By Roselyn Erehe
The National Energy Authority (NEA) has officially introduced its Corporate Plan for 2023-2027, marking a pivotal moment for the energy sector in Papua New Guinea (PNG).
Launched on August 23rd at APEC Haus in Port Moresby, the Corporate Plan represents the NEA’s first initiative of its kind and outlines the strategic direction and key objectives that will steer the authority’s initiatives over the next five years.
This Plan was initiated following the enactment of the National Energy Authority Bill in 2021, establishing the NEA with the core mandate of advancing, facilitating, and accelerating the development of PNG’s energy infrastructure.
At the heart of the Corporate Plan is the commitment to ensuring access to affordable, reliable, and sustainable energy services, which are vital for economic growth and community development. A principal aim is to extend electricity access to 70% of PNG’s population by 2030, with the ultimate goal of achieving universal access by 2050. Presently, approximately 15% of the population has access to electricity.
NEA Managing Director Roland Maketa emphasized the significance of the Corporate Plan in fostering the government’s national development objectives as articulated in the PNG Medium-Term Development Plan Four and Vision 2050. “I am optimistic that the strategies detailed in this inaugural plan will significantly advance our efforts to provide 70% of households with electricity sourced from renewable sources by 2030 and 100% by 2050.”
“Our pledge is to work in cooperation with all stakeholders to guarantee its successful implementation.”
Raymond Unasi, NEA Deputy Chairman, echoed these sentiments, reaffirming the Authority’s dedication to ensuring that even the most remote areas of the nation will receive electricity by 2050.
The Corporate Plan lays out a detailed framework that articulates the NEA’s principal roles, functions, and capacities. It establishes strategic goals and corporate priorities that will guide the Authority’s activities, with a focus on enhancing the regulatory landscape, broadening off-grid electrification, and tapping into the potential of renewable energy.
Government’s Dedication to Energy Security:
In his address, Minister for Energy Hon. Thomas Opa stressed the significance of pursuing innovative solutions for increasing energy generation and distribution, enhancing energy efficiency, and advocating for renewable energy.
Minister Opa remarked, “The government has placed tremendous importance on energy security in Papua New Guinea. Our medium-term development strategy aligns with our aim to elevate the economy to an estimated 200 billion by 2030, doubling the country’s internal revenue and creating one million new jobs.” He underscored the government’s goal of transforming PNG into a middle-income nation by 2030, with reliable electricity supply being central to this initiative.
Formation of the National Energy Authority:
The NEA was established to fulfill the necessity for a dedicated agency to supervise energy development. The separation of the Energy Division from the Petroleum Division of the former Petroleum and Energy Department in 2001 signified a new chapter in PNG’s energy landscape.
The NEA’s formation gained support from the Marape-Rosso government through the successful ratification of the National Energy Authority Act in 2021.
Corporate Plan 2023-2027: Core Initiatives:
The NEA’s Corporate Plan for 2023-2027 highlights several key initiatives intended to fortify the nation’s energy infrastructure and promote sustainable energy development. These initiatives include:
1. Developing Renewable Energy: The NEA is committed to investing in prominent electric, solar, geothermal, biomass, and wind power projects throughout PNG.
2. Enhancing Energy Infrastructure: This will involve expanding mini-grids, upgrading transmission and distribution networks, and leveraging innovative financial strategies to draw in private investment.
3. Advancing Energy Efficiency: The plan emphasizes supporting the adoption of energy-efficient technologies, developing performance standards, and raising public awareness regarding the advantages of energy efficiency.
4. Encouraging Private Sector Investment: The NEA will foster an environment conducive to private sector engagement in energy projects, featuring clear regulatory frameworks, targeted tax incentives, and a streamlined project approval process.
Minister Opa articulated the government’s ambitious target of providing 70% of PNG households with electricity by 2030, as part of the National Energy Rollout Plan. Realizing this goal will necessitate substantial investments in energy infrastructure, particularly in clean and renewable energy sources including hydropower, biomass, natural gas, geothermal, and wind.
Additionally, the plan aims to decrease the reliance on diesel-powered generators from 200 megawatts per annum to 150 megawatts by 2027. The NEA anticipates increasing electricity generation across the Ramu grid, Pom grid, and Gazelle. To achieve these objectives, an estimated investment of $3.3 billion is required for infrastructure priorities within various programs, including the National Power Generation Investment Program and the Off-Grid Renewable Energy Development Program.
The NEA’s initiatives have garnered robust support from international partners, such as DFAT Australia, USAID, and the Asian Development Bank (ADB). In the past year, DFAT Australia has assisted with urgent repairs on the Ramu and Port Moresby power grids and worked on designs for upgrading several potential power grids to hybrid solar-diesel systems. Meanwhile, USAID has contributed $1.2 million to establish a solar mini-grid system in PNG’s central province through its five-year collaboration with the PNG government. Furthermore, ADB has partnered with the government on various infrastructure projects aimed at enhancing the strength of the country’s energy sector.
Minister Opa reiterated the significance of robust partnerships in realizing PNG’s energy potential. He acknowledged the contradiction of PNG being abundant in energy resources yet facing obstacles in providing reliable electricity access. “The key to unlocking this potential lies in the unwavering commitment of not just the government but all stakeholders,” he stated.
The launch of the Corporate Plan also represents NEA’s commitment to honoring international partnerships, including the PNG Electrification Partnership (PEP) countries and other allies, by adopting a proactive approach to all energy programs in PNG, as agreed upon during the 2018 APEC Summit and subsequent discussions.
The event was attended by key stakeholders and partners, including the New Zealand High Commissioner, representatives from PEP partners, PNG Power Limited, Kumul Petroleum Holdings Limited, government agencies, and NEA management and staff.
The unveiling of the Corporate Plan is poised to lay the groundwork for the NEA’s endeavors to transform PNG’s energy sector, ensuring sustainable and equitable access to energy for all.