Guyana is by far the largest waster of energy in the region, according to an Inter-American Development Bank (IDB) report, compiled from a survey of 24 countries in Latin America and the Caribbean.
And if this country does not implement changes in the way it uses energy, it would need to spend in excess of US$39 million to meet the demand in the next ten years, the report released on Monday last said.
However, if Guyana were to improve its energy efficiency by a mere 10% over the next 10 years by investing in energy efficient light bulbs, electric motors and other measures, it would save the equivalent of 105 gigawatt hours of electricity per year. This means meeting the growing demand for energy would cost US$12 million, a savings of US$27 million.
While there was no data available for Guyana’s overall dependency on fossil fuels, the report said that the cost of electricity here at US$0.220 per kilowatt-hour, was the second highest in region.
Jamaica had the highest rate at US$0.248. However, it should be noted that these figures were compiled in 2006 and Guyana has since had an electricity rate increase. The report said the prices of gasoline and diesel were a little higher than the regional average. However, at US$0.62 and US$0.16 respectively as at August 20 this year, they are far lower than the prices quoted for the majority of territories. In fact, only Bolivia, Trinidad and Tobago, Ecuador and Venezuela had lower fuel prices.
The report, which looks at energy efficiency and conservation as a source of energy, said the region has rich energy efficiency “reserves,” though it has barely begun to exploit them, with the exception of a few countries most notably Mexico and Brazil.
The IDB found that the region is still overwhelmingly reliant on incandescent light bulbs, even though these consume 70% more power than newer “compact fluorescent” alternatives and its factories and water systems use millions of old, energy-wasting electric motors and pumps. In many countries, it revealed, transportation infrastructure—which consumes more than 30% of
the region’s energy—is grossly inefficient. Commercial and residential buildings are full of outdated air conditioning systems, refrigerators, washing machines and water heaters.
Whether the region will exploit its energy efficient reserves, the report said, depends on whether governments provide the right incentives, such as tax rebates, subsidies and regulations requiring specific efficiency standards for vehicles and appliances among others.
The IDB said Latin American governments were spending billions of dollars to subsidize fuel prices. It noted that the Financial Times recently reported that Latin America and the Caribbean will spend at least US$50 billion in subsidies for transportation fuel during 2008 and added that this was more than five times what the IDB will lend to the region during 2009.
