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Extracted from Guyana Power and Light (GPL) 2012 Annual Report


GPL experienced an after tax loss of G$7.67B, largely on account of significant increases in fuel costs.


By the end of 2012, GPL’s customer base expanded to 166,878 customers.


Gross generation totaled 690 GWh with 36 GWh coming from Guysuco at Skeldon; 501 GWh from GPL owned and Wartsila operated units, and 153 GWh from GPL owned and operated generating sets.


GPL installed (nameplate) generating capacity (excluding Guysuco) totaled 148.48MW of which 95.3 MW were Heavy Fuel Oil (HFO) and 53.18 MW were Light Fuel Oil (LFO).


Adjusting the capacity for age and reliability, GPL’s derated capacity totaled 118.69 MW. Overall availability in 2012 of generating equipment was 75 %; Wartsila operated plants totaled 93 % and GPL operated plants totaled 48%. It is expected that a further 26 MW of Wartsila generation would be added in 2014 with the commissioning of a new Power Station at Vreed-en-Hoop, W.C.D.


The reduction of technical and commercial losses remains a significant challenge for the Company. Losses increased from 31.6% in 2011 to 31.7% in 2012. While the level of Technical losses was restricted to the targeted figure of 14.65%, it nonetheless amounted to a slight increase over 2011. The reduction of technical losses requires significant capital investment and upgrade of the transmission and distribution network. It is hoped that the US$39M infrastructure development project currently ongoing would greatly assist in improving the network and reducing the level of losses.


Non-technical losses also remained significantly high in 2012 at 17.05%. Despite various initiatives implemented by the Company over the years, the rate of reduction in the level of commercial losses has stalled. Theft remains an enormous challenge and the intended benefits from the 2010 amendments to the legal framework to support GPL’s loss reduction drive have not materialized. Additionally, issues of corruption (both internally and externally) have affected gains on loss reduction. GPL continues to be plagued by high staff turnover in the Loss Reduction Division.


Despite the cash collection rate of 100% of sales, GPL’s operations had to be subsidized by GOG to a value of G$6B as a result of rising fuel costs and capital investment costs.


Escalations in fuel costs increased overall expenses which necessitated an injection

of $6B by the shareholders.


GPL seeks to maintain, in stable conditions, voltages of ±5% of the nominal voltage and ± 10% following a system disturbance.


System Average Interruption Frequency Index SAIFI 2011 actual 156.22 ; 2012 actual 180.  The system average interruption frequency index (SAIFI) – an average of the number of interruptions experienced per customer for the year


System Average Interruption Duration Index SAIDI 2011 actual 140.55; 2012 actual 180. The system average interruption duration index (SAIDI) – an average of the duration of outages per customer over the period.


CAIDI = SAIDI divided by SAIFI


Major Factors Affecting SAIFI

Feeder, transmission lines and generator trips accounted for over 80% of customer-interruptions. The Berbice network’s ability to satisfy demand was significantly affected by the failure of a major 69kv transformer at the Canefield Power Station. The failure limited GPL’s ability to transfer the Power Station’s excess capacity to the grid. Additionally, the Berbice network was affected by the unavailability of the 5.5 MW Engine at the Skeldon Plant for most of 2012. Under the PPA with GuySuCo, the Corporation is to provide 8MW of guaranteed capacity to GPL.

In Demerara, the three heavily loaded East Coast feeders contributed to nearly 50% of SAIFI. Where there were sudden losses of generator capacity, an under frequency relay automatically tripped feeders in a predetermined sequence, to prevent a total system shutdown.


As previously reported, in October 2009, GPL and the China National Machinery Import and Export Corporation (CMC) signed an agreement for the construction of seven (7) new 69/13.8 kv Substations, the upgrade of three (3) existing substations and approximately 120 km (93.5 km measured) of 69 kv Transmission lines (including 1.8

km Submarine Cable across the Demerara River), and the construction of a Fiber Optic Network Linking all substations from Skeldon in the East, Edinburgh in the West and Garden of Eden in the South to a Supervisory Control and Data Acquisition (SCADA) System at a New Control Centre at Sophia. The total project cost was slated at US$33,881,618.78 with a provisional sum of US$5,082,242.82 to be utilized to offset any additional cost that may be incurred during construction. Financing for this project was made available by the Government of Guyana by way of a concessional loan in the sum of US$38.963M.


The Project, known as GPL’s Infrastructure Development Project, will serve to integrate major load centres along the coast, and will provide the capability to move bulk power from large, efficient, heavy fuel oil fired generating plants in Demerara and Berbice to those load centers. Additionally, new 13.8 kV primary distribution feeder outlets at the substations will allow existing long, overloaded feeders, especially on the East and West

Coast Demerara, to be segmented into shorter, more lightly loaded sections. These developments will result in improved quality of supply, system stability, improved voltage regulation, reduction of technical losses, and cater for increasing demand. They will also prepare the system to accept and distribute power from the Amaila Falls Hydroelectric Project.


In late 2012 activities were focused upon completing construction and testing of facilities to bring the First Priority Works onstream. These were:

• Two (2) new 69/13.8 kV substations at Vreed-en-Hoop and Edinburgh, West Demerara,

• A 14 km, 69 kV transmission line linking the two substations,

• The upgraded 69/13.8 kV substation at Kingston, and

• Approximately 2 km of 69 kV submarine cable across the Demerara River from Kingston to Vreed-en-Hoop.


On April 4, 2012, GPL entered into a US$7,119,833.37 contract with Wartsila Caribbean Inc. for the conversion of the electrical frequency of the 22MW heavy fuel fired power plant, the Kingston I Power Plant, from 50Hz to 60Hz. A financing plan was mutually agreed to by the Parties and comprised of a down payment of US$2,500,000.00, ten monthly payments of US$250,000.00, and twenty four monthly payments of US$88,326.39.


In late 2011, the IADB and GOG agreed to a US$5.5M facility for the Sustainable Operation of the Electricity Sector and Improved Quality of Service. The new investment was viewed as essential for the continued reduction of technical and commercial losses. The Sustainable Operation of the Electricity Sector and Improved Quality of Service Project is administered by GPL under an Administration Agreement with GOG. The general objective of the Project is to improve the overall efficiency of the system by achieving a lower level of electricity losses, improving the operation and maintenance of the distribution network, seeking a shared understanding of main technical, financial and operational issues, continuing the secured metering program, discouraging the culture

of theft and gaining commitment to sustainability in the continuation of necessary actions. The expected results include continuous reduction of commercial losses, commencement of parallel efforts to control and reduce technical losses, increase GPL cash collections, and increase the number of legal connections in the distribution

network. It is expected that once achieved these results would contribute to improved sustainability of the Company and the quality of the electricity service.

To achieve these objectives, the Project centers on three components:

i) Capacity Building and Energy Conservation;

ii) Rehabilitation of the Low Voltage (LV) Distribution Network;

iii) Commercial Loss Reduction (LR) Actions;


At the end of 2012, GPL’s installed (nameplate) capacity totaled 158.48 MW, with 108.9 MW located in Demerara, 37.2 MW (including 10MW of GuySuCo owned Skeldon Wartsila units) located in Berbice, and 12.38 MW located in Essequibo. After accounting for derating (for age and condition) and the then unavailability of the GuySuCo 5.5 MW Wartsila unit at Skeldon, this figure was reduced to 123.69. MW. Of this number, 98.52 MW (including the 5 MW of Guysuco’s Wartsila units) is considered reliable and 93.9 MW   (89.3 MW Wartsila Units and one 4.6 MW Mirrlees unit) operate with HFO. All other units are diesel-fired. GPL considers its remaining available capacity of 25.18 MW to be unreliable. These (nameplate capacity 52.53 MW) consist

of 23.7 MW of high speed, mobile and stationary Caterpillar units, 24 MW of mainly medium speed, base load type units that have exceeded their normal operational life expectancy and 4.8 MW of units that are inoperable and for which GPL has initiated the process for having the units “written off”.

Fuel is GPL’s largest expense accounting for 70% of the company’s total expenditure in 2012, a 1% increase from 2011 figures. Fuel costs accounted for G$24.1 billion in expenditure for the year compared to G$22.5 billion in 2011. The weighted average price of fuel stabilized at US$108 per barrel in 2011 to US$109 per barrel in 2012, an increase of $US1 per barrel, or 0.92% above 2011 prices.


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