A welcome project
Business Editorial
Stabroek News
March 26, 2004
The International Monetary Fund (IMF) and the World Bank have cleared the way for Guysuco to invest in a 30-megawatt co-generation facility.
This is good news on three fronts: it is tapping into a renewable source of energy; it is a cost- saving exercise for the corporation as it allows it to incorporate the co-generation facility into the designs for the new Skeldon factory; and thirdly it offers hope to Berbicians that they would in about two years time, be able to latch onto a more reliable supply of electricity.
Guysuco will be stockpiling bagasse for use in its co-generation facility but may have to revert to the minimal use of fossil fuel should this run out during its operation. However, this large-scale use of bagasse to produce electricity will enable the corporation to apply for carbon credits, which will release some monies for the corporation, though not a substantial amount.
It is also a step in the direction of tapping into renewable sources of energy. Guyana has engaged in hydropower on a small scale and the Amaila Falls project was planned on a larger scale, but this project is not moving at a rapid pace for various reasons.
Guysuco is hoping that it will be able to sell at least 10 megawatts of power to the Guyana Power and Light (GPL) for the national grid in Berbice and the details of the power purchase agreement are to be worked out between the corporation and GPL.
Apart from price, the responsibility of transmitting the electricity will have to be worked out.
It is expected that electricity from Guysuco will be at a cheaper price but because of the state of the power company's transmission and distribution system, it is not certain whether this will trickle down to consumers. However, what is quite clear is that it will impact on the demand for foreign exchange to import fuel for the power company but the extent of this is not certain. The cost of fuel and lubricants tops the list of imports for Guyana.
Additionally, Guysuco as a private provider of electricity to the national grid will allow GPL to reallocate its scarce resources to allow for increased efficiency in its operations and may allow for more resources to be spent on transmission and distribution in Berbice or elsewhere. Such an arrangement will no doubt be beneficial to both GPL and Guysuco.
Anyone living around sugar estates will be aware of the reliability of the corporation as a power producer for its own supplies. Hence, the corporation will be seen as a more reliable source of power for the community at large once the co-generation facility is in place.
As it is, Berbicians to a large extent have suffered most with power outages. The IMF/World Bank clearance of the project is indeed good news for them. If there are no more hiccups to the Skeldon expansion project, the co-generation facility should be ready for operation from the first crop of 2007.