Chinese-partnered 25 Mw wind farm backed by Republic Bank

…company putting in 75% of total financing, getting 51% equity

Government is throwing its weight behind an ambitious 25-megawatt wind farm project for Hope Beach, East Coast

Prime Minister
Sam Hinds

According to Prime Minister Sam Hinds, the US$42M project could be built and become operational in as little as one year of the necessary approvals.
In a letter to the editor yesterday pushing for alternative energy projects, Hinds confirming an exclusive report by Kaieteur News in February, said that Guyana Wind-Farm Inc. recently put forward a “very attractive project” which could see GoldWind of China, establishing 10 turbines, each capable of producing 2.5Mw.

GoldWind is rated at least third in the world in establishment of wind-farms. The Chinese company would provide 75 per cent of total financing and take 51 per cent of the equity shares.
“Republic Bank has offered to support the project, with a US$2M loan.  Some ground studies have already been done. The wind-farm could be built and be in operation within a year of a ‘go-ahead’.”
The project was also mentioned last Friday by Chief Executive Officer of the Guyana Power and Light Inc, Bharat Dindyal, who disclosed that work is being done to realize the project.

However, Hinds warned yesterday that renewable energy, particularly wind and solar, are not available full time.
“There would be times when no power would be available. One has to discount their installed-capacity. They are paid with prices no more than that of the net savings in the cost of petroleum fuel and maintenance which would have been incurred in the course of traditional generation with HFO – the ‘avoided’ costs.”

He said that the Hope Beach Wind Farm Project, too, is cast in the nature of a BOOT (Build, Own, Operate, Transfer) model with the write-off and transfer projected to occur at the end of five years, and with a useful life of about 20 years.
“Let us get Hope Beach Wind-Farm in place quickly. Let us turn our electricity-generation away from petroleum fuels,

Businessman
Lloyd Singh

thereby saving ourselves a good quantity of money and doing our bit to reduce climate change.”
According to the Prime Minister, with respect to wind energy, there have been from decades ago, small wind-driven electricity-generating sets along the coast, and water pumps on the savannahs in the hinterland.
In 2000, the Caribbean Development Bank financed an engineering survey of the potential of wind along the coast for the large-scale production of electricity.  The prospects were judged to be not fantastic but, still possibly, economically attractive, and Delta Caribbean of Curacao which had established a wind-farm in Curacao – the wind regime was very favourable there – was invited to study the possibilities of wind-farms along Guyana’s coast.

“Delta Caribbean began their appraisal with a year-long study of wind speeds at Hope Beach, and also studied various generators available then to see how they would perform in our wind regime.
“Up to about 2006, a project could not be put together which would be financially attractive to all parties, and Delta Caribbean withdrew, passing on all its rights and obligations to a new local company, Guyana Wind-Farms Inc.”

The search to put together a “closed” project was maintained.  “One may recall, at one time, that an artist’s impression was presented of a wind-farm along the Georgetown sea-wall, from the head of Camp Street to the head of Vlissengen Road – the apparent public response was to stay at Hope Beach.”

During the years since 2000, wind-generating technology has improved and prices have fallen, whilst oil prices have risen.
Guyana Wind-Farm Inc is partially owned by Lloyd Singh, the main principal in International Pharmaceutical Agency Group, a supplier of drugs to Government.

In February, it was disclosed that a feasibility study has been completed and the environmental hurdles have all been crossed for the project.
Government and the principals of the project have been meeting in recent months with the aim of signing a power purchase agreement that will see the state-owned Guyana Power and Light Inc. (GPL) purchasing electricity at a cheaper rate.

Guyana wants additional, cheaper power as several new housing schemes and a number of new industries continue to spring up, spurring an increased demand for power. The administration has been pinning hopes on a 165-megawatt (MW) hydro electric project at Amaila Falls, Region Eight to meet demands.

An artist rendition of the Hope Beach wind farm project being proposed.

However, that project has been temporarily shelved after the US developer, Sithe Global, pulled out last year. This was after the National Assembly remained divided on key legislation that was critical to the funding of the US$840M-plus project.

Sithe Global had wanted total consensus from all the parties.
The project is still very much alive but will take several years to be realized. In the meantime, the demand for power continues to rise.
According to Singh in February, it is estimated that power will be sold between 13-15 US cents per kilowatt to GPL. Currently, the power company, largely using the cheaper, heavy fuel oil, is generating at around 18 US cents per kilowatt.

Singh was looking for the power facility to be built under a ‘Build, Own, Operate, Transfer’ (BOOT) arrangement, where it could end up in the hands of Guyana after a specific number of years.
“We are even looking to Lethem, Region Nine area, for a possible similar project and awaiting government’s approval to conduct a feasibility study. The Essequibo Coast is also not being ruled out.”