Funding PNG's Electrification: Vanimo Case Study
There are significant challenges to be considered for investment
in electricity infrastructure
Indicative constraints for PNG electrification
1
Population Distribution
2
Geography
3
4
High cost of grid
extension
Low tariffs
NOT EXHAUSTIVE
80% of the population of Papua New Guinea live in rural areas, often in small and
remote villages of less than 2,000 people that are unserved by city or provincial grids
The mountainous terrain of PNG poses particular difficulties for infrastructure
projects, with transmission line costs substantially higher than in flat regions; a
problem further compounded by the limited road network
High cost structure for PPL to maintain and extend grid networks
In an effort to increase affordability for end-users PNG Power has not raised tariffs
from the 2013 rates
5
60
Uneconomical
regional generation
Low consumption
Provincial generation operates on diesel at a unit cost of $0.41 / kWh which retails at
$0.15 kWh; cities are subsidising towns
Low power LED and efficient appliances keep peri-urban consumption low (e.g. led
lights, low power fridge, fans and mobile chargers consume 500 kWh pa / household)
Source: Palladium
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