K236mil boost to power supply

By Gynnie Kero
The Asian Development Bank (ADB) on Tuesday approved the second phase of financial support amounting to K236 million (US$76 million) to address the lack of access to affordable, clean, and reliable power in provincial centres.
“Lack of access to power is limiting economic growth in provincial centres,” said Woo Yul Lee, an energy specialist at ADB’s Pacific regional department.
“The programme will improve the reliability and quality of power supply to stimulate economic growth, and replace diesel generation, thereby reducing costs and creating incentives to improve access rates.”
In PNG, grid-connected power is still largely restricted to the main urban areas. By the end of 2015, about 12 per cent of the overall population had access to electricity.
PNG has significant underutilised indigenous renewable energy sources, particularly hydropower and solar, for which the generation costs of energy are considerably lower than that of diesel. The majority of provincial centres are supplied entirely through diesel generation, resulting in high generation costs but still with a low quality of power supply.
The programme, which is part of ADB’s US$120 million (K372 million) multi-tranche financing facility for the Town Electrification Investment Programme approved in Nov 2010, will be supporting the development of least-cost renewable energy sources.
It would rehabilitate the Yonki Toe of Dam (Eastern Highlands) and Warangoi (East New Britain) hydropower plants which are currently operating below their full capacities. Once refurbished, the plants’ economic life will
be extended by another 20 to 25 years.