$28.7B approved for major electricity grid expansion to support Gas-to- Energy Project  

The National Assembly has approved a supplementary allocation of $28.7 billion to accelerate the expansion and modernisation of the country’s electricity transmission and distribution networks.

This funding is critical to integrating the forthcoming 300-megawatt (MW) Gas-to-Energy (GtE) project into the national grid, aiming to provide more reliable and affordable electricity across the country.

The GtE project, centred around a natural gas-fired power plant in Wales, is designed to reduce Guyana’s dependence on imported heavy fuel oil and cut electricity costs by up to 50 per cent.

However, the project has faced delays, with the latest projections indicating completion in the second quarter of 2026, as announced by Prime Minister Brigadier (Ret’d) Mark Phillips.

To support the integration of the GtE project, the government signed contracts totalling approximately US$422 million (G$90 billion) in April 2025 with Power China and Kalpataru Projects International Limited.

These contracts encompass the construction of 155 kilometres of 230-kilovolt (kV) double-circuit transmission lines, 167 kilometres of 69 kV double-circuit transmission lines, five new substations, and the upgrade of the Kingston substation in Georgetown.

The newly approved $28.7 billion will facilitate mobilisation, advance payments, and interim payments projected through December 2025, ensuring the timely execution of these infrastructure projects.

The projects are divided into three lots, with Lots 1 and 3 awarded to Power China and Lot 2 to Kalpataru.

Minister within the Ministry of Public Works, Deodat Indar, emphasised the transformative nature of these upgrades, stating that the new transmission system will replace outdated infrastructure and incorporate cutting-edge technology aligning with international standards.

The expansion of the electricity grid is particularly significant as Guyana experiences unprecedented economic growth, driven by its burgeoning oil and gas sector.

The improved infrastructure is expected to enhance the reliability of power supply, which has historically been plagued by frequent outages and voltage fluctuations.

In addition to supporting the GtE project, the government’s broader energy strategy includes extending electricity coverage to previously unserved communities and investing in renewable energy solutions for hinterland regions. These initiatives aim to ensure equitable access to electricity and support sustainable development across the nation.