In order to identify guidelines for the development of the most adequate electrical infrastructure for generation and transmission expansion in the country, the Inter - American Development Bank (“IADB”) conducted in 2014 an Initial Study on System Expansion of the Generation and Transmission System of Guyana (“Initial Study”).

An update of the Initial Study (“2016 Expansion Study”) was commissioned by IADB in October 2015 to: (i) reflect changes resulting from the variation in the prices of fossil fuels; (ii) refine the findings from the Initial Study by updating the analysis with recent information from GPL’s power system and the expected investments from the utility in the coming years; (iii) explore alternatives for the development of renewable energy (“RE”) generation technologies; (iv) analyze and propose the potential of Energy Efficiency (“EE”) measures in amongst others, public buildings, industry, residential sector and Small and Medium Enterprises (“SME”); and (v) select the most favorable generation project and develop an action plan for its execution. The final report of the Guyana Power Generation Expansion Study was completed in June 2016.

Despite that the 2016 expansion program provided by the 2016 Expansion Study was built considering the development of thermal power plants, it was planned to do so with the use of imported Natural Gas. Currently, this has changed with the recent discovery of indigenous natural gas reserves 1 . In addition to this, the expansion program provided i n the 2016 Expansion Study needed to be updated in order to present a realistic and robust consideration for the future development of renewable energy generation technologies (“RETs”) in sustainable manner and eventually with the participation of the private sector. This will provide clarity on the future National RE strategy.

This study (“2018 Update Study”) is based on the 2016 Expansion Study, focusing on GPL’s power network with emphasis on the power expansion of the Demerara – Berbice interconnection system (DBIS) 2 . It includes in - depth revision and analysis of RE technologies and natural gas fired generation options. It also include s a preliminary socio - environmental impact and risk analysis of the issues associated with the candidate generation technologies and an analysis of the current regulation in order to reach regulatory policy recommendations to foster RE generation technologies.

This document is the Final Report. It includes comments from the client and its stakeholders .

This report selects the most favorable generation expansion programme. It covers all activities of the Term of Reference: Power demand growth (with energy efficiency and distributed generation), large scale generation alternatives, fuel price forecasts, selection of the most favorable generation mix, Policy and Regulatory analysis with recommendations, power sector tariff analysis, a preliminary social and environmental analysis and an action plan to develop the expansion programme