Papua New Guinea continues to grapple with energy gaps, but hydro power is increasingly being recognised as a key solution to meet the country’s growing electricity demand. Managing Director of PNG Hydro Development Ltd Allan Guo says hydro energy is the way forward and holds the key to unlocking PNG’s green industrial future.
He called for more unified action between government, the private sector and international partners to realise this potential.
“This is our moment. Hydro is renewable, it's reliable and it is ours. We must develop it not just to light homes, but to power a whole new economy,” he said.
Harnessing PNG’s vast hydro potential
Speaking at the 2025 Petroleum and Energy Conference (2025 PEC) on 9 October, Guo highlighted that PNG possesses substantial renewable energy potential—an estimated 14,000 megawatts of hydro capacity, more than 98 percent of which remains untapped.
He said the country’s vision is clear: to power green industries and achieve 70 percent household electrification by 2030. With landowners ready and investors showing genuine interest, the next step, he explained, is proactive and coordinated action to resolve land access issues.
Guo emphasised that tailored policies and strong on-the-ground leadership are essential to turn PNG’s promising renewable resources into viable, bankable projects.
A personal and professional journey
In an exclusive interview with PNG Business News, Guo shared his personal and professional journey—a story that began with humble beginnings and evolved into a lifelong mission to build a greener, more self-reliant PNG economy.
Reflecting on his early years, Guo spoke about the values that continue to guide his company and his belief that energy is the cornerstone of national progress.
“When I came to PNG over 20 years ago,” he recalled, “my first exposure was through a Chinese company. From there, I worked in Africa, and eventually returned to PNG because I saw a future here.”
“Energy is not just part of development. Without it, you can’t build roads, schools, factories—nothing,” he added.
Over the years, PNG Hydro Development Ltd has completed eight hydroelectric schemes and one transmission line, including several Asian Development Bank (ADB)-backed projects, developments for King Forest Products, and independently funded hydro and energy infrastructure initiatives.
The Edevu Hydropower Project: powering Port Moresby and beyond
Among the company’s landmark achievements is the Edevu Hydropower Project, located on the Brown River in the Hiri-Koiari District of Central Province. AG Investment, a subsidiary of PNG Hydro Development Ltd, began work in late 2022 on the Edevu–Moitaka 132 kV transmission line.
Led by PNG Hydro Development Ltd, the project represents a total investment exceeding K700 million and aims to strengthen energy supply to Port Moresby and the Southern region, both of which have long struggled with unstable power and frequent blackouts.
With an installed capacity of 54 megawatts and four turbine units located in the powerhouse, the Edevu Hydropower Plant is expected to supply up to 40 percent of electricity needs for homes in the National Capital District. The project is designed to improve energy reliability and affordability, helping Port Moresby meet growing industrial and residential demand.
The plant has received strong endorsements from national and provincial leaders, serving as a model for public-private partnerships that advance PNG’s target of 70 percent national energy access by 2030.
Development of the Edevu Hydropower Plant spanned nearly 15 years. Initially launched in February 2017 by PNG Power Ltd, it is seen as a milestone toward achieving the government’s Vision 2050 goal of a decarbonised, green energy future, with hydropower positioned as the cornerstone of PNG’s renewable transition.
Guo credited long-term cooperation and dialogue with Edevu’s landowners as a key factor in the project’s success. The project also represents one of Central Province’s largest infrastructure investments, creating significant employment opportunities during construction and continuing into its operational phase.
The project’s 104 transmission towers connect the Edevu plant to the Port Moresby grid and are designed to accommodate future supply from the upcoming Naoro-Brown Hydropower Project—part of a broader effort to strengthen grid stability across the region.
Building a green foundation for national growth
Guo believes many national development plans falter because they overlook energy as the foundation for sustainable growth.
“You build roads without energy, and they collapse into disuse. Fix energy first and the rest will follow,” he said.
For him, hydropower is not just a tool for electrification—it is a catalyst for transformation.
Hydropower: PNG’s green goldmine
According to Guo, hydroelectricity represents far more than a power source. It is a pathway to national transformation and economic independence.
“Hydro is green. It’s sustainable. It can power our industries and help PNG export green fuels like methanol, which the world is now demanding,” he said.
With the global shift toward low-carbon shipping and aviation, Guo sees PNG’s rivers and mountains as strategic assets that can drive both domestic and international growth.
“We have only tapped 2 percent of PNG’s hydro potential. The remaining 98 percent is untouched. That’s our opportunity.”
He believes that one day, PNG could export green energy and decarbonised fuel to global markets, achieving energy security while building an entire green economy at home.
Empowering Papua New Guineans through local expertise
Today, PNG Hydro Development Ltd has a presence in nearly every province. Central to its mission, Guo said, is empowering locals in project sites through hands-on technical training and leadership development.
“When you mention the word hydro, people think it has to be done by expatriates. We have proven otherwise—a PNG-based company can deliver hydro projects.”
To reinforce this vision, PNG Hydro Development Ltd has established a dedicated arm for energy investments, engineering and technical services—including installation and testing—that were once outsourced overseas.
Through this approach, the company not only builds power plants but also local capability, ensuring that PNG’s renewable future is truly powered by Papua New Guineans.
