Blacklock hails power initiative

By PETER ESILA
PNG Power Ltd acting managing-director Carolyn Blacklock says independent power producers (IPPs) herald a new era in power generation in the country.
Blacklock welcomed a new initiative called the IP3 Industry Group which was launched in Port Moresby yesterday by a consortium of IPPs to promote their collective interests in Papua New Guinea.
“We welcome the opportunity to engage with the IPP Group and ensure ongoing dialogue,” Blacklock said.
“IPPs have been in PNG for nearly 30 years with the PNG Forest Products Baiune hydro-power project near Bulolo.
“It has been and continues to be a very successful partnership where PNG Power buys reliable, renewable power at an affordable rate from the private sector.”
Blacklock said IPPs worked best when there was competition, driving both engineering design optimisation and value for money.
“The new IPP Group will promote PNG as a viable investment destination for IPPs and should help increase visibility of the opportunity,” she said.
Blacklock said there would be an expected number of new IPPs across PNG “as we ramp up the consumption of electricity, allowing the switch from high-cost, non-renewable fuels such as diesel and replace them with lower-cost, more-sustainable fuels”.
She said to undertake rapid electrification to enable reduced tariffs would require a large amount of capital.
“It is not feasible to expect that PNG Power has the capital or in some cases the expertise, to undertake the building of new power stations,” Blacklock said.
“PNG Power will create clear plans of where generation is needed and of what type, and then work with the private sector, through competitive tendering, to develop just-in-time, right-sized power stations to serve our energy needs.”