The Guyana Power and Light (GPL) today inked an agreement with the joint venture of Karpowership Global DMCC & UCC Energy International LLC JV to charter a second power ship with a total installed capacity of 75 Megawatts (MWs) for two years.
In the first phase, 60 MWs will be dispatched to the grid in approximately six weeks, followed by an additional 15 MWs once works are completed on an additional transmission line.
The contract requires GPL to pay the joint venture 8.52 US cents per kWh as a monthly charter fee for the powership and a monthly operation and maintenance fee of 0.98 US cents per kWh, based on electricity generated.
Under the contract, GPL is responsible for providing Heavy Fuel Oil (HFO) for the operation of the generators.
The powership will be located in the Demerara River and will be interconnected with the GPL’s Grid at 69 kV. GPL has commenced preparatory work to accommodate the powership and the interconnection to the company’s grid.
According to Kesh Nandlall, Head of GPL’s Executive Management Committee, the agreement’s signing marks a critical step in continuing to bolster the company’s power generation.
Antonio Neto, UCC Holdings Managing Director of the Americas, acknowledged the urgency of connecting the vessel to the grid and his company’s commitment to meeting the agreement’s timelines.
Public Works Minister, Deodat Indar, conveyed on behalf of Prime Minister, Mark Phillips, the government’s commitment to continue meeting the country’s increasing electricity demand.
He emphasized the importance of this arrangement and timeliness given the country’s rise in energy consumption. He also spoke about the demand on the Transmission and Distribution networks and urged GPL to ensure that timely maintenance activities are carried out to prevent unnecessary outages.
Senior Minister within the Office of the President with responsibility for Finance and the Public Service, Dr Ashni Singh, who also attended the signing ceremony, hailed this initiative as crucial to meeting the immediate growing electricity demand, owing to new industries, residential developments and increased commercial activities. He also noted that the government is pushing ahead with the Gas-to-Energy project, which will add 300 MWs to the grid when completed.
