Growth in electricity demand is a “product of development”

– President Ali said; stressed that GPL’s current operation exceeds electricity demand
– The government said it was in “intensive discussions” to plan for future peaks

With Guyana experiencing unprecedented development, the demand for electricity continues to rise. However, the government is working hard to ensure that this growing demand is met.
The Guyana Power and Light Company (GPL) has made a major breakthrough in the construction of a critical power supply vessel, with President Dr. Irfaan Ali saying discussions are currently underway with the company to plan for future peaks in electricity demand.

During a press conference at the Presidential Palace last Thursday, the Head of State stressed that the demand for energy will surge due to Guyana’s rapid economic growth.
He noted that the country was exceeding electricity demand for the first time in months due to the increase in power supply.
“GPL’s current power generation capacity is 192 megawatts. The current peak demand is 178 megawatts… We are ahead of the peak demand,” President Ali said, explaining that the 36 megawatts of power from the power supply vessel helped achieve this goal.

“By the end of this year, we expect demand to grow by 232 megawatts.”
In this regard, he said that while the power supply vessels offer some convenience, Guyana’s rapid development has facilitated the development of the system and therefore demand will continue to rise. Having said that, Dr. Ali noted that planning must be done to ensure that future capacity is met.

“Now we’re expecting it to be very different because when we get the cost of electricity down, the growth is going to accelerate even further because all those people who were off the grid are going to be connected to the grid. So right now, we’re having deep conversations about how to make sure we plan ahead for the type of growth that’s going to happen.”

The People’s Progressive Party/Civic Party (PPP/C) government is not putting all its eggs in one basket and has been considering several projects to help drive the energy transition.
The President noted that the Wales, Essequibo Islands-West Demerara (Region 3) gas-to-power project will bring a host of benefits such as a significant reduction in the cost of electricity, and that the PPP/C Government is currently developing more plans to improve the lives of the Guyanese people.

Notably, the gas energy project will lay a 200-kilometer-long, 12-inch diameter pipeline to transport natural gas from the Liza Phase I and Liza Phase II floating production storage and offloading vessels (FPSO) to power plants and natural gas liquefied petroleum gas (NGL) facilities to be built in Wales.

ExxonMobil’s local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), operator of the Stabroek Block, and its joint ventures are building the pipeline.
The pipeline will land on the West Coast Demerara coast and extend approximately 25 km to the NGL and power plant facilities. The pipeline is expected to cost US$1 billion and is cost-recoverable.
In December 2022, the Guyana government signed a $759 million contract with LINDSAYCA, an American integrated energy solutions group, in partnership with local company CH4 Group, to build a power plant and NGL facility.

Converting natural gas produced by ExxonMobil’s offshore operations into electricity is a key component of the PPP/C government’s goal to reduce energy costs by at least 50% through an energy mix that blends natural gas, solar, wind and “hydro” power.

The president said that even with the power plants operational and the additional electricity currently available, demand would still rise by the end of next year.

The Head of State then revealed that the government is currently evaluating the feasibility of a second major gas project to complement ongoing gas energy projects. He also urged public education to curb energy wastage.

“We have to think about educating the public because in many countries you find that when the cost of energy goes down, there is a waste of energy… We have to start early… educating the public on how to use electricity efficiently and effectively,” the head of state said.