Published in the Post Courier on 1 November 2018
BY MATTHEW VARI
Amid a hype of activity in recent years around the power generation sector since it was opened up to competition, the national government has come out stating the need to be selective of Independent Power Producer getting into the market.
While new proposed and previously approved IPP entrants continue to cry foul over delay in power purchase agreement and other processes to begin generation or construction of their plants, the Deputy Prime Minister and Treasurer has stated the State’s approach to this segment of the electricity market.
“Government has given PNG Power with a least cost holistic overarching approach and one of the lessons we have learnt in the past is that we can’t just bring in ad hoc IPPs into the picture.
“They must integrate into a comprehensive power solution that has medium term and longer term principles to them.
“I talk about for example where the power source should come from. Ultimately we have got to be aiming towards hydro and gas.
“If we entertain too many other options it is not in the best interest of PNG Power or Papua New Guinea in the long run.
He said unfortunately the government through its agents has gotten into some arrangements that were made without some of the overarching considerations in mind.
“Government is trying to work in PNG Power so we are able to factor in those things but ultimately we are working towards a holistic solution.
“We have got existing hydro plants for example that we can generate significant power if we get them functioning properly.
“Paunda is an example and Yonki (Toe of Dam). Simple reinvestments there can generate additional power without unnecessarily putting burden on the State through other arrangements,” Mr Abel said.
He, however, added that the government is still open to other arrangements through coal and biomass, but maintained the burden to the people to pay more was not an option for it.
“As I have said we do not want to burden our people through unnecessary cost, it must reduce the cost of power to our people.
“If these projects and IPPs power purchasing agreements are not in tune with that then government has to look at other options.