Gov’t bets big on power grid as GPL gets billions for major upgrades in 2026

By Kurt Campbell

[email protected]

The government is pouring tens of billions of dollars into Guyana’s electricity system in 2026, signalling its most aggressive push yet to stabilise the national grid, expand generation and tackle long-standing reliability problems at Guyana Power and Light (GPL).

At the centre of that push is the newly-created Ministry of Public Utilities and Aviation, which receives more than $103 billion in capital funding, making it one of the largest recipients of infrastructure spending in the 2026 national budget.

Of that sum, electricity alone accounts for approximately $69 billion, earmarked for grid upgrades, transmission and distribution expansion and power sector modernisation, the single largest electricity allocation Guyana has ever budgeted in one year.

Budget documents show that the bulk of electricity spending falls under the Electricity Services Programme, which consolidates projects previously scattered across agencies and portfolios. The focus is on strengthening GPL’s transmission and distribution network, addressing chronic system losses, voltage instability, and outages that have frustrated households and businesses for years.

While the Estimates stop short of listing every substation and feeder line, GPL’s capital spending show a clear shift toward system-wide grid reinforcement, rather than isolated, short-term fixes.

The creation of the Ministry of Public Utilities and Aviation marks a major structural change in how government manages energy, water, and aviation assets.

Previously, power generation and electricity policy were split across ministries. In 2026, electricity, water, aviation, and maritime administration are consolidated under a single portfolio, with electricity commanding the lion’s share of funding.

Finance Minister Dr. Ashni Singh, during his budget presentation, said the scale of electricity spending reflects the government’s view that power reliability is now an economic bottleneck, especially as oil and gas revenues drive industrial expansion, housing developments, and increased commercial demand.

Manufacturing zones, new housing schemes, hospitals, and schools funded elsewhere in the capital budget all depend on a grid that can handle higher loads.

The investment raises expectations but questions too since despite repeated capital injections over the years, GPL has continued to battle high technical and commercial losses, aging infrastructure and public complaints over outages and billing.

With nearly $70 billion now allocated in a single year, the 2026 budget sets a clear test to whether this unprecedented funding can finally translate into measurable improvements in reliability and service.

Where the Grid Money Is Going: Region by Region

The largest share of grid investment is concentrated along the Wales–Garden of Eden–East Coast corridor, which will carry power from the Gas-to-Energy project into the Demerara grid.

Key works include:

• Transmission from Wales (Region 3) to Garden of Eden (Region 4)
• Reinforcement of lines through Goedverwagting, Sophia and East Coast Demerara
• Substation and feeder upgrades to support new housing schemes and commercial growth

A major component of the 2026 grid upgrade is the extension of high-voltage transmission across the Berbice River, linking Demerara and Berbice for the first time at full grid scale.

Planned works include:

• Transmission lines extending to No. 53 Village, Region Six
• Strengthening of feeders serving New Amsterdam and surrounding communities

Region 10 features prominently in the energy plan through:

• Continued construction of a 15-megawatt solar farm in Linden
• Distribution network upgrades in surrounding communities

Beyond the coast, government is combining grid works with off-grid solutions:

• 10 new solar mini-grids to be completed in 2026, benefiting more than 6,200 households
• Distribution network upgrades in Mabaruma, Matthew’s Ridge and Port Kaituma
• Expanded hinterland electrification and solar PV systems

In total, $119.4 billion is allocated in 2026 for the broader energy strategy, including:

• $66.2B – GPL transmission & distribution upgrades
• $10.7B – Phase I of the Gas-to-Energy project
• $6B – Renewable energy projects (solar farms, mini-grids)
• Billions more for planning, smart grid technology and metering systems

Dr. Singh said these investments are intended to permanently change how electricity is delivered in Guyana.

“When completed, these interventions will result in a complete transformation and overhaul of our energy sector,” he said .