(GuyanaChronicle)IN a recent live address to the nation, President, Dr. Irfaan Ali acknowledged the prolonged power outages affecting Guyana and pledged his government’s unwavering commitment to resolve the issue.
The Head of State candidly discussed the challenges inherited by his administration, detailed current actions being taken, and underscored the significance of addressing the problem across short-term, medium-term, and long-term horizons.
“As you know, we [Guyana] have been experiencing power outages, prolonged power outages that we are totally dissatisfied with,” President Ali stated in his address.
These power outages from the Guyana Power & Light (GPL) have left many Guyanese frustrated and inconvenienced as the situation has impacted daily life, businesses, and overall development in the country.
The situation has prompted the government to take decisive action to address the power crisis.
“The truth be told, the pace at which we are growing would require us to double our capacity as quickly as possible. Our generating capacity is more than doubled.
“If we are to keep pace with the type of development and projections that you’re seeing…that is why the gas-to-energy project and the hydroelectric project are so important for us in the national scheme of things,” President Ali said.
The President highlighted two significant projects that are central to the government’s strategy to tackle the power challenges: the gas-to-energy project and the Amaila Falls hydroelectric project.
President Ali underscored the importance of these projects, stating that they are vital components of Guyana’s national development scheme. The gas-to-energy project, which aims to provide 300 megawatts of power, is expected to significantly boost the country’s energy capacity.
A 12-inch pipeline, which will stretch some 200km offshore, will be used to transport natural gas from the Liza Phase One and Liza Phase Two Floating, Production, Storage, and Offloading (FPSO) vessels offshore, to the power plant and Natural Gas Liquids (NGL) facility.
Esso Exploration and Production Guyana Limited (EEPGL), which is owned by ExxonMobil Guyana and partners Hess and CNOOC, have guaranteed the government that a minimum of 50 million standard cubic feet of gas per day (mmscfd) will be transported through the pipeline by 2024.
The pipeline, which is expected to cost US$1 billion, will have a maximum capacity of 130 mmscfd.
The conversion of natural gas from ExxonMobil’s offshore operations to electricity is a key component of the People’s Progressive Party/Civic (PPP/C) government’s aim to lower energy costs by at least 50 per cent through an energy mix which incorporates gas, solar, wind, and hydropower.
Furthermore, the Amaila Falls hydroelectric project, with its potential 165 megawatts of power generation, could have been a game-changer for Guyana.
President Ali lamented the missed opportunity, as the project should have been completed in 2013. Had it been operational, he said it would have supplied power at a lower cost compared to the current rates.
President Ali acknowledged that immediate action was required to address the ongoing power outages.
He urged high-volume consumers to consider self-generation during peak demand hours, particularly from 13:00hrs to 15:00hrs and 18:00hrs to 22:00hrs.
“As a temporary measure, large consumers may face an additional cost of 10 cents per kilowatt during these hours if they choose to remain on the grid,” President Ali clarified, before underscoring his government’s commitment to finding practical solutions.
President Ali assured the public that the situation will improve soon.
It was explained that the government is investing in additional power generation, and by mid-December, in time for the Christmas season, nearly 30 megawatts of new power should be available.
“The circumstances and the measures we are taking. This is a temporary measure and how we’re dealing with this problem to ensure that it’s fixed in the immediate, medium and long term,” the President said.
He continued: “I just wanted to update, first take ownership of the issue because we’re not going to hide from any history. This is a challenge and as a government, we are confronting this challenge. But the people of my dear Guyana must understand what we inherited.
Describing the situation as akin to “swimming against the tide and with the tide at the same time,” President Ali highlighted the need to make up for lost time while building for the future, especially as it relates to the five years that the A Partnership for National Unity and the Alliance For Change (APNU+AFC) party was in government.
The PPP government, upon its election to office in August 2020, found that GPL had outstanding receivables of $13 billion, which was owed by government ministries and agencies — this had a crippling effect on the company.
President Ali did not mince words as he explained that GPL’s capital programme, maintenance programme and investment initiatives were virtually non-existent during the APNU+AFC government’s rule.
This period of neglect, he said, had dire consequences, including a severe lack of infrastructural maintenance, frequent system failures, and, ultimately, the prolonged power outages that plagues the nation.
He pointed out that the government is actively addressing the country’s power challenges and in acknowledging past neglect, is pursuing significant energy projects.
The President added that implementing short-term measures to mitigate power outages reflects the administration’s dedication to providing a brighter and more energy-efficient future for all Guyanese citizens.
“We are going to fix it,” President Ali declared as he emphasised his government’s determination to overcome the power crisis and ensure a reliable and affordable energy supply for all Guyanese.
