Jagdeo needs a lesson in the economics of solar power

Apr 05, 2023 Features / Columnists, Peeping Tom

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Kaieteur News – Jagdeo is out of his depth when it comes to the management of the energy sector. It is obvious from his ranting at his most recent press conference that he is not familiar with the cost of generating solar power.

At that press conference, he denied that his government was in receipt of documents showing how solar was a cheaper alternative to the gas-fired power plant at Wales. As reported by this newspaper, Jagdeo claimed that the lowest offer government received to date for the generation of power is eight cents per kilowatt hour. He then went on to say that if anyone can be found who can supply solar power at four or five cents per kilowatt hour, his government will be prepared to sign a long-term contract for the supply of power.  It is  hoped that the Indian High Commissioner to Guyana will take up this challenge because not only can India supply solar power at less than five cents per kilowatt hour but such a service will not cost the government of Guyana a cent since the investment can come from private sources in India.

India is now positioning itself to become a low-cost supplier of solar power. It is estimated that by 2030, the cost of solar power in India will be around 0.025 cents per kilowatt hour. India is now the second cheapest supplier of solar energy behind China. In fact, China also is capable of producing solar power at less than US three cents per kilowatt hour. Jagdeo’s challenge is therefore surprising considering that he recently returned from a visit to India country.  No one should be so blinded by their commitment to one project that they will overlook other and more feasible options. Jagdeo’s challenge shows how uninformed he is about the cost of solar power. In Chile, a country that has temperate climate, a Spanish company, Solarpack Corporation Technologica, has entered into a contract to supply solar power at less than three cents per kilowatt hour, and there is no subsidy provided by the Chilean government.

Guyana has long been proven ideal for low-cost solar power generation. Guyana has a higher level of irradiation than Chile. So, if Chile can come in at less than three cents per kilowatt hour, then why not Guyana? The Guyana Energy Authority boasts that Guyana has excellent solar insolation levels. This places Guyana at a competitive advantage when it comes to the generation of solar energy, a fact that the government seems blind and deaf towards.  It is now public knowledge that solar power is the cheapest form of electricity for new generation. The cost of solar power has fallen tremendously over the past decade, far more than the 50% reduction which is promised by the gas energy facility being built by the government with a more than one billion United States dollars in capital expenditure.

The cost of the capital equipment for solar systems has also fallen over the past 30 years. Estimates show that these costs have declined almost 90% since 1990.  The evidence points to solar power being more feasible in Guyana.  As Jagdeo ought to know, however, feasibility is much more than simply the cost of generation. Many countries are prepared to pay higher costs in other to derive additional benefits.  One such benefit is to the environment. Jagdeo was once designated as a Champion of the Earth for his role in protecting the environment. He should know by now that natural gas is not a renewable energy source and is less clean than solar which is a renewable. Former University of Guyana lecturer Alfred Bhulai has pointed to a number of disadvantages of using natural gas as opposed to solar. Bhulai should know; he is a scientist.

Bhulai has said that solar will be more stable because with natural gas a power outage can affect the entire network, while with home solar power systems, there will be a lesser impact. Environmentalists have pointed out that natural gas is associated with higher risks. Leaks and other accidents can have catastrophic effects on the population and this is why there is no much concern over the waiver of an environmental impact assessment for the gas to energy plant being established at Wales. Bhulai has also said that solar energy would greatly reduce the need for operational costs for the gas-to-power plant. Yet, despite all of these arguments being made, the government has refused to undertake a feasibility study that is specific to the gas to shore and gas to energy projects it is undertaking.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions and beliefs of this newspaper and its affiliates.)

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• Alfred Bhulai, Chilean, Government, Guyana, lecturer

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