IN a bid to rapidly accelerate Guyana’s transition to cleaner sources of energy, while boosting the capacity to meet the growing demand for affordable and stable electricity over the next five years, the government has allocated some $29.4 billion to the energy sector in its 2022 budget.

The budget was read to the National Assembly, on Wednesday, by Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, who noted that “inadequate, unreliable, costly, and environmentally unfriendly energy has been the bane of Guyana’s industrial development.”

Included in the allocation is $20.8 billion for the gas-to-energy project and $1.4 billion for the 33 megawatts (MWs) solar farms for Berbice, Essequibo and Linden.

In September 2021, following a public expression of interest, the government issued an advertisement for the pre-qualification of firms interested in the transformational gas-to-energy project, recognising the potential of natural gas as a transition fuel.

The project, according to Dr. Singh, will allow the government to phase out the use of expensive and carbon-intensive heavy fuel oil.

He noted that this project, which encompasses the establishment of a power plant to generate 300 megawatts (MWs) of power as well as a Natural Gas Liquids (NGL) plant, will cover domestic demand and enable the government to reduce costs substantially, below the current levels.

The project also includes the construction of a 225 km 12” pipeline to transport the guaranteed minimum of 50 mmcfd of natural gas from offshore Guyana to the Wales Development Authority.

Minister Singh noted that currently, ongoing geotechnical and geophysical works for both offshore and onshore operations are advancing with several portions already completed.

By the second quarter of 2022, an environmental and social impact assessment is expected to be completed. Construction on the power plant and NGL is expected to commence in the third quarter of 2022, with an estimated completion timeline by the fourth quarter of 2024.

Additionally, Minister Singh noted that significant finance from the budget is going towards several additional projects which are expected to improve citizens’ access to reliable, affordable, and clean energy.

For 2022, $1.6 billion has been budgeted for the construction of a parallel transmission line linking the Kingston and the new Sophia substations, the upgrade of the existing L5 transmission line. This project is aimed at reducing transmission losses and maintaining desired system voltage levels.

Additionally, $1.1 billion of the sector’s budget is earmarked for solar farm interventions in 2022. These include the completion of the 1.5 MW solar farm at Bartica, 0.75 MW at Wakenaam, and the 1.0 MW at Lethem. It is also government’s intention to tender for a 0.6 MW solar farm at Leguan and a 0.65 MW farm at Mahdia later this year, the National Assembly was told.

Further, Minister Singh said that several hinterland areas can expect to benefit significantly from the 2022 budget as over $450 million has been budgeted for the expansion and upgrading of the hinterland electrification and power generation capacity through the purchase of generators and the expansion of distribution lines.

Minister Singh disclosed that Region Nine, in particular, is set to see increased energy production.

“We have also advanced the process for the construction of a 1.5 MW hydropower plant at Kumu, and rehabilitation and upgrade to 700 KW capacity of the defunct Moco Moco hydropower plant in Region Nine. Over $600M is budgeted for the construction of both projects in 2022,” he said.

Additionally, over $170 million has been budgeted for the completion of the 150KW hydropower scheme at Kato and 30,000 photovoltaic home systems for hinterland and riverine areas.

Minister Singh noted that this solar mini-grid and off-grid solutions are the country’s most viable options to ensure unserved and underserved hinterland regions are energised.

Meanwhile, he disclosed that throughout 2022, there will be free distribution and installation of over 22,000 LED bulbs and over 12,000 LED tubes in homes, businesses, and government buildings at Bartica, Linden, Leguan, and Wakenaam.

The initiative which is anticipated to remove over 500 tons of carbon dioxide emissions from the environment, is part of the government’s plans to reduce the country’s carbon footprint.

Minster Singh also noted that government will pilot the installation of fast-charging stations for electric vehicles, in Region Three (Essequibo Islands-West Demerara), Region Four (Demerara-Mahaica), and Region Six (East Berbice-Corentyne).