Latest update April 17th, 2024 12:59 AM
Nov 04, 2021 News
Kaieteur News – The Guyana Government, over a decade ago announced plans to pursue a 165 mega watt (MW) Hydro electric plant, and subsequent to the discovery of oil and gas in 2015, a Gas to Energy Project to bring installed electricity generation capacity of the country to some 500 MW.
The Guyana Power and Light Incorporated (GPL) however, has in recent years been plagued by losses in excess of 30 percent, technical and commercial.
Commercial losses are recorded through the theft of electricity while technical losses occur as a result of distribution deficiencies in the system, altogether accounting for billions in wasted monies for power generated by GPL and never recouped.
As such, the administration has since announced plans to change the situation and is in fact looking to, not only increase the reliability of the distribution grid to reduce losses, but is in fact looking to install a smart grid utilising the fiber cables to be incorporated into the network.
At least this is according to Vice President, Dr. Bharrat Jagdeo, who on Monday during a press engagement held at the Arthur Chung Convention Centre (ACCC) gave the disclosure.
According to Dr. Jagdeo, the administration has already mapped the electricity demands for the country over the coming five years and it is assumed that the demand will double in that time.
To this end he said, government would be installing triple the demand and rationalised that position by saying; “we assume that in the future when the power becomes more stable and the price is cut by half—which is our intention by 2024 as soon as the Gas to Energy Project comes on stream to cut the price of electricity by 50 percent to business and consumers across Guyana—that a lot of the private generation capacity would go into reserve and people will connect to the grid.”
Grid Problems
Speaking directly to the upgrades, Vice President Jagdeo told reporters, “we have a problem now with the grid and so we are now doing a study so by next year we can have an overall improvement of the grid.”
According to Dr. Jagdeo when the 165MW power is delivered to the Sophia substation in Georgetown from the Amaila Falls Hydro Electric Project, coupled with the 250 MW to be generated from the natural gas plant at Wales, government would be looking to ensure “that the grid can handle it, it’s stable and we don’t have all these blackouts.”
He hinted at a change out “of all the transformers” as part of stabilising the grid saying, “that’s the next big thing we are working on.”
According to Vice President Jagdeo, the administration is pursuing the establishment of a smart grid, “so that when we have all this new power, that the grid can handle it; a stable smart grid where fibre will be in all the electricity lines.”
As such, he posited that an individual would be able to monitor, from a control room, “and know, without having to send a crew out and get a report when there is a power outage in any part of this country.”
According to the Vice President, as it relates to Guyana’s pursuit of its energy mix, “that’s the next big thing we are working on, a stable smart grid.”
He told media operatives that as it relates to the establishment of a smart grid, the studies are presently being done.
The Vice President was adamant that a smart grid once implemented efficiently, will help to reduce the technical and commercial losses experienced by the power company.
On Monday, the Ministry of Finance confirmed that the administration was moving apace with the hydroelectric project and had selected Chinese contractor China Railway Group Limited for the construction.
The Ministry of Finance, in a public missive indicated that Cabinet had given its ‘No Objection’ to the company, as evaluated by the National Procurement and Tender Administration Board (NPTAB).
Government had earlier this year advertised to solicit a private partner to fund and develop the project, and according to the notice published at the time there had been two proposals on offer.
The first option advertised, Build-Own-Operate-Transfer (BOOT) where the developer would operate the project for a 20-year period before handing it over to the government at no cost.
The second option, Design-Build-Finance, where the government would take over the project at the commissioning date and initiate repayment of the financing in accordance with contract terms.
The Ministry of Finance in its missive confirming the Cabinet Decision said, the ‘no objection’ was granted for the Office of the Prime Minister, to engage China Railway Group Limited to construct AFHEP.
This, the ministry said would be pursued based on a BOOT model where the company will supply electricity to the Guyana Power and Light (GPL) Inc. “at a cost not exceeding US$0.07737 per KWH and where the company will provide the entire equity required for the project and undertake all the risks associated with the project.”
According to the ministry, a total of four companies submitted proposals, and China Railway Group Limited was identified as the most ‘capable partner’ by the Evaluation Committee after a rigorous evaluation process, following which NPTAB submitted the relevant recommendation to Cabinet for ‘no objection.’
It should be noted that checks conducted by this publication found that China Railway was in 2019 debarred by the World Bank for practices considered fraudulent on a highway project in the country of Georgia.
Meanwhile as it relates to the Gas to Shore Project, this publication understands that geotechnical and other studies are currently underway specifically as it relates to the mapping of the seabed route for the gas pipeline.
JAGDEO ADDING MORE DANGER TO GUYANA AND THE REGION
Apr 17, 2024
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