Budget 2026: $119.4B to supercharge energy sector as gas-to-power, smart grid and solar rollout accelerate
The government has allocated $119.4 billion in Budget 2026 to drive what it says will be a sweeping overhaul of Guyana’s energy sector, with major investments geared toward expanding generating capacity, modernising the grid, accelerating renewable energy projects and completing the flagship Gas-to-Energy initiative by the end of this year.
Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, told the National Assembly that the administration’s energy strategy is aimed at meeting rapidly growing demand, delivering cheaper electricity, improving reliability and stability, and diversifying the energy mix toward cleaner, more renewable sources.
Dr. Singh said that since August 2020, the PPP/C Government added more than 186 megawatts of new generating capacity to GPL’s integrated system and has begun upgrading the company’s transmission and distribution network.
He also pointed to a nationwide push into renewables, reporting that the government constructed solar farms at Anna Regina, Charity, Leguan, Bartica, Mahdia and Karasabai, and built mini hydropower plants at Moco Moco, and Kato.
He said authorities installed 46 solar mini-grids and distributed 37,230 solar-powered home systems to households in hinterland communities.
A central component of the 2026 energy programme, Minister Singh said, is the completion of Phase One of the Gas-to-Energy Project at Wales, West Bank Demerara (WBD).
He told the House that the project is expected to deliver 300 megawatts of power, doubling Guyana’s generating capacity and reducing the cost of electricity by 50 per cent.
The Minister insisted the project’s completion will have an immediate economic impact, particularly for manufacturing and other energy-intensive industries, while also cutting household electricity bills.
As part of the wider modernisation drive, Dr. Singh said $66.2 billion has been budgeted in 2026 to advance upgrades to the transmission and distribution network. He said the work will help deliver power from Wales across major population centres and integrate the national network more efficiently.
He also announced plans to improve power management by implementing a full-scale smart grid, signalling a move toward more modern, technology-driven monitoring and control of electricity distribution.
Singh said the government is also investing heavily in renewable energy, particularly in underserved areas. He reported that $6 billion is budgeted for renewable energy interventions in 2026, including the completion of 10 new solar mini-grids expected to benefit over 6,200 households in hinterland and riverine communities.
He said distribution networks in Mabaruma, Matthews Ridge and Port Kaituma will continue to be upgraded to benefit over 2,600 households and businesses, while construction continues on a 15-megawatt solar farm in Linden.
Singh said the energy allocation is designed not only to increase electricity supply, but to lower costs and strengthen national competitiveness. He described the administration’s objective as ensuring adequate electricity for current and future demand, producing more affordable power for consumers, enhancing grid quality and reliability, and steadily shifting Guyana’s energy mix toward cleaner sources.
“In 2026, a total of $119.4 billion is allocated for the continued implementation of our energy strategy,” Singh told the Assembly.
