The National Energy Authority (NEA) has officially launched its Corporate Plan 2023-2027, marking a significant milestone in Papua New Guinea’s energy sector. The Corporate Plan, launched on 23 August at APEC Haus in Port Moresby, is the first of its kind for the NEA. It outlines the strategic direction and key objectives that will guide the Authority’s efforts over the next five years. The Plan came into effect following the enactment of the National Energy Authority Bill in 2021, which established the NEA with the primary purpose of leading, facilitating, and accelerating the development of PNG’s energy sector.
The central goal of the Corporate Plan is to promote access to affordable, reliable, and sustainable energy services, which are crucial for economic growth and community prosperity. A key focus is extending electricity access to 70% of PNG’s population by 2030 and achieving universal access by 2050. Currently, only about 15% of the population has access to electricity.
NEA Managing Director Roland Maketa highlighted the importance of the Corporate Plan in supporting the government’s national development goals, as outlined in the PNG Medium-Term Development Plan Four and Vision 2050. “I am confident that the strategies outlined in this inaugural plan will take us a step closer towards achieving our goal of providing 70% of households with electricity from renewable sources by 2030 and 100% by 2050. Our commitment is to work collaboratively with all stakeholders to ensure its successful implementation.”
Deputy Chairman of the NEA, Raymond Unasi, reiterated similar sentiments, emphasising the Authority’s commitment to ensuring that even the remotest parts of the country will have electricity by 2050.
The Corporate Plan sets forth a comprehensive framework that identifies the NEA’s key roles, functions, and capabilities. It establishes strategic goals and corporate priorities that will drive the Authority’s activities, focusing on enhancing the regulatory framework, expanding off-grid electrification, and harnessing the potential of renewable energy sources.
Government Commitment to Energy Security:
The Minister for Energy, Hon. Thomas Opa, in his speech, emphasised the importance of pursuing innovative solutions to increase energy generation and distribution, improve energy efficiency, and promote renewable energy sources. Minister Opa stated, “The government has placed great emphasis on energy security in Papua New Guinea. The medium-term development strategy is aligned with our goal to grow the economy by an estimated 200 billion by 2030 and double the country’s internal revenue, creating one million new jobs.” He highlighted the government's mission to transform PNG into a middle-income country by 2030. Central to this vision is ensuring a reliable and continuous electricity supply across the nation.
Establishment of the National Energy Authority:
The NEA was established as a response to the need for a dedicated agency to oversee energy development. The separation of the Energy Division from the Petroleum Division of the former Petroleum and Energy Department in 2001 marked the beginning of a new era in PNG’s energy sector. The creation of the NEA was supported by the Marape-Rosso government through the successful passage of the National Energy Authority Act in 2021.
Corporate Plan 2023-2027: Key Initiatives:
The NEA’s Corporate Plan for 2023-2027 outlines several key initiatives aimed at strengthening the country’s energy infrastructure and promoting sustainable energy development. These include:
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Developing Renewable Energy: The NEA plans to invest in high-profile electric, solar, geothermal, biomass, and wind power projects across PNG.
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Strengthening Energy Infrastructure: This involves expanding the use of mini-grids, upgrading transmission and distribution networks, and utilising innovative financial mechanisms to attract private investment.
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Promoting Energy Efficiency: The plan also focuses on supporting the adoption of energy-efficient technologies, developing energy performance standards, and raising public awareness about the benefits of energy efficiency.
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Facilitating Private Sector Investment: The NEA will create an enabling environment for private sector investment in energy projects, including clear regulatory frameworks, targeted tax incentives, and a streamlined project approval process.
Minister Opa outlined the government’s ambitious target of providing 70% of PNG households with electricity by 2030, as part of the National Energy Rollout Plan. Achieving this will require substantial investments in energy infrastructure, including the generation of clean and renewable energy sources such as hydropower, biomass, natural gas, geothermal, and wind. The plan also aims to reduce the use of diesel-powered generators from 200 megawatts per annum to 150 megawatts by 2027. The NEA expects to increase electricity generation in the Ramu grid, the Pom grid, and the Gazelle. To meet these goals, an estimated $3.3 billion in investment is needed for infrastructure priorities under various programs, including the National Power Generation Investment Program and the Off-Grid Renewable Energy Development Program.
The NEA’s efforts have received strong support from international partners, including DFAT Australia, USAID, and the Asian Development Bank (ADB). Last year, DFAT Australia supported urgent repairs across the Ramu and Port Moresby power grids and worked on designs to upgrade several potential power grids to hybrid solar-diesel systems. USAID, through its five-year partnership with the PNG government, contributed $1.2 million to establish a solar mini-grid system in PNG's central province. Additionally, ADB has partnered with the government on several infrastructure projects aimed at strengthening the country’s energy sector.
Minister Opa reiterated the importance of strong partnerships in realising PNG’s energy potential. He noted the paradox of PNG being rich in energy resources yet facing challenges in providing consistent electricity access. “The key to unlocking this truth is unwavering commitment, not just by the government but by all stakeholders,” he said.
The launch of the Corporate Plan also signifies NEA’s commitment to honouring international partnerships, including the PNG Electrification Partnership (PEP) countries and other allies, by ensuring a hands-on approach in all energy programs in PNG, as agreed upon during the 2018 APEC Summit and subsequent arrangements.
The launch was attended by key stakeholders and partners, including the New Zealand High Commissioner, representatives from PEP Partners, PNG Power Limited, Kumul Petroleum Holdings Limited, government agencies, and NEA management and staff. The launch of the Corporate Plan is expected to set the foundation for NEA’s efforts to transform PNG’s energy sector, ensuring sustainable and equitable access to energy for all.
