With the Guyana Government having already invested billions of dollars into expanding the Guyana Power and Light’s (GPL) generating capacity to meet the country’s growing electricity demand, efforts are underway to overhaul the entity’s aged equipment which will see a modern smart power grid being installed by 2030.
In light of these massive investments, President Dr Irfaan Ali has warned that the state-owned power company will be held accountable if it fails to deliver stable and reliable electricity to the country, which is expected to see a steep surge in peak demand.
“GPL plans to achieve a full-fledged smart grid by 2030, which will comprise the distribution management system, smart distribution equipment, and complete advanced metering infrastructure. With the smart grid, GPL will achieve a significant reduction in the spread and number of outages, and we shall hold them accountable. These investments we are making, the management of GPL will and must be held accountable to deliver the results from these investments,” the Head of State declared on Thursday.
He was at the time addressing the 12th Parliament, where he reminded that GPL was starved of adequate resources that were direly needed for investment to effectively deliver service to a growing customer base and peak demand.
“During the period 2015 and 2019, GPL struggled with insufficient inventory to effectively execute its planned network expansion and maintenance programme. With respect to the operation of the grid, this challenge was further exacerbated by the insufficient investment in generating capacity and the maintenance of existing generator units. This resulted in significant system disturbances and frustrations to customers,” he stated.
Since 2020, however, the Ali-led Government has invested a whopping $28.1 billion into expanding the power company’s generation transmission and distribution system, adding 127.7 megawatts of generating capacity to the GPL grid to keep pace with the 64 per cent increase in peak demand and a 19 per cent increase in customer base since 2019.
These investments in the electricity sector by the current People’s Progressive Party/Civic Administration included the expansion and upgrade of the distribution network and substations, installation and replacement of more than 100,000 meters, as well as close to 4,000 transformers, and laying almost 2,800 kilometres of distribution network, and expanding and upgraded three substations.
Over the past four years, 27 communities were also powered for the first time and there has been no increase in electricity tariff despite substantial hikes in fuel prices.
In addition to modernising the electricity sector, the Guyana Government has also been working on advancing its renewable energy sources. A key initiative of the PPP/C’s energy transition programme is its flagship Gas-to-Energy (GtE) Project, which will see a 300-megawatt power plant and Natural Gas Liquids (NGL) facility at Wales, West Bank Demerara, utilising natural gas that will be piped from offshore Guyana.
The power plant is slated to come on stream in 2025 and when that happens, Guyanese consumers will see the cost of electricity slashed by half. This, according to President Ali, will save citizens more than US$250 million or $50 billion. And Government has already moved onto Phase Two of the GtE Project to bring an additional 75 million cubic feet of gas from offshore for a second power plant at Wales.
Power demand
Looking forward, the Head of State pointed out that by 2030, Guyana’s power demand is expected to triple and the Government plans to meet this surge primarily through natural gas and the Amaila Falls Hydro Project, alongside expansions in wind, solar and other hydropower plants.
Moreover, Government is also preparing additional tenders to deliver more substations, transmission lines and feeders to further improve the power system reliability and resilience. These tenders will deliver 230 kV transmission lines and substations to transfer bulk power to West and East Berbice as well as Linden.
Additionally, each new substation that GPL will construct will be completed with new distribution feeders, fully equipped with all relevant equipment in preparation for the smart grid.
President Ali went onto add that five solar PV farms, at 18 megawatts, is currently underway with plans for three more such facilities that will add another 15 megawatts to the national grid. “These investments aim to enhance the reliability of the power grid and improve access to electricity for new customers,” he stated.
On the renewable energy side, ramped-up investments have resulted in a 224 per cent increase in electricity generation from solar, hydropower and other renewable sources since 2020. Key projects include solar farms in Mahdia, Wakenaam and Leguan along with the distribution of 30,000 solar PV systems to the hinterland and riverain communities.
According to the Guyanese Leader, over the coming years, renewable energy is expected to play a greater role in delivering power across the country.
“By 2030, more than 50 per cent of the country’s electricity needs will also be met by renewable sources and natural gas. Looking ahead to 2040, with a peak load forecasted at 1326 megawatts in the next decade, we intend also to collaborate with Suriname, Brazil and French Guyana on a 3000-megawatt power interconnection system, underscoring the country’s commitment to energy security and a shift towards renewable energy,” he stated.
