Inter-American Development Bank
facebook
twitter
youtube
linkedin
instagram
Abierto al públicoBeyond BordersCaribbean Development TrendsCiudades SosteniblesEnergía para el FuturoEnfoque EducaciónFactor TrabajoGente SaludableGestión fiscalGobernarteIdeas MatterIdeas que CuentanIdeaçãoImpactoIndustrias CreativasLa Maleta AbiertaMoviliblogMás Allá de las FronterasNegocios SosteniblesPrimeros PasosPuntos sobre la iSeguridad CiudadanaSostenibilidadVolvamos a la fuente¿Y si hablamos de igualdad?Home
Citizen Security and Justice Creative Industries Development Effectiveness Early Childhood Development Education Energy Envirnment. Climate Change and Safeguards Fiscal policy and management Gender and Diversity Health Labor and pensions Open Knowledge Public management Science, Technology and Innovation  Trade and Regional Integration Urban Development and Housing Water and Sanitation
  • Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Energía para el Futuro

  • HOME
  • CATEGORIES
    • Energy Access
    • Energy Efficiency
    • Energy Integration
    • Gender and Energy
    • Renewable Energy
  • authors
  • English

Natural Gas a Driver for Renewables in Guyana: Diversifying the generation mix. 

November 25, 2017 por Jaime Sologuren Blanco Leave a Comment


It is known that electricity power systems must have sufficient amounts of generating units available to meet the demand and the changes in it, from base to peak load. However, the challenge in every country is to define the ideal combination of energy sources to satisfy those needs in an efficient and economic manner. Commonly, there is a false dichotomy when talking about natural gas and renewables, presenting them as opposites, when in reality they perfectly complement each other and represent a realistic option for countries aiming to move from heavy and light fossil fuels towards a more renewable power generation in the long term.

In Guyana, a country that is blessed with an abundance of natural resources, the recent projected availability of indigenous natural gas creates a number of challenges and opportunities for its use in power generation. Currently the country is highly dependent on imported heavy and light fossil fuels; it imports around 4.7 million barrels of liquid fuels and the Guyana Power & Light (GPL), the state-owned electric utility company, spent an estimated USD 80 million per annum bill on imported fuels. The high reliance on imported fossil fuels has contributed to volatility of company, dampened private sector growth and competitiveness, and has constrained the development of high value-added sectors such as tourism and manufacturing due to the high prices of electricity.[1]

The replacement of diesel and HFO generation plants, with the use of domestic natural gas in Guyana, can trigger a new path of development towards the further development of renewable energy projects. Reducing the high price of electricity in the country would be the most important economic and social effect of introducing natural gas for electricity generation. Lower cost electricity would positively impact consumer welfare and help spur private sector development. By using natural gas, electricity generation costs could decrease as much as 40 percent, depending on the scenario-savings that could be passed on to consumers.

Along with commercial and residential tariff reduction, the introduction of indigenous natural gas will strengthen the countries energy security as well as support the continuation of the recently developed Green Economy Development Strategy (GRDS), which proposes to transition its economy towards using cleaner and cheaper sources of energy. Natural gas is less polluting than the current HFOs because when using combined cycle generation turbines, NG emits about 40% less CO2 than oil products.

Natural gas is also a cleaner fuel that can attend base load as well as peck load demand. GPL estimates that Guyana is expected to experience a significant growth in electricity demand in the coming years, especially after 2020 when the revenues of oil production will start and should stimulate the economy. It was planned, without the oil impact, that by 2035 Guyana will require more than a doubling of its current generation capacity, up to 370 MW in order to satisfy its electricity demand. This high growth in the demand implies a need for new power generation sources to be introduced over time, where the utilization of NG as a bridge fuel in the short-run, can enable the further introduction of a pipeline of longer-term hydropower investments or other renewables.

Therefore, the vision of the GRDS is not compromised because, the introduction of indigenous natural gas the cleanest fossil fuel, does not contradict the countries’ aim of moving toward a clean energy matrix in the long-term.  Looking ahead, and with the support of the IDB, Guyana will review its optimal power generation matrix while strengthening the required regulatory framework that is needed to attend a demanding and growing oil and gas sector in the country.

 

[1] Caricom, Caribbean Sustainable Energy Roadmap (C-SERMS), Phase 1: Summary and Recommendations for Policymakers. 2013.


Filed Under: Uncategorized

Jaime Sologuren Blanco

Jaime Sologuren is an energy sector specialist with more than 15 years of experience in the field of Energy in Latin America, Africa, and Asia. During this time of professional work, especially in energy access and renewable energy, he planned, built, implemented, and coordinated projects in the field of energy in Guyana, Trinidad and Tobago, Bolivia, Rwanda, and Nepal. He is currently the leader of the IDB energy team in Guatemala and Belize. Jaime has coordinated energy access projects, as well as provided advice on the diversification of electricity generation matrices and energy policy, with the introduction of Renewable Energies in various countries where he worked. He has a track record of building capacities, developing Monitoring and Evaluation systems, coordinating, and establishing alliances with different actors (public and private), as well as coordinating with a range of projects financed by international donors. He has a Bachelor’s degree in Economics from the Catholic University of Bolivia and a Master’s degree in Environmental and Energy Management (Energy specialization) from the University of Twente, The Netherlands.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Follow Us

Subscribe

Search

Energy

A blog about the impact of renewables, technology and innovation in the energy industry.

Recent Posts

  • The Challenge of Renewable Energy Curtailment
  • Exploring Dual-Use PV: Unlocking Renewable Energy’s Hidden Potential
  • Energy development lights up the Honduran Moskitia
  • Five Takeaways from Advancing Inclusive Energy Transition in Latin America and the Caribbean in 2024
  • The Importance of Resilient Infrastructure in Addressing Climate Change

Categories

  • covid-19
  • Digitalization
  • Electromobility
  • Energy Access
  • Energy Efficiency
  • Energy Integration
  • Energy transition
  • English
  • English
  • Español
  • Gender and Energy
  • Green hyrdrogen
  • Infraestructura sostenible
  • Minerals
  • Renewable Energy
  • Sin categorizar
  • Uncategorized

Footer

Banco Interamericano de Desarrollo
facebook
twitter
youtube
youtube
youtube

    Blog posts written by Bank employees:

    Copyright © Inter-American Development Bank ("IDB"). This work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives. (CC-IGO 3.0 BY-NC-ND) license and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed. Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC- IGO license. Note that link provided above includes additional terms and conditions of the license.


    For blogs written by external parties:

    For questions concerning copyright for authors that are not IADB employees please complete the contact form for this blog.

    The opinions expressed in this blog are those of the authors and do not necessarily reflect the views of the IDB, its Board of Directors, or the countries they represent.

    Attribution: in addition to giving attribution to the respective author and copyright owner, as appropriate, we would appreciate if you could include a link that remits back the IDB Blogs website.



    Privacy Policy

    Derechos de autor © 2025 · Magazine Pro en Genesis Framework · WordPress · Log in

    Banco Interamericano de Desarrollo

    Aviso Legal

    Las opiniones expresadas en estos blogs son las de los autores y no necesariamente reflejan las opiniones del Banco Interamericano de Desarrollo, sus directivas, la Asamblea de Gobernadores o sus países miembros.

    facebook
    twitter
    youtube
    This site uses cookies to optimize functionality and give you the best possible experience. If you continue to navigate this website beyond this page, cookies will be placed on your browser.
    To learn more about cookies, click here
    X
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT