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Guyana’s Renewable Energy Transition: An Evidence-Based Assessment

Admin by Admin
September 23, 2025
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In a recent interview with The New York Times, Guyana’s President Irfaan Ali made bold claims about his country’s commitment to a clean energy transition, funded by its newfound oil wealth. He stated, “We’re investing in solar farms, hydro, natural gas, wind, and biomass, all aimed at transitioning to a low-emission energy grid. We are building off-grid systems, solar farms, wind farms for the hinterland community, where the Indigenous people live” [1]. This report provides a comprehensive, evidence-based assessment of these claims, examining the current state of renewable energy projects in Guyana across four key areas: biomass, wind, hydropower, and large-scale solar farms.

Biomass Energy: Limited Progress Despite Potential

President Ali’s claim of investing in biomass is supported by limited evidence. While Guyana has one operational biomass facility, the 30-megawatt Skeldon Biomass Power Plant, this facility was commissioned in 2008, predating the current administration by over a decade [2]. The plant utilizes bagasse, a byproduct of the sugar industry, and remains the country’s only significant biomass power source [3].

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Research conducted by the National Agricultural Research and Extension Institute (NAREI) in 2017 highlighted the significant potential of agricultural waste, particularly rice husk, for bioenergy production [4]. The study estimated that Guyana could generate over 185,000 megawatts of energy annually from rice husk alone. However, implementation has been minimal, with only one rice husk gasification plant currently in operation, powering a single rice mill [4].

While the government has explored bioenergy opportunities, as evidenced by a 2008 Inter-American Development Bank technical cooperation project [5], there is little documented evidence of new, large-scale biomass investments under the current administration. The evidence suggests that while the potential for biomass energy is significant, tangible progress in expanding this sector has been slow.

Wind Energy: Ambitious Plans, Limited Implementation

The evidence for significant investment in wind farms, particularly for rural or hinterland communities, is limited. The most prominent wind energy project, the Hope Beach Wind Farm, has a lengthy and complex history, marked by multiple changes in scope and timeline since its initial conception in 2007 [6, 7]. While the government continues to engage with private developers for a 10-megawatt wind farm at Hope Beach, there is no clear evidence of its completion or operational status [6].

A more recent, smaller-scale project is a planned 450-kilowatt wind turbine farm on Leguan Island, intended to complement an existing solar farm [8]. This project, however, is a far cry from the large-scale wind farms implied in President Ali’s statement.

Furthermore, the claim of building wind farms for hinterland communities is not well-supported. While the Guyana Energy Agency has conducted wind speed monitoring in several hinterland regions, the results were deemed “not very attractive” for commercial development [6]. The focus of wind energy development remains on the coast, rather than in the hinterland, where many Indigenous communities reside.

Hydropower: A Tale of Two Scales

President Ali’s claim of investing in hydropower is supported by mixed evidence, with significant progress in small-scale projects but substantial delays in the country’s flagship large-scale project.

The 165-megawatt Amaila Falls Hydropower Project has been plagued by delays and setbacks. Originally planned for a 2027 start-up, the project has been pushed back to 2029, and the government is currently in the process of re-tendering the project for the third time since 2020 [9, 10].

In contrast, Guyana has made significant strides in small-scale hydropower. The 1.5-megawatt Kumu Hydropower Station and the rehabilitated 0.7-megawatt Moco Moco Hydropower Plant, both in Region Nine, were commissioned in 2025 and 2024, respectively [11]. These projects provide clean energy to thousands of residents in hinterland communities, directly supporting the President’s claim of building off-grid systems for Indigenous populations.

Large-Scale Solar Farms: A Clear Area of Investment

The evidence of investment in large-scale solar farms is the most robust. The Guyana Utility Scale Solar Photovoltaic Program (GUYSOL), funded by a US$83.3 million grant from the Guyana-Norway partnership, is a significant initiative aimed at diversifying the country’s energy mix [12]. The first phase of GUYSOL, which includes 18 megawatts of solar PV farms in Regions Two, Five, and Six, is currently under construction and expected to be completed by 2026 [13].

The 15-megawatt Linden solar farm, another significant project, is also under construction and expected to be completed by 2026 [14]. This project, along with the GUYSOL program, will contribute to Guyana’s goal of having over 39 megawatts of solar capacity by 2025 [15].

In addition to these large-scale projects, the government has also implemented a program to distribute 30,000 solar home systems to off-grid communities, further supporting the claim of providing clean energy to hinterland and Indigenous populations [16].

President Irfaan Ali’s claims about Guyana’s clean energy transition are a mix of ambitious plans and tangible progress. The evidence strongly supports the claim of significant investment in large-scale solar farms, with multiple projects under construction that will substantially increase the country’s solar capacity. The government’s commitment to small-scale hydropower projects in hinterland communities is also well-documented and represents a clear success story.

However, the claims regarding biomass and wind energy are less substantiated. While the potential for both is significant, there is little evidence of new, large-scale investments in these sectors under the current administration. The flagship Amaila Falls hydropower project also faces significant delays, casting doubt on the timeline for large-scale hydropower development.

President Ali’s vision for a comprehensive clean energy transition is ambitious, but the implementation is uneven. The government has made strides in solar and small-scale hydropower, but has yet to translate its plans for biomass and wind energy into significant, on-the-ground projects. Guyana Business Journal

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