With ‘contingencies’ in place, Guyana’s electricity costs will be slashed in half next year – President

A mega Gas-to-Energy project is under development and will slash Guyana’s electricity costs in half, according to the country’s President, Dr. Irfaan Ali, who added that other plans are in place to ensure energy costs are lowered next year.

“Long before the end of next year, the cost of electricity will be slashed in half.

“We are already working, looking at many different contingencies, many different plans (and) many different approaches through which we can improve efficiency, deliver power, and reduce the cost of delivering the power,” President Ali said during an interview this week.

A 300-megawatt (MW) natural gas-fired power plant is being developed at Wales, on the West Bank of Demerara. Gas produced in the lucrative Stabroek Block offshore will be brought onshore to power this plant.

The President was quizzed about delays to the completion of this project. He noted that there are several “moving parts” in place.

Outside of the pipeline to bring the gas to shore and the construction of the power plant at the Wales site, transmission lines and a modern command center are being built. It is expected that power will be supplied to the national grid in 2025.

However, an arbitration process is unfolding with the contractors of the project over delays. If the outcome favors the administration, the company could pay about US$11 million in liquidated damages for each month the project is delayed.

LINDSAYCA and the CH4 group are executing the contract for the engineering, procurement, and construction of the Guyana integrated natural gas liquid plant and the power plant at Wales.

The firms are seeking additional payments due to cost overruns stemming from delays in other components of the project.

Because of this, the President noted that he could not speak further on the project.

Looking ahead, the government believes that Guyana’s energy needs will continue to grow.

The government has disclosed intentions to possibly build a second natural gas plant while also establishing at least two mega hydropower projects and pursuing more solar power ventures.