Concerns about potential blackouts in Guyana have escalated as the Turkish energy company Karpowership has indicated it may suspend operations if a new commercial agreement with the government is not reached. The deadline for final negotiations expired on June 1, 2026, and government officials have not publicly addressed the situation, leading to increased public anxiety regarding power outages in various communities.
Karpowership currently provides 96 megawatts of electricity to the national grid through two powerships located in the Demerara and Berbice Rivers. Recent correspondence from Karpowership to Minister Deodat Indar highlighted unresolved commercial matters that need to be addressed for operations to continue. The company emphasized the necessity of aligning commercial terms and pricing structures across its operations.
At the center of the negotiations is Karpowership’s request for a significant price increase for electricity generated by its 36-megawatt vessel in the Berbice River. The proposed adjustment would raise the cost from US$0.076 per kilowatt to US$0.095 per kilowatt, potentially adding approximately US$5.8 million annually to the state-subsidized electricity bill.
During a recent Local Content Summit, Finance Minister Dr. Ashni Singh did not provide updates on the contract status and suggested that inquiries should be directed to energy sector managers. He reassured the public that the government would take necessary actions to protect consumer access to electricity.
The situation is further complicated by delays in the Wales Gas-to-Energy Project, which is not expected to begin generating electricity until late 2026. This delay increases reliance on temporary power generation, raising the risk of blackouts if a new agreement is not reached or alternative power sources are not deployed.
Source: hgptv.com
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