Help save ‘sinking’ PNG Power Ltd

Editorial

THE current inconsistent supply of electricity in Papua New Guinea makes one wonder if the country can meet the target of delivering electricity to 70 per cent of households in 2030 and 100 per cent access through renewable energy by 2050.
Today, there is only 13 per cent electricity access to PNG households since electricity became publicly available in 1963.
Fifty-five years later, and to hit the target of 70 per cent in 12 years’ time, is a daunting task.
It does not help knowing that the entity responsible for the generation, transmission, distribution and retailing of electricity in the country is a “sinking ship”.
PPL is a fully integrated power authority and services customers in almost all urban centres throughout the country encompassing industrial, commercial, government and domestic sectors. Where possible, the services extend to rural communities adjacent to these urban centres.
While the Government has moved forward with the approval of the national energy policy, it should step back and save the sinking ship which has been neglected for so long, especially on its aging infrastructures.
Currently, PNG Power is unable to meet the electricity demand in the country with its aged infrastructures.
Lack of funding for upgrading and rehabilitation and even for routine maintenance is leading to a further deterioration in services while the anticipated rise in demand due to economic growth and an increasing population has further stressed the system.
Supplying reliable and affordable electricity and expanding access to electricity to a larger proportion of the urban and rural populations is, thus, essential to make a positive impact on the socioeconomic well-being of PNG’s citizens and on the economic development of the country.
So this is where the new energy policy is expected to come in.
It focuses on three areas – access, reliability and affordability.
The policy enables those responsible to focus on initiatives such as plans, programmes and even projects, both on-grid and off-grid.
This will, in turn, increase electricity access to all consumers especially those – unserved or underserved majority – in very remote areas. Specific policies for each source of energy such as hydro, solar, wind, biomass, geothermal and coal will be developed as the need arises to complement the national energy policy.
The policy encourages competition in generation, transmission and distribution of power.
To implement its public-private partnership policy, the Government expects the current and new State-owned companies to partner with private sector to compete in the power industry.
We agree with the many commentaries that to rely only on one or two companies to deliver the Government’s accessibility targets of 2030 and 2050 will not work in the implementation of this policy.
PNG needs more participants to come into the energy sector to drive major changes to meet the energy service needs of all consumers in our country.
Parliament was told last year that the World Bank was working on a master plan on the country’s electrification programme.
Parliament was also told that the continuous power outages experienced in Port Moresby and other parts of the country are a result of PNG Power’s transition from diesel to gas.
Whatever it is, supplying reliable and affordable electricity and expanding access to a larger proportion of the urban and rural populations is crucial to make a positive impact on the socioeconomic well-being of PNG’s citizens and on the economic development of the country.
It is time to allow licensed independent power producers to enter the market and use their experience to establish standalone power systems.