Papua New Guinea Plans to Quadruple Power Capacity

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Researched by Industrial Info Resources (Sugar Land, Texas)--The recent rapid economic expansion in Papua New Guinea (PNG) has increased the pressure on the country's overstretched power sector. In order to meet the requirements of the country's growing population, and to supply electricity to under-served areas, PNG wants to increase its current capacity of 500 megawatts (MW) to 1,970 MW by the end of 2030, which would meet at least 70% of the population's needs.

About half of the targeted capacity can be generated from abundant hydro resources. State-owned PNG Power Limited (Port Moresby, PNG), in collaboration with Origin Energy Limited (New South Wales, Australia), proposed the 2,500-MW Purari Hydro Project between Purari and Torres Strait in Australia. The $1.72 billion project could make PNG a regional electricity exporter to Australia.

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While high capital costs and maintenance problems are the main barriers for solar power plants in PNG, there is some potential for the addition of a few natural gas and diesel fuel power plants in the near future for oil and gas, as well as mining sites, that are being developed.

PNG Power, in association with Asian Development Bank, is developing six power projects under the Rural Electrification Program. These projects include construction of new hydro stations and transmission systems, and expansions to the existing facilities. Few of the projects under the Rural Electrification Program have reached final phases of design. PNG Power recently released requests for tenders to major contractors to build the 3-MW Ramazon Hydro Project and the 3-MW Divune Hydro Project, which are expected to begin construction early next year.

In addition to this, PNG Power is developing the 240-MW Ramu 2 Hydro Plant at Port Moresby, which is an expansion of the existing 45-MW Ramu Hydro Plant.

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While the country's plans to generate more power for the domestic market are on track, land rights and logistics remain major hurdles.

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