…seeking funding for US$293M investment in infrastructure – CEO
The Guyana Power and Light (GPL) plans to invest US$293 million to improve its transmission and distribution infrastructure, a project that will see the utility company juggle rebuilding the entire network while maintaining service as much as possible.
GPL CEO Bharrat Dindyall
This was revealed by GPL Chief Executive Officer (CEO) Bharrat Dindyall, who made an appearance on a virtual forum hosted by the Public Utilities Commission (PUC) recently. According to Dindyall, Guyanese can expect massive investments and improvements in the quality of electricity service over the next few years.
He explained that GPL is planning to overhaul its systems, presumably the Demerara Berbice Interconnected System (DBIS). It is a project that will end up costing approximately US$293 million, for which they are currently seeking financing, but which will ultimately benefit consumers.
“We have developed a masterplan for transmission and distribution. It’s about US$293 million. We’re thinking that this can be implemented over a five-to-eight-year period. But I should mention, this calls for a complete rebuild of the existing network. And while we’re rebuilding the existing network, we have to continue providing services,” he said.
GPL is planning a massive project to overhaul and upgrade its infrastructure
“We’re looking at sourcing financing for it right now. As you know, this is quite a big investment… we have to look at a combination of grants and loan sources. As you know, where loan sources are concerned, we tend to look for concessional financing,” Dindyall explained.
Dindyall noted that the Inter-American Development Bank (IDB) has historically been GPL’s go-to source for financing. He said that while other financial institutions have expressed an interest in funding the project, GPL will be looking at the terms being offered and choosing the most sustainable option.
Electricity theft
Loss reduction will also be uppermost in GPL’s mind, as according to Dindyall, electricity theft continues to plague the utility company.
“Investing in technology, in terms of network design, I don’t think will solve the problem. I think we have to win hearts and minds through social outreach,” Dindyall said, adding that consultants who have examined loss reduction strategies for GPL have commented that they have never encountered persons so determined to steal electricity as Guyanese.
Mixed energy sources
The CEO also spoke of the US$900 million gas-to-shore project and how important it is for reducing GPL’s costs. According to him, the utility company wants to implement a mix of energy sources to generate power, including the gas from offshore Guyana.
“With the advent of gas, we expect that a lot of changes will occur, first in our ability to reduce tariffs. In our ability to meet current and incremental demands for the next 15 years. We’re looking at an optimal mix of power generation starting with gas and including subsequently renewable energy, like hydro and solar farms.”
“The Government’s stated intention is that the current tariff should be reduced by at least 50 per cent. We look forward to ensuring that our industries are competitive and that our residential consumers are able to afford the service we provide,” the CEO said.
The gas-to-shore project is a transformative project that will see gas from the Liza Field offshore Guyana being pumped onshore to generate power. The main objective of the initiative is to transport sufficient gas from the Stabroek Block’s petroleum operations to supply some 200-250 megawatts of energy to the national grid, leading to a significant reduction in electricity costs.
Soon after the Government issued permit licences to oil giant ExxonMobil for the Payara Development Project last year, Vice President Bharrat Jagdeo had announced that the Government would turn its attention to negotiating the gas-to-energy project.
A number of factors including geotechnical, geophysical and environmental were examined before Jagdeo announced recently that the Government had settled on Wales to land the pipelines for the project.
Meanwhile, Prime Minister Mark Phillips, who has responsibility for the energy sector, has previously said that the Government is looking to produce 200 megawatts of power from the gas-to-shore project by 2024.
Exxon has said that around 30 to 35 million cubic feet of natural gas would be required for the gas-to-shore project. Data from Norwegian research company Rystad Energy had indicated that less than 20 per cent of the 1.8 billion Barrels of Oil Equivalent (BOE) discovered last year was gas.
