PNG Biomass wants project to get off the ground soon

PNG biomass project in Morobe’s Markham valley does not want any more delays in the construction of the power plant.
According to a statement from PNG Biomass, there were two key delays in ongoing discussion with PNG Power Ltd:

• Changes to the power tariff agreed in the power purchasing agreement (PPA) signed with PNG Biomass in 2015; and
• PNG Government not standing behind the commitment PPL and Cabinet made by signing the PPA.

“PNG Biomass supports PNG Power in wanting to sell power to its consumers at a more affordable tariff than today,” it said. “To find a solution to bring the price of power down to a more-attractive level, we have proposed a much lower price to PNG Power based on indications of commitment from leading investors globally – who classify PNG Biomass as the best large-scale renewable power project in the Pacific – to provide concessional funding and grants. These investments make the biomass power price less than half of the cost of hydrocarbon fuelled generation on the Ramu grid and would be a substantially lower cost than any other new IPP (independent power producer) on the Ramu grid using any generation technology.”