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Future Earth engaged the domestic private sector to invest in utility-scale solar and wind projects in Guyana, anchored by the GCF private sector finance facility.
Context
Context
Guyana has a regulated energy system with Guyana Power and Light and National Industrial & Commercial Investments Limited owning generation, transmission and distribution infrastructure with most operations and maintenance services outsourced.
Guyana Power and Light serves electricity to the majority of the population. With 187,855 customers, 170,493 are residential, 16,515 commercial and 847 industrial. Satellite electricity companies serve the remainder of the country under National Industrial and Commercial Investments Limited.
With average daily solar insolation is 4.1 to 5.5 kWh/m2; between 4.6 GW and 7.6 GW of technically viable hydro power potential; and prognosis for wind favourable makes conditions for renewable energy generation favourable. Biomass is also viable given the warm, wet climate.
Approach
Approach
Working for Global Green Growth Institute, we created and led the private sector engagement strategy. We created a raft of communications materials and led direct outreach to Guyana's top businesses and individuals, raising awareness of the Green Climate Fund's Private Sector Facility and domestic opportunities for investment into utility scale renewable energy as PPP.
For the Guyana Office of Climate Change and Department of Environment, we also arranged and facilitated awareness raising sessions across representative institutions, government ministries, finance institutions.
Renewable energy projects from across the country were selected to be taken forwards as GCF PSF Concept Notes according to their practical viability and suitability as blended financing projects with sufficiently attractive terms to suit the private sector.
Outcomes
Outcomes
The engagement culminated in two capacity building events eliciting Letters of Support for initial investment of over $10 million.
Future Earth also built capacity across several departments to develop and submit applications to the GCF. We then led and developed Concept Notes for two projects, which went on to be financed and implemented:
1. 25.2MW onshore wind farm with solar back up (successfully funded by the GCF)
2. 5.5MW grid-tied solar PV farm + Energy efficient street lighting and household LEDs (eventually funded by the government)
Future Earth Ltd designed and developed a national sustainable financing mechanism, embedded in existing local structures, to initiate the utility scale renewable energy market and rapidly accelerate the implementation of co-financed projects.
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