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Apr 06, 2016 News
THE VOICE OF THE LIBERAL DEMOCRATS….
By Sase Singh
INTRODUCTION
Guyana has plentiful, yet partially unrealized renewable energy potential. The closest we came to developing our vast renewable energy potential dates back to the 1970s with the Upper Mazaruni Hydro-project. Then we were fortunate to have a structured proposal with Sithe Global on the Amaila Project that got delayed because of strong allegations of corruption and financial abuse.
Fortunately for Guyana, Mr. Lloyd Singh has put up his money and entrepreneurial skills to build a 25 MW wind energy plant at Hope Beach. But to what end? The reality is that the project is still bogged down in negotiations with the Government around a Power Purchase Agreement (PPA).
Guyana has a clear history of roadblocks that disallowed the rolling out of our renewable energy potential, and that lethargy is alive and well today. But that need not continue if we have the attitude of mind to convert our disadvantages to permanent advantages. Our biggest challenge today is our limited fiscal capacity to implement such significant capital-intensive projects. But the solution is the total acceptance of the private-public model of development in the energy sector.
Is this happening fast enough and often enough?
OUR FIELD OF DREAMS
If at the highest levels in the energy sector, we have the attitude of mind and requisite talent to market and structure deals in a transparent manner, we can unleash this energy potential. This US$50 million Wind Farm at Hope Estate has been the closest we have been towards upgrading our energy security without the Treasury being exposed. Therefore why we are still bogged down in negotiations when the Minister responsible for the energy sector Mr. David Patterson said on October 4th, 2015 that “Cabinet has approved the process” and “we are close to clinching a deal on the Hope Wind Farm”. Well if you check any dictionary you will observe that “close to clinching a deal” is a matter of days – not months.
We still do not have a fully executed PPA, months after, which is a pre-requisite for the project to commence. This is the illness that has plagued Guyana for at least 35 of the past 50 years and has contributed directly to the stagnation of our people’s well being.
Someone is misleading the nation and clearly they do not have the professional integrity to update us as to why this negotiation team is working as a serious competitor to the snails and tortoises of the world. This either is a reflection of gross incompetence or a delaying tactic to leverage for something else. What really is the case here? Are we again in danger of losing our field of dreams?
WHO IS BATTING FOR GUYANA?
Certainly not the fossil fuel industry! Since December 2015, the price of oil has risen by an average of US$10 per barrel; the oil price trajectory has changed. That translates into higher electricity prices for the end users in the foreseeable future? This unpredictability in oil prices is no good for Guyana, so why are we not batting for Guyana? Unleashing this renewable energy portfolio at a faster pace will bring greater stability in the prices for the end users.
Policy makers and technicians batting for Guyana should be in the forefront battling to make this Hope Wind Farm into a reality. But from all indications, this is not happening.
It is my understanding that this Hope Wind Farm will provide GPL with a fixed and predictable cost for energy much cheaper that what is available right now from Wartsila and can save Guyana some G$1 billion in expenses. In an environment where almost 60 percent of the gas-guzzling generating capacity will reach the end of its useful life and will have to be replaced in the next four years at astronomical costs to the nation, why are we not aggressively pursuing the expansion of the stock of renewable energy for the coastlands?
To complement that Hope Wind Farm Project, we must also urgently conclude the “financial review” of the Amaila Project so that we can secure the green light on whether Norway will back it with that US$80 million.
This decision will serve as the life or death of the Amaila Project. I really blame Team Brassington for bungling that Amaila project in the past with their rent-seeking attitudes, but that is all water under the bridge. What is important today is that the responsibility to fix this mess is now with the Granger administration.
Eleven months is way too long to still be floating on this important portfolio. Where are the concrete plans to preserve our energy security? Observing the evidence on how we managed this energy portfolio over the last 11 months, one struggles to give it a passing grade, at best the performance in the sector deserves a “D”. But does the energy sector really fit with Public Infrastructure of Natural Resources?
CONCLUSION
On the campaign trail, the Coalition had prided itself on Page 4 of the manifesto to deliver on “an energy policy that utilizes our wind, water and solar resources to provide cheap, renewable electricity to Guyanese in our urban, rural, riverine and hinterland communities”. To date – Not Done!
Do we still believe that after 11 months, the necessary creativity, imagination and boldness can be applied to re-invent and re-create a more optimum opportunity to unleash our renewable energy potential? We all know the answer.
It was more words, with a bagful of empty promises rather than action. Actually, this energy sector along with the agriculture sector cost the Coalition some serious vote losses in rural Guyana in the 2016 Local Government Elections. This kind of policy paralysis has to stop and must be rejected at every juncture. I am calling on all to come on board to lobby for this energy portfolio to be de-linked from the Ministry of Public Infrastructure, which is differently focused.
For that exclusive reason, the people have lost over the last 11 months on the energy sector and change is long overdue on how we manage this sector.
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