IRENA International Renewable Energy Agency Pacifi c Lighthouses Report Renewable energy opportunities and challenges in the Pacifi c Islands region Papua New Guinea Copyright © IRENA 2013 Unless otherwise indicated, material in this publication may be used freely, shared or reprinted, so long as IRENA is acknowledged as the source. About IRENA The International Renewable Energy Agency (IRENA) is an intergovernmental organisation that supports countries in their transition to a sustainable energy future, and serves as the principal platform for international cooperation, a centre of excel- lence, and a repository of policy, technology, resource and fi nancial knowledge on renewable energy. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy in the pursuit of sustainable development, energy access, energy security and low-carbon eco- nomic growth and prosperity. www.irena.org Acknowledgements The work and data for the preparation of this paper was carried out by Herb Wade (Consultant). The kind assistance and sup- port provided by Toni Koiri (Papua New Guinea Power) and Apisake Soakai (Consultant) are gratefully acknowledged. This report could not have been completed without their generous assistance. Authors: Mirei Isaka (IRENA), Linus Mofor (IRENA) and Herb Wade (Consultant) For further information or to provide feedback, please contact: Linus Mofor, IRENA Innovation and Technology Centre. E-mail: [email protected] or [email protected]. Disclaimer The designations employed and the presentation of materials herein do not imply the expression of any opinion whatsoever on the part of the International Renewable Energy Agency concerning the legal status of any country, territory, city or area, or concerning their authorities or the delimitation of their frontiers or boundaries. Pacific Lighthouses Renewable energy opportunities and challenges in the Pacific Islands region Papua New Guinea August 2013 TABLE OF CONTENTS Preface ...............................................................III 4. Experiences with renewable energy technologies ....................9 Acronyms .......................................................... IV Geothermal energy ........................................................9 1. Country context ................................................1 Hydropower ......................................................................9 Physical description ........................................................1 Wind energy ...................................................................10 Population ...........................................................................1 Solar energy ....................................................................10 Environmental issues ......................................................1 Bioenergy .........................................................................10 Economic overview ........................................................2 Hybrid energy.................................................................10 2. Energy landscape ...........................................3 5. Challenges for renewable energy deployment ....................12 Institutional and regulatory Fiscal .................................................................................. 12 arrangements for energy ...................................... 3 Funding ............................................................................. 12 The Energy Division .......................................................3 Legislative, regulatory and policy .......................... 12 PNG Power Ltd ................................................................3 Institutional ...................................................................... 12 The Independent Consumer and Technical ........................................................................... 12 Competition Commission ............................................3 Market and private sector.......................................... 12 Policies and laws regarding energy .........................3 Knowledge ....................................................................... 12 Energy supply and demand ................................. 4 Environmental and social .......................................... 12 Petroleum ...........................................................................4 Electricity generation and demand .........................4 References .........................................................13 Non-PPL grids ..................................................................7 Electricity tariffs ..............................................................7 3. Renewable energy opportunities ..................8 Geothermal energy ........................................................8 Hydropower ......................................................................8 Ocean energy ...................................................................8 Wind energy .....................................................................8 Solar energy ......................................................................8 Bioenergy ...........................................................................8 Note on currency: On October 24, 2012, the exchange rate was Papua New Guinea Kina (PGK) 1.97 per United States dollar (USD). IV Renewable Energy Opportunities and Challenges in the Pacific Islands Region: Samoa Preface In the Abu Dhabi Communiqué on accelerating renew- situations, and the challenges and opportunities for re- able energy uptake for the Pacific Islands (of 13 January newable energy deployment, around the region. These 2012), leaders from the Pacific Island Countries and studies are available for the Cook Islands, the Federated Territories (PICTs) called on the International Renew- States of Micronesia, the Republic of Fiji, Kiribati, the able Energy Agency (IRENA) to “…map the Renewable Republic of the Marshall Islands, the Republic of Nauru, Energy Readiness of the Pacific Islands Countries and Niue, the Republic of Palau, Papua New Guinea, Samoa, Territories to ascertain the status of renewable energy the Solomon Islands, the Kingdom of Tonga, Tokelau, opportunities and identify pathways to close gaps” and Tuvalu and the Republic of Vanuatu. The IRENA Pacific to integrate all IRENA activities in the region “…into a Lighthouses report draws on those studies, as well as an coherent roadmap for the Pacific Islands”. In response, additional study on a diesel-renewable energy hybrid IRENA has carried out a wide range of activities of spe- power system, intended as a transition measure to a cific relevance and application to the PICTs as well as renewables-based energy future for the PICTs, which is other Small Island Developing States (SIDS). This work also part of the series. has now been integrated into the IRENA report: Pacific Lighthouses: Renewable Energy Roadmapping for IRENA, in collaboration with its members and other key Islands. development partners, will continue to support the de- velopment national roadmaps and strategies aimed at The report consists of an overview roadmap framework enhanced deployment of renewables in the Pacific and and 15 island-specific studies on the respective energy other island states and territories. Renewable Energy Opportunities and Challenges in the Pacific Islands Region: Samoa V Acronyms APEC Asia-Pacific Economic Cooperation CSO Community Service Obligation DPE Department of Petroleum and Energy DSP Development Strategic Plan 2010–30 GWh Gigawatt hour (thousands of millions of Watt hours) MTDP Medium Term Development Plan 2011–15 ML Megalitres (thousands of kilolitres) MW Megawatt (millions of Watts) OTEC Ocean Thermal Energy Conversion PGK Papua New Guinea Kina (currency) PIREP Pacific Islands Renewable Energy Project PNG Papua New Guinea PNGSEL PNG Sustainable Energy Ltd. PPL PNG Power Ltd. PV Photovoltaics SPREP Secretariat of the Pacific Regional Environment Programme VI Renewable Energy Opportunities and Challenges in the Pacific Islands Region: Samoa 1. Country context Figure 1. Map of Papua New Guinea Source: Adapted from the Perry-Castañeda Library Map Collection, University of Texas. The boundaries and names shown on this map do not imply official acceptance or endorsement by the International Renewable Energy Agency. Physical description. Figure 1 shows the map of Papua Population. The World Bank’s estimate of the popula- New Guinea (PNG) which is located in the south-west- tion of PNG stands at just over 7 million people in 2012, ern Pacific Ocean at 6° south latitude and 47° east with more than 800 indigenous languages. Approxi- longitude. It has a total area of approximately 462 840 mately 87% of the population, which grows at just under 2% per year, live in the rural areas. square kilometres (km2) and a land area of 452 860 km2. The country is by far the largest of the Pacific island Environmental issues. The climate of PNG is tropical. countries and territories. PNG, located to the east of PNG has a large stock of rain forest and biodiversity Indonesia and some 160 km to the north of Australia, that are under threat from over-logging, over-hunting, has four regions with 22 provinces consisting of over clearing for agriculture and plantations, and trading in 600 islands. The landscape consists of an extraordinary threatened or endangered wildlife species. The marine physical variety of mountainous