University of Guyana

Faculty of Engineering & Technology

Department of Civil Engineering

“Guyana’s Green Energy Policy”

Name: Recardo Phillips USI: 1016123

Lecturer: Mr. Maxwell Jackson, MSc.

Course: CIV 4213 - Environmental Engineering II

Date: 17th April, 2019

 Table of Contents

1. Introduction ........................................................................................................................ 3

2. Green Energy Development Policies .................................................................................. 4

3. Energy Infrastructure in Guyana ........................................................................................ 7

4. Environmental Implications ............................................................................................... 9

5. Conclusion ........................................................................................................................ 11

6. References ........................................................................................................................ 12
 1. Introduction

Energy is the vital element which fosters growth and development of the various sectors of a
country. It is an essential component for any developing state, since a modern economy
depends on energy generation for the functioning of all of its faucets such as transportation,
agricultural, manufacturing and services, communications, etc.

Energy as a development factor is important to governments and the private sector, therefore,
guidelines aimed at improving efficiency in supply and consumption are needed. One such
guideline to control these aspects is the use of an Energy Policy. An Energy policy is
interventions on issues relating to energy development, production, distribution and
consumption. The attributes of an energy policy may include legislation, treaties, incentives to
investment, guidelines for energy conservation, taxation and other public policy techniques.

According to Framework of the Guyana Green State Development Strategy and Financing
Mechanisms (2017), Guyana has depended on imported petroleum-based fuels as its primary
source of energy. Between 2012 and 2016, Guyana imported approximately $300-600 million
per year in mostly refined fuels, accounting for 15-33% of imports, and equal to 25-45% of the
value of Guyana’s exports. To combat this, a review of the 1994 National Energy Policy was
executed; the updated National Energy Policy forms part of the Green State Development
Strategy (GSDS), and is the guiding principle behind our energy pursuits. It is the overarching
policy as it relates to sustainable energy independence and development in Guyana. Its mandate
is to wean the economy off of the reliance on fossil fuel imports and move over to renewable
sources such as solar power, wind power, hydropower, and other biomass and bio-fuels.

This report highlights the policies governing green energy development in Guyana, the energy
infrastructure and the environmental implications.
 2. Green Energy Development Policies

Energy policy is closely linked to the development of renewable energy resources. This is
especially true in the power sector, where most renewable energy development has occurred.
(Dornan, K et al., 2016) In the power sector, regulatory reform is key to attracting private sector
investment, which can complement aid in the development of renewable energy resources.

Guyana, has gross domestic product per capita (GDP/capita) of US$3,606 in 2014 and like any
other developing Caribbean nation, is highly dependent on the importation of fossil based fuels
as its primary source of energy generation. Guyana’s average energy consumption is only 4.5
million barrels of oil equivalent (boe), representing 0.007% of world energy consumption.
(GEA, 2016)

Guyana imported 4.9 million barrels of petroleum-based products in 2014 (13,531 barrels per
day consisting of diesel, fuel oil, gasoline, aviation fuel, kerosene and liquefied petroleum gas).
Petroleum imports for 2014 were acquired at a value of approximately US$562 million and
accounted for about 21% of the country’s gross domestic product. (GEA, 2016)

The threat of rising temperatures from greenhouse gases which exacerbates climate change and
the unstable price fluctuations of international oil markets necessitates the transfer from fossil
based energy to alternative sources of energy and climate resilience. With this in mind,
governments of the past and present identified and started the implementation of various
policies with the aim of growth and development of the alternative energy sector. Some of
these policies include the Updated National Energy Policy, Low Carbon Development
Strategy, and the Green State Development Strategy.

Guyana’s current energy policy, guided by the principles of past policies, strategies and
regional policies, seeks to ensure that stable, reliable and affordable energy is provided to all
persons in Guyana within an economically, environmentally and socially sustainable
framework. The Guyana Green State Development Strategy (GSDS) has incorporated various
aspects of the National Energy Policy and the low carbon development strategy to make a
wholesome working model of transition to alternative energy. The GSDS will put significant
emphasis on ensuring the full delivery of a modernised energy sector, with an increased mix
of clean and renewable resources. To meet these goals, and to achieve the desired
transformation, the GSDS will emphasise on four core strategic areas:
 i. Achieving a transition to 100% renewable energy in the power sector
ii. Achieving affordable, reliable and clean energy services for all
iii. Ensuring security and quality of energy for business growth
iv. Increasing energy efficiency

Guyana is committed to a set of energy-related international and national targets based on the
Sustainable Development Goals (SDGs) and Nationally Determined Contributions (NDCs).
The goals most related to energy transformation are listed below:

 Remove import duty and tax barriers on the importation of renewable energy
equipment, compact fluorescent lamps and LED lamps to incentivise and motivate
energy efficient behaviour
 Conduct energy audits and replace inefficient lighting at public, residential and
commercial buildings to reduce energy consumption
 Public education and awareness programmes to provide consumers with information
and tools to reduce energy consumption and expenditure
 Implement building codes and net-metering of residential renewable power
 Seek to construct and/or promote the construction of small hydro systems at suitable
locations such as MocoMoco, Kato and Tumatumari
 Power all of the six newly established townships, starting with Bartica, using renewable
energy sources.
 Work closely with farmers in agricultural areas across Guyana to encourage the use of
biodigesters to reduce waste, produce biogas and provide affordable, healthy and
efficient cooking means in the household.
 Reducing dependence on fossil fuels for energy generation, achieving close to 100%
renewables by 2025 through a diversified renewable energy infrastructure including
biomass, solar, wind and hydropower.
 Commitment to providing energy access to all the populations, and acceleration of the
development of distributed energy to the hinterland communities.

Guyana is also actively pursuing the development of its hydropower resources as a priority of
the country’s energy policy. Feasibility studies for a large hydropower development in the
Mazaruni region will commence in collaboration with Brazil. Independent power producers
and suppliers will be encouraged to construct energy farms and sell energy to the national grid.
Guyana will continue to pursue options for higher pressure bagasse-fuelled cogeneration to
increase power cogeneration capacity where feasible to meet incremental growth in demand.
Power generation options from rice husk and woodwaste will also be reviewed. Over the next
five years, Guyana is expected to install more than 13 MW of solar Photovoltaic systems in the
country. While still relatively expensive when compared to the cost of energy supplied by the
grid, solar photovoltaic prices are decreasing and their use will be encouraged, provided the
prices remain sustainable. Importation and installation of solar water heaters will be
encouraged for both residential and commercial use. The tourism and hospitality sector, still
at an early stage of development, will be engaged with the objective of promoting the
installation of solar water heaters.

Guyana will support the implementation of wind farms to supply energy to the national grid,
provided that pricing mechanisms are competitive and sustainable. Wind energy at the
residential and commercial levels for off-grid applications will also be encouraged.

Options for interconnecting renewable energy generators to the grid are being reviewed and
explored towards the implementation of grid-tied systems and net-metering platform. Once
proven beneficial to all parties, grid-tie options can be encouraged as a means of reducing
investment in fossil-based generators and meeting incremental demand from renewable energy
sources.
 3. Energy Infrastructure in Guyana

Energy Infrastructure may be defined as the large-scale enabling technologies to transport

energy from producer to consumer, and to direct and manage energy flow. (GEA, 2016) Energy
infrastructure refers to large-scale technical systems which organise social life. They are the
“central nervous systems” of economies connect multiple spaces and institutions of energy
capture, conversion, transmission, storage, consumption and waste, and play key roles in daily
life. (IEA, 2016) Therefore, pipelines, electricity transmission and distribution systems,
generating stations and other energy facilities comprise the energy infrastructure of a country.
Indeed, there is now widespread recognition that the significance of energy infrastructure
exceeds its technical capacity for moving, converting or storing energy. (T.P Hughes, 1993)

Guyana’s energy infrastructure is a key driver of employment, and growth throughout the
economy. Maintaining flexible electric power transmission and distribution lines, and delivery
of energy to businesses and consumers, promoting growth across all sectors of the economy.

Guyana’s energy infrastructure is largely publicly owned, operated and financed. The major
obstacle for the renewal and modernization of the energy infrastructure is funding. However,
technology and policy drivers are rapidly changing the way energy is produced and consumed
in Guyana, thereby creating and enabling a climate where investment can be fruitful. Currently,
the regulatory framework and physical systems that surround the energy sector are out dated
but is slowly being modernized and expanded.

Within the context of Guyana, the energy infrastructure was therefore limited to the traditional
electric transmission and distribution grid.

Given the recent discovery of off-shore oil and gas, and the need to integrate high levels of
intermittent renewable energy into the national grid, the Government intends to include the
following in the definition of the Energy Infrastructure:

1. Oil and gas pipelines

2. Storage facilities for crude oil and refined petroleum products
3. Oil refineries
4. Marine transport for oil and gas
 5. Large-scale energy management technology in the electric sector such as
advanced metering infrastructure (AMI), distribution systems, smart building
technologies, modern power plant control systems, and the information and
communication infrastructure necessary to manage the flow of electricity.

The future plans for the improvement and modernization of the energy infrastructure include:

1. Increased use of cost-effective digital information and control technology to improve

reliability, security, and efficiency of the electric grid
2. Dynamic optimization of grid operations and resources, including appropriate
consideration for asset management and utilization of related grid operations and
resources, with cost-effective full cybersecurity
3. Deployment and integration of cost-effective distributed resources and generation,
including renewable resources
4. Development and incorporation of cost-effective demand response, demand-side
resources, and energy-efficient resources
5. Deployment of cost-effective smart technologies, including real-time, automated,
interactive technologies that optimize the physical operation of appliances and
consumer devices for metering, communications concerning grid operations and status,
and distribution automation
6. Integration of cost-effective smart appliances and consumer devices
7. Deployment and integration of cost-effective advanced electricity storage and peak
shaving technologies, including plug-in electric and hybrid electric vehicles, and
thermalstorage air-conditioning
8. Provision to consumers of timely information and control options
9. Application of standards for communication and interoperability of appliances and
equipment connected to the electric grid, including the infrastructure serving the grid
10. Identification and lowering of unreasonable or unnecessary barriers to adoption of
smart grid technologies, practices, and services.
 4. Environmental Implications

Guyana’s current energy policy, guided by the principles of past policies, strategies and
Regional policies, seeks to ensure that stable, reliable and affordable energy is provided to all
persons in Guyana within an economically, environmentally and socially sustainable
framework.

The extensive understanding of environmental degradation from the burning of fossil fuels and
the emergence of climate change has necessitated the need for urgent action. Guyana’s Low
Carbon Development Strategy, outlines Guyana’s approach to promoting economic
development by protecting Guyana’s tropical forests while addressing global climate change.
This goal is a timely one; particularly, in light of the recently concluded twenty-first session of
the Conference of the Parties (COP 21) of the United Nations Framework Convention on
Climate Change (UNFCCC) where developing countries, including Guyana, provided
nationally determined contributions for limiting emissions to relatively safe levels. One
significant and transformative goal under these contributions is the target of having 100% of
electricity generation from renewable energy sources by 2025. This target will not only result
in significant reductions in the consumption of fossil fuel but also improve Guyana’s energy
security given the need for electricity generation to match the significant growth in electricity
demand that is expected in the coming years, with IDB’s predictions of electricity consumption
more than doubling in the next ten years.

In light of the current efforts to make Bartica one of many ‘Green’ Towns, it is envisioned that
the deployment of renewable energy will proliferate in the future. Energy efficient and
renewable energy cook stoves will be reviewed to provide sustainable energy solutions where
appropriate.

Public education and awareness programmes will continue to play a major role in providing
consumers with information and tools for reducing energy consumption and expenditure for
energy. Governmental agencies will continue its campaign to educate and guide consumers in
making wise energy efficient choices. Energy audits, per unit production energy consumption
reports, energy “walk-through” assessments and the opportunities for energy service
companies will be encouraged at the residential, commercial and industrial levels. Options for
energy efficient street lighting will be explored and tested.
In shifting to low carbon energy, the Government of Guyana has set zero-rated items and any
machinery and equipment for utilizing energy from renewable sources and making them fully
exempt from import duties. It has also implemented programmes to install energy efficient
street lighting, and to conduct energy audits on some government buildings and implement
energy use reductions.

Addressing climate change requires both mitigation and adaptation measures. Consequently, it
is important to consider the potential risks of a warmer climate and its effect on the energy
sector. Guyana will collect and analyse available data on past climate impacts on the energy
sector and encourage adaptation measures to enhance the country’s resilience.
 5. Conclusion

Guyana seeks to wean its economy off of the dependence on fossil based generated energy and
have a 100% transition to renewable energies in 2025. To accomplish this, the government has
updated and established policies, namely the Low Carbon Development Strategy, National
Energy Policy, Green State Development Strategy. These policies aim to introduce full scale
renewable energies into the country by controlling and gradually reducing the generation,
supply and consumption of fossil based fuels.

Guyana’s energy infrastructure is largely publicly owned, operated and financed. Technology
and policy drivers are rapidly changing the way energy is produced and consumed in Guyana,
requiring a faster pace of investment and modernization. Currently, the regulatory framework
and physical systems that surround the energy sector are out dated but is slowly being
modernized and expanded.

Transitioning from fossil based energy generation is necessary since the high volatility of
international oil markets coupled with the emerging evidence that fossil based fuels induce and
enhanced greenhouse effect causing climate change. Addressing climate change requires both
mitigation and adaptation measures. Consequently, it is important to consider the potential risks
of a warmer climate and its effect on the energy sector. Guyana is on the road to a more
sustainable energy sector which will aid the adaptation measures to enhance the country’s
resilience to climate change.
6. References

 Low Carbon Development Strategy. (2013). Office of the President. Georgetown,

Guyana.
 IEA (International Energy Agency) World Energy Outlook. (2016) Paris, France.
 T.P. Hughes. (1993). The evolution of large technological systems. MIT Press,
Cambridge, MA.
 W.E. Bijker, T.P. Hughes, T. Pinch (Eds.), The Social Construction of Technological
Systems: New Directions in the Sociology and History of Technology, MIT
Press, Cambridge, MA (1987), pp. 51-82
 Guyana Energy Agency Strtegic Plan 2016 – 2020. (2016). Georgetown, Guyana.
 Framework of the Guyana Green State Development Strategy and Financing
Mechanisms. (2016). Ministry of the Presidency. Department of Energy. Georgetown,
Guyana.
 Draft National Energy Policy Of Guyana – Report 2 - Green Paper. (2016). Ministry
of the Presidency. Department of Energy. Georgetown, Guyana.