–President Ali says, expresses dissatisfaction with utility company’s current performance
–says gov’t in talks with UK Export Finance to explore financing options for transmission as demand continues to grow

PRESIDENT Dr Irfaan Ali has expressed his dissatisfaction with the current performance of the Guyana Power and Light Incorporated (GPL), while also acknowledging the myriad of inherited problems due to a lack of maintenance and investments during the period 2015 to 2020 under the APNU+AFC government.

President Ali made this point during an engagement with the Board of Directors and management of GPL, the Power Producers and Distributors Incorporated (PPDI) and Wartsila at State House on Tuesday.
He urged the entity to explore various avenues in order to find solutions to meet the energy demand until the gas-to-energy project comes on stream.

In addition to reflecting on the primary reason for this situation, which is the lack of maintenance and investments under the coalition, the President also discussed the exponential growth in demand, aged assets, and lack of redundancy in transmission with the team.

“It’s important to note that the Government has already engaged UK Export Finance (UKEF) to explore financing options for the transmission. Additionally, the President asked the utility to consider alternative options to provide bridging energy to meet the demand while waiting for the completion of the gas-fired power plant.

The utility expects a further growth in demand this year of around 30MW,” the Office of the President said in a Facebook post.
In September 2023, GPL had recorded a historic peak in demand amounting to 182 megawatts of power. In 2022, however, it was noted that based on projections, there was a realisation that demand for power would increase significantly.

Notably, the conversion of natural gas from ExxonMobil’s offshore operations to electricity is a key component of the People’s Progressive Party/Civic (PPP/C) government’s aim to lower energy costs by at least 50 per cent through an energy mix which incorporates gas, solar, wind, and hydropower.

A 12-inch pipeline, which will stretch some 200km offshore, will be used to transport natural gas from the Liza Phase One and Liza Phase Two Floating, Production, Storage, and Offloading (FPSO) vessels offshore, to the power plant and Natural Gas Liquids (NGL) facility.

Esso Exploration and Production Guyana Limited (EEPGL), which is owned by ExxonMobil Guyana and partners Hess and CNOOC, have guaranteed the government that a minimum of 50 million standard cubic feet of gas per day (mmscfd) will be transported through the pipeline by 2024. The pipeline will have a maximum capacity of 130 mmscfd.