renewable energy systems – grid-tied solar PV systems.
However, even though the cost to install solar PV energy systems has declined over the years, and as per projections, the cost is expected to decrease further, many of GPL’s customers cannot afford the present and near future CapEx of solar PV systems.
Hence a FIT can be considered a significant revenue stream for the present and future grid-tie customers. As a result, IDB said, credits for electricity export combined with the avoided cost for the self-supply should provide customers with adequate return on investment and promote the development of distributed renewable energy system resources.
IDB said that GPL is currently developing the FIT Programme with the following objectives: To increase the contribution of renewable energy in the energy supply mix; To provide Grid-tie Customers with a framework for renewable energy investments; and to facilitate energy sector investments while ensuring transparency, safety, sustainability, continuity, and reliability of electricity supply.
Salient interim characteristics of the FIT Programme are that GPL customers with renewable systems up to 1.5 MW will be eligible for grid interconnection; Larger installations (categorised as IPP’s) would be accommodated under the framework of the National Grid Code; Renewable energy systems up to 100 kW can be grid-tied at the customer utilisation voltage level. Larger installation capacity up to 1.5 MW shall be grid-tied at the primary distribution level, 13.8 kV, through a dedicated transformer.
Once connected, the customer will qualify for the FIT Programme and be compensated for the excess solar energy exported to the grid, according to the IDB. The FIT Programme will only apply to renewable energy systems and the Guyana Electrical Inspectorate (GEI) must inspect and certify such systems.
In addition, GPL said that all applicants must maintain their insurance policies for their renewable energy system to mitigate the risk of personal loss or damage to equipment and risk to GPL’s staff.
