PNG Power Limited must follow its internal processes to ensure that any proposed power generation project is in line with state utility’s strategic, least cost and sustainable power development plan for the Ramu Grid.
Minister for State Owned Enterprises, William Duma, said this in a statement in response to recent comments made in the media by several national leaders in support of the coal fired power project in Morobe Province by Mayur Resources.
“PPL is reviewing its Power Plan for the Ramu Grid and investigating various types of power generation sources, including coal, to determine the least cost power generation solution that best meets the demand of current and future Ramu Grid customers and takes into account development such as Wafi-Golpu mine,” he said.
“The PPL Board has informed me that their strategy is to replace current expensive imported high carbon emitting fuels such as diesel and heavy fuel oil with domestically supplied, lower cost, cleaner gas, and hydropower in line with demand profiles.
“PPL may source power generation from the private sector in the form of Independent Power Producers (IPPs). When it does so, PNG Power Ltd shall do in the accordance with its IPP Policy and will derive value for money and select high quality, experienced developers through competitive tender and bidding process.”
Duma added that he would like to see PPL deliver cheap, reliable, safe and clean energy to its current and future customers following all due processes, and in this regard, he has requested PPL to consider the proposal by Mayur Resources and ascertain whether the proposal meets the development requirements and policies of PPL.
He said the immediate focus for PPL is rehabilitating its aged hydropower stations and maximising their outputs in the Ramu Grid. At the same time, PNG Power Ltd is also focusing on new gas to power and hydropower such as Ramu 2 to realise fuel cost savings by switching from expensive diesel to cheaper domestic gas and renewable energy.
(Filepic of William Duma)