…Gov’t unveils multiple measures to drive ‘green agenda’

By Vanessa Braithwaite

GOVERNMENT on Monday laid out comprehensive measures to drive its green agenda next year, among which are the construction of an ambitious $264M large-scale solar farm at Mabaruma, North West District, and a series of tax emptions for importation of energy-efficient equipment, including hybrid electric vehicles.

Finance Minister Winston Jordan told the National Assembly during his budget presentation that, when operational, the 400-kilowatt solar farm would afford an additional 17 hours of electricity to the 3,000 residents of Mabaruma.

Furthermore, he said, Government has advanced the pursuit of additional solar farms with a capacity of 800 kilowatts at Lethem, 400 kilowatts at Mahdia, and 1.5 megawatts at Bartica.

Jordan said some immediate measures will be taken towards this expansion, which are: the lowering of the excise tax on hybrid and electric vehicles; granting of tax exemptions to set up electric vehicle charging stations; Zero-rating the excise tax on biofuel and specially designed refuse trucks; restriction of the importation of used tyres; and a reduction of taxes on new tyres.

$1B ALLOCATION
In addition, he said, Government will prioritise evidence-driven and cost-effective options to determine renewable energy choices across the country, in order to successfully transform the energy mix and reduce the share of non-renewable energy sources in the overall ratio.

“In this regard, we will shortly be releasing the outcome of a review of the Amaila Falls Hydroelectric Project which was undertaken by Norconsult, the Norwegian-contracted consultants, after the comments of both the Kingdom of Norway and the Co-operative Republic of Guyana are incorporated into the final document.”

Last Saturday, the Opposition called for the release of the document.

In addition, Minister Jordan said, Government has allocated almost $1 billion next year to implement a series of renewable energy and energy-efficiency projects, following the charge given by President Granger for the public sector to lead the way in transitioning towards greater renewable energy use.

These interventions will be channelled through, and managed by, the Guyana Energy Agency (GEA). The renewable energy programme for 2017 would entail the installation of solar photovoltaic (PV) systems on the rooftops of 64 government buildings. With a combined installed capacity of 1.36 megawatts (MW), these installations would result in: annual energy savings of 1.86 gigawatt hours (GWh) or 1,200 barrels of oil equivalent per year; annual cost savings of approximately $140 million; and environmental benefits in the form of avoided carbon dioxide emissions of about 1,116 tonnes per year.

Additionally, he said, to complement public sector investment, Government would be granting a one-off tax holiday of two years for corporation tax to importers of items for wind and solar energy investments, and for investors in water treatment, waste disposal, and recycling facilities.

These interventions, he said, when finalised, would significantly improve the lives of citizens, especially in the hinterland, by incentivising behavioural change, boosting investor confidence, and ensuring energy reliability.

“Our Government’s energy efficiency programme will involve, also, the replacement of inefficient lights and the installation of 10,427 light-emitting diode (LED) lamps and 3,766 occupancy sensors in government buildings; as well as 360 energy efficient outdoor lights. This intervention will result in annual energy savings of 0.93 GWh, or 600 barrels of oil equivalent, with an estimated annual cost savings of $54 million, and avoided carbon dioxide emissions of 558 tonnes per year,” Jordan said.

Jordan told the House that, overall, the renewable energy and energy-efficiency interventions in 2017 would result in annual energy savings of approximately 2.8 GWh or 1,800 barrels of oil equivalent per year, and an annual cost saving of approximately $193 million, and avoided carbon dioxide emissions of 1,674 tonnes per year. The simple payback period would be approximately 5.2 years, based on the combined investment cost.

ENERGY-EFFICIENT STREET LAMPS
He said, too, that in 2017, the administration would consider utilising the balance of the current Japanese non-project grant aid facility to the private sector to procure 5,000 energy efficient street lamps. This endeavour, he said, would result in replacement of the existing inefficient 250W street lights with 120W LED street lamps, resulting in energy savings of about $158 million annually; with other benefits such as a reduction in power demand of about 0.7 MW and environmental benefits of about 2,000 tonnes carbon dioxide emissions per year avoided.

According to Jordan, based on the annual energy savings, this investment in energy efficiency would have a simple payback of less than 2 years.

Furthermore, in the pursuit of best practice and due diligence, Government will conduct further geotechnical studies for the Moco Moco Hydropower Development Project. The results of the geotechnical studies, which are expected to be completed in 2017, will be used to invite bids for the hydropower redevelopment contract.

Also, in the coming year, Government will see data collection studies being conducted on wind energy via a demonstration wind project.

GREEN AGENDA
Jordan said Government’s Green Agenda, which has been consistently ventilated by President David Granger, and expressed in many forms – be it green economy, green development, or green pathway – sets out a vision that takes a broad, multi-dimensional approach towards achieving a “good life for all”.

He said the Green Agenda encompasses environmental protection, citizen security, employment and value chain creation, energy, health, education, social protection, and resilience against climate change and economic shocks. “It is about sustainable development, embracing a broad range of Sustainable Development Goals (SDGs) and aligning perfectly with multi-dimensional progress,” Jordan said.

According to him, each of us, as responsible citizens of this land, must strive to ensure that our actions leave minimal carbon footprints. “Whether we are making energy smart decisions on the type of appliance to purchase for our homes; whether we choose to drive to the corner store instead of walking; whether we remember to turn off lights in unoccupied spaces; or whether we design and construct our homes to use more natural light and ventilation, are all important decisions which will determine the magnitude of carbon footprint we amass.

“The Government will prioritise resource allocations to advance our nation along this green trajectory.”
He said that in recognition of its commitment to the Sustainable Development Goals and our Guyana’s nationally determined contributions to the Paris Agreement on Climate Change, “we have committed to expand our protected areas by an additional two million hectares, by 2020.” Next year, the Government will engage in consultations with stakeholders; begin the process for delineation of the expanded area, and design a related management plan.

“These actions are consistent with meeting our commitments under the Paris Declaration and in keeping with Guyana’s commitment as a signatory to the Convention on Biodiversity,” the finance minister said.

He said sustainable management of the country’s environment will see additional resources being allocated for greater compliance and monitoring and strengthening of operations by regulatory agencies. To complement these initiatives within the regulatory framework and curb Guyana’s less-than-desirable consumption and production patterns, Jordan said, Government will be introducing an environmental levy on the manufacturers and distributors of products that use non-returnable metal, plastic, and glass beverage containers.

In addition, he said, “We will grant exemptions of customs duties and taxes on greenhouses and their component parts, among other concessions.”

He said, too, that to create an overarching framework to guide the management of the country’s biodiversity and chart a course for national development, Government will embark on the design of a Green State Development Plan, with support from the United Nations Environment Programme (UNEP). The plan will serve as the template to guide the rapid transformation of our economy, reorienting the structure of Guyana’s production base and promoting diversification to reduce the reliance on the ailing traditional sectors.

“These efforts will lay the path to eliminating our dependency on fossil fuels and moving us closer to the target of 100 per cent renewable energy supply by 2025,” he explained.

He said that building on previous initiatives with a low carbon focus, including the use of renewable energy sources and co-generation alternatives, the Government would review and expand the scope of alternative energy solutions.

CLIMATE PACT WITH NORWAY
On the forest and climate partnership agreement between Guyana and Norway, Jordan told the House that the prime features of this agreement, which was signed in 2009, are to safeguard Guyana’s rainforest, improve forest governance, and support Guyana’s holistic green development, including the transition to green and renewable energy.

He said that in a recent meeting held in the margins of the United Nations Climate Change Convention in Marrakech, Morocco, both President Granger and Minister Vidar Helgesen of Norway agreed to have in place, early in 2017, an agreed work plan for detailing Guyana’s clean energy transition. Jordan said the two officials also agreed to continue a dialogue on how to develop their partnership in the 2020-2030 period.