A sum of $8.9 billion will be allocated in 2019 to improve the energy sector and GPL will receive $3.6 billion, Finance Minister Winston Jordan said in his national budget presentation on Monday.
“To date, our energy matrix has been almost entirely reliant on imported fossil fuels, creating a high dependency on heavy fuel oils, which results in susceptibility to volatile prices, and contributing to the high cost of electricity. To compound matters, the anticipated rapid expansion of the economy would see our energy demand doubling over the next decade,” Jordan told the National Assembly.
Noting that current energy generation and transmission systems restrict growth and socio-economic development, Jordan said, the government’s Green State Development Strategy envisions the country no longer being hostage to an unreliable, unclean and undiversified energy mix.
He reiterated that government will assess the use of domestic natural gas, as a transition energy source, and seek to strengthen and expand the generation and transmission capacity of the Guyana Power and Light (GPL) to reduce the cost of electricity for all.
Budgetary allocation to support GPL in 2019 is $3.6 billion, with funding going in part towards continued support in the rehabilitation of over 800 kilometres (km) of the GPL’s low and medium voltage network, covering Parika to Corentyne. The works focus on the reduction of overall electricity losses, both technical and commercial, and the improvement of safety and reliability of the system.
“We will also advance construction works to the Kingston and Vreed-en-Hoop substations, continue the implementation of GPL’s smart metering programme, and strengthen the management and governance structure,” Jordan noted. The energy efficiency programme, in which over 10,000 LED lights, 1,000 motion sensors and solar photovoltaic (PV) panels were installed across 90 government buildings, representing 1,942 kilowatts (kW) of additional installed capacity of solar energy in 2018, Jordan said, will extend into 2019. The extension will see, he said, the installation of PV panels on an additional 80 government buildings and 400 stand-alone solar powered street lamps across regions, which will result in estimated savings of $114 million, annually.
Government will also pilot the first fully electric vehicle in the public service, with the accompanying solar charging station, in 2019, he said.
All budget agencies are mandated to ensure that vehicles to be procured should be rated at least 25 miles a gallon, energy star compliant and equipped with inverter technology where possible.
“It is our hope that leading by example will encourage households and the private sector to enthusiastically join in the national effort to use energy efficiently and reduce our carbon emissions,” he said. In terms of renewable energy, Jordan said, “We will continue to pilot the green town concept in Bartica.” In 2018, he noted, the government installed a 21.5 kW solar grid at Three Miles Secondary School dormitory and 179 energy efficient streetlights within the community. Government is now in discussions with international financiers for the development of mini-hydro projects to complement the solar power.
By the first quarter of 2019, the Hosororo Hydropower Project and the Mabaruma PV Farm will be commissioned, Jordan said.
Feasibility studies have been completed for the installation of solar PV farms in the townships of Bartica, Lethem and Mahdia, he added.
Noting that government has included several incentives to make the transition to cleaner technologies over the last few budgets, he said, “this year again we will roll out a suite of measures for 2019, including changes to the Wear and Tear Schedule of the Income Tax Act for capital investments in renewable and alternative energy, and further tax exemptions for hybrid or electric cars of a certain capacity as well as electric motor cycles.”
The hinterland electrification programme, he said, also continues to benefit communities such as Port Kaituma, Moco Moco and Lethem with installation, extension and upgrading of distribution networks in these areas.
In 2019, some $101 million has been allocated to continue and extend this programme to Orealla, Kwakwani, Siparuta and Waramuri, among others.
