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GuySuCo supplies GPL with 3,000 MWh monthly

Oct 30, 2009 News

– payment agreement being negotiated

By Leonard Gildarie
The Guyana Sugar Corporation (GuySuCo) has revealed that is producing an average of 3,000 megawatt hours (MWh) of power monthly for the Guyana Power and Light Inc (GPL).
According to Chief Executive of GuySuCo, Errol Hanoman, the supply of co-generated power started in 2007 at the Skeldon sugar plant and payment arrangements consist of monthly billings to GPL against which GuySuCo either receives cash payments or nets off electricity bills payable by GuySuCo.
A private purchasing agreement (PPA) is currently being negotiated with GPL and this will spell out the terms and conditions of deal.
According to Hanoman, there is an interim agreement until the PPA becomes effective. This agreement specifies that GPL will supply fuel and reimburse GuySuCo for the operating and maintenance costs incurred during this period.
Skeldon’s co-generation facilities are crucial to the generating capacity of Berbice until Government completes a massive project of running transmission lines to that area, allowing for the Demerara system to be linked to the Berbice grid, eventually.
Government recently announced that it is completing negotiations with the Chinese for a US$40M project to build a number of sub-stations along the grid.
Within days, GPL will also commission three new Wartsila sets, capable of producing over 20 megawatts of power.
This will considerably boost the capacity of GPL which over the past months has been under fire for severe power outages.
Yesterday, GPL’s Managing Director, Bharat Dindyal, disclosed that offline tests to all three Wartsila sets have been successful it is hoped shortly that the generators will be hooked up into the system itself to conduct even more checks.
GPL is eyeing two more engines for next year to be added to the current network.
The three new engines will see GPL’s dependence on the more expensive diesel oil drop significantly to the cheaper heavy fuel oils (HFO), which has been received as good news, since the cash-strapped company has been eyeing several measures to reduce technical and commercial losses.

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