Power projects in Papua New Guinea are notorious for taking a long time to get up and running, Independent Power Producers of Papua New Guinea Industry Group Chairman David Burbidge tells Business Advantage PNG. But the group may have a solution.

Inconsistent power supply is a common complaint in PNG. Source: IP3

The Independent Power Producers of Papua New Guinea Industry Group (IP3) was formed in 2018 by four independent power producers—NiuPower, PNG Biomass, PNG Forest Products and Posco Daewoo Power—to bring industry players and experts together to tackle the country’s power issues.

Often developers don’t have a clear understanding of the development pathway for power projects. This includes information on approval processes, which slows everything down, Burbidge adds.

‘IP3 has a role to play in providing factual information and helping industry players reinforce the message that more power stations by itself isn’t going to fix the issue.’

That is why the group’s focus is to be a hub of information, provide a clear pathway for development of power projects and to streamline processes, Burbidge says.

Clear policies and procedures

David Burbidge Source: IP3

‘PNG Power recently produced a set of guidelines for independent power producers, and we are working closely with them to develop clear procedures around these.’

Drastically reducing the development time for these projects by streamlining processes and approvals is a focus for IP3, he says.

By reducing the time it takes to develop a power project in Papua New Guinea, Burbidge says costs will decrease and it will be easier to secure funding for projects.

‘We are working with PNG Power and the government to minimize development time and outline guarantee structures that can be implemented to satisfy the bank’s funding requirements.’

While PNG Power has taken significant steps to create and update policies for independent producers, Burbidge says there is work to be done to institutionalize these policies.

Having a clear policy is a good starting point, but we need to understand how it translates into processes and works on a practical level, which is where IP3 can add value, he says.

Infrastructure and renewable sector

IP3 launch. Credit: IP3

With inconsistent power supply a common complaint from Papua New Guineans, Burbidge says it’s important to understand building new power stations isn’t the only answer.

‘IP3 has a role to play in providing factual information and helping industry players reinforce the message that more power stations by itself isn’t going to fix the issue.’

To support the electrification of the country, more needs to be done to support the transmission grids and upgrade network infrastructure, he says.

‘You can’t just fly in new projects and expect to repair the system.’

‘We need to work on upgrading infrastructure, developing streamlined procedures that work, and recognise power will grow in small increments,’ he adds.

‘You can’t just fly in new projects and expect to repair the system.’

As a country rich in a range of natural resources, there is plenty of room for growth in Papua New Guinea’s renewable sector, which IP3 hopes to encourage.

‘Papua New Guinea has some of the best natural resources I’ve seen, with plenty of potential for hydro projects, solar, wind, and of course biomass.’

So far it is early days for IP3, having hosted a few meetings since forming.

Burbidge says to date the group has received positive feedback from industry and government, and he is confident IP3 will add value.

‘With inconsistent power supply a common complaint from Papua New Guineans, it’s important to understand building new power stations isn’t the only answer.’

‘All companies holding major power purchase agreements with PNG Power are members of IP3, which is a great start.’

‘We are working with government bodies, and experts across a number of areas within the sector have shown interest in working with us, which shows significant support for what we are hoping to achieve,’ he says.

‘For companies considering entering the power sector in PNG, we welcome them to join IP3 where they can obtain relevant information and support,’ Burbidge adds.