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GPL unable to guarantee generation capacity by year-end
…36-yr-old unit still operating at Garden of Eden
“As can be seen from the forecasted generating capacity, if additional capacity is not installed urgently, GPL will have to undertake statutory load shedding in 2013,” – Finance Minister Dr Ashni Singh
By Gary Eleazar
Even as Guyanese brace for word on the impending electricity tariff increase, word has surfaced that in a matter of a few months, a large portion of the generation capability on the Demerara grid, and its continued reliable operation, cannot be guaranteed.
This information surfaced as a result of the request for some $5.3B by government for the purchase of a 26 MW Plant.
Finance Minister Dr Ashni Singh, at the time of the debate on whether to approve the money or not, had cause to eventually circulate a document titled “Justification for 26MW Power Plant.”
Finance Minister, Dr. Ashni Singh
The information supplied by Dr. Singh to the House on Thursday evening revealed that two Wartsila plants that had been commissioned in 1993 will have reached their 20-year ‘economic lifespan by next year.
These units supply 22MW of the total demand which currently peaks at about 79MW.
The Minister cautioned that while the units have been maintained over the years, their “continued reliable operation cannot be guaranteed.”
According to the information supplied by Dr Singh, also, another ‘Crossley’ Unit that supplies an additional 2.5MW from Garden of Eden is “beyond retirement.”
This unit is said to be currently 36 years old.
To compound the situation further, the Finance Minister says that according to projections, demand for 2013 is expected to increase to 85MW. This will occur at a time when a further 11MW from the Kingston plant will be taken offline.
According to Dr Singh, in relation to the latter occurrence, Guyana Power and Light Inc. (GPL) has already executed a contract with Wartsila for the frequency conversion of the 22MW plant there.
This conversion process is expected to take some six months, commencing in December this year.
“With the frequency conversion making 11MW unavailable and another 11MW at Garden of Eden achieving 20 years, overall generating capacity in Demerara would reduce from 80MW to 58MW with peak demand. As can be seen from the forecasted generating capacity, if additional capacity is not installed urgently, GPL will have to undertake statutory load shedding in 2013.”
The plant which the Finance Minister proposes for installation comprises “three Wartsila 20V32 generators which will be located at Vreed-en-Hoop. Each machine is rated at 8.7MW.”
He says that Vreed-en-Hoop is a new site and bulk storage facilities for heavy fuel oil are included in Wartsila’s supply scope.
During the course of the debate, Prime Minister Samuel Hinds had indicated that, the nation is now facing an impending electricity tariff increase.
Hinds, was at the time defending a $1B Supplementary request which was being debated in the House for GPL. The $1B was being held in abeyance following its gutting from the 2012 Budget, but was approved yesterday.
At the time of the revelation by the Prime Minister, he was responding to queries related to what measures had been put in place to address the defects at GPL which have led to more than 30 per cent technical and commercial losses.
Hinds explained that at the time the power company had been preparing its budget, it was realized that the company would require some $10B to meet shortfall. He said that Government eventually committed to supporting the company to the tune of $6.5B.
As a result of the shortfall from what had been requested, Hinds explained that the company had to defer maintenance among other measures to meet its cash flow requirements.
According to Hinds, the company has been holding off any increases for the past four years, but prevailing situations would force the company to increase its tariff.
He did not announce when such an increase would take effect.
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