Lighting up the nation
A country-wide solar project
Seven years ago, most homes in Papua New Guinea relied on firewood, kerosene and other products for lighting needs, with little ability to charge mobile phones. But the International Finance Corporation’s (IFC’s) Lighting PNG program has achieved dramatic growth in the purchase of off-grid solar products with 60 per cent of households now buying solar energy products.
“Solar has now effectively replaced kerosene lamps in homes, which is good for people and the environment,” says the IFC’s resident representative in PNG, John Vivian.
“It’s a significant move in a country where only 13 per cent of people are connected to an electricity grid.”
Six years ago, mobile phone penetration was growing rapidly, but the means to charge those phones was lagging, Thomas Jacobs, IFC country manager for Australia, New Zealand and the Pacific, told Paradise.
“Now kerosene has been usurped, and there’s a prevalence of generic offerings, battery powered torches and lanterns, alongside quality-verified off-grid solar products – many with an ability to charge a phone.”
Between 2012 and 2017, annual off-grid solar sales grew 68 per cent from around 30,000 to more than 400,000. In 2017, one in every four PNG households purchased an off-grid solar product.
The IFC’s Lighting PNG program has helped 22 per cent of the population – or 1.8 million people – gain access to off-grid solar lighting and mobile phone charging for the first time.
The market penetration of solar products in PNG is now significantly higher than other off-grid solar markets such as India, Nigeria, Bangladesh and Myanmar.
The growth can be attributed to a range of factors, including people having sufficient disposable income, the low connectivity rate of 13 per cent, as well as new distribution networks and the Lighting PNG program.
The program involved the IFC partnering with five global manufacturers and four local distributors on how to grow the off-grid solar market in PNG, particularly in rural areas, through market research advice, roadshows, and setting minimum quality standards for partners to join the program.
“This marks a significant first step in access for people in the energy ladder,” the head of IFC’s energy advisory program in the Pacific, Subrata Barman, says.
“While there are plans to increase the number of people connected to grids, it’s clear that lighting product solutions will continue to play an important role in Papua New Guinea’s electrification strategy.”
An IFC analysis of the program says the PNG solar market is worth $US260 million a year and is expected to grow over the next five years.
“But there is still tremendous opportunity to build partnerships, deepen reach, and leverage disruption and technological innovation to continue to increase access and support productive uses,” says Jacobs.
“Along with grid electrification efforts being pursued by the Government of PNG, we believe off-grid energy will remain a cornerstone of the country’s energy supply strategy.”
Solar has now effectively replaced kerosene lamps in homes.