GPL inks deal for rental of second Power Ship

The Guyana Power and Light (GPL) company today signed a contract with the Joint Venture, Karpowership Global DMCC & UCC Energy International LLC JV for the rental of a second Power Ship.

The additional power ship comes with a total installed capacity of 75 Megawatts (MWs) and the contract is for a period of two years.

In a statement this evening, GPL explained that the second power ship will be based in the Demerara River and in the first phase, 60 MWs will be dispatched to the grid in approximately six weeks, followed by an additional 15 MWs of power once works are completed on an additional transmission line.

Under the contract, GPL is required to pay the Joint Venture 8.52 US cents per kWh as a monthly charter fee for the Powership and a monthly operation and maintenance fee of 0.98 US cents per kWh, based on electricity generated.

GPL will be responsible for providing Heavy Fuel Oil (HFO) for the operation of the generators.

According to Mr Kesh Nandlall, Head of GPL’s Executive Management Committee, the signing of the agreement marks a critical step in continuing to bolster the company’s power generation. The Powership is expected to be connected to the national grid within six weeks.

Antonio Neto, UCC Holdings Managing Director of the Americas, acknowledged the urgency of connecting the Power Ship to the grid and his company’s commitment to meeting the agreement’s timelines.

Minister within the Ministry of Public Works, Deodat Indar, attended the signing of the contract and emphasized the importance of the arrangement and timeliness, given the country’s rise in energy consumption. He also spoke about the demand on the Transmission and Distribution networks and urged GPL to ensure that timely maintenance activities are carried out to prevent unnecessary outages.

Senior Minister with responsibility for Finance and the Public Service, Dr Ashni Singh, said the rental of the second power ship is crucial to meet the immediate growing electricity demand in the country.

The first power ship to be rented is based in the Berbice River.