GPL’s Rented Power Ship Criticized as Somewhat Inefficient

15th of July, 2024. Guyana, South America. GSA News. Guyana News.

Last updated: July 16, 2024 at 13:02 pm

The Guyana Government via its state owned Guyana Power and Light (GPL) earlier this year made a bold and somewhat costly move in a desperate bid to reduce widespread power outages across the country of Guyana. GPL rented a “power ship” from a Turkish company in the Middle East–a move heavily criticized by both citizens and opposition parliamentarians as wasteful and inefficient.

GPL paid a mobilization fee of US$1 million to rent the power ship and it will pay 6.62 cents per kilowatt hour as a monthly charter fee plus 0.98 cents per kilowatt hour on maintenance, based on electricity generated. This will not increase the cost of electricity for Guyanese citizens, the Vice President said.

In response to a reporter caught on video some time in April 2024, President Ali, when asked if the power ship was worth the money spent on it, responded gruffly, “you want blackout? you want blackout?” The President seemed confident that the power ship would be a quick fix to Guyana’s chronic electricity woes.

However, about two months after its installation, residents along the coastal areas have reported to this publication that power outages have remained frequent. Some even complained about an increase in low voltage which has the tendency to damage appliances and cause fires. In a recent survey carried out by this publication, 18 out of 20 respondents expressed dissatisfaction at the power ship.

Dr. Andre Brandli, a Guyanese citizen living in Switzerland and lecturing at the Ludwig-Maximilians-University of Munich, heavily criticized the move to rent a power ship from the Middle Easter company. In a letter to the editor to Stabroek News, dated May 5th, 2024, Brandli asserted:

GPL is paying up to USD 50 million to the Qatari contractor for an electric power generation capacity, which will disappear to other shores after two years of operation. By contrast, a new off-the-shelf 36 MW Caterpillar D 3616 Diesel Generator could have been purchased for merely USD 8.3 million (excluding shipping and installation) from USP&E in the United States (https://www.uspeglobal.com/listings/1759899-36-mw-2009-new-caterpillar-d-3616-diesel-generator-sets). The generator is ready for shipping, comes with full warranty, and would have served GPL and its customers for many years to come.

Despite this apparent blunder, the Guyana Government is working hard to ensure a smooth and steady flow of electricity to all Guyanese. In Region 9, the Moco Moco and Kumu Falls are currently being harnessed to produce electricity. The project is expected to be completed by the end of 2024. Further, several solar farms will augment the “energy mix” of the region, promising cheap, non-stop electricity supply to residents of Lethem and satellite villages. A hydro power plant is also under construction at Kato Region 8, and a gas-to-energy project, scheduled for completion by the end of 2025, is expected to reduce both the costs of cooking gas and electricity along the coastal areas of Guyana.