Guyanese businesses should use the lower electricity costs expected from the Gas-to-Energy project to invest in energy efficiency, renewable energy and electric mobility rather than simply reducing operating expenses, according to the Guyana Energy Agency (GEA).
Speaking on the July 30 edition of the Energy Perspectives podcast, GEA Chief Executive Officer Dr. Mahender Sharma said companies have a unique opportunity to strengthen their competitiveness while reducing emissions through investments that lower long-term energy costs.
“The private sector should be playing a role in decarbonizing their own businesses… Now, with the 50% reduction in cost of electricity that’s coming, you hear the comment that, look, I don’t need to do this now because my cost of electricity will go down by 50%. And while that is true, an investment now will even further reduce your cost of energy,” he said.
According to Sharma, combining lower electricity tariffs with investments in efficiency and renewable energy creates multiple layers of savings while improving business margins.
He estimated that a 10-kilowatt grid-connected solar system and an electric vehicle together would cost businesses about US$48,000 (GYD$10 million).
“With that investment, you are paying for the vehicle and its fuel for the life of the vehicle. So $10 million buys the vehicle and the fuel for the life of that vehicle, which is extremely impressive. And if you can think along those lines, there are huge opportunities to reduce your costs, increase your margins, and make your products more competitive,” Sharma explained.
To encourage that transition, the agency has launched the Energy Champions Award, which recognizes businesses demonstrating leadership in energy efficiency, renewable energy, electric mobility and environmental stewardship.
Sharma said the GEA has already received submissions after inviting participation through the Private Sector Commission and other business organizations.
“The idea here is to recognize the efforts of the private sector in reducing their carbon footprint by being a responsible business, environmental stewardship, handling water use, the cost they pay for transportation, the cost they pay for energy, and what they’re doing to reduce those costs,” the GEA CEO explained.
