New power supply approaches to enable PNG development goals

​New approaches to electricity supply will assist Papua New Guinea to meet its ambitious national development plans and underpin a tripling of electricity supply by 2030, according to a major new research report released by ANZ today.

The report, 'Powering PNG into the Asian Century' prepared by Port Jackson Partners for ANZ outlines new directions for electricity supply in PNG. This includes an extension of current electricity sector reforms and the introduction of new, cheaper energy technologies such as solar PV, micro-hydro and biomass to replace PNG’s reliance on diesel generation.

Speaking at the report’s launch in Port Moresby today ANZ Chief Executive Officer Mike Smith said: “Asia’s industrialisation is presenting Papua New Guinea with an unprecedented opportunity to fast-track its economic and social development.

“Improving electricity access and service reliability is widely acknowledged as one of PNG’s key infrastructure challenges. This report is designed to support a conversation in PNG on the importance of new approaches to the power sector and how reforms and innovative technologies can deliver significant economic and social improvements,” Mr Smith said.

Powering PNG into the Asian Century - Key Findings

•          Electricity supply will need to increase by 225% - triple current levels - to support PNG’s national development plans which include having 70% of its population with access to electricity in 2030 (currently ~8%).

•          Rapid improvements in energy technology have created new generation and storage options. Shifting away from a reliance on diesel electricity generation and focussing on opportunities in solar PV, micro-hydro and biomass will save US$5 billion and halve emissions between 2015 and 2030.

•          Reform to PNG’s electricity sector must address the structure of tariffs and subsidies, private sector competition and a new structure for PNG Power to assist improved performance.