Guyana, Karpowership negotiating 9-9.5¢ per kWh power price – Min Indar

As negotiations between the Guyana Government and Turkish energy company Karpowership continue over the ongoing operations of the two power ships that supply some 96 megawatts (MW) of electricity to the national grid, the two sides are bouncing between 9 cents and 9.5 cents per kilowatt/hour (kWh). This was revealed by Public Utilities Minister Deodat Indar during an appearance on a recent episode of the Starting Point podcast. Indar recalled that when Guyana signed the contract for the first 36-MW power ship in 2024, it secured electricity at 7.2 cents per kWh for the vessel docked in the Berbice River, the lowest rate on the market at that time. The second ship, however, saw Guyana paying 9.5 cents per kWh for the 60MW generated from the vessel docked in the Demerara River.
Since both of those contracts were for two years, the Government and the company have been in negotiations for a contract renewal. According to the Public Utilities Minister, “So, they asked for 9.5 cents. We said we want 9 cents, and we are working between that because they would never renew it for a concessional rate of 7.6 cents. We know that.”
He pointed out that since the demand for electricity continues to grow across Guyana, the country needs the 90-plus MW of power generated by the two ships. But in the same breath, Indar contended that at no point during the negotiations was the Government backed into a corner by the company, as reported in some sections of the media. “We know we need the generation, but they’re not the only ones in town too. So, we also let them know that we have options too. But it was a very difficult negotiation with the people, and we continue to negotiate with them because the vessel is here. It’s already hooked up to our system. We need the power. They need to work. Let’s find a middle ground. And that is what we’ve been working on. I would say we are 99 per cent there, not fully yet, but we are 99 per cent there with a final outcome,” the Minister stated. Indar went on to explain that it was during this intense negotiation process that Karpowership’s letter to the Government was leaked. Over the past month, there have been reports that the power ship company has threatened, via correspondence to the Public Utilities Minister, to shut off operations if a new deal is not reached. But the Minister had previously assured that the two power ships were still being operated as the Government and company iron out a new agreement. “I don’t know who leaked [the letter], but…you don’t negotiate in public. You negotiate with the people, and we are back and forth. They give their position. We say, fine, we give you a position… But we have to remember too that we got the first two years at very low rates and the owner of the asset said, you know, they have never rented this to anybody at this rate…”
“You bet your bottom dollar, our Government…made sure that we took some strong positions in the negotiation. People can think we are backed into a corner. No one should believe we were ever backed into a corner. We will defend the interests of the Guyanese people. We will fight as best we can to get the outcome we want. We don’t lay back and say, well, you come and bamboozle us. That doesn’t work with us. We don’t operate like that,” he emphasised.
During all of this, the power ship company continues to supply electricity to the national grid. The Guyana Government contracted the two power ships to provide additional capacity to meet the country’s growing demand for electricity.
Following the signing of the two-year contract between the Guyana Power and Light Inc. (GPL) and the joint venture of Turkish-based Karpowership Global DMCC and Qatar-based UCC Energy International LLC (UCC JV) in 2024, the two ships began generating power, with one vessel in the Demerara River at Meadow Bank producing 60 MW and the other at Everton in the Berbice River supplying 36 MW of electricity. At the time, the Government explained that this was a short-term solution while awaiting the highly anticipated Gas-to-Energy (GtE) Project that is slated to come onstream later this year, bringing some 300 MW of power using natural gas from offshore Guyana. These two ships, coupled with other GPL assets, take Guyana’s generating capacity up to approximately 267 MW-way more than the current demand, which stands around 228 MW at peak.