Vice President Assures Electricity Price Stability Despite Power Ship Charter
Vice President Assures Electricity Price Stability Despite Power Ship Charter
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Vice President Dr. Bharrat Jagdeo recently reassured the public that the recent chartering of a power ship to alleviate national blackouts will not result in increased electricity prices.
The power ship, boasting a total installed capacity of 36 Megawatts (MWs), is being chartered from Urbacon Concessions Investments, W.L.L (UCI), with an initial mobilization fee of US$1M already paid.
During his weekly media briefing, Vice President Jagdeo emphasized that there would be no immediate electricity price hikes due to this rental agreement. He confirmed that the arrangement would maintain stable electricity rates for at least the next two years.
The power ship is scheduled to commence full operation and electricity delivery by May 8, 2024, and will remain in service for a two-year period.
Jagdeo further elucidated that the government is already investing significantly to ensure electricity prices remain stable, affirming ongoing efforts in this regard.
Under the terms of the contract, GPL will pay UCI a monthly charter fee of 6.62 US cents per kWh for the power ship, along with a monthly operation and maintenance fee of 0.98 US cents per kWh, based on electricity generated.
The power ship, expected to operate with a 96 percent availability rate, will be stationed at Everton, Berbice, and connected to GPL’s grid at 69 kV.
Previously deployed in Cuba as part of a similar generation asset contingent, the power ship is slated to arrive in Guyana on May 1, 2024, pending favorable weather conditions.
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UCI, a subsidiary of UCC Holdings of Qatar, maintains a strategic partnership with Karpowership International, a Turkish firm, underscoring the global collaboration behind this initiative.