The Papua New Guinea (PNG) Minister for International Trade and Investment, Hon. Richard Maru, said PNG is still facing a pressing energy crisis, nearly half a century after gaining independence.
Minister Maru underscored the urgency of the country’s energy challenges, stating: “We cannot pretend, we can't keep talking about providing for other countries in the world, talking about their energy security when we have serious issues at home.”
He expressed concern over the widespread blackouts affecting everyday life and businesses across the nation that holds back development, including his own region of Sepik, where residents can go up to five days without power.
“This is the reality,” he stated.
Speaking at the Petroleum and Energy Conference 2024 in Port Moresby, Minister Maru expressed gratitude for its location in PNG and acknowledging the critical discussions that needed to take place.
“To me, this is one of our most important conferences. I call on stakeholders to collaboratively tackle the energy crisis that has hindered economic development,” he said.
Despite PNG's abundant natural resources, the nation has failed to capitalize on its hydro, solar, and wave energy potential, Maru said.
“The mining and petroleum sector did not deliver the result we were all expecting. Therefore PNG must now look at the non-resource sector with a focus on energy to drive the economy forward,” Maru said.
“Tourism, downstream processing, manufacturing, fisheries, that is where the future is. It will ride on the back of cheap and reliable energy. So much potential PNG has not turned into energy solutions. This energy crisis has held back the countries development, held back jobs, made it difficult to find investors,” Maru said.
He cited Madang province, where blackouts hinder the establishment of a fish cannery that could create thousands of jobs.
The Minister noted that PNG’s electricity prices are among the highest in the world, which has stunted the nation’s competitive edge in industries reliant on energy. He contrasted PNG's situation with neighboring Indonesia, which benefits from significantly lower energy costs, enabling robust industrial growth.
Maru pointed to the need for a strategic shift toward renewable energy sources, urging the government and stakeholders to develop a comprehensive plan to transition to cleaner energy.
“We must move with the rest of the world,” he said, referencing global trends towards carbon neutrality by 2050.
Citing the low electricity penetration rate — only 19% of the population has access — Maru said: “The rest of the world is nearly 100%.”
He emphasized the urgent need for infrastructure improvements and criticized the lack of progress on the PNG Electricity Partnership agreement signed in 2018.
“We are looking for innovative solutions. We are inviting local and international energy companies to invest in PNG’s energy sector.”
The minister stressed the government’s commitment to deregulating the energy market and offering incentives to attract investment, aiming to increase electricity access to 70% of the population by 2050.
“We have a crisis. I'm not blaming anyone. We all have to take responsibility,” he said.
Maru told PNG Business News in an exclusive interview that Papua New Guinea stands at crossroads, and with strategic partnerships and innovative solutions, the nation can unlock its vast economic potential.
“We can talk all we want at this conference, but the fact is that PNG is facing an energy crisis, and we need to properly address this energy crisis before addressing other sectorial challenges. Energy is key to development,” he said.
