The Guyana Power and Light Company (GPL) will enter into a power-purchase agreement with the Skeldon sugar factory for the supply of about 10 megawatts of power per month.

The agreement, which comes into effect later this year, will facilitate the transmission of electricity into the national grid which will be utilised within Region Six and adjoining communities the Government Information Agency (GINA) reported.

GPL Chief Executive Officer Bharrat Dindyal said the power to be supplied under the agreement will represent more than 65% of the current electricity demands for the entire county of Berbice. This initiative will ensure an economical electricity supply to Berbice and accomplish one of the primary reasons for the construction of the Skeldon Modernisation Plant. To ensure the viability of the establishment, the administration has pursued a number of diversification strategies.

GINA said additional boilers have been installed at the factory to produce more power than is required to sustain its daily operations. In the light of the imminent price cuts imposed by the European Union, government has additional initiatives which the Guyana Sugar Corporation will be pursuing. In addition to electricity generation consideration is also being given to building a distillery and possibly a refinery.