Guyana takes Norway money to spend US$2.5M per MW on solar

Jul 12, 2022 News

…while world spends five times less for same thing

Kaieteur News – India recently secured a US$165M loan from the World Bank, to fund the development of the installation of some 450 mega watts (MW) of electricity for about US$376,500 per MW.

GUYSOL program director Amir Dillawar

Guyana on the other hand, is looking to install 33 MW of solar power, spending some US$83.3M or about US$2.5M per MW.

This according to a recent procurement notice issued by the State owned Guyana Power and Light (GPL) Incorporated, for the Guyana Utility Scale Solar Photovoltaic Program (GUYSOL).

In requesting the proposal, Programme Director, Amir Dillawar, indicated that government had secured financing under the Guyana Norway partnership in the amount of US$83.3M representing the balance of the funds owned to the country under its forest pact, for the GUYSOL project.

The financing administration of the programme will be administered by the Inter American Development Bank (IDB), while the project is being executed by GPL. According to the procurement request, part of the financing will be going towards payment for goods, works, related services and consulting services to be procured under the GUYSOL project while bidding for the project will be governed by the IDB.

The main procurements to be had under the project, according to GPL, will come under two components, the first being the Engineering, Procurement and Construction (EPC) of 33MW of Solar Photovoltaic Plants with Battery Energy Storage Systems—to be tendered in three lots.

Additionally, the second part of the project involves the installation of automated monitoring systems, remote controls systems for substations, individual consultancy for risk management plan for flood probe sites and training programs for women in solar PV, solar job and workforce development.

This aspect will also include the design and implementation of an apprenticeship program for diversity and inclusion with GPL’s Program Executing Unity and other government agencies.

According to the request, the procurement processes of contracts financed with the resources of the program will be conducted in accordance with the policies for procurement of goods and worked financed by the IDP and is open to all eligible bidders as defined by the International Financials Intuition’s policies. The main objective of the 33MW solar project, according to GPL, “is to support the diversification of Guyana’s energy matrix towards the use of climate resilient renewable energy sources in the electricity generation matrix.”

In that energy matrix of hydro, gas and solar, the country is also in the first stages of the construction of a 250MW gas fired plant to be constructed at the Wales Development Zone, West Bank Demerara with a price tag estimated at in excess of US$1B.

The energy matrix also included the construction of a 165W hydro electric plant at the Amaila Falls site on the Kuribrong River, with an estimated price tag, also in excess of US$1B.

This publication recently reported that India has secured financing from the World Bank to pursue the development of 450MW more solar power in that country at a cost more than five times less than what Guyana is proposing. The bank has been supporting the Government of India’s programe to generate electricity from rooftop solar since 2017 with the financing of US$648 million for rooftop solar for commercial and industrial establishments.

India added 456 MW of rooftop solar capacity in the first quarter of 2022, a 34 percent year-over-year growth compared to 341 MW registered in the same period in 2021 as that country continues to transition away from fossil based fuels for its power generation.

Despite a global push towards renewable energy, Guyana’s Vice President, has stated that solar is simply too expensive for Guyana and as such the country will have to continue using fossil based fuels such as natural gas as part of an energy matrix.

During a recent press engagement with the Vice President, he had claimed renewable options such as solar, wind and even hydro is “very, very expensive” when compared to the highly touted Gas-to-Energy (GTE) project which is currently being touted over US$1.3B.
While Jagdeo claimed that renewable alternatives are too expensive for Guyana, President of the Caribbean Development Bank (CDB), Dr. Hyginus ‘Gene’ Leon, a few weeks ago underscored the urgent need for the region to accelerate the transition to renewable energy.

His comment comes even as the world is pushing to transition towards renewable energy. This publication had also reported that earlier this year, the Government of Barbados inked a deal that in the near future will see the country realising some 178 MW of electricity using hydrogen and solar energy at a cost of some US$100M, while in Ethiopia, that country will soon realise 6,500 MW of hydro power electricity at a cost of just over US$600,000 per MW.

With the world on a pathway towards reducing carbon emissions as a result of burning fossil fuels primarily for electricity generation and transportation, Barbados is now leading the Caribbean region with the announcement that it will soon be building the largest clean hybrid power plant in the Caribbean, producing base load power for 16,000 Barbadian households from solar and locally produced green hydrogen.