Undoubtedly the availability of a cheap and reliable source of electricity is essential to industrial/economic development because of the fact that it is the most versatile form of energy. And therefore any developing country would find it extremely difficult to make that quantum leap transformation into a modern industrialised competitive economy.
“Energy is an essential input. Electricity is the most versatile energy form and is used in almost every activity in a modern society. Electricity can be generated both from fossil fuels and from hydro, nuclear and geothermal energy. Coal has been used hundreds of years and is still important for electricity generation and. Oil has in the last century been more and more important for transport of people and goods. Natural gas has increased rapidly in the last decades also for electricity generation. The potential of hydropower generation has been used in the industrialised countries to economic maximum within non-preservation limits. Many developing countries still have a potential left due to high investment costs. Industrial countries with no more natural resources have turned to nuclear power, a high investment cost alternative. Only a few countries have geothermal energy which can economically be utilised.
An essay in 1992, Energy demand and Economic Development in the Industrial World since 1950, showed a strong correlation between per capita increase in electricity and gross domestic product, GDP. This study is an extension with many countries in different economic development phases.” (ENERGY AND DEVELOPMENT by Karl Erik Björkman).
One of the trouble spots in Guyana’s developmental process has been the development of a cheap and reliable source of electricity supply which has significantly affected its industrial/economic advancement. Not that this problem has been a recent one rather it is one that began in the 1970s when the then power company the Guyana Electricity Corporation (GEC) developed a myriad of problems, including financial, technical, managerial etc, which plunged the company and the national power supply situation into a deep crisis. This marked the beginning of the era of blackouts which saw many parts of the country experiencing prolonged power outages so as to ensure the urban centres enjoyed a relatively stable electricity supply.
Today, much has been done to improve the power company, now the Guyana Power Company (GPL), and the national power supply but we are still suffering from the “fall out” of that earlier dark period in our history. And therefore we still have a far way to go to bring the power supply situation to the desired ideal level.
Against this backdrop it was most laudable in his budget presentation. Finance Minister Dr. Ashni Singh dealt specifically with what will be done to enhance the power sector.
According to him, the ongoing efforts to complete the rehabilitation of power stations and reduce technical and non-technical losses in the electricity sector are on the agenda of the sector which has been allocated $5.8B this year.
He said the sum will go towards financing the completion of the rehabilitation of the Canefield Power Station and the 69 Kilovolt (KV) link between Skeldon and No. 63 Village in Corentyne, Berbice.
Work is also scheduled to commence on the development and expansion of the 67 KV transmission lines and associated substations, the interconnection of the Berbice and Demerara interconnected system and the installation of the Supervisory Control and Data Acquisition (SCADA) system.
The latter will serve to integrate all major load centres along the coast to permit centralised generation using cheaper heavy fuel oil, and will facilitate efficient distribution of bulk power in the future.
The Finance Minister also disclosed that the power company will be installing 1,365 itron meters and 12,000 pre-paid meters, and upgrading the secondary conductors for better management of primary voltage.
These initiatives will fulfill the objective of reducing technical and non technical losses.
Effective monitoring of customer queries will also be effected, with the introduction of a $2.8M state of the art Customer Information Service (CIS) which will see customer accounts being immediately credited with payments made, accounts adjusted and a new bill immediately granted.
“This system is an enormous step forward in the operations of GPL utilising ICT (Information Communication Technology) to make services more efficient and consumer friendly,” Dr Singh said.
He recalled too some of the accomplishments made in the electricity sector in 2009 reference were made including the commissioning of the new 20.7 megawatt power plant at Kingston which Dr Singh described as “the first major expansion in generating capacity installed in 12 years.”
The Finance Minister noted however that Government’s continuing efforts to provide long term solutions to energy requirements will manifest with the development of renewable energy sources.
Electricity will be provided to areas including Chenapau, Yupukarri, Sand Creek, Red Hill, Santa Aratak, Katoonarib and Paruima, using solar home systems for 1,800 households and 12 schools.
Additionally, efforts will continue to develop the Amaila Falls project which has a 156 megawatt potential. Estimates from the developer, Sithe Global, showed a total capital cost of about US$600M.