GPL invites expressions of interest from suppliers to make up generation shortfall

Deodat Indar
Deodat Indar

While it has already received approaches, the Guyana Power and Light Inc. (GPL) has requested Expressions of Interest (EoIs) from businesses that can potentially supply the Demerara Berbice Interconnected System in order to address its current generation shortfall, which has seen a spate of recent outages across the country.

GPL on Friday issued the Request for EoIs from “technically and financially sound” businesses to submit for the supply of a minimum of 1 megawatt (MW) and a maximum of 30 MW of firm power generation capacity with appropriate substation where necessary to interconnect with the national grid at either 13.8 kV or 69 kV. Generating unit size shall not exceed ten MW, it added.

GPL noted that the Request for EoIs does not constitute an invitation to tender and only suppliers deemed qualified by GPL should qualify to the next stage of the process.

It stated that for existing power generation facilities, GPL shall only be responsible for grid connections at the point of interconnection with the existing network infrastructure, and for new power generation facilities GPL will only be responsible for indication of the most appropriate location. Suppliers will be responsible for all activities relating necessary to finance, insure, test, commission, operate and maintain the power generation and associated facilities.

It added that in order to prequalify, interested suppliers must demonstrate the ability to deliver a complete project within two months of an agreement, prove legal status via certified copies of company’s registration or documents and demonstrate that there is access to competent personnel with operation and maintenance experience at a minimum of one facility similar to size.

During a press conference on Wednesday new Minister within the Ministry of Public Works Deodat Indar said although GPL has already received interest by some in providing power to the national grid, in order to ensure that the process is transparent a decision would be made based on the invitations for EoIs.

Indar stated that the company will evaluate the cost of sourcing the power from suppliers and will make a decision on whether it will buy power from those persons or buy new generators that are in the country.

However, he said that either option would only be a temporary solution to Guyana’s power problems as he noted the need for immediate measures to be put in place so people can continue accessing power without too much disruption. “We have to put in place immediate measures, medium-term measures and long-term measures and we want to make sure that we are transparent in that process so that is on the issue of GPL. For us to get power immediately, we have to look at short term options,” he explained.

GPL on Tuesday revealed that it was seeking to source an additional 25 MW in order to meet increased demand while working to address continuing power outages.

Indar also noted that five generation sets were purchased by the former APNU+AFC government and are still in Finland. “…There is a balance to be paid, about GY$7 million, but we have already signed the contract, we cannot pull back right now. We have to go through with it,” he added.

He also claimed that during the five years that the former coalition government was in power, it only injected US$1 million into GPL. “That is the only amount that the coalition government saw fit as the capital injection into GPL to enable more generating capacity,” he said and warned that residents along the coast will continue to experience power outages.

“The reason for this is because the peak demands 117 MW and the capacity is 117 to 120 MW … so anytime there is an issue with the generating sets throughout GPL’s substations systems at Kingston, Garden of Eden, Vreed-en-Hoop, anytime there is  an issue with generator failings, system tripping, you will experience  blackout… In the meantime, from now until the arrival of those gen sets, we are left with a state where the capacity that we generate power is equivalent with the demands and any disruption with the system causes power outages,” he explained.

Meanwhile, Indar revealed that the 46.5 MW power station that is being constructed at Garden of Eden on the East Bank of Demerara is only 14% complete. “…Just to be clear, the civil works for that project is just 14% complete and that completion is tabled for April 2021,” Indar said.

Indar assured that every effort is being made to minimise outages and he noted that the Amaila Falls hydropower project and a natural gas power plant remain high on the agenda for the new government.