Basil maps out Energy way to light up PNG Homes using renewable Energy

Papua New Guinea Minister for responsible for Energy Honrable Samuel H Basil yesterday mapped out the O’Neill Government’s way forward on the Energy Sector to light up PNG households and power industrialization to modernize the country.

At heart, the focus is to harness Papua New Guinea’s readily available renewable energy sources and to open up the market for power generation, transmission, distribution and retail for investment in public private partnerships including landowners.

Referring to the recent Cabinet endorsed (01/02/18) National Energy Policy 2018-2028 Harnessing Energy for Life, Mr Basil told the 2nd Papua New Guinea Petroleum and Energy Summit delegates that the policy is in line with the Vision 2050, PNG Sustainable Development Plan and the Alotau Accord I & II as outlined in the 100-day plan.

“We have a lot of catching up to do. Electricity became publicly available about 54 years ago. But electricity access to consumers at this present time is only 13%,” said Mr Basil.

“The big challenge of the Energy Policy is for us to mobilize and focus so we can meet our national targets: 1) of electricity access to 70% of PNG households from all forms of energy by 2030; 2) 100 % of all households through power generated from renewable energy by 2050. “

Mr Basil added: “The main focus of the energy policy is renewable energy to mitigate climate change, but it does not remove the ongoing dependence on fossil fuel. All renewable projects will be required to include climate changes considerations to comply with international obligations. The focus on household energy is vital not just for lighting up homes but also for cottage industries – involving and empowering women. The third focus of the policy addresses the need for energy for industrialization.

The Minister said that PNG needs affordable energy to power industries to produce cement, metals for construction, downstream processing of timber, plastic, glass and other resources including agriculture and fisheries, which are all vital in building a modern state.

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“The key focus areas (of the energy policy) includes: access, reliability and affordability of Energy in the country,” he said.

“Specific policies for each source of energy such as hydro, solar, wind, biomass, geothermal and coal will be developed as the need arises to complement the National Energy Policy.”

Mr Basil said that the vacuum arising from the lack of a coherent energy policy has resulted in fragmentation within various components of energy housed in different Government bodies and by extension engagements with development partners.

This, he said, has been addressed in the Energy Policy - and the recent National Leaders Summit on the theme “Accelerating Implementation through Teamwork” endorsed by Prime Minister Peter O’Neill on the need for harmonization by all Government bodies is the way to go.

Mr Basil said that the implementation hub of the Energy Policy will be the National Energy Authority which will serve as a One-Stop Shop Regulation: 1) to address fragmentation by encouraging cooperation among Public Sector stakeholders; and 2) map out the way forward for development partnerships, investments and decentralized participation including Domestic Market Obligations and Community Service Obligations.

“This bill is in the final stages of drafting for NEC. The National Energy Authority, once established, will be the overall - one-stop shop institution - responsible for policy coordination, development and regulation of the energy industry,” the Minister said.

The NEA will implement the National Energy Policy objectives , which are:

❖ To promote efficiency and competition in the electricity supply industry;
❖ To promote the establishment and maintenance of the safe and efficient system of electricity generation, transmission, distribution and supply;
❖ To establish and enforce proper standards of safety, reliability and quality in the electricity supply industry;
❖ To establish and enforce proper safety and technical standards for electrical installations (including standards in relation to design of electrical installations) and to protect interests of electricity consumers; and
❖ To set tariffs which results in the cheapest possible price of power for all in Papua New Guinea.

While the NEA bill process is underway, the Energy Wing of the Department of Petroleum and Energy will be upgraded to be the National Energy Office as a transitional arrangement.