PNG Power still looking at costing of proposed hydro project

By PETER ESILA
PNG Power Limited is pursuing a least-cost power-development plan for the proposed Ramu Two hydro project once commercial operation begins in November 2024, says acting managing director Carolyn Blacklock.
The K3 billion project is under a public-private partnership between China’s Shenzhen Energy Group (70 per cent) and the State, the Eastern Highlands provincial government and landowners (30 per cent). The Chinese company will surrender its 70 per cent share of the consortium after 25 years of operation – debt free.
Blacklock told The National yesterday that project was yet to be approved by the PNG Power board.
A revised power purchase agreement is currently being assessed.
“The negotiations are confidential and I am unable to provide details on the (agreement),” she said.
She said the least-cost plan was being finalised.
“It is the plan that informs management and board of utility companies such as ours as to the least-cost way to provide reliable power,” she said.
“It considers different generation sources/technologies like hydro, gas, diesel etc, and where and when there should be right online in addition to investments to be made in the transmission and distribution network that will lead to reliable but lowest cost of supply.
“All proposals must conform to the goals of the least-cost plan if we are to achieve a healthy electricity sector in PNG including providing electricity to around 70 per cent of our population.
To enable this to occur, the current tariff needs to be significantly reduced.”
She said to reduce the tariff, all generation, transmission and distribution must be carefully planned and executed.
She said around 860,000 people had access to electricity in the country.
“We only have 115,000 connected households or businesses.”