Photo credit: MRDC
The 100 per cent national owned Independent Electricity Producer, Dirio Gas and Power Limited and PNG Power Limited, has announced that it would begin delivering power into the Port Moresby grid at the end of this month.
Dirio and PNG Power directors inked an agreement that allows Dirio to deliver power to the PNG Power system in Port Moresby.
In November 2020, Dirio completed and commissioned a 45-megawatt (MW) power plant in Caution Bay, Central Province, but was unable to supply electricity due to PNG Power's failure to build a transmission line or to have sufficient capacity and stability on existing transmission lines to take the full supply as stipulated in the Power Purchase Agreement.
This is the first phase of the entire deployment, according to Dirio Chairman Isaac Lupari.
He said Dirio and PNG Electricity collaborated to tackle the grid transmission network stability issue in Port Moresby and inked another key agreement on October 20, 2021, allowing power delivery to commence on October 30, 2021.
“There has been some delay due to technical issues, but those have now been resolved, and I thank our Directors and everyone for being patient.
“This business is owned by landowners. I am proud that our people are getting into the downstream processing business.” Lupari said.
He stated that their goal is to deliver consistent, inexpensive power to people in the capital city while also generating a long-term profit.
Dirio Electricity is owned by landowners and provincial governments, according to Hela Governor Philip Undialu, who stated it was a risky move to enter the power market.
“For too long, we have left it to foreigners to dominate the electricity sector in PNG. That must change. Papua New Guineans must get into this sector and I am glad we have taken the bold stand with this initiative,” Undialu said.
He commended the Mineral Resources Development Company's board of directors and management, as well as Dirio, for their efforts in completing the project.
PNG LNG Project landowners, as well as the provincial governments of Hela, Southern Highlands, Gulf, and Central, own Dirio.
Reference: Post-Courier (25 October 2021). “Dirio Ready To Supply Electricity”.
