The dry season had barely begun when society was confronted with power outages. Normally, such a situation occurs mainly during prolonged dry periods, when there is insufficient water in the Van Blommesteinmeer to deploy all six turbines during the period between two rainy seasons.
The most unpleasant aspect is that the institution which by law must ensure reliable, affordable and environmentally friendly energy, the Energie Autoriteit Suriname (EAS), did not announce in advance which areas would be disconnected from the energy supply and at what time.
The cause of the outages was said to be an increase in energy demand and excessive electricity use by society. The public was called on to limit energy consumption during peak hours, when most households need electricity.
The Energie Autoriteit Suriname
The EAS was established by law in 2016 to ensure affordable, reliable and environmentally friendly generated energy for society. According to that same law, the authority must monitor and direct the energy sector. In other words: the EAS is supposed to lead the sector.
Based on developments concerning electricity tariffs and interruptions to the electricity supply, it can be stated that the EAS has not properly carried out its duties over the past ten years.
A report by the Energie Tarieven Commissie (ETC), which was appointed in 2022 by late president Chandrikapersad Santokhi, reportedly shows that the tariffs charged to society by Energiebedrijven Suriname (EBS) do not consist entirely of actual costs.
At the same time, the EAS reportedly had hardly any influence on the production, cost price and planning necessary to guarantee energy supply to society.
According to the author, little to nothing has been done with the recommendations in the ETC report, which were intended, among other things, to contribute to an affordable and uninterrupted energy supply. According to him, this applies to both the previous and current governments.
Research and statements by experts, including internal experts, as well as information from Staatsolie Power Company Suriname (SPCS), reportedly show that EBS, the SPCS thermal plant at Tout Lui Faut and the Afobakakrachtcentrale together have sufficient generation capacity for current demand and the coming year.
The question then is: why are areas nevertheless disconnected from the electricity supply?
The EBS
At EBS, a generator with a capacity of more than 22 megawatts has been out of operation since 2022. Later, a second generator also had to be taken out of production due to necessary maintenance work.
This work reportedly was not carried out partly due to a lack of financial resources.
The ETC report reportedly shows that the lack of financial resources at EBS is partly caused by the high price Staatsolie charges for the supply of HVO fuel. In addition, EBS reportedly purchases thermal energy from SPCS at a high price and subsequently sells it back to SPCS at a lower price.
Both the previous and the current government have repeatedly complained about the fact that EBS would have to be subsidised by more than SRD 3.2 billion. However, according to the author, the above leads to the conclusion that not only society, but also SPCS is being subsidised.
Moreover, no annual reports are reportedly available from which the necessity and amount of this subsidy can be clearly determined.
SPCS and the Afobakakrachtcentrale
The director of SPCS recently stated at a local radio station that the company is modernising three turbines to generate more energy. However, the same interview also indicated that work was being carried out on one of the six turbines at that time.
The work on that turbine reportedly incurred a delay of about two months because parts were not yet available during dismantling.
The question arises as to what would happen if such parts are delayed even longer due to circumstances or cannot be delivered at all.
According to the author, two turbines had already been fitted with more efficient blades when the Afobakakrachtcentrale was taken over from Suralco.
Based on the cited information, SPCS can currently supply approximately 130 megawatts to EBS. With a capacity of more than 30 megawatts per turbine, this would mean that four turbines are in production, one turbine has been dismantled and another is out of operation.
At the same time, the director reportedly stated in the same programme that there is sufficient water in the Van Blommesteinmeer to generate approximately 160 megawatts.
What, according to the author, is insufficiently emphasised is that more than 30 megawatts of the generated energy is supplied to Zijin, leaving approximately 100 megawatts available to EBS for society.
The expectation is that the dismantled turbine will be returned to production in early October.
Operators of hydroelectric power plants generally carry out maintenance work based on the number of production hours prescribed by the manufacturer. Other work is preferably carried out during periods when sufficient energy is available to society, or when the water level is too low to keep all turbines in production.
Management of the energy sector
Under the 2016 Energiewet, SPCS and EBS should plan their maintenance work in consultation with the EAS.
In that context, the EAS should examine together with EBS whether possible shortages from Afobaka can be absorbed. If it appears that EBS cannot do so, the EAS should, according to the author, issue binding advice to SPCS to postpone planned modernisation or renewal work on turbines.
According to the author, the turbines in question do not have any technical defects. In addition, SPCS itself reportedly indicated that, with sufficient water in the reservoir, approximately 189 megawatts of relatively inexpensive hydropower energy can be generated.
The EAS should ensure that the Afobakakrachtcentrale produces optimally, so that EBS has to generate or purchase less expensive thermal energy.
According to the author, the current situation shows that the EAS is insufficiently carrying out its statutory task and that SPCS’s actions are detrimental to society.
He further states that SPCS would have a financial advantage under the existing situation. The company reportedly sells thermal energy from its plant to EBS for USD 0.16 per kilowatt-hour and purchases the same energy from EBS for USD 0.11 per kilowatt-hour.
According to the author, the price of USD 0.16 was based on an oil price of approximately USD 70 per barrel, while he states that it is now around USD 108 per barrel.
The solution
According to statements by SPCS, the dismantled turbine of the Afobakakrachtcentrale should be operational again in early October.
According to the author, the EAS must closely monitor this and at the same time insist that all available turbines be put into production, taking into account the water level in the reservoir.
In addition, according to him, at least one 22-megawatt generator at EBS must be overhauled as soon as possible.
According to the author, purchasing thermal energy from SPCS is more expensive, while renting generators from abroad also entails substantial costs. According to him, that money could be better used to overhaul at least one EBS generator within approximately six weeks.
To prevent a repetition of the current situation at the Afobakakrachtcentrale, the author states that management of the plant must be taken away from SPCS.
He also refers to the situation in Brokopondo in 2022. According to him, all spillway gates were fully opened during the 2021-2022 period to protect the dam, after which parts of Brokopondo were flooded.
According to the author, water management in the period thereafter also contributed to a water shortage, resulting in less energy being generated towards the end of 2023.
Finally, according to him, De Nationale Assemblée (Suriname’s parliament) must more emphatically exercise its oversight role towards the minister responsible for energy supply.
According to the author, the minister stated in the media that approximately USD 500 million would be needed to solve “the problem”, without making clear what he believes is the actual cause of the energy shortage.
The question that therefore remains, according to the author, is:
Can an investment of USD 500 million solve the problems if the chaos in the management of the energy sector is not addressed at the same time?
Kenneth Sukul
