WHY PNG NEEDS INDEPENDENT POWER PRODUCERS
> Total installed capacity in PNG right now is around 500 MW, yet average peak demands for power in PNG are scheduled to grow to over 1500 MW by 2030, as presented in the Government’s Strategic Development Plan 2010-2030.
> Yet, PNG Power is struggling even to meet the current needs of power users, in a country where only 13% of the population has access to mains power.
> This is in spite of PNG Power investing K692 million (US$313 million) over the past five years and having a K476 million (US$215 million) debt facility for further investment.
> Power supplies in PNG are sufficiently unreliable for every business of any size to need its own power generation capability. Indeed, many major mineral and agribusiness projects exist completely off-grid.
> Under current regulations, PNG Power has the exclusive right to sell electricity within 10 km of 25 designated centres nationwide, leaving space for a private energy sector to develop beyond these population areas.