Guyana currently has one of the fastest-growing economies due to its vast offshore oil reserves. Despite this, Guyana remains one of the most impoverished countries in the Latin America and Caribbean region. In 2023, 58% of Guyanese lived in poverty, earning less than $6.85 a day, and 32% lived in extreme poverty, earning under $3.65 a day.

This disparity worsened after the government signed production and revenue-sharing agreements in 2016 with major oil companies. These deals grant Guyana just 12.5% of oil revenues, a small portion of which reaches the average Guyanese. At the same time, energy remains expensive, unreliable, and inaccessible for many, exacerbating energy poverty nationwide.

For Guyana and other developing nations, renewable energy offers a path towards sustainable, affordable, and reliable power. It holds the potential to lift communities out of poverty and build a more secure future. While renewable energy in Guyana shows significant promise, the country must overcome several key challenges to unlock its full potential.

The Current State of Energy

Oil production in Guyana exploded after ExxonMobil’s 2015 discovery of offshore oil reserves in the Stabroek Block. By 2024, daily output reached 630,000 barrels, with projections to double by 2027. This will make Guyana one of the world’s top per capita oil producers. Additionally, petroleum supplies over 99% of the country’s energy generation and consumption.

Guayana generates its power primarily through aging diesel systems and delivers it through a deteriorating grid, which causes severe inefficiencies and frequent outages. This makes energy both expensive and unreliable, and leaves many Guyanese in a constant state of energy poverty and exacerbating financial strains.

Electricity in Guyana costs around $0.32 per kilowatt-hour, which is among the highest in the region and the country loses 26% of all power due to grid inefficiencies. Those who can afford power experience frequent power outages.

Oil companies have secured significant control over the energy sector, including monopoly rights on power generation and the grid, through legal frameworks designed to protect their interests. While oil brings GDP growth, due to these agreements, Guyanese citizens themselves see little of the money.

Why Renewable Energy in Guyana Matters

Renewables offer Guyana a way to produce inexpensive, reliable, and sustainable energy that will reduce energy and financial strain for many Guyanese citizens. Recognizing this, the Guyana government created a Low Carbon Development Strategy (LCDS) which focuses on fostering low-emission economic growth by 2030. The LCDS emphasizes energy access for underserved populations, environmental protection, and international collaboration.

Despite strong potential, renewable energy development in Guyana remains slow and uneven.

Hydropower

Guyana has an estimated 7,600 megawatts of hydropower potential, but currently has no large-scale hydro plants. The country ultimately abandoned the Amaila Falls Hydropower Project, proposed in 2014 to generate more than 1,000 gigawatt-hours annually.

More recently, smaller projects have found success. In 2024, the country built the 1.5 MW Kumu Hydropower Station, and in 2025, it built the 0.7 MW Moco Moco Plant. These projects provide clean, reliable energy to several hinterland communities.

Solar Power

Solar energy has seen the most progress in Guyana, particularly in rural and off-grid areas. In 2023, the Guyana Energy Agency distributed 26,398 solar units to remote communities, according to EIA. The Home Energy Systems Project plans to add 30,000 more units, totaling 4.8 megawatts of capacity.

Two 45-kilowatt mini-grids with battery storage were installed in Orealla and Siparuta. The GUYSOL program launched a 1.5 megawatt solar plant in Bartica in 2023, which aims for 19% renewable energy in the national grid.

In March 2024, Guyana signed a $38 million deal with SUMEC to build solar farms in three regions, adding 10 megawatts. By 2025, new solar farms in Guyana are expected to produce over 39 megawatts of solar energy.

Wind and Biomass

Wind power in Guyana remains largely underdeveloped. The country never completed a 10 megawatt wind farm proposed for Hope Beach in 2007. More recently, the government proposed a 450-kilowatt wind turbine for Leguan Island, designed to complement an existing solar farm.

Guyana’s agricultural sector produces large volumes of rice husks and sugarcane waste, which offer ideal biomass fuel sources. However, biomass energy remains underutilized.

The Skeldon Biomass Power Plant in East Berbice-Corentyne is currently the only operational biomass facility. It generates 30 megawatts of power from sugarcane residue and supplies energy to surrounding communities.

Challenges to Renewable Energy

Despite significant potential, renewable energy development in Guyana faces several obstacles such as energy laws, high upfront costs and unequal access. Building renewable infrastructure requires a significant initial investment. Remote and Indigenous communities benefit least from oil revenue and struggle to finance energy projects, making them particularly dependent on public or international aid.

Strategic investment, donor support, and regulatory change could help Guyana shift toward a more equitable and sustainable energy future.

– Dylan Kretchmar

Dylan is based in Granville, OH, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr