Guyana is experiencing a rapid surge in electricity demand, driven by economic expansion following the start of offshore oil production in 2019. To close a widening power supply gap, the state-owned utility has relied on powerships and is advancing a large-scale Gas-to-Energy (GtE) project, expected to reduce generation costs when it comes online by the end of 2026. However, the system remains fiscally fragile. The utility carries arrears of roughly US$392.6 million (as of 2024) to the government and depends on subsidies to keep tariffs stable. As Guyana shifts toward long-term Independent Power Producer (IPP) contracts, transparency will be important to ensuring these arrangements deliver their intended benefits. With proper oversight, new contracts can build on existing experience and establish a stronger foundation for the power sector going forward.
Download to read the full analysis (5 pages) here.