The Government of Guyana today signed a US$83.3 Million Agreement with the Inter-American Development Bank (IDB) under the Guyana Utility Scale Solar Photovoltaic Programme (GUYSOL) which paves the way for investments in eight utility scale solar projectsto bring affordable and clean energy to targeted communities in Guyana.
Finance Minister Dr. Ashni Singh signed on behalf of the Guyana Government while the IDB’s Acting Resident Representative Lorena Solorzano-Salazar signed on behalf of the international financial institution.
In a statement, the Ministry of Finance explained that the US$83.3 being used for this programme is part of the US$220.8 million earned by Guyana for forest climate services through its partnership with Norway.
The earnings from Norway have been invested in several key adaptation and socio-economic projects identified as part of the Low Carbon Development Strategy.
Prime Minister Mark Phillips who witnessed today’s signing pointed out that the solar programme will benefit thousands of persons in the country including women in rural areas. He also reminded that it will assist the local power company in decreasing fossil fuel use and moving to a greater use of renewable energy.
“So it is a transformative project for Guyana. We are thankful that the IDB has been working side by side with Guyana to utilize this money that was lying in an account for over six years and we are thankful for them bringing us to the stage at which we are,” the Prime Minister added.
The Minister of Finance said the allocation of over US$80 Million has its roots in the original Low Carbon Development Strategy and the Guyana REDD Plus investment Fund which was established under the original LCDS.
The IDB’s Resident Representative (ag) Lorena Solorzano-Salazar said, the operation is framed within the partnership that Guyana had with Norway and will take the country to 19 percent renewables of the grid within about three years. She said the project augers well for Guyana.
The objective of the programme is to support the diversification of Guyana’s energy matrix towards
the use of cleaner and renewable energy sources in the electricity generation matrix.
The programme seeks to avoid Carbon emissions with the development of solar PV generation plants and to lower the cost of electricity generation while supporting the country’s transition towards renewable energy-based generation