…to minimise outages, disruptions
…blames recent blackouts on intensified maintenance of gensets, grid

CHAIRMAN of the Guyana Power and Light (GPL) Incorporated board, Robert Badal, has defended the power entity despite frequent and prolonged instances of power outages over the last few months.

In a letter to the editor, published in Friday’s edition of the Stabroek News under the headline, “Recent outages were a result of intensified maintenance on generating assets and the grid,” Badal accepted that GPL’s responsibility to supply reliable and stable electricity is taken seriously at all times. He apologised for the recent spate of blackouts across the country and noted the concerns of citizens. But while he understands the concerns, Badal said “it is important to understand the constraints and challenges affecting GPL’s everyday operations and the circumstances surrounding these outages.”

The Chairman of GPL’s board explained that the outages were the result of intensified maintenance works on both generating assets and the transmission and distribution network (grid). “The age of the electricity grid requires frequent maintenance to replace cables, connectors and the like. The absence of redundancy lines means that the areas serviced by the lines scheduled for maintenance would obviously be affected,” he said in the missive.

Livewire maintenance
Additionally, Badal explained that the executive management has recently been mandated to implement livewire maintenance, which would require a minimum disruption of service during maintenance. “Currently we do not have this expertise, and it would require much training of local technicians, but it’s the way forward.”

Over the years investments in generating assets have lagged behind the need to retire aging Gensets. Currently, GPL has 50MW of generators in Kingston and Garden of Eden that are over 22 years old, and their replacement is now being planned. “These units are now de-rated, resulting in lower generating capacity. While the units under maintenance have now been restored, a shortfall in supply at SEI in Skeldon has made our reserve very thin.”

Badal said too that currently there is a total, available generating capacity within the Demerara/Berbice Interconnection System (DBIS) of 123MW against a peak demand of 115MW; Leaving a reserve capacity of 8MW. “This means that in the event of an unexpected breakdown or even scheduled maintenance the generating capacity may be inadequate. To arrest this scenario we have invited expressions of interest for the installation of 50MW of generation based on natural gas under a power purchase agreement, but the lead time for such supply could be two years, leaving GPL in a most challenging situation,” he disclosed.

According to the board’s chairman, divesting all new generation is the new model GPL would be using going forward to allow private sector investment in the electricity sector, while allowing it to focus its operating cash flows on modernising its electricity grid. “The same neglect of renewal was evident at Bartica, Anna Regina and Canje, where the generating sets are more than 30 years old, which logically would give rise to maintenance challenges and affect the reliability of electricity. We have purchased new gensets for these areas which after commissioning would remove outages in those areas. Nonetheless, a sensible policy of scheduled retiring and replacement of gensets is vital in ensuring adequate long-term generating capacity.”

Meanwhile, Badal said the Public Utility Upgrade Programme (PUUP), a US$64M investment would see 54,000 smart meters installed and more than 1000km of low-voltage distribution lines aimed at reducing losses, management strengthening and capacity-building. In addition, the Infrastructural Development Programme phase 2 will soon be commissioned. “This programme costing in excess of US$22M will build four new sub-stations, expand seven existing sub-stations, build 55km of transmission lines and integrate generation with transmission through the SCADA system.”

Stronger financial position
He noted that the power company is in a stronger financial position now than it was years ago and said that over the past two years it has added more than G$8B in free cash flows through prudent management, better inventory control and scheduling of procurement, even after extending a 20 per cent reduction in electricity rates. Additionally, Badal said GPL has repaid the government $1B in interest this year, the first time the company has been able to do so.

“It is now able to finance its own operations from operating cash flows instead of needing state funding. All executive posts are now filled and a CEO will soon be on board,” he stated. Government has allocated $2B in its 2018 budget to the power company to improve the quality and efficiency of its electricity distribution network. The allocation is for the PUUP.

In addition, Finance Minister Winston Jordan said government will be examining the feasibility of using natural gas as a more affordable and cleaner energy source until such time as we are able to move to 100% renewable energy. GPL has already invited expressions of interest for the installation of a 50MW capacity natural gas-fired plant.

Similarly, Badal noted that GPL’s focus next year is to complete the PUUP and execute the IDP 2, build generation capacity through private sector partnerships, intensify the reduction of losses, and improve operational efficiency and productivity. That aside, he noted that customer service has been found wanting given the plethora of complaints but believes that with the hiring of a new director of customer service months ago, improvements will be made. “Strong leadership which a substantive CEO would bring should propel us to achieve these goals,” said the chairman of the board.