Papua new guinea Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in papua new guinea, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Renewable Energy
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Overview

In the early 2000s, less than 10 percent of PNG’s population had access to electricity.  In recent years, the PNG government announced an ambitious target to accelerate progress - 70 percent of its people will have access to reliable electricity by 2030.  Turning on the lights in homes and businesses will undoubtedly improve living standards and drive economic growth across the country.

With wind, water, geothermal resources, and an abundance of sunshine, PNG is ideally positioned to become a leader in renewable energy.  A recent study by the International Finance Corporation highlighted the enormous potential for wind power in PNG.  There are multiple locations in and around Port Moresby and coastal villages of PNG with wind speeds over 10 meters-per-second.  

The PNG Electrification Partnership (PEP) committed the leaders of Japan, the United States, New Zealand, and Australia to helping PNG realize its goal of connecting 70 percent of the country to electricity by 2030.  The United States has launched its PNG Electrification Program committing US$60 million over five years and plans to a make 200,000 electrical connections.  Rather than fund all its projects entirely, USAID aims to use seed funding to leverage private sector investment into PNG’s electricity sector.  An initial US$57 million was allocated for this purpose and the project is looking to generate investment worth US$200 million.

Leading Sub-Sectors

  • Hydropower
  • Solar energy
  • Geothermal resources

Opportunities

Small-scale solar and hydropower generation equipment, telecommunications systems including the internet, and refrigeration that can be applied at the town and village level represent opportunities for U.S. firms. Through the USAID PNG Electrification Project (PEP) there are opportunities for U.S. businesses to supply small scale solar products and equipment into the PNG market.  Several PNG provincial governments also seek to deliver affordable   solar and hydro energy to their constituents.

Resources

  • PNG Climate Change and Development Authority
  • PNG Power Ltd
  • Solar Energy Association of PNG
  • National Energy Authority

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