Hydro integrated renewable energy power system (hydro, solar and wind) technologies have the potential to provide long-lasting solutions to the problems compounded by the economic, social and environment sectors in Papua New Guinea (PNG) for isolated pockets of masses in rural areas secluded by the tough terrains. The use of hydro integrated renewable energy technologies in rural electrification in PNG will also play a crucial role in raising the living standards of rural people through jump start connectivity for information technology for education and telemedicine services. To implement hydro integrated renewable energy power systems in PNG, it is important to have appropriate energy policy framework for the PNG energy sector. The authors present economically viable, detailed, off-the-shelf technology for a hydro integrated renewable energy (hydro, solar and wind) micro-grid power system for sustainable living in the rural areas of PNG with a case study.
1 Developing & Sustaining Hydro Developing & Sustaining Hydro Integrated Renewable Energy Integrated Renewable Energy Power System for Rural Areas in Power System for Rural Areas in Papua New Guinea Papua New Guinea Ms Rebecca Ogann Kiage Ms Rebecca Ogann Kiage Suapi Management Consultancy Suapi Management Consultancy Papua New Guinea Papua New Guinea Mr Sammy Samun Aiau Mr Sammy Samun Aiau Electrical & Communication Engineering Department Electrical & Communication Engineering Department Papua New Guinea University of Technology Papua New Guinea University of Technology Papua New Guinea Papua New Guinea
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Developing & Sustaining Hydro Developing & Sustaining Hydro Integrated Renewable Energy Power Integrated Renewable Energy Power
System for Rural Areas in System for Rural Areas in Papua New Guinea Papua New Guinea
Mr Sammy Samun AiauMr Sammy Samun AiauElectrical & Communication Engineering DepartmentElectrical & Communication Engineering Department
Papua New Guinea University of TechnologyPapua New Guinea University of Technology
Papua New GuineaPapua New Guinea
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Outline of the Presentation:Objective of the PaperBackground of Papua New GuineaPapua New Guinea Energy SectorPapua New Guinea Electricity Structure
Policy Framework PNG’s Electricity Industry Structure PNG’s Electricity Regulatory Framework
PNG’s Renewable Energy Resources Hydro Energy Solar Energy Wind Energy
Rural Electrification with Renewable Energy Sources in PNGCase Study, Wantun Micro-hydro/Solar Project Micro-hydro/Solar/Wind Micro-grid Power SystemBusiness Models for Rural Micro-GridsConclusionsRecommendations
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Objective of the Paper:
To understand Papua New Guinea’s electricity industry structure and policy and regulatory framework.
To promote the use of Renewable Energy to achieve sustainable development in the rural areas of Papua New Guinea.
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Background of Papua New Guinea:
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Background of Papua New Guinea Background of Papua New Guinea • Located south of the equator in the Oceania
region.• PNG total land area is 462,800 square
kilometers.• PNG population is 7 million with (approximately 6
million people) live a traditional rural subsistence rural lifestyle.
• PNG gained independence in 1975 and is a parliamentary democracy.
• The National Government consist of three (3) independent branches – (executive, legislature and the judiciary).
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Papua New Guinea Energy SectorPapua New Guinea Energy Sector• The energy sector in Papua New Guinea mostly
depends on three main types of energy:– Electricity – Oil– Gas
• The energy sector accounts for 14% of the country’s GDP (PNG‘s GDP US$ 12.937 billion with a growth rate of 8.9%).
• PNG Power Limited is the sole national electricity company responsible for generation, transmission, distribution and retail of electricity in PNG
• Oil Search (17.6% PNG Govt. shares) and Inter Oil are the oil companies.
• Both companies dominate the gas market as well. • The PNG LNG Project, scheduled for deliveries in
2014 will be a setting a major change in PNG’s energy sector.
• On the Renewable Energy sector, it remains severely underexploited due to organizational and technological reasons.
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Why RE Sector is UnderexploitedWhy RE Sector is Underexploited• Absence of:
– Electricity Industry Policy– Energy Policy– Rural Electrification Policy
• High investment costs associated with establishing transmission lines due to the PNG’s rugged topography.
• Recent initiative by the Somare-Temu government in 2006 has paved the way for the development of the three important policies:
– Electricity Industry Policy (endorsed 2011)– National Energy Policy (early draft stage)– Rural Electrification Policy & Strategy (early draft stage)– Geothermal Energy Policy– Renewable Energy Policy
• The delay in the formulation and implementation of these policies has deprived the bulk of the population especially in the rural areas of Papua New Guinea, without access to electricity.
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Papua New Guinea Electricity Papua New Guinea Electricity SituationSituation
• PNG 90% of the population of 7 million lack access to electricity services.
• The progress of rural electrification has lagged over the years.
• PNG electrification rate is only 7%.• PNG Power Limited (PPL) is sole national
electricity company responsible for generation, transmission, distribution and retail.
• PNG does not operate on a national power grid.
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Papua New Guinea Electricity Papua New Guinea Electricity SituationSituation
• PNG has 3 main grids, supplied by major hydro power plants.
• 19 regional centres are supplied by diesel powered thermal generation.
• PNG’s total installed generation capacity is 580MW.
• PNG Power Limited manages approximately 300MW capacity.
• 280MW is generated by other IPP’s.
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PNG Power Limited Power System
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PNG Energy Profile
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PNG Electricity Situation:PPL’S CURRENT AND PROPOSED HYDROPOWER INSTALLATIONS IN PNG
CURRENT INSTALLED HYDROPOWER STATIONS PROPOSED HYDROPOWER DEVELOPMENTS
NameInstalled/Available
Capacity (MW) NameCapacity (MW)
Port Moresby (Rauna system) 120/100 Port Moresby (Naoro Brown) 60
Ramu System (Lae-Madang-Mendi) 122/70 Port Moresby (Udava) 70
Gazelle (Rabaul) System 17/12 Ramu II system 240
Gowar 21.6
Mongi 69.7
Burum 43.5
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PNG Electricity Situation:NUMBER OF PNG POWER LTD ELECTRICITY CUSTOMERS
Name of Province Population of Province Population with Electricity
Population without Electricity
Percentage of Population without
Electricity
Central 183983 3182 180801 98
Gulf 106898 411 106487 99
Milne Bay 210412 1340 209072 99
National Capital Dist. 254158 41766 212392 84
Oro 133065 961 132104 99
Western 153304 652 152652 99
Eastern Highlands 432972 5445 427527 98
Enga 295031 1396 293635 99
Simbu 259703 1721 257982 99
Southern Highlands 546265 1131 545134 99
Western Highlands 440025 6175 433850 98
East Sepik 343181 2380 340801 99
Madang 365106 3297 361809 99
Morobe 539404 12136 527268 97
Sandaun 185741 1070 184671 99
Autonomous Region of Bougainville 175160 570 174590 99
East New Britain 220133 6496 213637 97
Manus 43387 3353 40034 92
New Ireland 118350 1202 117148 98
West New Britain 184508 1982 182526 99
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PNG Overarching Policies & Energy Sector Policies
• PNG’s Vision 2050.- Government sets vision for long term developmentand prosperity 2010 – 2050.- Seven (7) ‘pillars’ natural resources, climate change and environmental sustainability are among areas of focus.
• PNG Government Strategic Development Plan 2010 – 2030.– High level of strategic support for energy development.– All households have access to reliable and affordable energy
supply.– 70% of PNG be electrified by 2030.
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PNG Overarching Policies & Energy Sector Policies
• The Energy Division of the Department of Petroleum and Energy (DPE) is responsible for energy policies and plans, data collection and analysis and advices the government on energy sector issues.
• PNG Power Limited (PPL) undertakes power sector infrastructure planning and developments.
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PNG Overarching Policies & Energy Sector Policies
• Electricity Industry Policy (EIP)- Launched in December 2011- Objectives of EIP are to : improve reliability, accessibility and affordability of electricity services to the majority of the population.- Policy measures proposed:
(1) Facilitating competition/contestability under various market models.(2) State provisions for consumer service obligations.(3) Appropriate regulation.(4) private sector participation.
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PNG overarching policies & Energy Sector Policies
• Draft National Energy Policy (NEP)- Under review by the Government Task Force on Policy.- Sets vision as “ vibrant energy sector that improves quality of life and supports national development’”.
• Draft Rural Electrification Policy (REP)– Early draft stage.– Sets vision as “ to enhance livelihood of rural population
through sustainable provision of electricity.
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PNG Overarching Policies & Energy Sector Policies
• Draft Geothermal Energy Policy - The Government has engaged the services of a private consultant to develop a model for this policy.
• Draft Renewable Energy Policy- A lot is to be done. - Policy is driven by sectors in agriculture, forestry and environment.
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Policy Difficulties
• Lack of capacity.• Lack of Government focus.• Lack of needed focus.• Lack of coordination in sector policy management.
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PNG Electricity Industry Structure
• Current players(1) PNG Power Limited
- Government owned.- Established as a regulatory regime vested with power to plan, develop, generate, transmit, distribute and sell electricity.- Vertically integrated.- Holds monopoly retail transmission sector.- Generation and distribution are contestable.
(2) IPP’s- Operate under direct power purchasing agreement.- Activities are limited and within designated locations.- Power purchasing arrangements are negotiated on a party-and- party basis rather than through open and competitive
processes.
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PNG Electricity Regulatory Framework
• Broad Features- Provides exclusive service (retail) areas for PPL defined as within 10 kilometres of the distribution network operated by PPL for loads under 10 MW.- Allows for third party producers to generate and supply PPL for the latter’s sale to consumers.- Allows for free entry to serve lage consumers (i.e. with loads of 10MW or more.- Uses a system of postage stamp pricing in the shape of the national single tariff (which charges the same price for customers within a particular category, regardless of location.- An independent regulator of the electricity industry, the ICCC implements a form of revenue cap price regulation in relation to PPL, and sets licence conditions for PPL and other market participants.
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• Hydro Energy– Currently main electricity source for PNG.– PNG still has significant hydroelectric potential (vast river networks, numerous
creeks, streams and mountain spring water flows.– By 2035, 800MW of Hydro electricity generating capacity is planned to be
either built or upgraded.
• Solar Energy
- Largest potential source in PNG.
- Average insolation in most parts of PNG is 400 – 800 W/m² .
- 4.5 – 8 sunshine hours per day all year round.
- To date no solar electricity grids have been installed in PNG.
• Wind Energy
- Potential source in PNG.
- High wind spots along the northern coastline and on the isolated islands of PNG.
- No major wind turbine power installations, however small wind turbines are being installed for individual household electricity supplies.
PNG’s Renewable Energy Resources:
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Renewable Energy Sources Renewable Energy Sources
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Renewable Energy Sources & Renewable Energy Sources & TechnologyTechnology Objectives: Objectives:
• Provide sustainable developments in economic, social and environmental sectors in PNG.
• Provide sustainable development in rural electrification in PNG.
• Raise the standard of living of the rural people , 90% of PNG population.
• Provide connectivity for information technology for education and telemedicine to the rural population in PNG.
• Protect the environment and reduce the Greenhouse Gases.
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Hydro Energy Hydro Energy
• Benefits:– No fuel costs– Carbon free– Can be distributed near the user– Creates local jobs
– No fuel costs– Carbon free– Can be distributed near the user– Creates local jobs
• Challenges:– Not dispatchable– Intermittent resource– Minimal impact to peak loads
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Wind Energy Power System Layout Wind Energy Power System Layout
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Rural Electrification with Renewable Rural Electrification with Renewable Energy Sources in Papua New GuineaEnergy Sources in Papua New Guinea• Development and adoption of reliable renewable energy sources in rural
areas for rural electrification has become a major challenge to most parts of the world. eg Europe, USA, India, China, etc.
• PNG’s 90% rural population is no exemption. Modern renewable energy technologies can play a crucial role in developing rural electrification to provide electricity to the people living in the rural areas of PNG.
• The role of energy and more specifically electricity is the key player in all aspects of sustainable development.
• Sustainable development of the energy sector is a potential factor to maintain economic competitiveness and progress.
• Access to modern energy reduces;– Poverty and hunger through food preservation (MDG1)– It fosters education by providing light and communication tools (MDG2)– It improves gender equality by relieving women of water collecting (MDG3)– It reduces child and maternal mortality, incidences of diseases (MDG4,5,6)– It directly contributes to global environmental sustainability (MDG7)
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Elements of Sustainable Rural Elements of Sustainable Rural Electrification Project Electrification Project
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Case Studies Case Studies
• Wantun Micro-hydro power project, Markham District, Morobe Province
– Map of Project Site
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Case Studies Case Studies
• Wantun Micro-hydro power project, Markham District, Morobe Province
– The Feasibility Study Team
The Feasibility Study Team Wantun Community Learning and Development Center
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Case Studies Case Studies
• Wantun Micro-hydro power project, Markham District, Morobe Province
Micro-hydro Site – Yawai Waterfalls
Water Flow Measurement – Bucket method.
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Case Studies Case Studies
• Wantun Micro-hydro power project, Markham District, Morobe Province
Hydro Power Generated Taking a gross head measurement of the penstock of 216 meters and a design flow
of 20.0 l/s (or 0.020 m3/s), the hydro power generated by the proposed scheme can be calculated using the following equation:
Hydro Power (kW) = Head H (m) x Flow Q (m3/s) x 9.81 (acceleration due to gravity) P = 216 x 0.0200 x 9.81 = 42.38 kW If we take into consideration the frictional losses in the penstock then the head is
reduced to 200 m (net head) and the hydro power will be reduced to: P = 200 x 0.0200 x 9.81 = 39.24 kW
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Case Studies Case Studies
• Wantun Micro-hydro power project, Markham District, Morobe Province
Electrical Power Calculation To calculate the electrical power produced by a generator, the efficiency of the
system must be taken into consideration. Typical efficiency for a micro-hydro system is approximately 85%. This takes into consideration the penstock, turbine, and the generator losses.
Electrical Power (kW) = Hydro Power x System Efficiency For the 216 meter head scenario, Electrical Power = 42.38 x 0.85 = 36.02 kW For the 200 meter head scenario, Electrical Power = 39.24 x 0.85 = 33.35 kW
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Case Studies Case Studies • Wantun Micro-hydro power project,
Markham District, Morobe Province
Indicative Fixed Flow containerized Francis turbine.
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Micro-grid System for Rural ElectrificationMicro-grid System for Rural Electrification
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Business Model for Rural Microgrids
• Challenges
- High capital cost over low returns.
- Rural population usually dispersed.
- Have low consumption rates.
- Lack capacity to pay for electricity services.
“ The key issues to be addressed in developing a sustainable rural electrification market is how to maximise private sector investment and minimise subsidies for rural electrification”.
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Business Model for Rural Microgrids• PNG ScenarioThe PNG EIP aims to upscale rural electrificationthrough State financing for consumer service obligation and encourage privatesector participation.
• Critical steps to consider in order to promote a sustainable business model for rural electrification. (1) Review and integrate off-grid policy into overall electricity industry policy (regulations, level playing
field). (2) Design targeted and efficient smart subsidies in a transparent way, secure funding and define exit
strategy. (3) Adapt public-private partnerships delivery models to local needs and condition. (4) Support policy development and capacity building. (5) Ensure that users pay substantial part of lifecycle cost (payments creates ownership) (6) Involve users and communities in decision and implementation. (7) Design monitoring mechanisms to supervise both firms and users compliance with the contracts
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Hybrid Business ModelHybrid Business Model
• Community-based model• Private-based model • Utility-based model• Hybrid business model
• PNG Power Limited or a private company implements and owns the micro-grid power system, the community manages it on a daily basis and PPL or private company provides the technical back-up and management advice.
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ConclusionsConclusionsRenewable energy projects can serve a critical niche in supplying much-needed electricity to rural, off-grid communities in Papua New Guinea.
Connecting the electricity grid to rural and remote areas is very uneconomical to carry out. Therefore it is more economical to electrify the rural areas with a micro-grid by means of existing renewable energy sources available locally.
The micro-grid configuration represents energy distribution architecture from the producing site to consumers and eventually the interconnection between several sites and several consumers.
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RecommendationRecommendationPNG has abundant hydro solar and wind energy potentials that can be developed under a renewable energy hybrid business model to fast- track the rural electrification program and provide electricity to the people living in the rural areas of Papua New Guinea.
The concept of the micro-grid power system using hydro integrated renewable energy sources (hydro solar and wind) is a cost effective and sustainable system and should be implemented in the rural electrification program in Papua New Guinea.
The PNG government gives priority to renewable energy projects, allocate sufficient budget, and create conducive environment for private sector who are investing on renewable energy.
