PRESIDENT Dr Irfaan Ali has said Guyana’s energy plans must take account of the electricity generated independently by mining, forestry and bauxite operations, as well as demand supplied through the national grid.
Speaking about two large gold-mining projects expected to come on stream soon, Dr. Ali said each could require about 80 megawatts of power.
The mines could produce their own power using diesel or heavy fuel oil, he said, or potentially connect to new generation, including the proposed Amaila Falls hydropower project.
He said the projects illustrated the scale of rising demand across the economy.
Dr Ali noted that planners should calculate how much electricity is already being generated outside the grid by mining, forestry and bauxite operations, and consider it alongside national grid demand.
Doing so, he said, would give a clearer picture of both the country’s overall power use and its growth.
“So, it tells you that even in the mining sector, the need for power is growing enormously, so whether it’s self-generating, whether it is from the grid, whether it’s from standalone system, or from new development that will bring on stream, it talks about the national demand for power,” the Head of State said.
The President said Guyana’s demand for electricity would continue to grow as the country develops and new industries come on stream.
He said planning for the future must take account of both the pace of development and the energy needs it will create.
Dr Ali also said the country needs an energy authority that is more agile, flexible and proactive.
He emphasised that it must have the technical and managerial expertise to respond effectively to a period of rapid transformation while helping to ensure stability.
“I believe that understanding the pace of development and what lies ahead of us is only going to get greater. But I believe that we need to have an authority that is more agile, more flexible, more proactive, dynamic, and has the technical managerial skillset that is required in this period of rapid transformation and period of stability,” he said.
AMAILA FALLS
President Ali also said the Amaila Falls hydropower project had attracted bids from several companies and was currently at the evaluation stage.
He said he had instructed officials to begin negotiations with the highest-ranked bidders once the assessment was complete.
The Head of State said the project would be delivered through a design-build-finance arrangement and a power purchase agreement.
He said the terms would need to make economic sense for Guyana and support the government’s goal of providing energy at the cost it wants to deliver to the public.
“We have received some bids, a lot of submissions, very good companies, and it’s at evaluation stage now. So as soon as that evaluation is completed, I have instructed that we move to negotiate with the best ranked bidders and give us the best possibility. As you know, this is a design-build finance.
“This is a power purchase agreement. They have to agree to the terms, the terms that make economic sense for us and will meet the energy costs that we want to deliver to the people of this country, so we’re going through that process now.”