PNG Power needs capacity upgrade to meet demand: Official

PNG Power Ltd needs to restore and upgrade capacity to meet the growing demand for electricity, according to Institute of National Affairs executive director Paul Barker.
He said to make supply more reliable and affordable would require strong management capacity in the company and competent leadership in the regulator.
“They will need to manage a process of encouraging needed private capital to combine with limited public funding available to finance power generating and transmission capacity around the country,” he said.
He said they needed to examine successful models from around the world that enabled private capital to complement PNG Power’s own investment, “and contribute to reticulation via the grid and for off-grid supply, and enable more competitive energy pricing”.
He said providing electricity, and regulating its supply too, was a valuable step, on the refocus strategy of PNG Power.
“For too long, the Electricity Commission (now PPL) had the dual function of power provision and regulation,” he said.
“And yet, PNG Power clearly was challenged to perform the role of sustaining reliable power supply to existing customers, let alone extending power provision to meet growing demand, both on-grid and off-grid to the large numbers of private and business consumers in the smaller centres and rural areas.
“Clearly, as regulator it was being restrictive and preventing potential new supplier entering the market, including households or business supply of solar-power provision for domestic use or sale to the grid, which is widespread outside PNG.”
He said the global power revolution would see old fossil fuel power generation progressively replaced by renewable forms of power, “for which PNG is well placed, not only to meet demand for conventional energy use, but also to power new uses, such as electric powered motor vehicles”.