Official says high power rates, unreliable supply affecting sector

HIGH power rates and unreliable supply are affecting the country’s energy sector, Solar Energy Association PNG president Christian Lohberger says.
“Papua New Guinea has extremely high electricity prices by global standards,” he told The National.
“The reality is these prices are still probably too low, at least in rural areas where delivering power is being subsidised by the high prices in Port Moresby and Lae,” .
“The electricity tariff has been frozen since 2013 and is in dire need of a review.
“A good outcome would be a move to variable pricing that could perhaps see higher prices in the day time and lower at night.
“This would encourage investment in solar and build a business case for small and medium scale batteries.
“The unreliability is a flow on effect from the difficult economic situation PPL (PNG Power Ltd) is in.
“Without better financial resources, they are finding it difficult to pay for upkeep on the current network and invest in new technology they sorely need to improve the grid.”
Lohberger said there was also the matter of constant changes in the leadership of PPL with new CEOs (chief executive officers) being squeezed by political pressure and workers’ union.
“They need a period of stability and the appetite to review their structure and mission,” he said.
“With the introduction of the NEA (National Energy Authority) as the regulator, its hoped this will help PPL to become more efficient.”
Commenting on alternative power sources, Lohberger said: “Solar power is a ready to go alternative that can be installed at a scale large enough to power an entire town or small enough for a single household.
“It is expensive to build but far cheaper to maintain.”