Electricity costs to be slashed by 50 per cent by end of 2025

Significant relief is coming for Guyanese consumers as electricity costs will be reduced by 50 per cent before the end of 2025.

According to President, Dr Mohamed Irfaan Ali, this measure will put more money in the pockets of hardworking Guyanese.

“This is an injection of US$ 250 million by the Government of Guyana that will positively impact disposable income by the reduction in the cost of electricity. That is more than $50 billion back in the pockets of the Guyanese people. This is where the revenue is going,” the president said during a special sitting of the National Assembly on Thursday, at the Arthur Chung Conference Centre. 

The president’s announcement comes in light of the significant challenges faced by the Guyana Power and Light Inc (GPL) to keep up with the increasing demand for electricity.

“During the period 2015-2019, GPL struggled with insufficient inventory to effectively execute its planned network expansion and maintenance programme. With respect to the operation of the grid [in the same period], this challenge was further exacerbated with the insufficient investment in generating capacity and the maintenance of existing generator units,” the president pointed out.

He added that this resulted in significant system disturbances and frustrations for customers. 

In this regard, President Ali noted that his administration has made significant upgrades aimed at enhancing capacity at GPL.

Since 2020, the government has invested $28.1 billion in expanding the generation, transmission and distribution system, adding 127.7 megawatts of generating capacity to the GPL grid. 

“The investment in the electricity sector by my administration included expansion and upgrade of the distribution network, substations, installation and replacement of more than 100,000 metres, as well as close to 4,000 transformers and laying almost 2800 kilometres of distribution network,” he said. 

Bringing light to underserved areas since 2020, the government has provided electricity to 27 communities that had been without power.

In addition, the government is investing in integrating solar energy into the national grid to supply cheaper, renewable electricity to households. 

This investment has led to a 224 per cent increase in electricity generation from solar, hydropower and other renewable sources.

Key renewable energy projects that are advancing this agenda include the solar farms in Mahdia, Wakenaam and Leguan, along with the distribution of 30,000 solar PV systems in hinterland and riverain communities. 

Even so, the demand for more power is expected to triple by 2030 and the government plans to meet this sharp rise in demand with the gas-to-energy project at Wales.

The massive project also includes the construction of an integrated NGL power plant, and transmission line upgrades. 

President Ali said these elements are progressing and the project is expected to be commissioned in 2025.