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Papua New Guinea






Source: The World Fact Book, CIA

Figure 1: Map of Papua New Guinea


Table 1: General Information on Papua New Guinea

Neighbouring Countries

Australia, Indonesia, Solomon Islands, Palau, Federated States of Micronesia, Nauru, Vanuatu

Capital City

Port Moresby

Land Area

452,860 sq km


Papua New Guinean Kina (PGK)

Exchange Rate

PGK 1.97/US$ (average 2011)

Population Size(habitants)

6,310,129 (July 2012 est.) /1

Number of Households

1,424,835 /2

GDP per Capita

US$1,176 (2009) /3

Electrification Rate(%)

12% /4

Source: /1 /2 The PNG National Statistical Office, 2012
            /3 Renewable Energy Country Profiles, Pacific, International Renewable Energy Agency (
            /4 SPC Energy Indicator, 2012




Papua New Guinea (PNG) is the largest country in the South Pacific in terms of land area and population.  It comprises of around 600 islands, and, administratively, the country is divided into 22 provinces in four regions, i.e. Southern, Highland, Momase and Island regions. PNG is richly endowed with natural resources, but exploitation has been hampered by rugged terrain, land tenure issues, and the high cost of developing infrastructure.

PNG is a net energy exporter, and its self-sufficiency in fossil fuels puts it in a different position from other PDMCs. Oil production in 2008 was 38,080 barrels a day from three oil fields. With the commissioning of its first refinery plant in 2004, crude is now refined locally. Sixty-five percent of the refinery’s output is consumed locally for different end-uses in the industrial and transport sectors, as well as for electricity generation. The remaining 35% is exported overseas. A new world-scale export oriented Liquefied Natural Gas (LNG) project is presently under development in PNG and is expected to start operation in 2014.

Based on the Asia-Pacific Economic Cooperation (APEC) Energy Balance report 2009, PNG’s primary energy supply is projected to increase at an average annual rate of 5.1%, from 1.8 Mtoe in 2005 to 6.3 Mtoe in 2030 (see Figure 2).  Oil and natural gas will constitute most of the share in the total primary energy supply.  The demand for oil will concentrated in the industrial sector, followed by electricity and transport, while the demand for natural gas will be driven by the electricity generation.


Source: APEC Energy Demand and Supply Outlook – 4th edition, 2009
Figure 2: Primary Energy Supply in PNG


Energy Efficiency Policies and Regulations:
The Energy Division (ED) of the Department of Petroleum and Energy (DPE) is responsible for preparing energy policies, planning initiatives, data collection and analysis as well as advising the government on energy sector issues.  Over the past years, three policy drafts, including Draft Energy Policy, Draft Electricity Industry Policy (EIP) and Draft Rural Electrification Policy, have been circulated within the ED-DPE and discussed with the Government and concerned stakeholders.  PNG endorsed their National Electric Industry Policy in December 2011, and the Energy Department is the custodian of Energy Technical Regulation, which includes energy efficiency and conservation.

Price and other aspects of electricity supply operations in PNG are regulated by the Independent Consumer and Competition Commission (ICCC), an independent regulator of the electricity industry established through an Act of Parliament in 2002 (ICCC Act 2002).  There are two Acts cover the provision of power supplies within PNG, i.e.: 1) the Electricity Industry Act of 2000 (formerly Elcom Act), and; 2) the Government Power Stations Act.  

Key Energy Efficiency Stakeholders:
Review of various reports and studies have suggested that the following agencies may have a role relevant to development and implementation of Energy Efficiency projects and activities in PNG. These are:

  • Energy Division (ED), Department of Petroleum and Energy (DPE): Responsible for energy policy development; energy planning; data collection; energy advice to PNG Government including in areas of fuel prices, subsidies and electricity tariffs;
  • PNG Power Limited (PPL): Responsible for generation, transmission and distribution of power nationally, and; technical regulation of electricity provision;
  • Department of Environment and Conservation (DEC): Responsible for establishing environmental standards; conducting environmental impact assessments; coordination of  Greenhouse Gas policies, and centre for accessing GEF financing and carbon credit support;
  • Independent Consumer and Competition Commission (ICCC): Responsible for setting electricity tariffs; fuel-price control, and; awards power generation licences;
  • Other agencies, including but not limited to, PNG National Statistical Office, National Institute of Standards and Industrial Technology (NISIT) and Industry Associations such as the PNG Chamber of Commerce and Industry.




The PNG Power Limited (PPL) is a fully integrated power authority responsible for generation, transmission, distribution and retailing of electricity nationwide.  PPL was corporatized under the Electricity Commission (Privatization) Act 2002 as the successor company to the Papua New Guinea Electricity Commission (ELCOM).  In 2009, PPL was delegated a regulatory role by ICCC and their responsibilities include approving licenses for electrical contractors, providing certifications for electrical equipment and appliances to be sold in PNG, and providing safety advisory services and checks for major installations.

Electricity Supply:
Based on the PEEP1 report for PNG, the total installed capacity in PNG was estimated to be 547 MW with 40% hydro and 38% thermal (mostly from diesel fired power stations) for the 2008-2009 period.  The remaining installed capacity was constituted by geothermal and natural gas power plants. Of this total installed capacity nationwide, 295 MW belongs to PPL, comprising 148 MW of hydro (50%) and 137 MW of thermal (47%) power plants.  The remaining installed capacity belongs to mining and manufacturing industries, as well as 150 to 200 small rural electricity systems (called “C-Centres”) that are operated by local government authorities.

According to the PPL Annual Report 2009, hydropower serves base load in the Port Moresby, Ramu and Gazelle Systems.  However, most of these hydropower plants are more than 30 years old and have not been properly maintained due to the previously poor financial situation of PPL.  As a result, power outages have been prevalent and increasing for many years, and the total hydropower generations are estimated to be lower than 30% of the total annual electricity generation in PNG.  Shown in Figure 3 are electricity generation mixes in PNG till 2030, estimated by Asia Pacific Energy Research Centre (APERC). Greater use of natural gas in electricity generation is expected, as a result of natural gas supply becoming available in the Port Moresby area.


Source: Adapted from APEC Energy Demand and Supply Outlook – 4th edition, 2009
Figure 3: Electricity Generation Mix in PNG


There is at present no national grid system due to the challenges posed by PNG's difficult topography as well as the considerable distances between various towns or load centers.  PPL operates three separate urban grids and 14 other independent provincial systems.  In addition, there are a number of C-Centres and privately owned facilities in rural areas.  The three separate urban grids operated by PPL include:

  1. Port Moresby System: The Port Moresby system serves the National Capital District, the commercial, industrial and administrative centre of Papua New Guinea. The Port Moresby system also serves surrounding areas in the Central Province.  The total installed capacity under the Port Moresby System is 116.2 MW (the Rouna Hydro Power Stations - 62.2MW, Moitaka thermal power station – 30 MW, and Kanudi Power Station (diesel, privately owned) – 24 MW).
  2. Ramu System: The Ramu system serves the load centres of Lae, Madang and Gusap in the Momase Region and the Highlands centres of Wabag, Mendi, Mt Hagen, Kundiawa, Goroka, Kainantu and Yonki. The economy of the regions supplied by the Ramu system is based on mining, oil, gas, coffee, tea, timber and industrial productions.  The main source of generation is the Ramu Hydro Power Station with an installed capacity of 75 MW, and a run-of-river Pauanda station in the Western Highlands Province with 12MW installed capacity.  Power is also purchased when required from the privately owned Baiune Hydro Power Station at Bulolo in Morobe Province, and varies between 1 to 2 MW depending on availability.  Transmission line outages, energy and peak demands are met by diesel plants at Madang, Lae, Mendi and Wabag.  These plants serve as stand-by units.
  3. Gazelle Peninsula System: The Gazelle Peninsula system serves the townships of Rabaul, Kokopo and Keravat to service Gazelle's economy based on copra, coconut oil, cocoa, timber and fishing.  The Gazelle Peninsula system is powered by a 10MW hydro power system at Warangoi, Ulagunan Diesel Power Station with 8.4MW, and 0.5MW from Kerevat Diesel Power Station.

Based on PPL’s billing data, the total sales in 2011 were 776 GWh. The Regional Energy Indicator study conducted by SPC shows combined transmission and distribution (T&D) losses of around 20%.

Electricity Tariff:
Based on the PPL website (, ICCC has approved a 14.59% increase in tariffs and charges for 2012, except for scheduled services which were adjusted based on the underlying PNG Consumer Price Index (CPI).  Given below are the PPL Tariff structures effective from 1st January 2012.

Table 2: PPL Tariff Structures (as of 1stAugust 2012)



Tariff (PGK)

Tariff (US$)

A. Industrial Customers (Credit Meters)








Demand Charge




B. General Supply Customers (Commercial)




B1. Credit Meters (Post-Paid Meters)








Minimum Charge




B2. Easipay (Pre-Paid Meters)








Minimum Charge

Per Receipt



C. Domestic Customers




C1. Credit Meters (Post-Paid Meters)




First 30 kWh/month








Minimum Charge




C2. Easipay (Pre-Paid Meters)








Minimum Charge

Per Receipt



Note: 1. US$1 = ST$1.97 (average Interbank rate, 1 January 2012 to 31 October 2012,

Electricity Demand:

PPL’s customers in the Port Moresby and Ramu Systems consume about 86% of the total electricity generation by PPL in 2011 (see Figure 4). 


Source: PPL Billing Data and IIEC Analysis
Figure 4: PPL Annual Electricity Sales by System


According to the PNG National Statistical Office, there are around 1.4 million households in PNG, and around 10% of which are in Metro and Urban areas1, while the remaining 90% of households are in rural areas.  The PPL annual report 2009 indicates a total of 78,014 domestic customers within the PPL’s networks.  This suggests that PPL has electrified around 6% of the total households in PNG.  Number of households electrified by the C-Centres and privately owned facilities in rural areas is unknown.  However SPC estimates that around 12% of the total household in PNG are electrified.

Note:1. According to the 2009 – 2010 Papua New Guinea Household Income and Expenditure Survey, the Metro areas are the two large urban centers in Port Moresby and Lae, and the Urban areas are other urban areas in all regions.


The latest billing data provided by PPL shows that domestic customers account for about 82% of the PPL’s total customers, and most of them (more than 97% of total domestic customers) are in the Easipay tariff category or pre-paid meters (see Figure 5).  However these domestic customers consumed only around 6% of the total PPL’s electricity sales in 2011.  The largest end-use sector within the PPL’s network is the commercial sector (general supply consumers), accounting for about 71% of the total consumption in 2011, followed by the industrial sector, consuming about 23% of the total consumption in the same year.   The electricity consumptions by sector in 2011 are shown in Figure 6.


Figure 5: Number of PPL’s Customers, 2011


Source: IIEC’s Analysis based on PPL’s Sales Data
Figure 6: Electricity Consumption by End-Use Sector in 2011


Demand Profile:
Based on data from PPL, electricity demand profiles in the Port Moresby and Ramu systems are similar reflecting contributions from the commercial sector.  In the Port Moresby system, there are two electricity peak demands, i.e. late morning to early afternoon peak and evening peak, as shown in Figure 7. Analysis of the load profile showed that the major contributors to daytime load are industrial (primarily base load) and commercial customers (primarily air-conditioning and lighting).  The decrease in commercial sector activities in the afternoon (around 5pm) is replaced by the increase in the residential sector activities (primarily lighting and cooking) resulting in an evening peak around 7 pm.  In general, peak demands during dry seasons are higher than wet seasons and the differences are estimated around 10%.


Source: PPL, 2012
Figure 7: Typical Weekday and Weekend Load Profiles of Port Moresby Grid




Residential Sector:
The latest Census in PNG does not include collection of data on sizes, energy performance (presence of energy labels on appliances, and power consumption rating) and usage patterns, therefore energy performance of household appliances in PNG will be determined based on the results of a household survey to be conducted by the PEEP2 project to collect additional data to better determine the baselines of energy performance of household appliances in PNG.  Initial findings from secondary resources, statistics and retailer surveys in PNG are discussed in the following sections.

Ownership of Household Appliances:
Based on the 2009 – 2010 PNG Household Income and Expenditure Survey, ownerships of selected household appliances are shown in Table 3.  Based on typical power consumption per unit, average daily operating hours and estimated number of appliances currently in use in PNG, the priority electrical appliances in PNG would include: Refrigerator, Television, Washing Machine, Electric Fan, and Lighting Products

Table 3: Ownership of Selected Household Appliances in Samoa


2011 (%)/1

2011 (Est. Unit)/2













Washing Machine



Microwave Oven



Rice Cooker



Electric Fan









Source:   /1 the 2009 - 2010 PNG Household Income and Expenditure Survey
              /2 Estimated number of appliances in the residential sector in PNG, based on 1,424,835 households

Energy Performance of Household Appliances in PNG

Based on the statistical data published by the PNG National Statistical Office, two major import origins are identified, i.e.: 1) wholesalers/trading companies in Australia/New Zealand of which products usually comply with AUS/NZ MEPS and Energy Labeling requirements, and; 2) wholesalers/trading companies in other countries (e.g. China, Malaysia, Singapore and Thailand) from which products may or may not comply with MEPS or Energy Labeling of the respective countries of origin.  Analysis of import statistics from 2008 to 2011 has shown that for most types of appliances non-AUS/NZ appliances have accounted for larger market shares than those from Australia and New Zealand.


Source: National Statistical Office, PNG
Figure 8: Imports of Major Electrical Appliances in PNG (2008 -2011)


It should be noted that using import units is a more accurate way of determining the share of each country as the import value share is influenced by exchange rates and equipment costs, i.e. the electrical equipment import value from Australia and New Zealand is typically higher than that of the People’s Republic of China (China).   However, the Customs departments usually interest in determining the value of the imported electrical appliances for taxation purposes and therefore the number of imported units is not usually a priority or correctly indicated by the supplier and/or customs officer, especially with regards to small electrical appliances such as lamps. 

Based on electric appliance surveys in four major retailers and wholesalers in Papua New Guinea conducted by IIEC in June 2012, it is found that the share of appliances with energy labels in PNG is relatively low (<60%) with exception of freezers.  The indicative energy performances of household appliances in PNG, estimated by the PEEP2 project team, are summarized in Table 4.

Table 4: Indicative Energy Performance of Priority Household Appliances in the Cook Islands

Electrical Appliance

Common Type

Indicative Energy Performance


2-Door Fridge/Freezer

30% - 40% are compliance with AUS/NZ minimum energy performance requirements.


Chest Freezer

30% - 40% are compliance with AUS/NZ minimum energy performance requirements.



35% – 45% are compliance with AUS/NZ minimum energy performance requirements, while the remaining are compliance with Singaporean energy requirements.

Domestic Washing Machines

Front Loaded and Top Loaded

20% – 30% are compliance with AUS/NZ minimum energy performance requirements, and another 20% – 30% are compliance with Singaporean energy performance requirements.

Air Conditioners

Split-Type and Window Type

10% - 20% are compliance with AUS/NZ minimum energy performance requirements.

Fluorescent Lighting

T8 and CFL


Source: Market surveys conducted by the PEEP2 Project Team

The data gathered during the in-country retailer surveys also includes information on appliance brands, country of manufacture, and complements existing import data available from the statistical data. Note that information of electrical appliance brands and country of manufacture is not comprehensive. The country of manufacture of certain appliances is not easily identifiable and in some cases could only be identified through the product’s user manual.  Table 5 identifies a range of international brands and the countries of manufacture are mostly China, Australia, New Zealand, Thailand, Japan and South Korea.

Table 5: Brands and Countries of Manufacture of Common Household Appliances in PNG

Electrical Appliance


Countries of Manufacture


Westinghouse, Kelvinator, Fisher & Paykel, Sharp, LG, Whirlpool, Akira, Xingx, Samsung

Australia, New Zealand, Japan, South Korea, India, China, Singapore, Thailand


West Point,  Fisher & Paykel, Westinghouse, Xingx, Sanyo

France, New Zealand, Australia, South Korea, China

Air Conditioners
(all sizes)

LG, Kelvinator, Kelon, Midea, Gree, Sharp, Panasonic, Haier, Akira

South Korea, Australia, China, Japan, Indonesia, New Zealand

Domestic Washing Machines

Haier, Simpson, West Point, TCL, JEC, ATECH

New Zealand, Thailand, France, Singapore, Japan

Domestic Dish Washers

Heller, West Point, Fisher & Paykel, Simpson, Dishlex

Australia, France, New Zealand, Thailand, Europe, Singapore

Electric Fans

Air Monster, Kool, Sanyo



Star Vision, Integrity, LG, Sharp, E-Homes, Philips, Samsung

Thailand, China, South Korea, Japan, Singapore

Linear Fluorescent Lamps


China, Malaysia

Compact Fluorescent Lamps (CFL)



Incandescent Lamps


Australia, Hungary

Source: Market surveys conducted by the PEEP2 Project Team

Building Sector:

The primary building categories in PNG would include: Public Sector (Government) Buildings, Private Sector Buildings, Hotels and Resorts, Hospitals and Retailers.  Necessary data to determine energy use baselines for the building sector, including building stock data and Energy Use Index (EUI) or Specific Energy Consumption (SEC), is not available in PNG.  The PEEP2 Project is currently conducting building surveys in PNG to compile all necessary data to establish the energy use baselines for the building sector.

Street and Outdoor Lighting:
Based on PPL’s billing data and analysis undertaken by the PEEP2 project team, it is estimated that there are about 65,000 light points for street and outdoor lighting in PNG, and more than 85% of which are based on relatively inefficient lighting technologies for street and outdoor lighting applications, such as fluorescent tube lamps and mercury vapour lamps, as summarized in Table 6.  Population of different lighting technologies for street and outdoor lighting in PNG are shown in Figure 9.  The weighted average lamp efficacy for all street and outdoor lighting in PNG, calculated based on average lamp efficacies specified in the Annex, is 72 lumen per watt.

Table 6: Number of Light Points and Lighting Technologies for Street and Outdoor Lighting in PNG

Lighting Technology

Typical Wattage

No. of Light Points (2011)


















Mercury Vapour




Mercury Vapour




Mercury Vapour




Mercury Vapour




Mercury Vapour




Mercury Vapour




High Pressure Sodium




High Pressure Sodium




High Pressure Sodium




High Pressure Sodium




High Pressure Sodium




Low Pressure Sodium




Low Pressure Sodium




Metal Halides




Metal Halides




Source: IIEC’s estimations based on billing data provided by PNG Power Limited (PPL), 2012


Figure 9: Types of Lamps for Street and Outdoor Lighting in PNG


S5 Box