While trumpeting plans for hydropower and natural gas, Finance Minister Dr Ashni Singh on Friday announced that government will put $2 billion into the Guyana Power and Light Inc (GPL) to clear inherited arrears even as it works to position the company to meet expanding demand on the national grid.
During his national budget presentation on Friday in the National Assembly, Singh said successive PPP/C governments have long recognised that the single biggest impediment to accelerated economic and social development is the absence of adequate, affordable, and reliable energy, with dependence on aged fossil-fuel based generation, inadequate generating capacity, a porous transmission and distribution network resulting in high technical losses, along with high levels of commercial losses being among the key challenges.
Against this background, he said the government would once again seek to make the controversial Amaila Falls Hydropower project a reality to ensure “sustainable, cheap and reliable hydropower,” while also mentioning previously announced plans for key studies to inform government’s technical considerations to land the gas-to-shore project and bring an associated power plant into operation by mid-2023.
At the same time, he noted, plans to continue to invest in GPL and encourage policy initiatives to meet and eventually surpass the ever-expanding demand placed on our national grid. He said GPL is currently executing fundamental infrastructure investments to promote loss reduction and improve the performance of its power distribution networks. He mentioned the $2 billion budgeted to continue clearing the stock of receivable arrears inherited at GPL.
Singh also said a sum of $700 million has been budgeted for the installation of 10 mini-grids and 4 off-grid systems in 2021. “This will provide a total of 1.472 KW of installed solar capacity, thereby generating 5,305 KWh of electricity,” he explained, while naming Sebai, Iwokrama, Waramadong, Paruima, Kurukabaru, Annai, St. Monica, Karaburi, Capoey, Whyaka, and Loo Creek as being areas that will benefit.
He said, too, that solar farms will be installed at Mahdia and Leguan, and work will continue on solar farms at Bartica and Lethem. Additionally, he noted that two mini-hydropower plants, at Kumu and at Moco-Moco, will be tendered this year and construction will commence. He also said the 150 KW Kato hydro project will also be substantially completed in 2021. Sums totalling $840 million have been budgeted to cover these projects, he added.
