Guyana targets power grid upgrade to help cover demand growth

The IDB has issued a call for expressions of interest to support Guyana Power & Light’s (GPL) grid modernization efforts.

The work entails providing consultancy services to assist GPL with smart grid deployment to incorporate intermittent renewable energy systems.

“In light of the recent developments in Guyana's oil and gas sector, the government aims at achieving a 50% reduction of current emissions associated with electricity generation by 2025 and 70% by 2027. The electricity generation plans to achieve these emission reduction targets are centered around using natural gas (as a bridging or transitioning fuel), hydropower and distributed renewable energy systems,” the development bank highlights.

Guyana’s low-carbon development strategy – released in October – envisions that renewables will account for over 70% of installed generation capacity by 2040.

GPL has forecast that electricity consumption and peak demand in 2026 will reach 3,300GWh and 502MW from this year’s projected 1,257GWh and 197MW.

The potential growth will come from the expected increase of economic activity, driven by the development of the oil and gas industry.

In 2022, Guyana is again expected to lead regional GDP growth boosted by the build-out of the upstream hydrocarbons sector.

The UN Economic Commission for Latin America and the Caribbean forecasts growth of 46% versus an estimated 18.5% in 2021.

Documents for the six-month contract are due by March 25, according to procurement information. Reference terms are available at this link.

The call falls under IDB technical cooperation to strengthen the government’s management of the energy sector.

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