Energy

Energy

Paul Oeka - September 26, 2022

Summit Reaffirms Growth in PNG’s Energy Sector

The three-day Papua New Guinea Energy Summit and Exhibition that ended last week focused on strengthening coordination roles among stakeholders and industry players by promoting government and private sector engagement to improve and reaffirm the huge potential of PNG’s Energy Sector. This was the first time the summit was mainly dominated and driven by the Energy division. The summit highlighted the challenges and factors that could determine the right pathway for PNG’s Energy sector to align its direction and leadership priorities. Facilitated by Kumul Petroleum Holdings Limited, the summit was regarded as a momentous occasion to identify key challenges and opportunities for addressing, improving, and accessing the Energy sector in the country. Kumul Petroleum Holdings Ltd. Managing Director, Wapu Sonk, stated in his closing remarks that he was quite pleased with the topics and issues discussed and highlighted throughout the summit, mostly in development and investment opportunities regarding the energy sector. “It was always about mining and petroleum, and now it is time to focus more on energy because energy is the future for development in the country,” said Mr. Sonk. Participants at the summit included heads of departments, development partners, the private sector, institutions, civil society organizations, potential investors, and individuals. With up to 30 exhibition booths that consisted of different organizations and stakeholders in the Energy sector, the summit was commended as an exciting experience in terms of networking and showcasing their products and services. Climate change was also a big topic discussed at the summit regarding PNG’s vulnerability to climate change ramifications. This was stated by key speakers as being a global concern, but PNG must be aligned with climate change adaptations and mitigation while at the same time looking at developing its domestic energy policy. During the summit, discussions also indicated that investors and service providers were taking proactive steps to venture into areas within the energy sector where the government’s attitude and approach were restricted by policy guidelines. The sentiments shared by Mr. Sonk during his closing remarks also indicated the lack of government participation. Mr. Sonk said: “My biggest regret is that the government must sit in such summits and attend to discussions and take note of how policy should be implemented and where the industry is headed.” The summit was endorsed by the Ministry of Petroleum and Energy and financially and technically supported by KPHL, Exxon Mobil, Santos, Total Energies, MRDC, Twinza, Vodafone, ANZ, High Arctic Energy Services, JX Nippon Oil & Energy, Kina Bank, and Puma Energy. In closing the summit, Mr. Sonk said: “I hope the next energy summit will be much bigger and I each and every one of you who has traveled into the country or are residents here for attending.”

Energy

Paul Oeka - September 26, 2022

National Energy Authority to support stakeholders within Energy Industry

The recently established National Energy Authority was one of the major participants of the PNG Energy Summit and Exhibition 2022. NEA’s Acting Managing Director, Mr. Ronald Maketa said the highlight of the NEA is to support the National Governments Energy Policy and its stakeholders to realize the potential of PNG’s Energy industry. He stated during his speech that “We want to improve access to this (Energy) sector by having the right regulatory reforms for foreign direct investment by engaging with stakeholders to find the right approach for the direction of the Government” “Investors must have confidence in the government, coordination by the government has been lacking in the energy sector for the last 40 years”. He said. He added that “Renewable resources such as Geothermal and hydro energy are becoming huge potentials that is why we are aligning our development policies with the Connect PNG Infrastructure program. We want to open up small power systems in provinces and small centers so independent power producers and investors can come in” The government already has an Energy policy in place, the role of the policy is to set the pace for service delivery in the energy sector. The implementers of this policy will be the Petroleum and Energy ministry and the National Energy Authority, the two are working closely with industry players and stakeholders to see that the policy is effective and is putting out desired outcomes. Explained Maketa. Apart from this he further stated that there is a global demand for energy so policy has to be allowed to be shifted to consider this changing dimensions. Reliability and affordability should be prioritized for key areas such as Renewable resources in the energy sector this may include Solar, Hydro, and Wind and Geothermal energy. The country is blessed with a lot of rivers and waterfalls to use for this form of Energy, this has huge potential to create opportunities for investment. Energy for domestic use must also be considered, Oil and gas can be expensive even though we are producing it. We must teach ourselves to use clean energy in order to improve ourselves.

Energy

PNG Business News - September 26, 2022

Maru: Sowom Hydro Project to be PNG Government's Priority

Photo credit: Papua New Guinea Today According to Richard Maru, the Minister for Trade and Investment, high electricity costs are a significant barrier to trade and investment in Papua New Guinea (PNG). With approximately 13% of the population having access to electricity, PNG is one of the least electrified nations in the world due to its inconsistent, costly, and limited supply of energy. “We continue to rely on the expensive diesel generators when we have vast cheaper and cleaner energy options available- the rivers (for hydro projects) and the sun (for solar farms),” said Minister Maru. After speaking with a team from the Snowy Mountains Engineering Corporation (SMEC) regarding a feasibility study into the Sowom Hydro Project in East Sepik Province, Minister Maru brought up this issue. The possibility of the hydro project along the Sowom River was investigated by SMEC in a preliminary high-level feasibility assessment in 2014. “The Marape-Rosso Government is keen to have a full feasibility study done on the viability of one or two hydro projects along the Sowom River,” said Minister Maru. Currently, diesel generators at Wewak and Maprik supply the approximately 10 megawatts of energy needed in the East Sepik Province. “It is difficult to attract major investment projects in East Sepik Province without reliable and cheaper power. The Greater Sepik Region cannot continue to depend on expensive diesel generators for electricity,” said Minister Maru. In order to conduct a thorough feasibility assessment on the Sowom Hydro Project, Minister Maru asked SMEC to put up a proposal and a costing. Before the year is up, he wants the Feasibility Study to be finished. “I have briefed the Governor of East Sepik Province on this study, and he is very supportive. The availability of cheap and reliable electricity is one of the highest challenges for the entire Greater Sepik Region which must be solved before the region can market itself as a serious investment destination, along with other provinces like Manus, Gulf, West Sepik, and New Ireland who continue to depend on very expensive diesel-fired generators. A combination of hydro, solar energy, and gas-fired electricity supply is the way to go for these provinces,” said Minister Maru. In order to develop a more affordable and dependable electricity supply to support economic growth and provide cheaper and more accessible electricity to the majority of the population in the country, Minister Maru stated that he will be working closely with the leaders from other provinces and districts across the nation. “This will also be a major business opportunity to the landowners of the lands where such projects will be located in,” he said.   Reference: Papua New Guinea Today (20 September 2022). “Sowom Hydro Project to be PNG Government's Priority : Maru”.

Energy

PNG Business News - September 26, 2022

National Energy Authority to be fully operational by 2025

Photo credit: Ronald Meketa LinkedIn Page The National Energy Authority has been in the transition for the last two years and is set to be fully operational by 2025. The NEA is planning to conduct its consultation workshop with intergovernmental agencies to guarantee they are fully functioning in three years, according to interim managing director Ronald Meketa. He stated that the tiny power system and having the appropriate policies in place will now be the NEA's main priorities. “We want to have PNG Power Ltd to be more focused on the main key grids that are a revenue-generating business for them, including Port Moresby, Highlands (Ramu Grid), and Gazelle in East New Britain,” he said. “We already have the key draft policy in place. “We should be running the consultative workshop with intergovernmental agencies to make sure we are operational in three years’ time. “We want to open up the small power system in small centres so the free independent power producers investors who are interested can come in. “We can open up the market for competition in that space and that will be embedded in some of the reviews we are doing.” Given that more power system businesses are operating within the 10km zone, Mr. Maketa stated that they would also be looking at the definition of a 10km main grid from the off-grid location. “We will look at how we can improve in that space and open up opportunities as there is a need to address the reliability issues that we have,” he said. Mr. Maketa acknowledged that there is still more to be done to advance the industry. “We should have the small power system regulation up and running by year-end, hopefully in the next energy session will have good answers for everyone,” he said. Given the dire circumstances the nation is in, he said it is critical that various energy sources invest in infrastructure. “We can have the independent power producers and allow competition in that space so that it gives ample time for PNG to look at its transformation strategies and to participate meaningfully in the transitional and to go into gas power,” he said.He claimed that the National Electricity Administration (NE as the National Development Bank, the World Bank, and others.   Reference: Wohi, Lorraine. Post-Courier (22 September 2022). “National Energy Autority To Be Operational By 2025”.

Energy

PNG Business News - September 26, 2022

Dirio’s Next Project to Deliver 66 MW to the Ramu Grid

Photo credit: MRDC Dirio Gas and Power’s next project will be to supply 66 megawatts gas fired power station gas for the Ramu Grid. Speaking at the PNG Energy Summit in Port Moresby, Mineral Resource Development Company (MRDC) Chief Operating Officer John Tuaim said Dirio is currently providing a 45 megawatts (MW) gas-fired power station for the Port Moresby grid, and construction on the following project is anticipated to start in early 2023 for the Ramu Grid. The first Dirio project outside of Port Moresby, according to Mr. Tuaim, is already powering the city. They are now looking at the second project, which will be up in Hela Province and deliver 66 MW while also connecting to the Ramu Grid and servicing Southern Highlands Province. “Dirio will be using the same technology and same landowner groups for the first project in the next project up in Hela and we have already signed a Power Purchase Agreement (PPA) with PNG Power Limited,” he said. “We will also utilise the same strategic staff and local companies to do the next project as well. Once it is done it will provide a cheaper cost of generation power for PNG Power as well.” He stated that Dirio is anticipating a long-term solution for PNG to offer 283MW gas-fueled generation to 12 places around the nation following the project up in Hela, which would bring the advantage of PNG's gas deposits to the entire country. According to Mr. Tuaim, construction on that project is scheduled to begin in 2023 since the National Executive Council (NEC) has already given its approval and because a PPA with PNG Power Limited at 50% of current costs is still waiting.   Reference: Kamus, Maxine. Post-Courier (21 September 2022). “Dirio’s Next Project”.

Energy

PNG Business News - September 22, 2022

Day 2 of 4th PNG Energy Summit highlights local content, SME development for future generation

Picture from left to right: Dr. Genevieve Nelson, Mr. Luke Liria, Mr. Peter Koim, Mr. Francis Kunuma and Mr. Kori Chan  One of the highlights of the second day of the PNG Energy Summit discussions on the 21st of September was how the energy sector could contribute toward local content and the development of local small to medium enterprises for the future. Present for the panel of discussions were Mr. Kori Chan, Managing Director of Total Waste Management Group (TWM); Mr. Francis Kunuma, Cofounder of Nares Engineering Ltd.; Mr. Luke Liria, Corporate Affairs Executive General Manager, Kumul Petroleum Holdings Limited; Mr. Peter Koim, Director PNG Gas Projects Coordination Office; and the moderator, Dr. Genevieve Nelson, Chief Executive Officer of Kokoda Track Foundation. Both Nares Engineering and Total Waste Management Group being 100-percent locally owned companies participating in the LNG project, elaborated more on the services they provided. TWM is currently the leading total waste management and environmental service provider in PNG, while Nares Engineering provides non-destructive testing (NDT) that includes x-ray, ultrasonic, magnetic particle, dye penetrant, and macro testing methods, as well as statutory inspection services. Mr. Chan and Mr. Kunuma, in response to a question by Dr. Nelson on the challenges they faced as local companies, asked the government to explore investing in the future of a skilled trained workforce, as to correlate to international standards and meet the demand in the energy sector in terms of skills and development. Mr. Liria spoke on the current achievement of Kumul Petroleum’s social investment projects in the country. These include the training of skilled technicians through its Kumul Petroleum Academy, in which ExxonMobil PNG is a major sponsor for on-the-job employment and skills. The other proposed project is the steel fabrication facility and construction training academy, which will employ more Papua New Guineans. Another major project includes support for health and sports; so far K65 million has been spent on cancer facilities in Mendi, Angau, and Port Moresby General Hospital. Closing off the panel discussions, Mr. Koim spoke of the importance of the government providing an avenue for landowners to participate meaningfully in the energy sector. As the resources are currently nonrenewable, both the landowners from the gas project areas and different stakeholders must participate in its development, he said.

Energy

PNG Business News - September 21, 2022

4th Papua New Guinea Energy Summit and Exhibition paints a promising future

The fourth Papua New Guinea Energy Summit and Exhibition commenced on the 20th of September 2022 at the Hilton Hotel and will end on the 22nd of September. The theme of the summit is "A New Dawn for PNG's Energy Sector Development." The host sponsor for the Summit is Kumul Petroleum Holdings Limited, whose Managing Director Wapu Sonk gave the opening remarks. Mr. Sonk stated that PNG is blessed with both renewable and non-renewable resources and that the proper development of these will underpin national development for many years to come. Representing the government, Minister for Petroleum and Energy Hon.Kerenga Kua, in his keynote address, stated that PNG is an exporter of liquefied natural gas. This, in the long run, will prepare the country for the future to be viable when there will be customers for PNG's green energy export. Mr. Kua also elaborated that getting electricity to remote areas is not easy given the topography of the country, and PNG's electrification reach is poor compared to other countries. Major players in the energy industry, including the National Energy Authority (the regulatory body of the state), gave their presentations as well to help potential investors in the country work cohesively with different stakeholders, in line with the government's policy and existing national content plan. Existing energy developers and partners such as ExxonMobil PNG, Santos, MRDC, Twinza Oil, High Arctic Energy, and Chiyoda also gave detailed presentations. One of the key areas highlighted by all of them is that they are looking forward to advancing in community initiative projects, including sports, education, health, carbon emissions projects, and utilizing technology that will enhance green energy in the future. Besides the energy developers, Vodafone PNG was present as well for a presentation on the use of telecommunication as a major player in the energy industry in terms of technology while working remotely in the terrains of Papua New Guinea. A total of 30 exhibitors were enlisted for the exhibition, including: Aspen Medical AG Energy Limited American Chamber of Commerce ANZ Bank Limited- PNG Atlas Steel PNG ExxonMobil PNG Limited High Arctic Energy Services PNG Limited JX Nipping Oil and Gas Exploration Corp- Japan Kina Bank Kumul Petroleum Monier Limited MRDC MTIS Group (Asia Pacific) MVIL NACAP PNG Limited National Energy Authority Nambawan Super Pacific International Hospital Pacific MMI Insurance Limited PNG Business News PNG Internal Revenue Commission RTI International- PNG Electrification Partnership Santos Limited Telikom Thai Benkan Company Limited Total E&P PNG Limited Touchstone NDT Limited Twinza Oil Vodafone Papua New Guinea Westpac

Energy

PNG Business News - September 01, 2022

PM Marape wants first green energy project off the ground in 2023

The clean green energy projects initiative being championed by Papua New Guinea Prime Minister James Marape moves one step closer to take-off as he met the second time this month with Fortescue Future Industries South-East Asia President Allard M. Nooy in Port Moresby today (August 29 2022). The Prime Minister used this opportunity to connect the company directly to the Government’s working team to get the project off the ground, which he wants to see happen within 2022 and 2023. The meeting follows from the first PM Marape and Mr Nooy held in Singapore earlier this month during the PM Marape’s short visit to the country some days after his election. At the meeting this morning, Prime Minister Marape reassured Mr Nooy that he stood ready to speak at the high-level arena, while directing the State Negotiating Team to work with the company in processing the mechanisms needed to get the first project off the ground. The Prime Minister also committed the relevant agencies of the State to assist FFI progress this work immediately. PM Marape then came in strong with his reassurance that at the high-level, he would speak with the founder and owner of the company Dr. Andrew Forrest and proceed in making connections to markets in countries that have existing bi-lateral relations with Papua New Guinea. He highlighted Papua New Guinea’s strategic location in relation to the economies of both ASEAN (Association of South East Asian Nations) and APEC (Asia Pacific Economic Cooperation) nations, many of whom already have existing bi-lateral ties with PNG. He said with very high populations in these countries and PNG having all the right conditions to produce energy and food, the country was appropriately placed to contribute to both energy and food security in the region. PM Marape said: “At the high-level, if you want someone to market these things for you, our Government can market for you using the bi-lateral connections. We have strong relationship with China since 1975; with US at the bi-lateral level, with South Korea, India, Indonesia, Malaysia. These are big economies. “We are rightly placed to advocate for green energy. That is our competitive advantage. African nations do not have this; they are too far but we are right here. And we are here to support you. “We are ready to assemble a team. So by 2023, we not in concept anymore but get some project going.” PM Marape once more reassured the company on the opportunities available in Purari River, Gulf Province and the geothermal springs of West New Britain Province where the company has already established working sites based under two heads agreement signed between the State and FFI last year. The meeting, held at the Prime Minister’s office at Sir Manasupe House, was attended by Minister for Petroleum and Energy Hon. Kerenga Kua; Governor for West New Britain, Hon. Sasindran Muthuvel; Member for Rabaul, Hon. Graham Pinau Rumet; and Head of the State Negotiating Team Dairi Vele. President Nooy was accompanied by FFI PNG representative, Andy Hetra.   Article courtesy of PM James Marape News Page

Energy

PNG Business News - July 11, 2022

Installation of solar power to support rural communities in Papua New Guinea

EU-STREIT PNG preparing to install micro grid solar panels in selected public facilities to support cocoa, vanilla and fisheries entrepreneurs as well as livelihoods of rural communities. To create an enabling environment for cocoa, vanilla and fisheries entrepreneurs and to generate real possibility for economic growth that will enhance the livelihoods of rural communities, the UNDP under the EU-Funded Joint UN STREIT PNG Programme, is closing in on preparatory works with stakeholders to install solar generated clean and renewable electrical energy in the Sepik region of Papua New Guinea. In a one-day workshop organised by the Programme in Wewak, East Sepik Province, on Thursday 23 June, participating stakeholders from Division of Education, Sepik Seventh-day Adventist (SDA) Mission, Division of Health and Catholic Health Service came together to discuss and gauge feedback from beneficiaries on the installation of micro grid solar systems in six identified facilities. The selected recipients in East Sepik Province are Taul Community Health Post in Turubu area of Wewak District, Nagum Adventist Secondary in Yangoru-Saussia District and the Catholic Health Service-run Dagua Community Health Centre along west coast highway in Wewak District. The beneficiaries in Sandaun Province are all located in Vanimo-Green District namely Don Bosco Technical School, Vanimo Secondary and Baro Community Health Post. These education and health facilities are located in areas with limited or no access to grid-connected electricity. Opening the workshop was Head of FAO Country Office in Papua New Guinea Mr Bir Mandal who was visiting Wewak to support the programme to expedite the programme implementation and enhancing partnerships with East Sepik Provincial Government. Mr Mandal draw attention to the global scenario on energy access and what this means for the Greater Sepik Region and PNG. “A third of the 2.6 billion people in the world still do not have access to safe, clean fuels and technologies for cooking or heating their homes, at significant health, social and environmental costs. In PNG, only 15% of the total population of about 8 million have access to grid connected electricity.” He added: “For change to occur, we need to reset our energy systems and put people into the centre – ensuring that these systems are cleaner, more secure, more resilient, and totally inclusive.” “Under the Programme, we’re working together with relevant Government of PNG (GoPNG) agencies at the national level and our target provinces to ensure communities in the agri-value chain get connected to electricity via renewable energy sources. This initiative will contribute to the GoPNG’s energy access target as outlined in the Medium-Term Development Plan III and various development plans, policy frameworks and regulatory instruments,” said Mr Mandal. Despite the disruption in the global supply chain by the Pandemic which has put a strain on the progress of this effort, UNDP’s Project Manager, Ms Karen Anawe, said, “I’m pleased to announce that preparatory works are now underway to ensure we assist the government to close the energy access gap by promoting clean energy and a transition towards a low carbon economy in our focus areas.” Ms Anawe said the meeting also discussed sustainability and ownership arrangements of these micro grid solar systems. For the recipients, unreliable electricity supply has been an ongoing dilemma for years, hence the support will give confidence as well as strengthening their operations to service better the rural people. “Nagum Secondary is a recipient of this support and I like to say thank you to the European Union as financiers of this impact project, not only for the school, but for the community at large. We’re glad that the solar project in the future will gather for students from the Sepik provinces, and also from Madang and Morobe,” said Mr Jeffrey Saigomi, Secretary for Sepik SDA Mission. For Dagua Community Health Centre, serving sick patients after hours or in the night has been an concern for some years because of no proper lighting. “This is a big help to us, especially for the people living along west coast including Dagua LLG. The solar power will provide sufficient lights for sick patients in our wards. It will also help with some emergencies we conduct after hours and in the night like attending to deliveries and injuries from road accidents mainly,” said Mr Ignatius Burr, Health Extension Officer. The rural health facility services some 100,000 plus rural population of Dagua LLG including those from Boikin LLG. Despite being handicapped in its operations, the facility is known for being the first to attend to some very serious road accident injuries along the west coast highway before referrals are made to Boram General Hospital in Wewak Town. A feasibility assessment for renewable energy power was conducted in early 2021 for the region, and six facilities were identified for solar energy installation. The UNDP under the EU-STREIT PNG Programme supports development and improvement of renewable energy to create an enabling environment that will embrace development of the three targeted value chains which thousands of rural communities in the Sepik Region depend on to sustain their livelihoods. The EU-STREIT PNG, as a UN Joint Programme (FAO as leading agency, and ILO, ITU, UNCDF and UNDP as partners), is the largest grant-funded Programme of the European Union in the country and the Pacific region. Being implemented in close cooperation with the National and provincial government institutions, research entities, civil society organizations, and private sector enterprises, the Programme aims to help improve the lives of the people from East Sepik and Sandaun provinces, by focusing on increasing sustainable and inclusive economic development of rural areas through improved economic returns and opportunities from cocoa, vanilla and fishery value chains while strengthening and improving the efficiency of value chain enablers, including the business environment, and supporting sustainable, climate-proof transport and energy infrastructure development.

Energy

PNG Business News - June 20, 2022

ADB, Australia, PNG Partner to Boost Access to Clean, Reliable, and Affordable Power

Photo credit: ADB The Asian Development Bank (ADB) today announced a $305 million project which will support the strengthening and expansion of electricity in Papua New Guinea (PNG). The Power Sector Development Project is supported by loans and grants from ADB and the governments of Australia and PNG and will target five subprojects within the main power grids of the country’s power utility, PNG Power Limited (PPL). ADB provided two loans amounting to $208.6 million, the Government of Australia contributed a $59.5 million loan and a $12.8 million grant, and the Government of PNG with PPL will yield $24.1 million. “PNG has one of the lowest rates of electricity access in the Pacific, with only 13% of households having access,” said Director of ADB Pacific Department’s Energy Division Mukhtor Khamudkhanov. “The project will contribute to the government’s objective of connecting 70% of its population to electricity by 2030 and will help advance reforms in the power sector.” The project will expand and upgrade transmission lines and substations in Gazelle, Ramu, and Port Moresby; build new low- and medium-voltage power distribution lines in Gazelle, Ramu, and Port Moresby, and mini grids in West New Britain; and strengthen the capacity of PPL through the introduction of procurement and implementation, utility operation, and financial management reforms. The limited electricity access in PNG stifles economic growth and exacerbates poverty and inequality in both urban and rural areas. COVID-19 has also impacted the local economy, and quality infrastructure is a central component of the government’s post-pandemic economic recovery strategy. The stable power grids proposed under the project will help maintain urban health facilities’ basic operations and are critical to reducing COVID-19 risks. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.   Article courtesy of ADB

Energy

PNG Business News - June 13, 2022

Solar Association: Focus On Green Energy

According to the Solar Energy Association of PNG, foreign investments in the energy industry are now focusing on green energy, but the country's institutional frameworks are insufficient to take advantage of the prospects. President Christian Lohberger said: “PNG was one of the first countries to sign the Paris Agreement on climate change and under our national commitments, we have set a target of the electricity sector being 78 per cent renewable by 2030. “Currently, we are less than 50 per cent renewable and have a growing LNG industry. “So we need to develop a pipeline of hydro, solar and eventually wind projects. “Happily, these are also cheap and (in the case of solar) very fast to build.” According to Lohberger, the LNG business presently dominates the PNG energy sector, although LNG is extremely expensive to acquire (or not export) owing to the Ukraine conflict. “LNG is also very polluting with huge methane and carbon dioxide emissions that destroy our environment,” he said. “It is difficult to see LNG competing with solar and other renewables from a price perspective, particularly if a carbon price is adopted. “Our major trading partners are all adopting carbon prices and this will pressure us to clean up emissions. “Europe and China already have active carbon prices with the US having a tax credit that effectively works the same way as a carbon price. “Australia once had a very successful carbon price but it was removed for political reasons. “Looking forward a few years, the most likely scenario is a grid that is almost entirely powered by solar and wind with hydro for backup on rainy and windless days. “LNG might be useful for extreme situations a few times a year when demand cannot be met.”   Reference: Luma, Dale. The National (8 June 2022). “Association: Focus on green energy”

Energy

PNG Business News - May 22, 2022

PNG Electrification Global Information System Launched

The PNG Electrification Global Information System has been created by the United States Agency for International Development. Off-grid energy providers can use the Electrification Global Information System (GIS) platform to find prospective mini-grid locations and regions for selling stand-alone solar goods. Sean Callahan, USAID's Deputy Mission Director for the Pacific Islands and Mongolia, formally inaugurated the platform during his visit to Papua New Guinea. According to him, the platform would initially be available to several hundred customers in the electricity industry. “USAID is pleased to be a partner with stakeholders to bring electricity to rural Papua New Guinea. This innovative, data-based approach will provide our off-grid partners with the live, up-to-date information they need to further bring electrification to rural communities,” said Deputy Mission Director Callahan. He explained that the PNG Electrification GIS platform is an interactive mapping tool that allows stakeholders working on electrification in PNG to view hundreds of indicators linked to local populations and communities. “The platform was developed by the Papua New Guinea Electrification Partnership (USAID-PEP). “The USAID-PEP Activity is a five-year, US$57 million project partnership with the PNG government to advance the country’s journey to self-reliance by contributing to the goal of connecting 70 per cent of PNG’s population to electricity by 2030,” he said. To achieve this aim, USAID-PEP supports PNG Power Limited, develops viable off-grid electrification models, improves PNG's energy regulator, and catalyses private sector investment, according to him.   Reference: Post-Courier (20 May 2022). “Online Platform To Support Electricity In PNG By 2030”.

Energy

PNG Business News - April 04, 2022

Power Project Launched

Through the rural electrification on grid initiative, more over 56,000 people in Rigo, particularly in Hula communities in the Central Province, now have access to power. The project was successfully completed thanks to the New Zealand Government and PNG Power Limited. The overall cost of this project, according to Rigo MP Lekwa Gure, is $9 million NZ dollars (K20 million), and it has now been finished and commissioned. According to him, if they had to access this rural electrification project based on population, the K20 million investment would reach more than 50,000 individuals, or 23% of the district's population. “I understand from PPL that currently we only have 60 per cent of the country that have access to electricity,” he said. “What that means is we have to roll out rural electrification program by seven percent per annum in the next eight years in order to reach the final seven percent by the year 2030. “With the completion of this Hula electrification project, Rigo Coast LLG is now complete except for Golobu and three villages of Keapara, Anukuni and Karawa. The project comes in three phases which are now completed.” The commissioning, according to New Zealand High Commissioner Philip Taula, is a significant step forward for the local populations, as well as Papua New Guinea and New Zealand. Mr Taula stated that they are eager to collaborate closely in order to enhance prosperity, stability, transparency, and resilience in this country and around the Pacific. “Key focus for New Zealand is to work with the Government of PNG and other partnering nations like Australia, United States of America and Japan in realigning to achieve the goal of delivering electrification to all Papua New Guineans by the year 2030,” he added. The project, according to PPL, involves a line extension and residential connection to the main grid.   Reference: Tom, Patrick. Post-Courier (1 April 2022). “K20m Power Project Launched”.

Energy

PNG Business News - March 07, 2022

PM Marape invites creation of power companies

As the new National Energy Authority (NEA) develops from strength to strength within a year of its inception, structural changes to boost energy output and tap into Papua New Guinea's alternative power-generation sources continue. Hon. Saki Soloma gave the country an update on the NEA's work since its two enabling legislation, the National Energy Act 2021 and the Electricity Industry Amendment Act 2021, were approved in April of last year, establishing it. The NEA is one of Prime Minister Hon. David Cameron's constituents. James Marape's aims to assist industrialize the PNG economy remain at the top of the agenda, along with the Connect PNG Program in civil infrastructure. The NEA was created as a result of his government uniting behind the passage of the NEA. The Prime Minister joined members of Parliament who came out in support of NEA and Minister Soloma's efforts to get the statutory body up and running. According to him, NEA takes over as the electricity regulator, leaving PNG Power Ltd with little choice but to operate as a power supply firm under a license. This instantly opens the way for new power-supply businesses to operate in PNG, which the Prime Minister rapidly took advantage of today in Parliament to demand. Bougainville, Manus, New Ireland, Oro, and a number of other locations not linked to the PNG power grid will be able to benefit from this new scenario, with the Prime Minister urging provincial governments to begin looking into developing it. PNG, according to the Prime Minister, has a plethora of alternative energy sources, including solar, hydro, wind, and geothermal energy, which the NEA plans to develop. Even though it is still in its early stages, NEA has already formed collaborations with Australian investor Fortescue Future Industries in the geothermal and hydropower sectors, with the goals of local supply as well as international export and commerce. The idea behind the current power programs involving the "four-nation" aid partners, according to the Prime Minister, is to get each of these financiers to support the development of supply lines into the country's most populous areas, similar to Japan's current support for the Yonki-Lae 132kva grid. Several more will be discovered, including the Yonki-Madang-Wewak supply chain. “Vision 2050 clearly states that by 2030, 70 per cent of our citizens must have access to electricity. So it is consistent with a national focus that by 2050, and the three MTDs that we have operated thus far, that the 70 per cent target is achieved – if not in 2030, at the very earliest,” said PM Marape.   Reference: PM James Marape News Page (1 March 2022). “PM Marape invites creation of power companies”. 

Energy

PNG Business News - March 07, 2022

Japan Awards K15.6M Grant to Hydropower Project

For development on the Rouna 3 hydropower project in Central, the Japanese government has awarded a K15.6 million grant. Soroi Eoe, the Minister of Foreign Affairs and International Trade, thanked Japanese Ambassador Nobuyuki Watanabe for the money in Port Moresby. The K15.6 million donation, according to Ambassador Watanabe, was authorized by the Japanese government in a recent cabinet meeting and will be used to purchase electrical equipment to improve power generation, notably at the Rouna 3 hydropower project. The award, according to Eoe, would help PNG Vision 2050 achieve its goal of reducing carbon emissions by 90% and generating 100% of electricity from renewable energy sources by 2050. It will also assist PNG Power in providing low-cost generation to link families as part of the PNG Electrification Partnership and PNG Development Strategic Plan, which aims to connect 70% of households by 2030. Despite the economic downturn and income contraction caused by the Coronavirus (Covid-19), Watanabe stated that Japan will continue to help PNG. In 2021, Japan offered K1 billion in direct budget support, K34 million in grant assistance for rural electricity, K13 million in grant assistance for construction equipment to support infrastructure development in West Sepik, Manus, Milne Bay, and Enga, and now the grants for Rouna 3 and Tokua Airport. Watanabe was reassured by Eoe's assurance that the grant funds would be used properly and for their intended purposes.   Reference: The National (1 March 2022). “Japan govt gives K15.6mil for work on hydropower station”.

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