The Amaila Falls Hydropower Project, long regarded as a flagship initiative in Guyana’s transition to clean energy, has been postponed to 2029 as the country prioritizes its Gas-to-Energy (GtE) development to address increasing power demand.
This was confirmed by the Minister of Finance, Dr. Ashni Singh during his budget presentation. He explained that phase 2 of the GtE project will now “compensate” for meeting the country’s energy demands during the interim period.
“The Amaila Falls Hydropower Project (AFHP) would have formed a critical element of a comprehensive solution to the problem. Phase 2 of the GtE project is expected to compensate for the delayed timeline for the AFHP,” Minister Singh said.
He noted that challenges in implementation, coupled with the complexities of upgrading the national power grid, have led to an inevitable shift in the timeline.
Originally envisioned to provide 165 megawatts (MW) of clean, reliable energy to the national grid, the AFHP was planned for start-up in 2027. However, discussions broke down with its last contractor in 2022.
Now, with the AFHP sidelined, the government has shifted its focus to interim energy solutions, mainly the GtE project, along with an expanded solar and wind power programme to address increasing electricity demands.
The first phase of the GtE project, expected to achieve first gas this year, will power a 300 MW power plant with output expected at approximately 4,000 barrels per day (b/d).
The outline for phase 2, which adds a 300 MW power plant, alters the government’s transition plan, particularly the emissions profile. However, the Guyana government is under pressure to meet the country’s rising demand for power.
Requests for Proposals have been sought by the government for a phase 2 developer, with a contract expected to be awarded in 2025 and scheduled for completion within two years of signing.
Phase 2 includes the construction and operation of a 300 MW combined-cycle power plant and a natural gas liquids (NGL) fractionation plant producing approximately 5,800 b/d of propane, butane and pentane.
The Guyana Power and Light Inc. (GPL), the state-owned electricity utility, will purchase electricity from the operator through a Power Purchase Agreement (PPA).
The Gas-to-Energy project (phases 1 and 2) is expected to generate 600 MW of power and 9,800 b/d of NGLs over two decades. It is anticipated to have a tremendous impact on Guyana’s economy.
A second hydropower project is expected to be identified by 2025, according to the Low Carbon Development Strategy 2030 (LCDS).
Guyana plans two large-scale hydropower projects to add 370 MW.
