Following on from his recent interview with Business Advantage PNG, new PNG Power Limited CEO Paul Bayly expanded on the utility’s turnaround plan at the 2025 Business Advantage PNG Investment Conference. In his speech, he shared a list of near-term projects which would assist with the turnaround and include “opportunities for would-be investors”.

PNG Power CEO Paul Bayly speaking at the 2025 Business Advantage PNG Investment Conference. Credit: BAI/Stefan Daniljchenko

1. Upgrading transmission lines between Yonki and Lae, and Tari and Yonki (Momase and Highlands Regions)

Benefit: Improved supply and reduced outages
Expected commissioning: September 2025
Expected annual contribution to PPL: K20 million

Transmission lines at Yonki. Credit: PPL

These upgrades on PNG Power Ltd’s major Ramu Grid would fix current structural viability issues, making the lines less vulnerable to damage from falling trees, Bayly said.

“At the moment when an old line goes, either through deliberate or otherwise, it takes the whole town of Hagen or Lae out,” he said.

These transmission lines also represent the potential for more consistent power through PNG’s Highlands Region, as the new transmission lines will mean power remains consistent even as the old infrastructure is being repaired, Bayly said.

2. Hidden Valley: security of supply (Morobe Province)

Benefit: Elimination of fuel rebate
Expected commissioning: September 2025
Expected annual contribution to PPL: K15 million

As its current contract stands, PPL is required to provide consistent electricity to Harmony Gold’s Hidden Valley gold mine, with PPL being liable for 95 per cent of the fuel costs in the event of incomplete supply.

Bayly noted PPL will now use PNG Forest Products’ hydropower capacity, “and they’re going to supply them [Hidden Valley] full on to meet their mining requirements.”

3. K92 Mining Transmission Line extension (Eastern Highlands Province)

Benefit: Demand for 18 MW, growing to 25 MW
Expected commissioning: December 2025
Expected annual contribution to PPL: K80 million 

Bayly outlined that part of K92 Mining’s “ambitious” plans included requesting that PPL expand its operations around the mine to accommodate a higher energy demand of 25 megawatts within the next two years.

“We’re building a new dedicated line for K92. The uplift for us will be extraordinary in terms of the revenue,” said Bayly.

4. Ramu 1 turbine upgrades (Eastern Highlands Province)

Benefit: Extra 5 MW supply
Expected commissioning: December 2025
Expected annual contribution to PPL: K25 million

The Ramu 1 turbine upgrade at PPL’s Ramu hydropower plant, slated for completion December 2025, is being managed by a German company.

“[It’s] just improving the efficiency of our turbines at Yonki,” said Bayly.

“Every megawatt hour that we produce is just money. It just cranks the machine.”

5. Rouna: commissioning of new turbines (Central Province)

Benefit: Increase of 7.5MW and reduced IPP generation
Expected commissioning: Dec 2025
Expected annual contribution to PPL: K90 million

The turbine commissioning at the Rouna I power plant just outside Port Moresby is a “case study” for the decline of PPL, said Bayly.

“The contractor has just come to us for a fourth time extension. They’re supposed to have the project finished by December [2025].”

The Rouna project represents a major opportunity to turn around PPL, as current issues with Port Moresby’s power supply cost PPL K90 million annually, on top of which PPL pays independent power producers to make up for any energy shortfall.

He said that the project’s delay had cost PPL K350 million over the last three-and-a-half years. “It’s pretty significant.”

6. Pauanda–Kaupena substation connection (Southern Highlands Province)

Benefit: Supplementary supply to Mt Hagen
Expected commissioning: May 2026
Expected annual contribution to PPL: K5 million

Bayly recently visited Pauanda to review the re-opening of its second turbine, which had not been operational for two years.

“This visit represented a success on a number of levels for PPL” he said. “Our people, unbeknownst to anyone at the head office, had built the supply line from the Pauanda dam up to Kaupena, which is a new substation, completely just using materials to hand.”

The current plan for the substation is to add a connection into Mt Hagen via the 132 kVA line.

“This means that when that’s done, we can still continue to feed Hagen via Pauanda.”

7. Ramu: tunnelling option

Benefit: Extra 30 MW (currently being explored by AG)
Expected commissioning: Late 2026
Expected annual contribution to PPL: K200 million

The largest project in terms of the potential added revenue is tied to a “big opportunity” to expand the Ramu power station.

“Ramu was built, designed for three turbines. It’s got five. And the tailgate wash system is not big enough to handle the water flow. So we can run about three and a half [turbines],” Bayly said.

Currently, PPL is looking at tunnelling solutions to avoid shutting off the power station entirely during the project.

“I’ve told the minister and the prime minister, there’s no way we’re going to turn off Ramu. We will find a solution that keeps Ramu operating and we’ll tunnel it.”

To read Paul Bayly’s exclusive interview last month with Business Advantage PNG, click here.