Government is exploring another power purchase agreement similar to the current one it has with a Qatari power ship company but this time for some 30 megawatts more until the Gas to Energy project is completed, as it forecasts increasing demands next year, Vice President Bharrat Jagdeo yesterday said.
“We are still looking for an additional 30MWs of power into the system, in a similar way to the arrangement we have with Karpowership, that is for two years , until the Gas to Energy (GTE) [project] comes on stream and is able to supply enough power to the country”, Jagdeo told a press conference he hosted at Freedom House, Robb Street yesterday.
He pointed to a notice from the Guyana Power and Light which yesterday stated that testing was completed on the Qatari powership and dispatching power to the grid would commence.
Jagdeo said that as the powership begins distribution,” this 36 MW would allow for maintenance of the other units” of the unity company that had been deferred.
GPL has fallen below the peak demand for power as several of its units are down. In addition there have been frequent trips in the Demerara-Berbice Interconnected System.
It is unclear why government is seeking additional power for two more years, putting the timeline at minimum to May 2026, when it has assured that the 300 MW GtE project would come on stream next year. Critics have also latched on to the continuing resort by the government of carbon fuel generators instead of the pursuit of green, renewable energies.
GPL on April 18 announced the terms of the agreement it signed with “Urbacon Concessions Investments, W.L.L (UCI) to charter a powership with a total installed capacity of 36 Megawatts (MWs) for a period of two years.”
“The contract includes the provision of operation and maintenance services as part of the agreement…The contract requires GPL to pay UCI a fee of 6.62 US cents per kWh as a monthly charter fee for the powership and a monthly operation and maintenance fee of 0.98 US cents per kWh, based on electricity generated,” GPL had said in a statement as it pointed to the US$1 million mobilisation fee.
It is unclear how the mobilisation fee is amortized over the two-year period, into the cost per kWh.
On May 1 the power ship, which was rented to supply 36 megawatts (MW) of power to GPL, arrived in Guyana’s waters. A statement issued by the power company announced that the ship will be stationed at Ever-ton, Berbice, and connected to GPL’s grid at 69 kV.
“The contract includes the provision of operation and maintenance services as part of the agreement…The contract requires GPL to pay UCI a fee of 6.62 US cents per kWh as a monthly charter fee for the power ship and a monthly operation and maintenance fee of 0.98 US cents per kWh, based on electricity generated,” GPL said in a statement on April 18th as it pointed to the US$1 million mobilisation fee.
The government has said that there will be no additional charge to consumers from the ship.
GPL has been blasted for rolling blackouts because of a shortfall in power and frequent transmission and distribution issues.
