BUDGET 2025: $88B to transform energy sector, reduce electricity costs this year

The Government of Guyana has earmarked $88 billion for its energy sector in 2025, aiming to address longstanding issues of electricity reliability, affordability, and access.

Finance Minister Dr. Ashni Singh, who made the announcement during his 2025 budget presentation on Friday, explained that this substantial investment will fund critical projects, enhancing the nation’s energy infrastructure and accelerating the transition to more sustainable power sources.

A key focus of the 2025 allocations is the ambitious Gas-to-Energy (GtE) project, which is set to revolutionise the country’s energy landscape.

The People’s Progressive Party Civic (PPP/C) government promised to slash electricity costs in half with this project. The US$526 million loan was recently inked; the project should be operational later this year.

In addition to the GtE, the 2025 budget will fund major upgrades to the transmission and distribution network of the Guyana Power and Light (GPL), which includes the construction of 155 kilometres of double-circuit transmission lines, 214 km of 69-kilovolt lines, and 343 km of distribution lines in key regions.

This infrastructure expansion is crucial to ensuring the power generated by the new projects reaches consumers across the country.

Renewable energy will also see significant expansion, with multiple solar and hydropower projects set to come online.

Altogether, these investments will reduce energy costs, increase grid reliability, and expand electricity access, especially in remote areas, marking a transformative step toward a sustainable energy future for all Guyanese.