Guyana is swimming in oil, but unveils its renewable energy roadmap with a focus on hydroelectric and solar power.

Guyana expects to exceed one million barrels of oil per day by the end of 2026 , but part of the revenue from that production will be used to diversify its electricity mix.

So the government is putting out to tender a 165 MW hydroelectric plant, with bids of up to $800 million , and plans to expand photovoltaic solar generation, especially in inland communities.

“Our goal is for the Amaila Falls hydroelectric project to have 165 MW by 2030. Currently, the process is in the bidding phase; all the bids have been received and are being evaluated,” revealed Mark Phillips , Prime Minister of Guyana , during his participation in the Future Energy Summit (FES) Government and Investment.

“We expect construction of the project to begin soon. The estimated cost is between US$415 million and US$800 million,” he added.

The roadmap is part of the national goal of achieving 80% renewable electricity by 2040 , although it currently relies almost entirely on power plants fueled by heavy fuel oil.

However, the challenge is also economic and operational: subsidized rates range from $0.24 to $0.30 per kWh , while losses in the electrical system hover around 26%. Expanding supply and modernizing the networks will be crucial to meeting the growth in consumption.

Therefore, the awarding of the Amaila Falls project will be a major milestone for the sector. This is especially true considering that in January 2022, the project was awarded to China Railway Group Limited, but the agreement was dissolved six months later due to financing difficulties.

Meanwhile, Guyana is incorporating small hydroelectric power plants. The 1.5 MW Kumu plant in Lethem began operating in July 2025, while the Moco Moco project will add another 0.7 MW.

Solar expansion is another component of the strategy. The government is combining grid-connected parks with stand-alone solutions for rural areas, where the costs of extending power lines hinder access to electricity.

"As a government, we will continue to develop photovoltaic solar energy projects, especially aimed at supplying electricity to many of the inland communities of Guyana," the Prime Minister stated.

Recent developments include the 0.6 MW Leguan photovoltaic plant , inaugurated in August 2025 with an investment of $1.4 million. It incorporates 1.2 MWh of battery storage and complements a similar facility developed in Wakenaam during 2023.

The rural electrification program, launched in 2023, aims to distribute 30,000 domestic solar systems . By July 2025, approximately 4.8 MW had been installed using this method, primarily in communities not connected to the national grid.

The plan also included nine photovoltaic parks with a combined capacity of 8.35 MW by the end of 2025. In addition, the country offers tax incentives for medium-scale solar and wind energy investments.

“We have a population of one million inhabitants in a territory of 83,000 m2. Since 90% of the population resides in the coastal area, that is where the greatest demand for electricity is concentrated; however, there is 10% that lives inland, distributed in small population centers,” the president indicated.

“We have recently connected all these communities to the internet, and now our goal is to provide them with an adequate electricity supply. To achieve this, we are using photovoltaic systems, microgrids, and small hydroelectric plants to meet the needs of these communities,” he added.

Smart grids, electric mobility and gas-fired power generation

Modernizing infrastructure is another priority, including the implementation of smart grid technology. For example, Guyana Power and Light experiences losses of approximately 26% of the electricity generated , while recurring power outages and high costs negatively impact consumers and productive activities.

“Increasing the electricity supply requires investing in smart grids, modernizing the entire electricity grid system, advancing digitalization and promoting electric mobility; these are precisely our current priorities,” the Prime Minister stated.

In terms of financing, Guyana also has the United Nations-backed Just Energy Transition Start-Up Financing Initiative, which includes technical assistance and resources for renewable energy generation and sustainable transport.

However, diversification also includes new thermal power plants such as the 300 MW Gas-to-Energy project by mid-2027 , while a second facility of equal capacity would raise the combined capacity to 600 MW by 2030.

"Gas is a transitional and cost-effective energy source. It has a lower carbon footprint, which is why we are investing in it as well. We are using the revenue generated to drive Guyana's development, which leads to increased energy demand," Phillips emphasized.

In summary, the period 2027-2030 will see the major generation milestones announced by Guyana. For the renewable energy sector, the awarding of the Amaila Falls project, the implementation of solar projects, and the reduction of electricity losses will be crucial in translating diversification goals into new operational capacity.