–President Ali says; affirms gov’t working to bridge demand-supply gap through holistic approach
GIVEN Guyana’s escalating energy demand, the government is currently working on a “holistic” reform of power supply to bridge the demand-supply gap, to address issues resulting from not only a lack of infrastructure and neglected maintenance, but also a human resource deficit.
This was according to President Dr Irfaan Ali, who has expressed deep concern over the state of Guyana’s power infrastructure, which is significantly impacted by aged generators, some surpassing 30 years old, compounded by a five-year period of maintenance neglect between 2015 and 2020 under the APNU+AFC government.
According to the Head of State, these issues have resulted in inefficiencies in power generation, exacerbating the shortfall in meeting the nation’s escalating electricity demands.
“As I speak, we are not meeting those demands. We have tremendous difficulties with trucks in construction, accidents hitting the network, causing challenges,” President Ali said on the sidelines of an event at the Office of the President, on Wednesday.
With an exponential increase in demand anticipated, President Ali revealed projections of an additional 35 megawatts of new demand this year alone, reaching approximately 220 megawatts overall by year-end.
However, the current generating capacity stands around only 165 megawatts, further highlighting the urgency of the situation.
Acknowledging the challenges posed by infrastructural constraints, including difficulties with transportation for construction and accidents affecting the network, President Ali stressed the critical need to address human resource gaps by recruiting more engineers, technicians, and linesmen to strengthen the workforce.
In response to these challenges, President Ali outlined the “holistic path” to bridge the demand-supply gap, including seeking financing through the UK’s Export Finance (UKEF) to complete new transmission lines and upgrade existing infrastructure.
“We have to deal with the transmission itself…We haven’t quantified that as yet.
But this is going to be a sizable demand because the transmission is very expensive,” President Ali said.
Expressing disappointment at the slow progress in recruiting technical personnel, President Ali highlighted the necessity of bringing in expertise from abroad to address immediate infrastructural needs.
“As I speak to you, I have expressed my disappointment…,” President Ali said as he reaffirmed his commitment to addressing these challenges through strategic investments and international partnerships.
The Gas to Energy (GTE) project was highlighted as a crucial initiative, promising to significantly reduce energy costs and satisfy the escalating demand for electricity in Guyana, projected to reach almost 1,000 megawatts by 2030.
The project is expected to improve reliability and lower the cost of electricity in the country, with the potential to significantly reduce the cost of electricity from US$0.25/0.36 per kWh to US$0.06/0.07 per kWh.
Progress on the GTE project, with approximately 40 per cent of the onshore pipeline and 55 per cent of the offshore portion completed, signifies a potential major energy transformation for sustainable development in the region.
Despite efforts to bolster the country’s power supply, recent power outages and system failures have underscored the urgent need for immediate action.
President Ali, on Tuesday, convened a meeting with stakeholders to address GPL’s current performance and call for urgent improvements.
In addition to ongoing projects like the GTE, the government is exploring plans for a second power plant, signalling a strategic move towards energy self-sufficiency.
Progress is also being made on the 165MW Amaila Falls Hydropower Project, further indicating the government’s commitment to enhancing Guyana’s power infrastructure.
