COUNTRIES with a high share of renewable energy in their power mix tend to fare much better than those dependent on fossil fuels. The stark reality of this simple truth is now revealing itself with devastating consequences in some parts of the world.
The disruption of global energy supply due to Iran’s closure of the Strait of Hormuz has already forced more than a dozen countries to adopt emergency measures in the last week alone. For millions of people in Asia and the Far East, this means frequent “blackouts,” rationing and restricted use of vehicles as these countries try to weather the storm of a 20 per cent or more reduction in global energy supplies.
Although Guyana is an oil producer, we import almost 100 per cent of our gasoline, diesel, kerosene, jet fuel and Liquefied Petroleum Gas (LPG). The next time you experience a “blackout,” remember this: According to the U.S. Energy Information Administration (EIA), an estimated 93-97 per cent of Guyana’s electricity generation comes from diesel and heavy fuel oil engines.
While we have not yet seen major disruptions to Guyana’s fuel supply, we are far from immune. Just a few days ago, several gas stations on the West Coast were closed, perhaps only because drivers emptied the pumps by filling up ahead of the Easter weekend, but unsettling, all the same.
According to the EIA, Guyana imported nearly 4 million barrels of petroleum products, mostly from the US, in 2023. The previous year, for some unexplained reason, that figure was almost double. That’s over 20,000 barrels per day of imports, with Gasoil alone accounting for 50 per cent of the imports by volume. Guyana’s fuel import bill, its largest category, accounts for close to USD$1B. Unacceptable for a small, resource-rich developing country.
President Mohamed Irfaan Ali and his administration knew this when it took office in 2020. The Gas-to-Energy plant at Wales was envisioned as a bridge to renewables. The plant will generate upwards of 300 MW of electricity when it is up and running by 2026, accounting for between 60 and 90 per cent of grid power according to some projections. The plan is to flip the switch and have renewables replace fossil fuels by 2030-2035.
Renewable sources, such as solar, small hydro and biomass, currently supply only about five per cent of the country’s total energy needs, as Prime Minister Mark Phillips acknowledged last year. However, just two years ago, Guyana had more than 17 MW of installed solar PV capacity, representing a 224 per cent increase over the level in 2020, when the previous administration left office. For all the bluster of Terence Campbell during the line-by-line 2026 budget review, the evidence indicates that APNU did nothing to alter the country’s energy mix.
As more hydro, solar, and wind come online in President Ali’s second term, the gas-to-energy share will see a significant decline by 2030. The president aims to have approximately 70 per cent of the overall energy mix supplied from clean and renewable energy sources. Hydro power will play a critical role, with the Amaila Falls expected to generate 165 MW of power.
Since 2020, the government has commissioned more than a dozen solar farms and mini‑grids, including utility‑scale projects at Lethem, Bartica, Mahdia and Onderneeming, with eight more GUYSOL solar farms now being built. There are now upwards of 30,000 households powered by solar PV. The fact that Guyana gets an average of between 2,300 and 2,500 hours of bright sunshine a year, I believe the PPP/C administration can drive that number higher. Canadian companies might be eager to assist.
Several African countries saw a 54 per cent surge in solar installations in 2025, driven in part by two firms based in Ontario, Canada. The roots of this boom trace back to Ontario’s 2009 Green Energy and Green Economy Act, which offered generous feed‑in tariffs. As a homeowner, I joined the programme and had 32 solar panels installed on my roof at no upfront cost, receiving about C$400 a year from the company; after 20 years, the panels, and any power they produced for the grid, would have become mine.
At its peak, Ontario was generating nearly 2,000 MW of solar, about 98% of Canada’s total solar capacity. Ontario’s programme ended, sadly, after a World Trade Organisation (WTO) ruling found its local‑content rules violated trade agreements, and the local solar market slumped.
The companies operating in the Ontario solar market followed the sun and, with seed money from development banks, began building utility-scale solar and wind projects across Africa and Asia. Solar Panda, one of the Canadian companies, now offer rent-to-own rooftop solar to underserved households in Kenya, Zambia, Benin and Senegal.
Countries that bet on renewables are less exposed when fossil fuel markets convulse. Guyana has the sunlight, the surplus oil revenues, and a president who understands the urgency of this transition. What is needed now is speed and scale. I would suggest that every single one of the 40,000 homes the government intends to build in the next five years should come outfitted with solar panels. This could perhaps make rooftop solar a truly national programme.
DISCLAIMER: The views and opinions expressed in this column are solely those of the author and do not necessarily reflect the official policy or position of the Guyana National Newspapers Limited.
