PPL, PNG Biomass discuss power price

PNG Biomass in Morobe has worked closely with PNG Power Ltd (PPL) to lower the power purchase agreement (PPA) tariff and reached an agreement that will halve the price of power on the Ramu Grid when its plant is commissioned.
According to a statement, the biomass PPA was signed in 2015.
After this, the Independent Consumer and Competition Commission approved in August 2016 the reference price for the Ramu Grid of PGK 54 cents per kilowatt hour (kWh) – which was based on the biomass PPA.
“Today, the cost to PNG Power of electricity generation from diesel on the Ramu Grid is close to being greater than the retail price of electricity from PNG Power,” PNG Biomass said.
“Project-owner, Oil Search, therefore supports PNG Power in wanting to sell power to its consumers at a much more affordable tariff far cheaper than today’s electricity prices.
In response to a request from PNG Power for the best tariff possible, PNG Biomass has identified four ways to reduce its biomass power tariff: concessional funding, grants, reconfiguration, and lower margins.”