The Ramu 2 Hydro Power Project is expected to increase total electricity generation capacity in Papua New Guinea by 36%, according to the Managing Director of Kumul Consolidated Holdings, Garry Hersey. It’s one of five new energy projects launched recently.
The project, which was launched late last week, has been on the drawing board since 2008. When completed, it will lift the Yonki dam’s electricity capacity from the current 93MW to 273MW. The capacity of Ramu 2 will be 180MW.
Ramu 2 will be based on a public-private partnership (PPP) model, which will see traditional landowners assume equity, says Garry Hersey, Managing Director of Kumul Consolidated Holdings (KCH), which is managing the project.
He says construction of the estimated US$2 billion (K 5.97 billion) project should begin in December 2016.
Kumul Consolidated Holdings’ Garry Hersey
Private sector partner
Hersey says KCH is now in the process of finalising the structure to attract a private sector development partner.
‘The launch will now enable our consultants to move in to complete social mapping, deliver awareness, undertake environmental and social impact studies and mobilise landowners to corporatise so that they can participate in the PPP model.’
The launch of the Ramu 2 project is one of five recent agreements using renewable energy to supply additional power to PNG.
Edevu Hydropower
PNG Power has agreed to buy power from the Edevu Hydropower project, a 50 MW capacity station to be built along Brown River, about 40 kilometres from Port Moresby.
Chinese company, PNG Hydro Development, will build the project over the next five years.
Biomass Power
Eucalypt trees in Markham Valley. Credit: PNG Biomass
PNG Biomass will use wood chips from new plantation trees grown and sustainably harvested in the Markham Valley, in Morobe Province, to provide up to 30MW of base load power to the Ramu grid.
The construction of an initial 15 MW unit is due to commence in late 2016, with the unit expected online in late 2018.
PNG Biomass is a joint venture between Oil Search (70%) and Aligned Energy (30%), an international biomass energy consultancy.
Highlands Power
Highlands IPP (100% owned by Oil Search) will construct an initial 2 MW gas-fired pilot power project located near Hides in the Hela Province, with potential to ramp up to 5 MW in the short-term and up to 65 MW by 2030.
Baruni waste project
Baruni dump. Credit: Operation Food for Life
PNG Power has also signed an agreement with Landfill Energies to turn waste at Port Moresby’s Baruni dump into power.
‘Most of the trash dumped daily at the Baruni landfill area to usable power energy that will be able to supply 2 megawatts of power to the city grid, boosting power to the residential and business houses,’ according to Landfill Energies Director, Del Smeeton.
He told EMTV the project will start in 2016.
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I believed that the current Economic and social development relies on an electricity system that delivers for everyone. Economic growth moves hand in hand with increased electricity supply. For social development, access to clean, affordable and reliable energy is of utmost importance.
PNG’s development ambitions cannot be achieved without energy supply improvements, delivered at a pace and scale that are unprecedented. Supply must increase by 225 per cent, or 7.2 per cent per year to meet PNG’s stated development goals, with the fastest growth in rural areas where current electricity outcomes and capabilities are weakest. we have been depending largely on Yonki dam and now I believe that Ramu 2 Hydropower Project is and will bost our Economy and the living standards of every citizens of PNG.