The Government of Guyana is in the final stages of negotiations with the Turkish energy provider Karpowership to renew contracts for two power ships that currently supply approximately 96 megawatts (MW) of electricity to the national grid.
Public Utilities Minister Deodat Indar has disclosed that discussions are now focused on agreeing a new electricity tariff, with the company seeking 9.5 US cents per kilowatt-hour (kWh) and the Government pushing for 9 cents per kWh. According to the Minister, both parties are close to a mutually acceptable agreement.
Speaking on the Starting Point podcast, Indar explained that the original agreement for the 36-MW power ship stationed on the Berbice River secured electricity at 7.2 US cents per kWh, a rate he described as among the most competitive at the time of signing in 2024. The second vessel, which generates 60 MW from its location on the Demerara River, was contracted at 9.5 US cents per kWh.
With both agreements having reached the end of their initial two-year term, the Government entered negotiations to extend the contracts. Indar acknowledged that although the Government would have preferred a lower rate, it was unrealistic to expect the company to continue operating at the heavily discounted price secured under the first agreement.
“We know they will not renew at the concessionary rates we initially secured,” the Minister said, adding that discussions are now focused on narrowing the gap between the two proposed prices.
The Minister stressed that Guyana’s rapidly growing electricity demand makes the continued operation of the power ships important, as they provide more than 90 MW of much-needed generation capacity. However, he rejected suggestions that the Government had been under pressure during the negotiations.
Minister Indar maintained that Karpowership is not the country’s sole option for additional generation and said the Government made that clear throughout the discussions. While describing the negotiations as challenging, he revealed that both sides are “about 99 per cent” towards a final agreement.
His comments follow reports that Karpowership had threatened to cease operations if a new contract was not finalised. The reports were based on a letter sent to the Government that was later leaked to the public.
The Minister criticised the disclosure of the correspondence, arguing that sensitive commercial negotiations should not be conducted in the public domain. He said both sides have continued to exchange proposals, and the vessels remain connected to the national grid, supplying electricity without interruption.
Minister Indar also defended the Government’s negotiating approach, emphasising that officials have consistently prioritised securing the best possible deal for Guyanese consumers.
“We will always defend the interests of the Guyanese people,” he said, adding that the Government has taken a firm stance throughout the discussions and would not be pressured into accepting unfavourable terms.
The two floating power plants were contracted in 2024 under an agreement between Guyana Power and Light Inc. (GPL) and the joint venture comprising Turkey’s Karpowership Global DMCC and Qatar-based UCC Energy International LLC. One vessel, moored at Meadow Bank on the Demerara River, produces 60 MW of electricity, while the second, located at Everton on the Berbice River, contributes an additional 36 MW.
The floating power plants were introduced as an interim measure to strengthen Guyana’s electricity supply while the country awaits the commissioning of the Gas-to-Energy Project. The landmark project, expected to become operational later this year, is designed to deliver around 300 MW of electricity generated from natural gas transported from offshore oil fields.
Combined with existing GPL generation assets, the two power ships have comfortably increased Guyana’s installed generation capacity to roughly 267 MW.