Since 2020, the Government of Guyana (GoG) has invested $28.1 billion in expanding the country’s generation, transmission, and distribution systems. This expenditure added 127.7 megawatts of generating capacity to the Guyana Power & Light (GPL) grid.
The foregoing was disclosed by President Dr. Irfaan Ali during his recent address to the Twelfth Parliament.
The head-of-state explained that the investment was made to address a 64% increase in peak demand and a 19% increase in the customer base since 2019. He noted, “Our investment in the sector is 173% higher than the $10.3 billion made by the previous government, of which, only $4.1 billion was invested in 17.4 megawatts of additional power, which, by the way, we brought into operation.”
Dr. Ali also highlighted that when his government assumed office in August 2020, they inherited a GPL that was starved of resources and in dire need of investment to effectively serve an expanding customer base, which had grown by 10%, while peak demand had increased by 12% between 2015 and 2019. He noted that, during the 2015-2019 period, GPL struggled with insufficient inventory to execute its planned network expansion.
President Ali stated, “With respect to the operation of the grid, this challenge was further exacerbated by the insufficient investment in generating capacity and the maintenance of existing generator units. This resulted in significant system disturbances and frustrations to customers.”
Reflecting on his administration’s progress, President Ali pointed to several key achievements like the expansion and upgrade of the distribution network, the installation of new substations, the replacement of over 100,000 meters, the installation of nearly 4,000 transformers, and the laying of close to 2,800 kilometers of distribution lines. Additionally, he said since 2020, electricity has been provided to 27 previously unserved communities.
In addition to those improvements, one of the administration’s major accomplishments, according to President Ali, has been maintaining electricity tariffs, even as global fuel prices have soared. He outlined, “In 2019 the weighted average fuel price was US$64 per barrel compared to the current average price of US$104 per barrel. As a result of the rise in fuel prices, fuel, which previously accounted for 53% of the power’s company revenue, it now represents 84%. Notwithstanding this, we have not increased the rates for electricity in this country.”
Moreover, President Ali explained that the government is preparing additional tenders for substations, transmission lines, and feeders to further improve the reliability and resilience of the power system. He stated that these tenders will include the installation of 230 kV transmission lines and substations to transfer bulk power to West and East Berbice, as well as Linden.
“Each new substation that GPL will construct will be completed with new distribution feeders fully equipped with all relevant equipment, ready for a smart grid,” President Ali added.
