During his press conference on Thursday, Vice President Dr. Bharrat Jagdeo acknowledged that climate change does present challenges to hydropower development but maintained that it is still a viable option for Guyana.
“So, climate change has posed challenges for hydropower but I don’t think you can beat hydropower at this stage as in terms of cost and being base load at the same time,” the Vice President pointed out.
He further highlighted the limitations of alternative renewable energy sources, noting that while solar power can be cost-effective, it lacks the reliability of hydropower. “So, hydropower, at this point in time, today, will outcompete wind energy and solar as base load, and still be competitive in terms of price of energy,” Jagdeo stated.
Addressing concerns about the impact of changing weather patterns on hydropower, the Vice President pointed out that such developments are still moving forward worldwide, with China planning one of the largest hydro projects.
He further stated, “So, if you build it and you have a period where you have drought, then you have adequate backup power to fill the energy demand of the country in the period when you have the drought. So, it does present challenges, but I don’t see it as fatal to the development of hydropower but of course, when you develop it, you have to ensure that your studies are done and updated, so that is clear.”
Moreover, the Vice President explained that while it is necessary to reassess hydrology risk, the model the government has pursued in the past, and intends to use, places some of that risk on the investor.
In relation to the hydrology risk, the Vice President further noted, “But clearly an investor, if they’re coming in to invest and need a sort of return to justify the investment, they would have to examine that themselves to see because it’s their money that they’ll be using.”
The People’s Progressive Party Government had introduced the Amaila Falls Hydropower Project several years ago with the aim of harnessing energy from the Amaila Falls located in Region Eight to generate 165 megawatts (MW) of power and to contribute to Guyana’s energy mix. Since returning to office in 2020, the PPP has attempted to revive the project which had been shutdown by the APNU+AFC in Opposition and set aside when they got into government in 2015.
