One of the power ships utilising Heavy Fuel Oil

-85 percent of electricity generation still relies on fossil fuels, production cost high

The International Monetary Fund (IMF) has raised concerns over Guyana’s electricity sector, noting that 25% of power is lost due to aging infrastructure and that the country remains heavily dependent on fossil fuels primarily heavy fuel oil (HFO) despite government efforts to diversify its energy sources.

According to the recently released IMF country report, 85 percent of the electricity generation still relies on fossil fuels, with production costs estimated at US$0.32 per kilowatt-hour, placing Guyana among the highest in the region. These high costs, the report notes, have “greatly affected businesses’ operating performance and has historically limited the country’s ability to provide value-added products.”

The IMF emphasized that the electric power sector remains both expensive and unreliable, with electricity often unstable in many areas and power outages a common challenge for businesses.