PPL & IFC TO PURSUE ROOFTOP SOLAR PROJECT
An agreement signed between PNG Power Ltd (PPL) and International Financing Corporation (IFC) will now set the way forward for the private sector in Papua New Guinea to participate in rooftop solar project.
A Memorandum of Understanding (Mou) signed on Wednesday 03 August 2016 allows mutual corporation between PPL and IFC to pursue rooftop solar power generation. Rooftop solar power refers to the installation of solar panel on residential houses’ rooftops to produce electricity.
The purpose of this MoU is to formalize the ongoing discussions between PPL and IFC regarding their possible collaboration to develop a framework to provide clarity for solar rooftop systems for grid-connected residential, commercial and industrial consumers.
Based on the clarity provided and when all frameworks is sorted with stakeholders, PPL will issue a notice to the public advising on the way forward, and it is envisaged that the private sector and other interested parties will participate in rooftop solar projects.
“Thank you PNG Power for looking at opening up the market especially to get renewable energy in and the way we look at it is a very good partnership because we would like PNG Power and the nation to rise together with the support from IFC and get the global standards in the electricity market,” IFC’s Senior Energy Specialist, Team Lead, EAP Mr Hermant Mandal commented during the signing.
Rooftop solar power is something that has worked in other countries. PNG didn’t have a policy, therefore, this renewable energy project has never been pursued and implemented on a larger scale.
“This is an excellent initiative,” PPL CEO Chris Bais said.
“We’ve been talking about solar power and rooftop power for a number of years now but it never got off the ground and I ‘m pleased that IFC have come on board and with your experience around the world, will help us especially in the regulatory area. Finally, we are going to make progress and thank you to IFC,” Mr Bais added.
After the execution of this memorandum, IFC in consultation with PPL and the regulators will look at assessing the current regulatory framework, licensing and permitting requirements in PNG for rooftop solar power generation and recommend areas that need clarification with the installation of on-grid rooftop solar power systems.
On the legal aspect, this will include review of current regulatory contract, electricity code, third party access code, grid code and standard customer supply and sale contract.
This renewable energy project will help PPL reduce the reliance on diesel fuel, improve reliability of power supply to customers and advance PNG’s effort in renewable energy projects.
