Why does Guyana import much of its energy despite having hydroelectric potential?

Although Guyana possesses significant hydroelectric potential, particularly at sites like Tiger Hill on the Demerara River and Tiboku Falls on the Mazaruni, the country continues to rely heavily on imported energy and thermal power generation.1

The development of these domestic water-based energy resources is primarily hindered by two major factors:

• Geographic Remoteness: The most promising sites for hydroelectric power are located in isolated areas, far from the coastal plain where the majority of the population and infrastructure are concentrated.1
• Capital Requirements: Harnessing this energy would require substantial financial investment to construct both the necessary generation plants and the extensive transmission facilities required to deliver electricity to populated regions.1

While the country has seen a major economic shift due to the discovery of offshore oil fields since 2015, historical challenges—including infrastructure instability and the need for significant capital—have historically limited the transition to alternative domestic power sources.12