Guyana: New Power Ship Deal Nearly Final As Electricity Demand Continues To Rise

The Government of Guyana is in the advanced stages of finalizing a new agreement for a smaller third power plant aimed at providing critical voltage support and additional generation specifically for the Berbice corridor. This development comes in response to the increasing national demand for electricity and ongoing distribution delays at the Wales Gas-to-Energy project.

Minister Deodat Indar, who oversees Public Utilities, indicated that the state is 99% close to completing the agreement. The rising demand for electricity is attributed to coastal industrialization, a boom in commercial real estate, and increased ownership of domestic appliances, which have all contributed to the compression of available spinning reserves of Guyana Power and Light Inc. (GPL).

With the 300-megawatt natural gas-to-energy transmission lines not expected to be operational until late 2026 or mid-2027, the government has opted to maintain its fleet of chartered floating power plants to ensure immediate baseline stability. The evolution of Guyana’s powership fleet from 2024 to 2026 includes:

• Vessel 1 (36 MW): Contracted in mid-2024 at a concessional rate of 7.2 to 7.6 US cents per kilowatt-hour (kWh), stationed at Everton, Berbice.
• Vessel 2 (60 MW): Introduced ahead of the 2024 peak holiday season to manage regional surges, connected at Meadow Bank, Demerara, at a premium rate of 9.5 US cents per kWh.
• Proposed Vessel 3 (Berbice Expansion): A smaller generation asset being negotiated to support the Berbice network, with discussions ongoing regarding pricing between the operator’s demand and the state’s counter-proposal.

Minister Indar addressed the ongoing negotiations, emphasizing the importance of defending the interests of the Guyanese consumer while navigating the complexities of international energy contracts. He expressed disappointment over a leaked internal negotiation brief, highlighting that such sensitive discussions should remain confidential until finalized. The current vessel’s connection to local infrastructure and the fast-tracked four-kilometer transmission line make reaching a middle ground essential to prevent rolling blackouts while permanent infrastructure is developed.

Source: hgptv.com