Independent Power Producer (IPP) Policy

Preamble

The Policy main objectives are;

To provide sufficient capacity for power generation at the least cost, and to avoid capacity shortfalls;
To only commit to new generation, transmission and distribution projects that meet PNG Power’s energy needs as well to commit to those strategic and economic opportunities that add value to PNG Power;
To continually reduce the cost of generation and delivery of electricity to PNG Power customers;
To maximise the use of domestic energy sources, with an immediate move away from diesel and fuel oil towards gas and, ultimately, to 100% renewables by 2050;
To diversify the range of energy sources and technologies for power generation;
To introduce generation technologies that PNG Power may not consider part of its core function which may play a vital role in the future electricity supply options;
To engage the private sector only when the value proposition is better than if PNG Power were to pursue a project using its own resources;
To eliminate inappropriate political influence in PNG Power’s procurement processes;
To ensure that all stakeholders’ interests are accounted for in the process;
To be attuned to safeguarding the environment;

Every IPP project will need to be approved by the PNG Power Board.

Least Cost Power Development Plan
The Least Cost Power Development Plan (LCPDP) referenced in the IPP Policy will be made public as soon as completed. This is expected to be available by the third quarter 2019.

Effectivity Date
This Policy is not retrospective. It is effective from the 5th November 2018.

More Information

Should you need any additional information, please contact;

Mr. Mairawesi Pulayasi
Senior Director, Strategy & Innovation

Tel: +(675) 324 3364;
Email: mpulayasi@pngpower.com.pg

Mr. Kero Tom
Senior Manager, Strategic Partnership & IPP Development

Tel: +(675) 324 3582;
Email: ktom@pngpower.com.pg