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|The Inter American Bank (IDB) announced approval of non-reimbursable investment financing up to US$83.3 million, with funds from the Norwegian Agency for Development Cooperation, to support Guyana’s effort at climate-resilient renewable energy sources use in the electricity generation matrix to avoid deforestation and face climate change.
The Bank made known that it has been supporting the Government of Guyana to develop the energy sector through financing of several renewable energy activities. Building on this, according to the Bank, Guyana will now make a transformational leap towards decarbonisation by expediting climate-resilient renewable energy in the electricity generation matrix.
Guyana is a signatory to the December 2015 United Nations Paris Climate Agreement which aims to reduce global greenhouse gas emissions by 45% by 2030 and reach net zero by 2050 in effort to keep global warming to no more than 1.5°C.
The Guyana Utility Scale Solar Photovoltaic Program (GUYSOL) is expected to invest in eight utility-scale, photovoltaic solar projects totaling 33MWp with associated 34MWh energy storage systems distributed across three areas in the country. Specifically, it will invest in 10MWp in the Berbice area, 8MWp project in the Essequibo system with a minimum of 12MWh battery storage and 15MWp plant connected to the Linden system, with a minimum of 22MWh battery storage.
The eight projects are expected to contribute to avoiding CO2 emissions, lowering electricity cost generation, and supporting a substantial transition to generation based on renewable energy sources.
The program will also support a step-change with respect to digitalisation of Essequibo and Linden electrical systems, moving them from manual systems towards real-time, automated monitoring and control, improving efficiency, reliability, and stability.
Alongside of these investments in infrastructure, the GUYSOL Program is expected to encourage diversity and inclusion in the maintenance and management of renewable infrastructure, developing local skills and apprenticeships with a focus on opportunities for women
According to the Bank, by 2025 in line with Guyana’s Low Carbon Development Strategy (LCDS), more than 265 thousand customers within the Demerara-Berbice Interconnected System and Linden and Essequibo systems are likely to benefit from reinforced reliability of electricity supply, and modernisation of systems.
Also expected to benefit is the Guyana Power and Light Inc. (GPL) and the Linden Electricity Company Inc. (LECI) from the use of solar photovoltaic technology that will displace significant amounts of fossil fuels and reduce generation costs.
Guyana’s operation is said to be in line with Vision 2025 – Reinvesting in the Americas: A Decade of Opportunities, created by the IDB to achieve recovery and inclusive growth in Latin America and the Caribbean, in the areas of digital economy, gender and inclusion, and climate change.