PNG Power Limited (PPL)

The project will increase the efficiency and reliability of power generation across PPL’s remote mini-grids, serving 1.5 million people while also reducing reliance on diesel fuel and in turn lower fuel costs as well as greenhouse gas emissions. 

Despite PNG being a resource-rich nation with abundant sources of energy, access to power is very limited. 

“Access to power is one of the main development challenges facing PNG. 

Minister for State Owned Enterprises, William Duma said nearly all transmission lines in the grid and equipment from the sub-stations are old and require replacements.

Minister Duma, PNG Power Board Chairman Moses Maladina and KCH Chairman, Dr. David Kavanamur met this week to find solutions to resolve the ongoing power issues.

“We have been able to source some funding with the help mainly from the Asian Development Bank and we are expecting the second tranche to come into the States account around Christmas time.

The K50 million project extends the Ramu grid into the Tsak Valley in the Wapenamanda District in Enga. The project is jointly funded by New Zealand and Australia under the five-nation PNG Electrification Partnership (PEP) and implemented by PNG Power Limited (PPL).

The project is expected to connect up to 5500 rural households, schools, health centres, government offices and businesses within 500 metres of the distribution lines along accessible roadways.

NiuPower’s CEO, Richard Robinson, said PPL had advised that the power station would save around K100 million annually. It will also reduce the adverse environmental impacts of power generation for Port Moresby.

Robinson said NiuPower is currently around 65 percent complete with the commissioning and testing program happening in parallel with finalisation of non-critical works like fencing, drainage and gravelling.

“We expect to be in a position to provide power to PNG Power Limited on a commercial basis around the end of March this year,” Robinson stated.

Minister for Higher Education, Research, Science & Technology, Pila Niningi, says what Imbonggu District Development Authority is doing is in line with the National Government Medium Term Development Strategies (MTDS) and Vision 2050 by providing infrastructure and services to the rural communities.

The financing will underpin network investment and hydro power upgrades.

PPL Acting Managing Director, Carolyn Blacklock, announced this during the PNG Investment Conference in Brisbane recently.

During her presentation, Blacklock announced the current plans with the ADB.

Blacklock said PPL has bold and aggressive plans that are focused on two areas:

1. Reduce tariff to around half of current levels, in the next 5 to 10 years;
2. Increase electrification to around 70 percent of population.

To achieve this, a new business model is needed.

The Commissioner said currently, core PPL infrastructure around the country are on intensive care unit and they are unsure how a tariff reduction will improve PPL’s services.

The comments follow statements by PPL acting managing director, Carolyn Blacklock last month that a reduction to the current tariff by half would make power accessible for many.

The transmission tower supplies power to Lae and Madang from the Ramu 1 powerhouse at Yonki.

However, it was toppled by a severe landslide in January 18, 2018, and disrupted power supply to customers in these two main regions.

This damage has also contributed to power instability in the Ramu Grid (Highlands, Lae and Madang) and it’s an urgent reconstruction project that PPL engineers are undertaking.  

The tower is located near the source of Singsing Creek, approximately two kilometres from the main Okuk Highway and impossible to access.

A ground breaking ceremony was held on Friday (Nov 10) to begin construction of a new 40 megawatt substation.

Speaking at the event, Minister for Public Enterprises and State Investment, William Duma, said the Kilakila substation project will include two components.

PNG Power Ltd's customers and business clients will not be able to purchase their Easipay on all vending sites, the mobile networks, including SMS and online banking, until the problem is fixed. 

The problem started since 10am, Monday, September 11.

"Our database, which stores all Easipay customer information, including meter number and tokens, are faulty and our ICT officers and our New Zealand vendor are currently working around the clock to have this rectified and restore the Easipay system," explains PPL in a recent statement.