Once the PPP/C Government continues on its current trajectory, Guyana would be able to realize a future energy mix of 50 percent gas and 50 percent renewables. Making this disclosure last week Monday to media operatives was Vice President, Dr. Bharrat Jagdeo.
During that engagement at the Arthur Chung Convention Centre, Jagdeo noted that the pursuit of such a mix would lead to significant carbon emission reductions, numerous economic development opportunities particularly for the agriculture and manufacturing sectors, and immunity from future market fluctuations on fossil fuels which often lead to higher electricity bills for consumers.
Expounding further, the Vice President recalled that the price of crude per barrel is US$75 with the cost of power generation pegged at 10 US cents. About 10 years ago, he said this hovered around US$120 per barrel with the cost of generation being 20 US cents per kilowatt-hour. “So what this mix brings is long-term stability in price and it will make us immune to future market fluctuations of bunker and other fossil fuels.”
With the gas to shore project that will lead to an industrial park being established across 10,000 acres of land at Wales, Jagdeo said Guyana will realize a power generation cost of 3. 5 US cents per kilowatt hour which would be lowered once the pipeline is paid back in four years time.
According to Jagdeo and Head of his Gas-to-Shore Taskforce, Winston Brassington, the gas project will generate at least 250 megawatts of power while the Amaila Falls Project would bring in 165 megawatts. Other renewables such as solar and wind will account for the difference.
“So this is what will be the major power mix of the future,” the Vice President concluded.
