Guyana expands phased electricity cost cuts as government targets 50% reduction

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Guyana is rolling out phased electricity reductions as the government works toward its target of cutting consumer electricity costs by 50% nationwide.

President Irfaan Ali said on August 18 that the first reductions have already reached some communities, particularly those with solar power and battery backup systems. More areas are expected to receive an initial reduction in the coming months.

“We have already been able to announce phase reduction in the cost of electricity, both in Bartica, when I was there on the cabinet outreach, and I think in Region One…I’ve committed to doing so in other areas, for example, in Region Two, where we have the solar system, and in Leguan and Wakenaam, where we have those solar systems, to look also at the phase reduction there,” Ali said.

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Lethem in Region Nine (Upper Takutu/Upper Essequibo) is also being assessed for a possible initial tariff reduction. Ali said the government is conducting the necessary analysis before determining the extent of the reduction in the community.

The approach means consumers will not receive the full 50% reduction at once. Instead, the government is introducing the cuts in stages as communities and energy systems are assessed.

“We are committed to this, and the consumers will definitely benefit tremendously from this phased reduction in electricity. You can be assured of that, but I’m saying to you that in the coming months, there will be additional communities that will get the, that will feel the first tranche of that reduction,” Ali stated. 

In July, Guyana Energy Agency (GEA) Chief Executive Officer Dr. Mahender Sharma disclosed that Lethem had avoided the use of more than 20,000 barrels of diesel through a hybrid energy system combining hydropower, solar and diesel generation.

The system includes two hydropower plants with a combined capacity of 2.2 MW and a 1 MW solar facility, with diesel generation used as backup. Moco Moco was commissioned in December 2024, followed by Kumu in July 2025.

The Gas-to-Energy (GtE) project at Wales on the West Bank of Demerara is a major component of the government’s broader plan to reduce electricity costs and lower the amount of fuel needed for power generation.

The 300-megawatt facility will use natural gas piped from the Liza field in the Stabroek Block offshore. The government plans to sell the natural gas liquids.

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