$88B to be spent on energy expansion, diversification

The government has allocated a sum of $88 billion in the 2025 budget to further its renewable energy transition and expansion agenda.

This was announced by Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr Ashni Singh during his budget presentation on Friday.

Dr Singh revealed that in 2024, approximately $136.1 billion was invested to reduce electricity costs for Guyanese citizens and enhance the reliability of the power grid.

He said the hydropower plants at Kato in Region Eight and Kumu in Region Nine will be operationalised this year. Solar farms will be completed in Berbice, Essequibo and Linden.

“We will commence construction of the 15-megawatt solar farm in Linden. We will upgrade distribution networks in Mabaruma, Matthews Ridge and Port Kaituma. We will develop a 450-megawatt peak wind farm at Leguan, and distribute an additional 7,230 solar panels in hinterland communities,” Dr Singh pledged.

Gas to Energy project

Work on Guyana’s flagship Gas to Energy project is also expected to advance this year.

“Our transformational gas to energy project is well advanced and under construction. All of the phase one components are scheduled to be completed in 2025, bringing online the single cycle for this project, significantly increasing availability and improving the affordability and reliability of energy,” he said.

This massive undertaking is a key pillar of the government’s agenda for transformation in the country’s renewable energy sector.

This project is the single largest investment in the electricity sector.

It is divided into five components ─ the laying of the pipeline to bring the gas to shore, the construction of the power plant and Natural Gas Liquid (NGL) facility, the installation of transmission lines, the construction of the control centre and the upgrading of the distribution system.

The government has already commenced phase two, which will add 250 megawatts of combined cycle power plant capacity, most likely through a power purchase agreement.

“We launched a Request for Proposals in 2024 and we anticipate concluding that arrangement in 2025 with completion to follow two years after,” the minister added.

Guyana Power and Light

Simultaneously, the Guyana Power and Light (GPL) transmission and distribution network is being upgraded to ensure it can handle the increased power once the project comes on stream.

“Key elements include the construction of 155 kilometres of double circuit transmission lines, 214 kilometres of 69 KV lines, and 343 kilometres of distribution lines. And we can see these lines under construction currently,” Minister Singh noted.

In the 2024 budget, the government allocated $80 billion to advance this project and its associated infrastructure.

The project will bring significant benefits to Guyanese, including job creation, improved electricity access, foreign investment, and energy security.

The government has partnered with ExxonMobil to develop the necessary infrastructure and facilities to transport and process the gas for use in power generation and other applications.

Budget 2025 was presented under the theme: A Secure, Prosperous and Sustainable Guyana.