— Says US$800 million investment required to strengthen transmission, distribution network over the next five years

PRESIDENT Dr. Irfaan Ali has identified the next six months as a critical period for Guyana’s electricity system, as generating units will have to be taken out of operation for mandatory maintenance and overhaul, even as the country confronts an estimated US$800 million investment requirement to strengthen its transmission and distribution network over the next five years.
In a recent sit-down interview with News Room, President Ali acknowledged the challenges facing the Guyana Power and Light Inc. (GPL), saying that while significant investments are being made to expand generation and upgrade the grid, the immediate months ahead will require careful management of available capacity.
“So, the next six months is critical for the existing challenge,” the President said.
He explained that the Government has been examining available generation capacity and the additional power that will be required through the end of the year, particularly as some generating units reach the point where they must be removed from service.
“In the next three months, by compulsion, we will have to take generating capacity out of the system for overhaul and maintenance,” President Ali said.
The Head of State explained that delaying scheduled maintenance can create further difficulties, particularly when components with lengthy procurement or delivery periods subsequently have to be replaced.
“Sometimes you may take a system out for maintenance, and then you have a long-lead item that has to be replaced, and that is the problem when you miss scheduled maintenance period and overhaul period. The long-lead items become problematic,” he said.
Ali said a technical assessment has also been completed for Essequibo, where approximately 25 to 27 megawatts of generation capacity requires investment in maintenance and overhaul. The Government is also examining approximately 4.5 megawatts of additional power that could be interconnected at critical areas.
But the President made it clear that the challenges confronting the electricity system extend well beyond generation.
He said GPL is simultaneously grappling with ageing transmission and distribution infrastructure, increasing electricity demand, inadequate reserve capacity, technical and management gaps and the need to modernise how the system is maintained and monitored.
Ali said GPL estimates that close to US$800 million will be required over the next five years for transmission and distribution infrastructure alone.

“To fix the existing type of infrastructure, GPL is estimating … a five-year plan investment of close to US$800 million. That is just transmission and distribution,” the President said.
Importantly, Ali said that this sum does not represent the entirety of Guyana’s longer-term electricity investment requirements, noting that the figure relates to a five-year programme rather than the utility’s broader 15-year development needs.
The Government, he said, has already been engaging international partners, including Qatar, to examine how the required investments can be accelerated.
At the same time, major transmission and interconnection projects are under construction, including works to connect the Berbice and Demerara grids, which Ali said should be completed within the coming months and provide additional relief to the system.
The President said the challenges have been compounded by the rapid pace of development across Guyana, with expanding housing, industrial and manufacturing activity placing significantly greater pressure on an electricity network that itself requires substantial expansion and modernisation.
He pointed to deficiencies across generation, transmission and distribution, while also acknowledging shortcomings in maintenance systems, predictive analysis, continuous monitoring, specialised technical capacity and other areas of GPL’s operations.
Ali said addressing the immediate generation requirements must therefore be accompanied by efforts to strengthen GPL’s technical expertise and management capacity.
“We are hoping to ensure that we stabilise and to have the gap in the technical expertise in GPL also fixed,” he said.
According to the President, recommendations from InterEnergy are being considered, while the Government is also looking beyond those recommendations and engaging development partners on ways to further strengthen GPL’s management and technical capacity.
Ali also acknowledged the frustration being experienced by consumers as a result of electricity disruptions, saying he too is dissatisfied with the current situation.
“I would say I am frustrated myself. But we are in a seat where we have to find the solutions. It’s a complex issue, but we have to find a solution and we are finding the solution,” he said.
He stressed that reliable electricity is not only a household issue, but is critical to businesses, manufacturing, telecommunications, hotels and virtually every aspect of national life.
The President said the Government intends to make the investments necessary to address the weaknesses in the electricity system.
“We are not satisfied. We definitely are not pleased with the performance now, but it’s a complex issue, and we will do all that is necessary to ensure that we fix this problem,” President Ali said.

The wider investment programme is expected to complement additional generation and other major energy projects being pursued by the Government as it seeks to build an electricity system capable of keeping pace with Guyana’s rapidly expanding economy and growing demand for power.