The Guyana Energy Agency (GEA) is the successor of the Guyana National Energy Authority (GNEA). The GEA came into operation on 1^st June 1998 by appointment of the Minister. It falls under ACT # 31 of 1997. GEA is the agency within whose portfolio lays all energy related matters.

It is the mandate of the GEA "To ensure the rational and efficient use of imported petroleum-based energy sources, while encouraging, where economically feasible and environmentally acceptable, increased utilization of indigenous new and renewable sources of energy."

In conformity with its mandate, the GEA has been instrumental in the construction of a 500kW hydropower plant located in the hinterland region of Guyana. This was made possible through a transfer of technology from The People’s Republic of China to the Co-operative Republic of Guyana. This 500kW plant provides power to Lethem, the main load center, and several other small communities located within 12 miles of the station. Lethem forms the bordering community between Guyana and Brazil. In the very near future, when the demand rises above the maximum capacity of the station due to the international trade foreseeable between Guyana and Brazil, other surrounding waterfalls can be harnessed to meet this demand.

As a result, cottage industries have already made commitments to utilize the natural resources available in Lethem for the production of agricultural products such as cashew nuts, peanuts, peanut butter and canned juices.

Guyana is a land of opportunity for hydropower investments. The Montreal Engineering Company conservatively estimated the potential as being somewhere in the vicinity of 7000MW.

Potential for the use of renewable energy sources also exists in wind, woodwaste, biomass (one of Guyana’s main export is sugar) and solar energy.

Studies have been done up to the pre-feasibility level for all hydropower sites from 5 MW upwards. These are available upon request either by fax or email. The main reason why these sites have not been further developed is that of a small load demand. The high capital investments required for hydropower stations are a major deterrent for investment at the Government level. Private investment, however, is where we are concentrating.

One of Guyana’s most valued natural resource is bauxite. We have the highest metal grade bauxite available in the world. The availability of the large amounts of reliable and affordable power required will allow this much more economically viable process of smeltering.

The private sector has just undertaken to conduct a feasibility study of a 105 MW hydropower station with the view of construction once the results are positive.

Guyana is in the process of negotiating the establishment of an international electrical interconnection at the Guyana/Brazil border, utilizing power indirectly from Venezuela. While this will initially serve to meet the energy needs of Guyana, the physical interconnection will eventually be used to supply power to the international market. The potential therefore for hydropower in Guyana not only spans the national market but also reaches out to the international community.

The privatization of the electricity corporation will be completed in the very near future. As soon as this is completed Power Purchase Agreements (PPA) will be worked out. Under legislation the public utility is required to buy power generated from new and renewable energy sources at "Avoided Cost".

All renewable energy equipment and materials are free of taxations and duties. There is also a regime of fiscal incentives for industrial development of Guyana including energy. The legal framework to promote foreign investment is already in place. The GEA is committed to the encouragement of private investment in the energy sector