PNG Power Ltd (PPL) has registered its first Clean Development Mechanism (CDM) project by the United Nations Framework Convention on Climate Change (UNFCCC).

It is the first of its kind in PNG and within the Pacific Island countries as a ‘CDM Programme of Activities (CDM PoA)’.

It is also one of the only two CDM Projects in the country which are eligible to sell carbon credits through the production of renewable energy.

The other organization that has registered a similar CDM project is the Lihir Gold Mine, now Newcrest Mine for their use of geothermal energy to generate electricity.

PPL received the good news from the UNFCCC Secretariat on February 23, 2013 that its CDM project, ‘POA 8383: Programme of Activities (PoA) for Sustainable Renewable Power Generation in Papua New Guinea (PNG)’ was registered on November 23, 2012.

The registration means that PNG Power is now eligible to sell Certified Emissions Reductions (CERs) or simply, ‘carbon credits’ for all power stations, less than or equal to 15 MW, it develops using renewable energy sources such as water, wind, solar, geothermal, tides, waves and biomass to produce electricity which can offset the emissions from fossil fuel fired or diesel power stations.

PPL applied for registration of the sub-projects, Divune and Ramazon hydropower projects, under the Town Electrification Improvement Project (TEIP) would be processed under the CDM PoA has individual programme activities and Divune has successfully being registered. PPL is currently working on Ramazon hydropower project to be registered.

The TEIP is a program looking at providing sustainable and reliable electricity to the major townships of PNG through the renewable power generation and improvement including extension of PPL power systems.

The three projects under the TEIP include the Divune Hydro Power station in Oro, the Ramazon Hydro Power station in the Autonomous Region of Bougainville and the extension of the transmission lines from Kimbe to Bialla.

The CDM POA has lifetime or is valid for 28 years in which time PPL is required to develop more renewable power sources for electricity.

PPL’s Director of Strategy and Marketing, Lawrence Solomon said there were very stringent guidelines that the company had to follow to be able to get a registration and there will be constant monitoring and verification as part of the process to ensure that all information provided to UNFCCC are accurate.   He also said this was a milestone for PNG Power as it is PPL’s first CDM project as well as a first CDM PoA in PNG and the Pacific Island Countries.

The CDM PoA is designed is such a way that the emission reduction can be taken up by any entity in PNG (public or private). PPL will work closely with other stakeholders including but not limited to, developers of renewable energy electricity in PNG, Department of Petroleum and Energy, Department of National Planning and Monitoring, Department of Treasury, Department of Environment and Conservation, and Office of Climate Change and Development to facilitate and develop renewable energy power generation projects in PNG.

The PoA contributes to the sustainable development of PNG and is in line with the goals and objectives of the PNG Vision 2050 and PNG Development Strategic Plan 2010-2030.