Guyana’s energy generation is almost completely based on fossil fuels, currently generated at electricity plants that use heavy fuel oil. The subsidized cost of electricity is $0.24 to 0.30 per KWH, which is among the highest in the region. Power is not stable in many areas and rolling brown outs are common. The high cost of electricity continues to affect businesses’ operating performance and has historically limited the country’s ability to provide value added processing. Renewable energy is viewed as a potential solution by the GoG, and they are working to reduce the cost of power and provide reliable electricity. Guyana has significant potential for hydropower, like its neighbor Suriname which has successfully developed hydropower programs.
Companies seeking to invest in Guyana’s renewable energy sector should contact the Ministry of Tourism Industry and Commerce and the Guyana Office for Investment (GO-INVEST) for information on tax concessions and other investment incentives for the adoption of renewable energy programs. The Guyana Energy Agency oversees feasibility studies for the integration of renewable energy programs in Guyana’s energy diversification initiatives and has regulatory oversight over certain aspects of the energy industry, in addition to the Ministry of Public Utilities and Aviation. The GoG adopted changes to the wear and tear schedule of the Income Tax Act in 2019 for capital investments in renewable and alternative energy and further tax exemptions for hybrid or electric cars and electric motorcycles. In the future, electric vehicle charging infrastructure may become a viable business opportunity.
The challenge for potential investors evaluating renewable energy opportunities in Guyana is the current energy legislation, which allows the state-owned company Guyana Power and Light Inc (GPL), to have a monopoly over power generation. The absence of grid tie-in legislation to allow for the resale of power to the state-owned entity may affect feasibility studies unless a public private partnership can be established for this purpose. In conjunction with the Public Utilities Commission (PUC) and the Prime Minister’s office, GPL has previously done PPPs with private energy firms using fossil fuel-based power generators.
Leading Sub-sectors
Development of Microgrids for Outlying Regions
Economic development in Guyana’s outlying regions is stymied by a lack of reliable electricity. These areas often have small populations. However, their locations and/or natural resources make them attractive sites for investment. GPL loses approximately 26 percent of the power it generates due to inefficiencies in the power grid and transmission lines. The GoG is rolling out microgrids as a potential low cost, clean energy solution to address outlying regions’ energy demands while reducing the grid congestion and peak loads on the main grid. In 2023, the GoG requested bids for solar photovoltaic projects and this trend continued in 2025 as the government expands renewable energy.
Development of Hydropower
Due to its extensive river networks, the GoG is exploring other hydropower developments to meet the growing energy demands of the country. A key project for the GoG is the potential development of the 165 MW Amalia Falls hydropower project which is located in the interior of the country. Originally, the project was awarded to the China Railway Group Limited in January 2022. However, it ran into financing issues, causing the government of Guyana and China Railways to part ways in July 2022. Further, feasibility assessments point out that in dry periods the water flow at Amalia Falls may be insufficient for full capacity operation of a hydropower plant. Additionally, companies lament the high cost of hydropower development given the wide dispersion of waterways and the challenge of connecting outlying communities to the electric grid.
Development of Wind and Solar Farms
Guyana has tax concessions and capital write-offs available for wind and solar farm investments. While Guyana’s geographic location makes offshore wind a viable alternative, current regulatory hurdles are likely to stymie investment in this technology. Solar power generation units are attractive options for companies that wish to avoid the unreliable and expensive central electricity grid. Nine solar farms are expected to supply a maximum of 8.35 megawatts of electricity to the power grid per day by the end of 2025. A wind farm with an installed capacity of about 10 MW to supply electricity to the local grid is being pursued for Hope Beach on the East Coast. The GoG plans to continue constructing several mini solar farm projects to connect and provide power to the rural communities.
Energy Efficient Technologies
The GoG seeks to increase energy efficiency across the economy and spur private sector investment by offering incentives like an accelerated capital depreciation for deployment of technologies which reduce operational costs and increase profitability for many companies.
Electricity Distribution Networks
Guyana’s electricity transmission lines and power grid are in a severe state of disrepair and need to be modernized. GPL reportedly loses approximately 26 percent of its power through inefficiencies in the grid. The GoG is drafting tenders for the rehabilitation of its existing power infrastructure, the supply of additional power, and improving the transmission lines. U.S. firms are encouraged to monitor the Department of Public Information page (www.dpi.gov) and the National Procurement and Tender Administration Board (NPTAB) website for tender opportunities. Please contact the U.S. Commercial Service team at the U.S. Embassy in Georgetown for more information.
Opportunities
According to the 2025 annual budget, the GoG will prioritize investments in updating and expanding its energy infrastructure using funds from the country’s sovereign wealth fund. U.S. firms are encouraged to track the GoG’s announcements regarding natural gas monetization plans, marketing of oil, integration of the grid, future hydropower, microgrids, solar and wind project opportunities.