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Papua New Guinea Project Notice - SUPPORTING PAPUA NEW GUINEAS ENERGY TRANSITION


Project Notice

PNR 65632
Project Name SUPPORTING PAPUA NEW GUINEAS ENERGY TRANSITION
Project Detail This technical cooperation program brings together AFD, the New Caledonian public energy company ENERCAL and the Papua New Guinean company PNG Power Limited. The objective: to promote the integration of renewable energies into electricity systems and thus support the energy transition of Papua New Guinea. This first AFD project in the country materializes support for regional cooperation and the projection of Caledonian expertise in the region, at the heart of the French Indo-Pacific strategy. CONTEXT In 2021, only 20% of Papua New Guineas population had access to electricity. The country is also heavily dependent on fossil fuels, which account for 70% of the energy mix. The state-owned PNG Power Limited (PPL) produces, maintains and distributes the equivalent of 320 MW, or 53% of the countrys electricity capacity. In 2020, the Papua New Guinea government announced a reform of the energy sector, with the creation of a National Energy Authority (NEA). This reform is expected to allow PPL to refocus its activities on operating and improving the performance of the national electricity grid. Additionally, as part of its commitments to combat climate change, Papua New Guinea plans to increase renewable energy (RE) in its energy mix from 30 to 78% by 2030. This project, the first financed by AFD in Papua New Guinea, will support the countrys energy transition by mobilizing Caledonian expertise. DESCRIPTION The project, financed via a FEXTE , will enable technical cooperation in the electricity sector in Papua New Guinea between the electricity operator PPL and ENERCAL, its New Caledonian counterpart. The massive integration of renewable energies (RE), with their intermittencies, and the limited capacities of island networks pose specific problems, this project should allow the country to identify innovative solutions to better manage these intermittencies. The cooperation will be structured around three components: Modeling the network and projections of its transformation in the short and medium term: supply-demand balance, stability of networks with a high proportion of intermittent renewable energy and new storage and loss reduction technologies. Expertise and operationalization of renewable energy sectors: strengthening PPLs ??skills, particularly concerning the mixing of renewable energy resources and the organization of investment programs promoting sectors with high potential. Expertise on network reinforcement/modernization projects: strengthening PPL capacities, particularly on transport/distribution and control/command systems. IMPACTS This technical cooperation program will identify innovative solutions to promote the integration of green energy into Papua New Guineas energy mix and better manage intermittency.
Funded By French Development Agency (AfD),
Sector Energy & Power
Country Papua New Guinea , Melanesia
Project Value PGK 800,000

Contact Information

Company Name PNG Power Limited
Web Site https://www.afd.fr/fr/carte-des-projets/favoriser-transition-energetique-papouasie-nouvelle-guinee

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