POWERING A NEW FUTURE
POWERING A NEW FUTURE As Papua New Guinea’s energy sector begins to accelerate its electrification strategy and embrace renewable energy, PNG Power Ltd is on hand to help transform the country’s operations in this space, strengthen infrastructure, and build a more resilient energy future. We speak with Paul Bayly, CEO, to learn more Writer: Lily Sawyer | Project Manager: Eddie Clinton
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he energy sector in Papua New Guinea (PNG) stands at a critical juncture as it looks to balance its immense natural resource potential against operational bottlenecks. Historically, the sector has been hampered by a fragmented grid system, high operational costs, and a heavy reliance on imported diesel fuels, which have proven expensive and unsustainable. A long-standing reliance on fossil fuels has left the nation’s energy architecture highly vulnerable to global fuel shocks and negatively affected by escalating financial deficits. Furthermore, PNG’s typically rugged geography and highly dispersed rural population have so far presented extreme physical challenges for traditional infrastructure expansion. Consequently, electricity access has remained low, leaving the vast majority of citizens without reliable power. 2 | APAC Outlook Issue 82
In recent years, however, the sector has evolved significantly through targeted legal, structural, and international interventions. Indeed, the National Energy Authority (NEA) was established in PNG in 2021, modernising regulatory frameworks and paving the way for decentralised energy management and private sector investment.
PNG POWER LTD ENERGY & UTILITIES
PNG POWER LTD ENERGY & UTILITIES
PPL – AT A GLANCE PPL is a fully integrated power authority in PNG responsible for the generation, transmission, distribution, and retail of electricity. The company’s Board of Directors consists of seven members, appointed in accordance with Section 12 of the Kumul Consolidated Holdings Act 2002. With the needs of its stakeholders in mind, the board is dedicated to fulfilling its duties in a lawful and professional manner, with the utmost integrity and objectivity. Serving customers in almost all urban centres throughout the country – including industrial, commercial, government, and domestic needs – PPL is a full-service energy provider whose work also extends to rural communities. Previously, the company performed a regulatory role on behalf of the Independent Consumer and Competition Commission (ICCC), which included approving licenses for electrical contractors and providing safety advisory services for major installations. Under recent legislative reforms, these powers have been fully transferred to the NEA. Corporatised under Section 3 of the Electricity Commission (Privatisation) Act 2002 as the successor to the Papua New Guinea Electricity Commission (ELCOM), all ELCOM’s assets, liabilities, rights, and titles were transferred to PPL.
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These structural shifts have unlocked massive opportunities for renewable energy. By leveraging the country’s vast rivers and expansive, sunny stretches of surplus land, the government has pivoted aggressively towards large-scale hydropower and solar farm initiatives. Despite these positive developments, however, significant challenges remain such as capital shortages and routine infrastructure failures. Resolving these deep-rooted issues will require an unprecedented level of capital investment, institutional discipline, and strategic international coordination – something PNG Power Ltd (PPL), the country’s primary electricity authority, is on a mission to deliver. Indeed, ongoing transformative practices within the country’s energy landscape aim to repair these vulnerabilities, shifting PNG away from its reliance on fossil fuels and towards a cleaner, more resilient energy future.
RESILIENCE, SUSTAINABILITY, AND CUSTOMER FOCUS PPL is a fully integrated state-owned utility responsible for generating, transmitting, distributing, and retailing electricity in PNG. As the nation’s sole power provider, it operates three major grids – Gazelle, Port Moresby, and Ramu – plus 17 provincial systems, with 580 megawatts of installed capacity. The company serves more than 200,000 customers nationwide, ranging from rural households and government institutions to heavy industry and commercial businesses. Since Paul Bayly’s appointment as CEO of PPL in March 2025, he has overseen a major turnaround plan based on seven critical pillars designed to modernise and future-proof. “When I joined PPL, we had not turned a profit in 12 years and the company was technically insolvent, requiring urgent restructuring and recapitalisation,” recalls Bayly.
Coastal Fuel Limited is a locally-based company in Port Moresby with over ten years of experience in the fuel and lubricant distribution industry. We are backed by a wide-reaching network throughout Papua New Guinea. Our operations include managing two significant fuel storage facilities located in Port Moresby and Manus Island, which grants us the capacity to serve our clients reliably. Our objective is to provide efficient services within our existing capacity while also working to expand our reach across the nation. As a long-standing trusted partner to PNG Power Ltd, we supply fuel, lubricants, and vehicle rentals, grounded in commitment, trust, and ethical principles. In collaboration with our primary fuel and lubricant importer and distributor, we ensure a steady supply to power stations nationwide, aiding in keeping the power continuous. To support our clients’ operations, we offer an array of services and solutions: Storage Solutions: We provide 5,000-liter and 10,000-liter fuel tanks at no initial cost, with purchase options available under agreed terms.
INTERVIEW: WATLING SIKE WHAT IS ONE KEY ASPECT OF YOUR COMPANY YOU WOULD WANT TO SHARE WITH A POTENTIAL CUSTOMER YOU MEET IN THE ELEVATOR? Watling Sike, Founder and Managing Director (WS): Coastal Fuel Ltd distributes fuel and manages your inventory, ensuring we replenish your stock before it runs out. WHAT IS ONE STRENGTH THAT KEEPS CUSTOMERS AND CLIENTS RETURNING TO YOUR COMPANY? WS: We prioritize our customers, treating everyone like royalty, no matter their budget. HOW ARE YOU PREPARING YOUR COMPANY FOR THE
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PNG POWER LTD ENERGY & UTILITIES
The plan included advancing the Ramu transmission lines, upgrading turbines at Yonki, Pauanda, and Rouna, improving supply lines for mining operations, and reducing non-technical energy loss through the introduction of smart metering to safeguard network integrity and improve current systems. “These projects all aim to stabilise supply, reduce outages, and restore financial viability,” he observes. As the energy landscape continues to shift towards resilience, sustainability, and customer focus, this transition requires disciplined execution, with solar farms being one of the most important developments to reduce environmental impacts. PPL currently operates four solar farms, with three more under construction across key locations. “The private sector is also getting involved, and we have a number of solar farm proposals out for which we have signed, or will soon sign, power
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purchase agreements (PPAs). This is an exciting development for PNG,” Bayly outlines.
ACCELERATING ELECTRIFICATION The Asian Development Bank (ADB) recently agreed to loan PPL USD$100 million, providing a policy-based framework to restore sustainability across PNG’s power sector, recapitalise the company, and enable private sector participation in future projects. The loan is part of a larger funding package for the Sustainable Energy Sector Development Programme, which is shifting reliance away from
expensive diesel and towards cleaner, low-carbon, and renewable energy sources to restore the financial and operational health of PNG’s power sector over the next decade. “The ADB’s involvement supports governance reforms, strengthens state-owned enterprise accountability, and funds clean energy expansion,” states Bayly. Half of the funding is going directly into immediate, urgent repairs to stabilise the PNG grid, with the rest supporting PPL’s internal finances and enabling the company to transform into a green energy champion driving PNG’s growth.
“ T H E A D B ’ S I N V O LV E M E N T S U P P O R T S G O V E R N A N C E R E F O R MS , S T R E N GT H E N S S TAT E - O W N E D E N T E R P R I S E ACCOUNTABILITY, AND FUNDS CLEAN ENERGY E X PA N S I O N ” – PAUL BAYLY, CEO, PNG POWER LTD
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PNG POWER LTD ENERGY & UTILITIES
PPL’S VISION, MISSION, AND IMPACT Vision – To expand electricity access across every corner of PNG • Enhancing the socioeconomic development of the nation by leading the development and expansion of electricity supply, aligning and utilising the resources of PPL, government, and the private sector. • Making a significant contribution to economic growth and quality of life for PNG’s citizens by providing reliable and affordable electricity access. Mission – To provide safe, reliable power delivered with integrity and care • PPL is dedicated to providing a safe, reliable electricity service and promoting a profitable, professional, and growing company whilst contributing to the development and well-being of present and future customers. Impact • Urban and commercial coverage – Providing reliable electricity supply to Port Moresby, Lae, and major urban centres powering businesses and households. • Rural extensions – PPL provides rural and remote communities across all provinces of PNG with grid access. • Regulatory role – Operating under the regulatory oversight of the NEA, the company is dedicated to ensuring fair tariffs, service standards, and consumer protection. • Licencing and certification – PPL is on a mission to maintain safety standards nationwide by licensing electrical contractors and certifying equipment.
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“This financing is critical to stabilising PPL’s balance sheet and preparing us for partial privatisation,” he confirms. Bayly and his team have worked assiduously to continue developing deep relationships between PPL and its long-term donors such as the ADB, World Bank, and Australian government. “Their support is critical. These partners bring not only financing but also technical expertise and capacity building,” Bayly emphasises. “They help us to accelerate electrification, integrate renewables, build in-house skills development, and ensure we can deliver on our electrification and renewable energy goals. Without them, our transformation would be far slower,” he adds.
RESTRUCTURING THE GRID As it looks to invest in hydropower and transition away from diesel, PPL is upgrading its Rouna, Yonki, and Warangoi hydropower stations to increase renewable generation and grid stability.
“Hydropower is PNG’s greatest energy asset, which is why we’re upgrading these power stations to boost renewable generation,” highlights Bayly. PNG has a vast hydropower potential of around 15 gigawatts, which is why projects such as Ramu 2 and Naoro Brown are being advanced rapidly with corporate backing. PPL acts as the primary offtaker for both projects under PPAs, helping private developers to build the dams whilst promising to buy the electricity to sell to homes and businesses. At the same time, the company’s work in this area is reducing reliance on costly and environmentally unsustainable diesel fuel generators. “Projects like Ramu 2 and Naoro Brown will be game-changers in cutting costs, emissions, and fossil fuel dependence,” he notes. Elsewhere, PPL is working with the government to restructure the three main grids in PNG – Gazelle, Port Moresby, and Ramu – to decentralise operations, reduce single points of failure, and improve reliability.
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PNG POWER LTD ENERGY & UTILITIES
“Restructuring the grids was necessary to revitalise PPL. Whereas all major decisions were previously made in our head office, we have now decentralised operational control and accountability back to the main centres,” Bayly points out This has helped PPL provide quicker and better local responses, with the overall objective of reliability, efficiency, and financial sustainability for every consumer. The government’s six-month rescue plan includes selling lossmaking provincial centres, focusing investment on profitable grids, and preparing for partial privatisation options.
PNG ELECTRIFICATION PARTNERSHIP Currently, only around 21 percent of PNG’s population has access to electricity, leaving millions of citizens without reliable power. 10 | APAC Outlook Issue 82
Through the PNG Electrification Partnership with Australia, the US, Japan, and New Zealand (NZ) – in which PPL plays a central role – the company is working towards providing 70 percent of households with access to electricity by 2030. The highly ambitious USD$1.7 billion international initiative is designed to transform PNG’s energy
landscape by building out physical energy infrastructure, including power generation plants, transmission lines, and localised rural grids for remote communities. In addition, the institutional overhaul is expected to include improving regulatory frameworks via partners like the National Association of Regulatory Utility Commissioners
PPL – IN NUMBERS • 200,000+ total customers – Comprising households and businesses connected to the national grid across PNG. • 22 provinces served – PPL provides nationwide coverage and delivers electricity to every province in the country. • 30+ years serving PNG – Powering communities, industry, and growth across the nation for over three decades. • 3,500+ daily online payments – Through PPL’s dedicated payment platforms.
PNG POWER LTD ENERGY & UTILITIES
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to unlock private sector investment and foster growth. The partnership pools capital, expertise, and regulatory support from the four main donor nations, with Australia acting as the primary operational coordinator, injecting direct capital through the Australian Infrastructure Financing Facility for the Pacific. The US is offering funding support through the US Agency for International Development, Japan is providing specialised technical cooperation through the Japan International Cooperation Agency, and NZ is focusing its development funding strictly around rural electrification schemes to help isolated villages. “Reaching 70 percent coverage across the country will require over USD$700 million in targeted investment. It’s ambitious, but achievable with combined grid
expansion and off-grid solutions,” Bayly states.
STRATEGIC FUTURE INVESTMENT Having revived its apprenticeship programme after a six-year hiatus, PPL has recently recruited 200 apprentices across five trades – electrical fitting, lines mechanic, power station operator, diesel mechanic, and hydro mechanic. With training taking place at PPL’s training college in Hohola, the programme is more than just a recruitment milestone – it’s a strategic investment bridging the skills gap within the PNG energy sector. Vice Minister for State-Owned Enterprises, Raphael Tonpi, who attended a reopening ceremony last year, acknowledged how PPL’s work in this area directly supports the government’s agenda to expand technical and vocational pathways,
reduce unemployment, and build resilience in critical industries. Apprentices are now rotating through various PNG power centres as part of their education, learn from seasonal professionals, and complete block courses at the company’s training collage, graduating after four years with not only trade certificates but also the skills and confidence to lead PPL into a new era. “This is a long-term investment in workforce sustainability and a way to tackle youth unemployment,” prides Bayly. Indeed, PPL is committed to building a sustainable workforce that will power PNG for years to come. “This year, we will also reactivate our Graduate Development Programme (GDP), which will see 20 graduates joining PPL to undertake a formal 12-month training programme,” he informs us. APAC Outlook Issue 82 | 11
PNG POWER LTD ENERGY & UTILITIES
PPL’S SEVEN GUIDING PRINCIPLES Customer service excellence • Offering prompt, courteous, and helpful advice. • Being attentive towards customers’ needs. • Maintaining open dialogue. • Undertaking informative education programmes. Performance excellence • Focusing on effective staff development and training. • Recruiting motivated and proficient staff members who take pride in their achievements. • Curating an organisation with a strong work ethic and responsible attitudes. • Cultivating a workplace environment conducive to personal and team fulfilment. Technical excellence • Always ensuring employee and customer safety. • Meeting quality and reliability requirements to international standards. • Using modern technologies practically yet innovatively. • Implementing proactive preventive maintenance programmes. Corporate integrity • Promoting honest, professional, and ethical conduct in the workforce. • Encouraging each staff member to cultivate their own work commitment values. • Providing internal and external transparency in all procedures. Leadership and teamwork • Adopting considerate and helpful attitudes amongst employees. • Fostering open and transparent dialogue across the workforce. • Encouraging pride in team performance and achievements. • Enabling staff members to achieve corporate goals by providing a cooperative work environment. • Participating in community services and activities. Accountability • Taking accountability for work quality and outcomes. • Ensuring quality of service when communicating with customers. • Enacting transparent business management with stakeholders. • Maintaining active communication with shareholders to ensure successful commercial outcomes. Achieving success • Exceeding customer expectations. • Meeting commercial targets. • Striving to always complete tasks on schedule. • Aiming to achieve corporate growth. • Cultivating a motivated and fulfilled workforce.
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The comprehensive GDP gives young professionals a direct pathway to permanent jobs in the energy sector. “This is the thing that excites me the most about the future of PPL,” Bayly reflects.
TURNAROUND STRATEGY As it looks ahead, PPL’s priorities are clear as it embarks on a comprehensive turnaround strategy designed to secure financial independence and transition PNG’s energy future. To achieve this, the company is seeking to achieve operational excellence as it works to reduce unscheduled power outages and commercial losses across its networks. In line with its efforts to embrace environmental responsibility,
“A G O O D B U S I N E SS C A N B E R U I N E D BY T H E W R O N G PEOPLE, BUT A BAD BUSINESS CAN BE TURNED AROUND WITH THE RIGHT PEOPLE. LEADERSHIP IS ABOUT BUILDING TRUST, EMPOWERING TEAMS, AND STAYING FOCUSED ON THE MISSION” – PAUL BAYLY, CEO, PNG POWER LTD
renewable integration is also a key priority for PPL, which is why it is expanding its hydropower projects and regional solar farms. It is hoped this shift will contribute to reducing PNG’s heavy reliance on fossil fuels. Grid modernisation is at the top of PPL’s agenda as it actively upgrades legacy infrastructure through the deployment of smart technologies, automated distribution systems, and climate-resilient hardware capable of withstanding severe weather events.
Elsewhere, a primary corporate focus is to stabilise the company’s balance sheet by restructuring legacy debts and improving revenue collection. PPL is preparing its financial foundation to attract the private capital necessary for eventual privatisation. To rebuild public confidence, PPL is also introducing flexible payment models, such as its Easipay pay-as-you-go system, to improve affordability whilst boosting
power reliability for residential and commercial users. Reflecting on the crucial characteristics of leadership, particularly given the adversity PPL has faced in recent years, Bayly highlights the recent resilience the company has shown. “A good business can be ruined by the wrong people, but a bad business can be turned around with the right people. Leadership is about building trust, empowering teams, and staying focused on the mission,” he resolutely concludes.
Tel: 324 3201 / 324 3202 info@pngpowermail.com.pg
www.pngpower.com.pg APAC Outlook Issue 82 | 13
Tel: 324 3201 / 324 3202 info@pngpowermail.com.pg www.pngpower.com.pg
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