Guyanese to benefit from cheaper energy soon, says VP
GEORGETOWN, Guyana (CMC) –Vice President Dr Bharrat Jagdeo says the people of Guyana will soon benefit from cheaper and reliable energy as the ruling PPP/C administration expects to begin receiving bids for the establishment of the gas-to-energy project in early September.
Speaking during a press conference on Friday, Jagdeo said that in January the Government received pre-qualification bids for the project which will see the establishment of a Natural Gas Fire Power Plant and a Natural Gas Liquids Plant (NGL). The facility is expected to produce up to 300 MW of power.
The vice president said when it comes on stream, Guyanese will only pay half of what they pay per kilowatt.
He also explained that it will only cost the country about four to five cents per kilowatt hour compared to the 20 cents it is costing now.
“We’re selling at 30 cents per kilowatt hour. So, if we sell at 15 cents … and you’re generating at four cents per kilowatt hour, we can have enough money to build a proper smart grid and still make a profit and payback for the entire infrastructure… and then have our emissions cut by more than 50 per cent because we are now using a cleaner fuel.”
He also highlighted that at such a low cost, the country will be able to cover the establishment and operating cost of the Power Plant, the NGL, and the laying of the pipeline which is about GUY$1.7 billion.
Further stressing the feasibility of the project, the Vice President said the country will still be able to make a profit.
“Every country in the world would be happy to latch on to a project like this. Where now can you get power generated at four to five cents per kilowatt hour… and then, we are getting all the liquids free too. So, we will get the cooking gas that we can then sell and export.”
The Vice President pointed out that while the Opposition is looking for all the possible flaws in the project, the big picture of what it means for the ordinary man who wants reliable power and investors who have an interest in coming to Guyana, is being missed.
The gas-to-energy project is slated to come on stream by late 2024.
The project will significantly contribute to the Government’s commitment to reducing the cost of energy by 50 per cent when it comes on stream.
The Vice President added that this will not only benefit the ordinary man who will be paying a cheaper electricity bill but will also lay the foundation for a boom in the manufacturing sector.