Solar energy law discussions begin

BY GLORIA BAUAI
THE National Energy Authority (NEA) has commenced discussions with PNG Power Limited (PPL) on how to relax the laws on the use of solar energy and other renewable sources.
NEA Policy Planning and Research Division executive manager Timothy Mais said this while clarifying the existing Independent Consumer and Competition Commission Act.
He said the act clearly stated that for premises within PPL’s exclusive area, businesses and individuals were prohibited self-generation of 10 Megawatts (MW)and above.
“As long as the demand is below 10MW, you still buy power from PPL,” he said. “So, our team is meeting with PPL to have that discussion — on how we can allow competition and individuals who can also put up their solar or any other preferred source of energy.
“Like in the case of Lae Biscuit Company who stated their position to go ahead with solar project even knowing that it is illegal at this stage, we want to see how we can make it legal for them.
“Discussions have started and hopefully we can reach an agreement soon,” he added.
Last week, Lae Biscuit chairman Ian Chow announced his intentions to undertake a solar project to cut down their high power costs and that he was prepared for a legal battle if PPL took him to court.
PPL chief executive officer Batia refused to comment specifically on this issue but in general said: “We are talking with NEA, the regulator, to relax laws to allow our big customers some room.”
For the case of those off-grid, USAID-PNG Electrification Partnership programme chief of party Bruce Corbet said instead of trying to expand the grid, the better option to lighting up PNG’s rural population was through mini-grids and solar systems.
“Trying to bring every household into the grid will only see increased power prices two to four times,” he said.