Facing shortfalls, GPL moves to seal power purchase deal with Giftland -other producers to be invited

Sep 06, 2019 News

After two years of back and forth, it seems finally that the state-owned Guyana Power and Light Inc. (GPL) is ready close a deal with the Giftland Mall.
There is almost five megawatts available at the Pattensen mall which they have been trying for almost two years to strike an arrangement with the GPL.

Giftland said it is ready to facilitate the sale of power to GPL.

Chairman of Giftland Group, Roy Beepat

However, despite statements, the process has been dragging on.
Yesterday, GPL disclosed that progress is being made.
GPL’s Board said it has considered the proposal from MCG Investments Inc. (Giftland Mall) to enter into a Power Purchase Agreement (PPA).
“In furtherance of its consideration, the Board authorised GPL to move forward efforts to finalize a PPA Agreement with MCG Investments Inc. that met the needs and interests of the company. The Board also instructed GPL Inc. to ensure all of the legal and regulatory modalities were satisfied,” a statement said.
The Board also disclosed that whilst the legal and regulatory modalities are being completed, the Board also authorised GPL Inc. to commence inviting Expressions of Interest (EoIs) from other potential power providers with immediately available generation capacity who may be interested in supplying electricity to GPL Inc.
Yesterday, Chairman of Giftland Group, Roy Beepat, repeated his entity’s readiness for power to be sold to the GPL.
“Once again I write to advise the Minister and his Board at GPL that we at Giftland Mall are ready to help ease the present power predicament.”
In justification, Beepat said: “It just requires very minor technical connection to place our power plant on the grid, the poles are already laid.”
The official said that its costs are below that of GPL’s diesel plants.
“The present perfect storm of issues to hit the corporation shows the need to alternate supply to help ease the load. It will alleviate suffering of thousands of households at no extra cost to anyone.”
GPL badly wants the extra power.
It disclosed Wednesday that due to unforeseen occurrences and generation and operational issues, it is currently challenged with providing the required generation during peak demand.
It was explained that due to a defective transformer at our Onverwagt, Berbice Substation, GPL is unable to export 6.9 MW of power to the Demerara-Berbice Interconnected System. “Additionally, a 5.5 MW generator at the Canefield Power Plant is unavailable because of scheduled maintenance.”
In Demerara, at the Kingston Power Plant, a 6.9 MW unit is unavailable due to a defective alternator, which had to be sourced overseas.
“The alternator has arrived, and repairs are expected to be completed by the end of the week. Thereafter the unit will return to operation by Monday, September 9, 2019. At the Garden-of-Eden power station, a 4MW is unavailable as we are awaiting the arrival of replacement parts for the defective components.”
GPL said it is aggressively injecting efforts to ensure all units are returned to operation in the shortest possible time.
“However, with a deficit of approximately 23 MW, customers in Demerara and Berbice will experience periods of service disruptions,” GPL has informed.

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