Agencies ink deal for bigger power supply study

National, Normal

The National, Friday 14th of February, 2014

A study to cater for demand and distribution of projects for power supply in Lae and Papua New Guinea will start following the signing of relevant documents yesterday, the Japanese International Cooperation Agency (JICA) says.
The Ramu system power development master plan and Lae area distribution network improvement plan will be developed between 2016 and 2030, with the hope of stabilising power supply.
The projects’ goals are to meet rapid power demand growth, stability in the Ramu system and Lae area through suitable power development.
The study will take 24-25 months.
PNG Power Ltd (PPL) chief executive John Tangit said study would complement its current efforts to meet customer demands in the long term, including mining loads.
He said this when signing two documents with JICA for the project Lae master plan.
He said the record of discussions and minutes of meeting signed yesterday would provide a guide towards prioritising investments up to 2030.
“The project is highly relevant and consistent to PPL’s focus. In response to ageing infrastructure and rise in demand for power in the Lae area, PPL in the last few years has continued to invest in big projects in Lae and the Ramu system.
“Yonki Toe of Dam, commissioned in 2013, the Lae Independent Power Producer undergoing approval processes and Lae transmission reinforcement projects illustrate our ongoing commitment to the people of Papua New Guinea.
“It is PPL’s ambition to improve the reliability of our existing power systems and to extend to rural pockets of PNG.
“We welcome the attention that JICA and the PNG government are placing in the Ramu Power System in terms of customer coverage. Ramu Power system is PPL’s second biggest system, second only to the Port Moresby system.”
JICA chief representative Shigeru Sugiyama said the signing yesterday indicated that all stakeholders, including PPL and Department of Petroleum and Energy, were committed to the study.
He said demand for power in the country could be tenfold given the level of development and industrial activities in the region.