A deluge of massive infrastructure projects and building programmes is underway in South America’s newest oil producing nation, Guyana. This growth surge is seeing a huge demand for energy which authorities say will continue to increase.
But a recent publication by the US-based Institute for Energy Economics and Financial Analysis (IEEFA) suggests that a 300 MW power plant, one of the key onshore components of a landmark Gas-to-Energy project, will provide Guyana with an oversupply of energy that would be distributed via the Guyana Power and Light Inc. (GPL). However, the country’s Vice President, Dr. Bharrat Jagdeo, has dismissed such a position as being ill-informed.
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“Any consultant, looking at GPL’s (2023 Development and Expansion) Plans alone to determine whether Guyana will have an oversupply of energy or not, has to be crazy…,” Dr. Jagdeo said. “You have to come here, and you have to understand what this country’s development plan is. That is how you estimate demand.”
The official said one of the biggest components of higher electricity demand would be those self-generating companies that have switched to the GPL grid. Those companies have realized that it is more cost-effective to use the GPL grid systems, since the Guyana government is subsidizing the utility company to prevent any increased costs from passing onto consumers.
Jagdeo said it is estimated that over 100 MW were being self-generated. “We are currently supplying, from GPL, 180 MW. If they switch over, that is 280 MW,” the Vice President said, adding that this state of affairs has forced GPL to remove 15 large companies from the grid during peak hours.
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The official also highlighted the expansion of various industries as another major contributor to increased energy demand. He noted for example that there are seven hotels in construction and four more that could potentially come on stream. He said those entities alone could need about 15 MW of power.
With the foregoing in mind, the Vice President said it is preposterous for any consultant to proclaim what Guyana’s energy demand will be if they are not on the ground to understand the dynamics at play.
Even if there is an overbuild of energy supply by 20 MW or 50 MW, the Vice President said it would not be stranded supply since the pace of the oil sector may very well necessitate another project to generate 100 MW of power. “So, this report about us possibly overbuilding and all that is utter nonsense,” the Vice President concluded.
