Minister of Public Utilities and Aviation Deodat Indar has indicated that the government is nearing the completion of negotiations for a third powership. This development comes as electricity demand in Guyana continues to rise, while the gas-to-energy project has not yet begun supplying power to the national grid.
In an interview on the Starting Point Podcast, Indar explained that the government has had to secure temporary power generation over the past two years to meet the increasing demand and stabilize the electricity supply. He noted that the first powership, which provided 36 megawatts, was brought in during a critical time when additional power was urgently needed. The government negotiated the arrangement at a rate of 7.2 US cents per kilowatt hour, which Indar described as the most affordable option available at that time for a vessel that could be deployed quickly.
Following this, a second powership generating 60 megawatts was contracted at a rate of 9.5 US cents per kilowatt hour. Indar stated that this vessel was also essential due to anticipated demand increases during the Christmas period. He mentioned that urgent work was required to connect this vessel to the grid, including the construction of four kilometers of transmission lines within a six-week timeframe.
The minister further explained that the government is currently negotiating for a smaller third powership to provide additional generation capacity in Berbice. He emphasized that this need persists because the gas-to-energy project has not yet been activated, and the system still requires both voltage support and extra generation capacity.
Indar also addressed public discussions surrounding the negotiations, noting that one of the letters related to the talks had been leaked. He asserted that negotiations should not be conducted publicly, stating, “You don’t negotiate in the public.” He mentioned that the government has taken a firm stance in the negotiations, acknowledging that the initial rate secured two years ago is unlikely to be replicated.
According to Indar, asset owners have proposed a rate of 9.5 US cents per kilowatt hour, while the government is advocating for 9 US cents. He remarked, “We made sure that we took some strong positions on negotiation.” The minister also highlighted that the government has alternative options but noted that the vessel already in Guyana has the advantage of being connected to the system. He concluded by stating, “We need the power, they need the work. Let’s find a middle ground.” Indar confirmed that the negotiations are almost finalized, stating, “We are 99 percent there, not fully yet, but we are 99 percent there.”
Source: hgptv.com
