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Moratorium on any generation or major infrastructure proposals

Moratorium on any generation or major infrastructure proposals

As PNG’s fully integrated power utility, PNG Power Limited is responsible for generation, transmission, distribution and retailing of electricity through Papua New Guinea. Among our goals is improving reliability across our systems, ensuring access to electricity for 70% of households in Papua New Guinea by 2030 and eventually 100% renewable generation by 2050.

It is our responsibility to develop, communicate and execute the plans to achieve these goals. To date, we have not accomplished all aspects of that process as well as we should have. That is going to change.

PPL has enlisted the financial and technical assistance of the World Bank to develop Least Cost Development Plans for our generation, transmission and distribution systems. In the short term, the World Bank is using their own in-house expertise and our existing data to produce preliminary plans with the aim of a high-level review completed inside three months. They are also in the final stages of engaging external consultants to help us prepare comprehensive plans, a process that we expect will take up to 12 months. A critical element of this process is that PPL staff will be working with the World Bank to develop our own capabilities.

These comprehensive plans will incorporate, among other things, the implications of reaching the target of 70% electrification by 2030, ensuring that major existing or proposed industrial loads (e.g., mines) are presented accurately and realistically, a move away from diesel and HFO generation to gas (and ultimately 100% renewables by 2050), strategic placement and sizing of generation to minimise system losses and maximise system reliability, and especially the need to drive down the cost of our business and the tariffs to our customers.

During this period, PNG Power Limited will also be developing an Independent Power Producer and Major Infrastructure Policy. This Policy will be based on solid principles and will set out appropriate and well-defined processes and procedures for the timely, cost-effective and demand-driven additions to our generation, transmission and distribution systems.

To ensure that our team stays focused on delivering these outcomes, we are placing a six-month moratorium on considering any generation or major infrastructure proposals that are unsolicited or have not been the result of a competitive bidding process." PNG Power Limited reserves the right to lift or extend this Moratorium should the need arise.

 

Carolyn Blacklock                                                          
Acting Managing Director

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