“I am fed up, really fed up with EBS!” The desperation and helplessness are clear in Rinia Amania’s voice. NV Energie Bedrijven Suriname (EBS) is the state-owned electricity company in Suriname. Amania’s refrigerator narrowly avoided catching fire, her washing machine requires repairs, and frequent unplanned power outages are putting her business at risk. “I provide services via the internet, and when it goes out, I can’t keep working.” Amania has looked into alternative ways to access electricity. “But as much as I would like that, it’s unaffordable for me,” she says resignedly, referring to solar energy.
Energy transition—the shift from fossil fuel-based energy to cleaner, more environmentally friendly sources—is a goal for nearly the entire world. The effects of climate change need to be mitigated, which includes reducing the emissions from burning fossil fuels.
The aim is—as far as the energy sector is concerned—to switch entirely to renewable sources for the supply of electricity by 2060. Suriname is also striving for this and wants to be 35 percent less dependent on fossil fuels by 2030, but has no concrete plans to achieve this goal. That is also why people like Amania cannot yet afford to switch entirely to cleaner forms of energy supply.
She would choose the installation with solar panels and a battery for storage in order to be independent of the Energy Companies Suriname (EBS). “I would have to pay around four thousand US dollars for the entire installation, but that is not feasible with my small business. That is SRD 124,000, while I now pay SRD 1,000 per month for electricity,” Amania explains.
Complex and Affordable
The energy landscape in Suriname is quite complex, but it offers short-term financial benefits to consumers. Thanks to the facilities from the Afobaka reservoir, the largest in the region, the country is already running on 50 percent clean energy. Other Caribbean countries do not have that. They are mainly dependent on expensive fossil fuels, which they also have to import.
Peter Donk, who serves on the board of the Suriname Energy Chamber and works at EBS’s management office, agrees. He advises EBS management and has done research on energy transition options in Suriname. “For some time, Suriname has made good progress in generating electricity from a green source. We cover at least 50% of our energy needs with the thermal energy that the Afobaka power plant supplies to EBS via Suriname’s national oil company, Staatsolie. In Suriname, we even pay less than half of the common rate in Barbados, where the price is between 30 and 40 cents USD per kilowatt-hour.”
An investment in solar energy, as Amania would like, is therefore not profitable. This applies to at least 80% of the population who use less than 900 kWh per month. “The 2016 Energy Act does allow individuals and organisations to invest in their own energy generation and then offset it against their EBS bill.” Offsetting means deducting the electricity EBS supplies to the customer annually from the electricity the customer generates themselves. “That’s not attractive for people like Amania. If the law allowed customers to supply surplus electricity to EBS and get paid for it, more people would want to generate their own energy because they could recoup their investment. But for now, that’s not possible,” Donk explains.
Barbados
In other countries, like Barbados, where electricity is significantly more expensive than in Suriname, energy sector reform has been underway since 2012. The island had some of the highest electricity rates in the region and high diesel import costs for power generation. But with the Public Sector Smart Energy Program (PSSEP), developed with IDB support, and the 2019 Barbados National Energy Policy, the island aims to achieve 100% renewable energy by 2030. Donk notes that those who build a home and take out a mortgage can finance the installation costs as well.
“You achieve that through policy. We don’t have that yet,” Donk says, even though the 2016 Energy Act that established the Energy Authority of Suriname (EAS) was passed. Currently, solar power installations are particularly attractive for large companies that consume more than 900 kWh, as they can reduce their electricity bills by offsetting their actual usage with EBS.
Orlando Olmberg, president of the Suriname Energy Chamber, says there is the need for both the Energy Act and a comprehensive energy sector plan to evaluate the current energy landscape. A strategic plan should follow, outlining the government’s path from the current situation to 2030 and 2060. “This way, investors know what to expect, and momentum can build. You need to know the policy before anything else can follow.” The Energy Act also stipulates that such a plan must be developed. The absence of one has led to stagnation. Olmberg adds, “We currently meet 50% of our energy needs with hydropower, but as demand increases, that percentage will decrease. Long periods of extreme drought, linked to climate change, could also reduce the generation capacity. In such cases, we’d rely even more on EBS’s large diesel generators,” illustrating the need for more alternatives for power generation.
A complex undertaking
Developing an energy sector plan, followed by a strategic plan, is complex. “It also involves spatial planning, which is still in its infancy in Suriname. It’s needed because a zoning plan should follow from it. This would outline where more electricity will be needed, such as industrial areas or new residential neighbourhoods, and determine their requirements. Only when that’s known can we decide what energy infrastructure needs to be built or adapted. Without that plan, every action will be ad hoc,” Donk adds.
Dave Abeleven served as director of EAS for three years, from its inception in 2020 to December 2023. He now works as an energy consultant in the region and is one of the few who has observed both sides of Suriname’s energy landscape—from the government at the Ministry of Natural Resources to the authority. By law, EAS is the body that should set rates and create the strategic plan Olmberg mentioned. “There was a plan in 2018, but the government did nothing with it. A new one is needed to consider future offshore oil production, which wasn’t accounted for in 2018. The plan is nearly complete. Once it’s in place, half the work is indeed done,” Abeleven says. “But the actions that should follow from this plan also need funding. And since successive governments have kept EBS rates mostly below cost, the company has never been able to make a profit. So all investments were paid for by loans. Where will EBS get the funds now to invest in new infrastructure and everything that entails?” Abeleven asks.
A grim picture
Abeleven also paints a grim picture of EBS’s existing network. “It can’t handle larger electricity quantities everywhere. So even if individuals started generating more power now, the distribution network couldn’t handle it in all areas. In some places, it’s already overloaded. So we need to start investing heavily in EBS infrastructure, which will be essential to meet the increasing demand for power.” Abeleven even believes that a second EBS power plant, like the one on Saramaccastraat, will be necessary, given that some elements are now around 25 years old.
Gas in transition
Donk, Olmberg, and Abeleven see importing natural gas as a potential way to transition from diesel to a cleaner form of energy. Gas could be used to keep the various generators at power plants currently running on diesel operational. “Gas is indeed much cleaner than diesel, so it’s a good option for a transitional period.” Abeleven also advocates for energy efficiency. “There is significant potential for reducing electricity consumption in Suriname, which is also a sustainable action. Because electricity in Suriname is relatively cheap, we’re used to using a lot of it. But with higher peak and lower off-peak rates, for example, energy consumption could already be influenced. There’s also much to learn about air conditioning use—many people set it at the lowest level, while a room-temperature setting would keep the room cool enough,” he shares as tips.
