Guyana’s government plans to accelerate construction of a second gas-fired power plant, President Irfaan Ali said this week, as the South American country races to meet rising electricity demand driven by new industrial and technological projects.
“When you look at what we want to achieve from a manufacturing, industrial, technological perspective, in terms of data centers and the type of energy demand, it is clear that we will have to accelerate work on the second power plant, and then work on the new gas project to Berbice so that we can ramp up energy production,” the President said during a press conference aired live on Facebook on Tuesday.
The administration is already pressing ahead with the first phase of the landmark Gas-to-Energy project at Wales, West Bank Demerara, where a 300-megawatt combined-cycle power plant and Natural Gas Liquids (NGL) facility are under construction. He stressed that a second plant would be needed sooner than anticipated to accommodate the various developments. Bids were received for the second phase, but the government has yet to announce a decision on a contractor and a definitive path forward.
Guyana currently suffers from frequent power outages due to faulty infrastructure, a longstanding issue that affects households and businesses. The government expects the new gas plants, along with grid modernization, to not only cut outages but also allow Guyana to shift away from costly imported heavy fuel oil and toward natural gas as its primary power source.
Ali said Guyana Power and Light (GPL) is finalizing plans to modernize the transmission and distribution network, including the rollout of smart meters for customers, automated switches, reclosers and fault indicators. These upgrades, he said, will reduce technical losses and improve reliability.
He stated that GPL is working to cut costs for project supervision and management. Consultants had estimated more than US$40 million in expenses, but negotiations are underway with InterEnergy, a Dominican Republic-based company, for a two-year program at approximately US$15 million. The package would cover technical advisory support, project oversight, and contract management, among other things.
The government says the investments will modernize Guyana’s power infrastructure, strengthen energy security and enable integration of renewables. Officials project that electricity costs could be cut by about half once the first gas plant is operational.
