Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2015
Effective Start Year: 
2016
Effective End Year: 
2020
Scope: 
National
Document Type: 
Overarching Policy
Economic Sector: 
Energy, Power
Energy Types: 
All, Coal, Oil, Power, Renewable, Hydropower, Solar
Issued by: 
Department of Public Enterprises and Department of Petroleum And Energy
Overall Summary: 
The document sets out the national policy and strategies for the energy sector that are aligned to the legislative reforms in tandem with Papua New Guinea’s Vision 2050. In particular, the Government recognizes the need to manage the energy sector in a manner that is efficient and sustainable. The overall objective is to ensure affordable, competitive, sustainable and reliable supply of energy to meet national and provincial development needs at least cost, while protecting and conserving the environment. In particular, the country aims to promote 100% electricity usage from renewable energy sources by 2050.The document is organised into twelve substantive chapters, starting with the Introduction in Chapter 1. Chapters 2 provide the overview of the energy sector in PNG and the principles of the Policy; Chapter 3 and 4 treat in detail the primary energy sources, namely Fossil Fuels and Renewable Energy, including electricity generation from geothermal and hydro resources. Chapter 5 covers transportation of fuels; Chapter 6 deals with the secondary energy source, Electricity, followed by Chapter 7 which details the unbundling initiatives for PNG Power Ltd, Chapter 8 deals with Indigenous Participation. Chapter 9 covers Energy Financing, Trading, Pricing and Socio-Economic Issues. Chapter 10 deals with Energy Efficiency and Conservation. Chapter 11 covers Land, Environment, Health and Safety whilst the final Chapter 12 details the new proposed Institutional Arrangements to be implemented under the policy.
Access
Bi-, multi-lateral mechanisms to expand access: 
Seek funding from development partners for specific programmes especially in areas less attractive to the private sector and complement self-help groups and private sector efforts in rural electrification projects. ---Support the activities of organizations and bodies that deal with rural electrification initiatives. --- Implement cooperation arrangements with Provincial Governments and Local Level Governments for accelerated implementation of rural electrification programme. ---Provide incentives to attract investment in petroleum retail networks in the remote areas of the country.
Energy access priorities: 
The overall objective of the energy policy is to ensure affordable, competitive, sustainable and reliable supply of energy to meet national and provincial development needs at least cost, while protecting and conserving the environment. ---Improve quality of life for every citizen and provide a platform for strong economic growth through sustainable development of the energy sector in line with Vision 2050.
Energy access action plan: 
Promote the National Electrification Roll-Out Plan (NEROP) for Grid extension and off-Grid stand-alone power supply system.---a. Promote electricity generation for domestic needs from diversified energy sources.---Promote oil & gas downstream processing for domestic energy needs.---Develop the gas sector by: ensuring the safe supply of gas to end users;[...].---Promote domestic and community based biogas plants to cater for the urban poor.---Roll out biogas initiatives to supply the remaining public institutions including prisons, schools and hospitals as well as biogas bottling plants across PNG.---Promote the use of hybrid power generation systems involving solar and other energy sources to manage the effects caused by the intermittent nature and availability of solar energy.---Plan transmission lines to facilitate evacuation of power from areas with high wind potential to major load centres. ---The government will provide necessary support for the implementation of the renewable energy projects in the populated areas including facilitation of acquisition, relocation and resettlement of project affected person.---Put in place mechanisms to ensure that the local communities benefit from developments of the electricity supply infrastructure.---Regulator to develop appropriate standards and mechanisms for consumer protection including but not limited to reliable, and stable, power supply includes repair and maintenance time lines. The regime should include penalties.---As part of its mandate, PPL is currently undertaking new transmission projects aimed at developing a robust grid system to:-Enable evacuation of the additional transmission lines across existing system, including economic corridor system inter-connections. Improve quality and reliability of electricity supply throughout the country by ensuring adequate evacuation capacity. ---Reduce the cost of electricity to the consumer by absorbing the capital cost of transmission lines since they will be fully funded by the National Government.---The Government will continue funding the development of distribution network in rural areas and continue to support strengthening of distribution network in the rest of the areas through licensed distributors.---Develop a rural electrification master plan.---Promote off-grid renewable energy technologies. ---Give impetus to the National Electrification Program Fund (NEPF) to empower the economically unviable areas.
Energy access targets: 
Install solar PV systems in 50% of all the remaining public facilities in the off grid areas.
Clean cooking solutions: 
Promote and update standards for efficient conversion and cleaner utilization of biomass including cleaner charcoal and wood burning stoves.---Promote the use of biomass briquettes as alternatives to wood fuel and kerosene in cooking, water heating and steam generation.---Undertake a comprehensive study on the viability of use of renewable sources with a view to eliminating use of kerosene in households.
Consumer subsidies: 
Government shall continue to play an important role in the regulation of retail competition, including issues of prices control and market ownership in the ESI and allow for a lower tariff for rural electricity users based on Long run marginal cost (LRMC). ---Government shall where necessary cushion Papua New Guinean consumers from the negative effect of high petroleum prices. ---Reduce the cost of electricity to the consumer by absorbing the capital cost of transmission lines since they will be fully funded by the National Government.---Create a rural electricity funding mechanism.---Provide incentives to both users and producers of energy technologies in rural areas.
Efficiency
EE priorities: 
Promote efficient systems and safety in energy supply in all sectors (transport, residential, commercial, industrial and agriculture).---Energy conservation and efficiency will be promoted in the design of hydropower plants.---Promote generation from renewable energy resources based on least cost and efficiency criteria.
EE action plans: 
Promote policy and regulatory framework for greater use of appropriate, cost effective and energy efficient modes of transportation including public transport.---Draft and enforce an Energy Efficiency Policy within one year of NEA’s creation. ---Promote energy audits in factories and industrial locations and demand-side management programmes in all sectors of the economy.---Establish energy efficiency/conservation projects certification schemes.---The Government shall promote the utilisation of Combined Cycle Gas Turbine (CCGT) plants to increase efficiency.
EE standards for appliances: 
Ensure minimum energy performance standards for electrical equipment, and adoption of building energy codes and other Standards for safety.
EE labeling: 
Promote minimum energy performance standards and appliance labelling to all electrical equipment and appliances in collaboration with PNG Customs Services (PNGCS), National Institute of Standards and Industrial Technology (NISIT), Independent Consumer and Competition Commission (ICCC) and other relevant stakeholders.
EE building standards: 
Ensure minimum energy performance standards for electrical equipment, and adoption of building energy codes and other Standards for safety.---Promote the concept of energy efficient buildings in accordance with Building Act and Regulations
EE public awareness/promotional programmes: 
Create awareness on the benefits resulting from development of clean energy technologies.
Cooperation in EE: 
Encourage development partners to establish financial facilities for financing energy related projects at minimal interest rates especially for renewable energy and energy efficiency projects
Renewable Energy
RE priorities: 
Promote solar-power and solar-thermal systems and LPG for residential commercial and public institutions. ---Promote best practise energy supply systems for agriculture industries.---Promote the maximum use of renewable energy resources for electricity generation. ---Promote the introduction of renewable fuels (biofuels) for use in the transport and power generation sector.---Energy conservation and efficiency will be promoted in the design of hydropower plants.---Promote the wide spread use of solar energy while enforcing the existing regulations and standards.---Promote off-grid renewable energy technologies.
RE targets: 
Promote one hundred percent electricity usage from renewable energy sources by 2050.---Install solar PV systems in 50% of all the remaining public facilities in the off grid areas.---Promote installation of at least 100,000 units of solar PV home solar systems by 2020.---Facilitate development of wind power generation of at least 100MW by 2030
RE action plans: 
The Government will continue to promote and encourage feasibility studies to develop large hydro potential in the country. ---The Government shall draft a new legislation specifically to regulate Renewable Energy.---Undertake a comprehensive study on the viability of bottling biogas for rural development. ---Roll out biogas initiatives to supply the remaining public institutions including prisons, schools and hospitals as well as biogas bottling plants across PNG.---The Government shall draft a new legislation specifically to regulate Solar Energy. ---Roll out a programme to distribute solar lanterns as substitute for kerosene in lighting rural areas, poor peri-urban and urban settlements.---Develop a programme to convert diesel stations to hybrid power generation systems harnessing solar energy. ---The Government shall draft a new legislation specifically to regulate Wind Energy. ---Enhance the institutional capacity to promote wide spread use of wind energy while enforcing the existing regulations and standards.---Promote the use of hybrid power generation systems involving wind and other energy sources.---Revitalize the existing Department responsible for Petroleum and Energy matters in PNG and establish others with a view to promote renewable energy use. ---Promote community based power generation. ---Establish a Renewable Energy Research Centre (RERC) under the auspices of the new National Energy Authority (NEA) and supported by other Research Institutions in the country and abroad for the handling of renewable energy promotion, potential analysis, mapping and other related studies. ---Promote generation from renewable energy resources based on least cost and efficiency criteria.
RE feed-in tariffs: 
Develop model Power Purchase Agreements for the various modes of generation under FiT.---Provide capacity building and financial assistance to community based projects.---Expand the scope of FiT to include the emerging technologies.---Set minimum and maximum tariffs to guide the negotiations for PPA under the FiT.---Review the FiT Policy to include operations and maintenance escalation components.
Net metering: 
Provide a framework for connection of electricity generated from solar energy to national and isolated grids, through direct sale or net metering.---Provide a framework for connection of electricity generated from wind energy to national and isolated grids, through direct sale or net metering.---Develop a tariff for net metering for electricity generated from renewable energy sources by electricity consumers.
Biofuels obligation/mandate: 
The Government shall formulate the Biofuels Policy as a matter of urgency and align it with this Energy Policy.---Provide fiscal incentives for bio-fuel production plant and equipment in so far as such entities are marketing the products solely for blending. ---Pilot a 10% ethanol-gasoline (E-10 Mandate) blend in Government vehicles and in public transport vehicles.---Pilot 1% biodiesel blend in Government vehicles and in different blending ratios for use as hybrid fuel at isolated power generation plants.---All gasoline vehicles in PNG to be using at least 10% ethanol gasoline (E-10 Mandate) blend.---Provide incentives to encourage all diesel vehicles in the country to use at least 5% biodiesel.
RE heat obligation/mandate: 
Ensure that all commercial buildings adopt solar and hybrid solar energy sources for water heating and lighting. ---Develop a programme for raising awareness on requirements for conformity with mandatory regulations for solar water heating systems.
RE capital subsidy, grant, or rebate: 
Promote small micro-enterprises through fiscal incentives to reduce small hydro’s start-up costs. ---Provide incentives to promote the local production and use of efficient small hydro power systems. ---Provide incentives to encourage all diesel vehicles in the country to use at least 5% biodiesel.---Provide incentives to promote the local production and use of efficient solar systems.---Provide incentives to promote the local production and use of efficient wind systems.---Provide fiscal incentives on wind energy equipment. ---Provide incentives to promote cogeneration from biomass. ---Provide incentives for conversion of municipal waste to energy.
RE reductions in taxes: 
Provide fiscal incentives on solar panels and equipment.
RE public awareness/promotional programmes: 
Create awareness and disseminate information on the benefits of small hydros and its coexistence with other usages of the resource.---Create awareness on the importance and viability of growing bio-fuel feedstock among the public. ---National and Provincial Governments to initiate capacity building programmes in institutions such village polytechnics on biogas installation, operation and maintenance skills.---Use public trade fairs, workshops, seminars and energy centres to demonstrate and disseminate information on the importance and viability of growing bio-fuel feedstock among the public. ---Create awareness on the potential opportunities and economic benefits offered by solar energy technologies.
Public investment loans or grants: 
Partner with financiers to enable the public to access credits schemes.
Cooperation in RE: 
Encourage development partners to establish financial facilities for financing energy related projects at minimal interest rates especially for renewable energy and energy efficiency projects
Environment
Energy environmental priorities: 
The overall objective of the energy policy is to ensure affordable, competitive, sustainable and reliable supply of energy to meet national and provincial development needs at least cost, while protecting and conserving the environment. ---Minimize the adverse impact of energy production, distribution and consumption within the framework of the Environmental Act 2014 [...].---a. Ensure safe transportation of energy products and wastes.---Enhance public participation in the management, protection and conservation of the environment.---Establish green energy certification schemes.
Pollution control action plans: 
The Government will ensure that all equipment procured for thermal power plants shall be designed and constructed to minimise the environmental impact while giving consideration to visual impact, wildlife and temporary disturbance during construction, maintenance and operation.---Enforce compliance for pollution prevention and reduction in thermal power plants.
Decarbonization strategy: 
Promote and support efforts in the conservation and maintenance of forests and appropriate marine resources, aquifers as carbon sinks.---Collaborate with other relevant ministries and other stakeholders to grow and sustain tree cover to above 10%.---Collaborate with other stakeholders to ensure efficient use of land resource to minimize the adverse effects arising from competition for land use between biomass energy and food production.---Identify and reserve land for use in biomass energy production and undertake awareness programmes to sensitize the public on the importance of the various land uses such as for biomass, food production and other human needs.---Create awareness on the importance and viability of growing bio-fuel feedstock among the public.
Carbon markets: 
Seek financing of clean energy projects through carbon credits under clean development mechanism green energy through relevant government agencies.
Land use change for energy production purposes: 
Collaborate with other stakeholders to ensure efficient use of land resources to minimize the adverse effects arising from competition for land use between liquid bio-fuel feedstock and food production.
Gas flaring: 
Flaring of natural gas must be regulated by way of formulating a gas flaring policy and regulation
Cooperation in env.: 
Support international action on reduction of greenhouse gases and ozone depleting substances from energy standpoint.
Pricing
Fossil fuel subsidies: 
Provide incentives for investments in marginal oil and gas discoveries that could have the potential to deliver much financial and socio- economic value.---Adopt a transfer pricing mechanism to address the possibility of tax avoidance by affiliated parties in the gas value chain, based on international best practice guidelines for transfer pricing. ---Offer more favourable fiscal terms for natural gas including more favourable profit splits as an incentive for natural gas exploration and development.---Enhance consumption of LPG, being an environmentally friendly and economic modern fuel by: [...] (b) Providing fiscal incentives on LPG and related appliances. [...].---Provide appropriate incentives to facilitate and support public and private investments in the development of petroleum infrastructure including petroleum jetties, gas filling terminals, loading and storage facilities in all parts of the country at least costs.---Government shall where necessary cushion Papua New Guinean consumers from the negative effect of high petroleum prices.---Provide incentives for investment in centralized gas reticulation systems.
Renewable energy subsidies: 
Promote small micro-enterprises through fiscal incentives to reduce small hydro’s start-up costs. ---Provide incentives to promote the local production and use of efficient small hydro power systems.---Provide fiscal incentives for bio-fuel production projects, plant and equipment in so far as such products are used to meet energy demands.---Provide fiscal incentives for bio-fuel production plant and equipment in so far as such entities are marketing the products solely for blending.---Provide incentives to promote the local production and use of efficient solar systems. ---Provide incentives to promote cogeneration from biomass.
Energy taxation: 
The Government shall support open access of the transmission network taking into account existing contractual commitments and provide a mechanism for determination of wheeling charges applicable to transmission lines.
Energy pricing: 
Government shall continue to play an important role in the regulation of retail competition, including issues of prices control and market ownership in the ESI and allow for a lower tariff for rural electricity users based on Long run marginal cost (LRMC). Any control mechanisms in ICCC shall be gradually transferred to Energy Regulatory Commission (ENERCOM).---Continuation of petroleum and gas agreements but with fiscal terms taken out and included in the general legislation. ---The objective of this policy is to reduce the current high business cost structure in PNG which is a major disincentive to business and investment in the country. Hence, the Government aims to ensure the price of refined fuels in PNG is reduced by 40 – 50 percent of the current market price which is based on the Import Parity Price (IPP). ---The PNG Government considers that the most appropriate way to support the economy and the citizens is to establish the appropriate policies as well as regulatory and legislative frameworks for a strong and robust market economy where competition is promoted so the correct price is set by the market forces. ---The proposed NEA, must design an appropriate tariff structure, and set out multiyear tariff for the electricity industry, subjecting it to review at appropriate terms, as it sees fit.
Energy Supply and Infrastructure
Energy supply priorities: 
The Government shall promote an intensive coal exploration programme and efficient utilisation of coal resources while minimising the environmental impacts associated with its use.---The State should be an active participant in the development of all energy resources.---Diversify the development and utilization of energy resources for the nation’s well-being and economic prosperity.---Promote oil & gas downstream processing for domestic energy needs.---The Government recognises the significance of the industry and is determined to promote efficiency in the overall administration and regulation of the hydrocarbon industry.---Promote and encourage direct uses of geothermal resources such as utilization of heat, water, gases and minerals.--- Improve quality and reliability of electricity supply throughout the country by ensuring adequate evacuation capacity.
Infrastructure development priorities: 
In carrying out its planning and development function regarding electricity and gas reticulation and energy regulation, every Provincial government shall set aside suitable land for energy infrastructure development purposes, including but not limited to projects recommended in the indicative national energy plans.---Develop oil and gas infrastructure such as crude oil pipelines and storage tanks, through PPP and JV arrangements where appropriate.---Midstream and Downstream Petroleum: Government to co-ordinate energy infrastructure development which are interlinked to facilitate efficient utilization of petroleum resources.--- Construct necessary infrastructure to support coal industry, including provision for handling import and export of coal.---Facilitate development of 10MW coal fired plant in Port Moresby, and development of other coal fired plants in other feasible sites in the country.---Develop an integrated infrastructure for coal storage, transportation and utilization to facilitate development of the coal industry.---Enhance infrastructure development for fossil fuels.---Provide necessary support for raising of Purari dam and other large scale hydropower projects.---As part of its mandate, PPL is currently undertaking new transmission projects aimed at developing a robust grid system to:-Enable evacuation of the additional transmission lines across existing system, including economic corridor system inter-connections. ---The Government will continue to fund the development of the national transmission system to enhance affordability. ---Ensure adequate and timely national transmission infrastructure is put in place including evacuation of electrical energy from early generation geothermal plants.
Cross-border energy infrastructure: 
Provide interconnection links with the neighbouring countries in order to facilitate power exchange and develop electricity trade in the region.
Regional integration priorities: 
The Government will establish the legal and regulatory mechanisms for competitive electricity market and further support regional integration of the power system to enhance regional power trade. ---Increase national and regional transmission network for full regional interconnection.
Trade
Import taxes and fee exemptions: 
Provide appropriate fiscal incentives for local manufacture as well as importation of biogas plant and equipment. ---Provide for high import duty for non-efficient energy technology while zero rating efficient technologies.
Advance rulings: 
Ensure oil and gas manufacturing, storage, handling and transportation meets the minimum safety standards for export and consumption.
Investment
Energy sector investment priorities: 
Invest in research on the production chain and sustainability of biofuels particularly biodiesel. ---Biomass Cogeneration: Accelerate investment in efficient and emerging technologies.---The Government recognizes the importance of the fuels market and how important it is to growing the PNG economy and to improve the living standards of the people. Therefore efficient management of the sector is an important priority of the Government.---Dedicating a certain percentage of the nation’s income from conventional energy sub-sector to support training, research, development demonstration and technology acquisition.
Financial incentives for energy infrastructure: 
The Government through the NEA shall: Explore and adopt all viable financing options from local and international sources for cost effective utilization of all its energy resources, and in so doing shall endeavour to maintain a competitive fiscal investment climate in the country.---The Government shall set up a Consolidated Energy Fund (CONSEF) to cater for funding of the proposed: a. National Energy Institute; b. Infrastructure development; c. Acquisition and management of strategic petroleum resources; d. Energy sector environmental disaster mitigation, response and recovery; e. Hydro risk mitigation; f. Energy efficiency and conservation programmes, and: g. Promotion of renewable energy initiatives.---Adequately fund the PNG Dams Limited to be the SPV/SOE to cater for large dams.
Tax and duty exemptions for energy equipment: 
Provide appropriate fiscal incentives for local manufacture as well as importation of biogas plant and equipment. ---Provide fiscal incentives on solar panels and equipment.
Independent power producers: 
Promote a competitive energy and electricity market environment for the expansion of independent power production and distribution.---Promote corporatisation and commercialization mechanisms for power utility and Independent Power Producers (IPPs) to facilitate improvements in power production, transmission, distribution and retail by relevant entities. ---Introduce model Production Sharing Contracts (PSC).---Open up off-grid areas in order to ease connectivity to electricity by constructing transmission lines to link them up to the national grid.
Local content requirement: 
The State to immediately formulate a Local Content Policy/Plan with the establishment of a Local Content Policy/Plan Committee, comprising relevant Government Institution such as Department of Commerce & Industry (DCI), Department of Labour & Employment, Industry representatives, and other stakeholders in the Energy Sector, i.e. Mining, Oil & Gas Industry. The State to assist Locally Owned Companies to attain world standards to meet Developer’s expectations. ---Ensure that petroleum exploration and production activities shall include technology transfer and development of local manpower; including engaging qualified local personnel as a priority. ---Provide incentives to promote the local production and use of efficient wind systems. ---Promote local manufacture and maintenance of cogeneration technologies. ---Higher rewards to be granted to Developers for complying with the Local Content objectives ---Priority to be given to Locally Owned Companies from the immediate Project Area, then from the respective LLGs, District, Province and finally to Nationally Owned companies [...].---The State to immediately formulate a National Content Policy/Plan with the establishment of a National Content Policy/Plan Committee, comprising relevant Government Institution such as Department of Commerce & Industry (DCI), Department of Labour & Employment, Industry representatives, and other stakeholders in the Energy Sector, i.e. Mining, Oil & Gas Industry.---Government to provide fiscal and monetary assistance to Nationally Owned Companies to assist them partake off opportunities available in Energy Projects. ---Priority to be given to SOE’s (Kumul Petroleum Holdings Company and National Gas Corporation in oil and gas sector) to participate for the collective benefit of the nation.
Electricity wholesale markets: 
National Electricity Market will be developed where electricity will be traded as a commodity. It will involve both wholesale generation that is transported via interconnected grid of high voltage transmission lines to electricity distributors, who deliver it to consumers (homes and businesses). The transport of electricity from generators to consumers is facilitated through a ‘pool’, or spot market, where the output from all generators is aggregated and scheduled at five minute intervals to meet demand.
Investment climate development: 
Establishing a favourable investment climate to attract investments in the energy sector--- A conducive investment environment for exploration and exploitation of coal will be created by providing fiscal incentives to attract investment in this sector. ---The Government through the NEA shall: Explore and adopt all viable financing options from local and international sources for cost effective utilization of all its energy resources, and in so doing shall endeavour to maintain a competitive fiscal investment climate in the country.---The State should empower landowner participation in the development of all energy resources ensuring landowner interest in these projects is equitable.---Promote a conducive environment for long term sustainable economic solutions in the supply of all energy sources.---Allow competition in the Oil and Gas upstream, midstream and downstream business and promote the long-term sustainability of energy supply from oil and gas products and improve the competitiveness of petroleum supply options through appropriate regulatory framework.---Ensure appropriate legal and financial frameworks are in place for energy sector development for private sector participants.---Encourage involvement of the private sector in the development and provision of energy services. :Provide incentives for private sector investment through appropriate fiscal regimes.---Strengthen monetary and fiscal regimes to maximize the government take on petroleum exploitation while taking into account the investors interests.---Provide incentives for investments in marginal oil and gas discoveries that could have the potential to deliver much financial and socio- economic value.---Support local investors that have the financial capacity and interest to participate in and/or undertake petroleum exploration and production.---The Government will encourage third party access in major oil and gas pipelines, particularly pipelines which have a capacity of 30 inches and over, hence a project developer must make provision for excess capacity to be made available in the system.----The Government is determined to ensure the market is regulated properly in a manner where both the suppliers are able to make a reasonable return in their investment while the consumers, including the PNG economy and ordinary citizens, including SMEs benefit from low unit cost of fuels. ---Introduce incentives to attract investment in retail networks in the remote areas of the country. ---1. Enhance consumption of LPG, being an environmentally friendly and economic modern fuel by: [...](c) Encouraging private sector investment in additional capacity for handling and storage of LPG. ---Provide appropriate incentives to facilitate and support public and private investments in the development of petroleum infrastructure including petroleum jetties, gas filling terminals, loading and storage facilities in all parts of the country at least cost.---The Government shall facilitate and support public and private investments in off-loading, storage, transportation and evacuation infrastructure for adequate supply and distribution of petroleum products.---Develop the gas sector by: [...]; attracting investment in the sector by establishing a transparent and efficient legislative framework; promoting private sector participation in all parts of the gas chain and establishing a regulatory framework.---Provide incentives for private sector participation in generation, exploitation, production, distribution, supply and use of biomass energy. ---Partner with financiers to enable the public to access credits schemes.
Public Private Partnerships: 
Promote public-private partnership in energy sector development---The Government through the NEA shall: [...] Support Public Private Partnerships (PPPs) in the development, operation and maintenance of energy infrastructure and delivery systems.---Promote Local Landowner Participation and Community Social Obligations in line with an established Local Content plan.---Encourage involvement of the private sector in the development and provision of energy services.---Promote petroleum exploration and production activities through encouragement of PPP arrangements.---Enhance corporate governance in the Government institutions charged with petroleum charged with exploration and development.---Support collaboration and synergy by government owned agencies keen to participate in petroleum exploration and production.---Develop oil and gas infrastructure such as crude oil pipelines and storage tanks, through PPP and JV arrangements where appropriate.---1. The Government will continue to support and facilitate the public sector as well as encourage the private sector to invest in geothermal subsector through various means including PPP and joint venture arrangements.---Hydropower: Provide incentives for public private partnerships and increase funding.---Promote joint venturing between Government agencies and private sector on the development and utilisation of bio fuels. ---The Government to enter into PPP arrangements with the private sector entities to accelerate the development of bio-fuels. ---Government to enter into PPP arrangements with the private sector entities to accelerate co-generation.---The Government will encourage electricity generation using indigenous fossil fuels primarily natural gas and coal including facilitating PPPs. ---Downstream: Use joint venture arrangements between reputable developers/proponents and nationally owned companies to downstream.
Bidding and Tendering: 
Allow competition in the Oil and Gas upstream, midstream and downstream business and promote the long-term sustainability of energy supply from oil and gas products and improve the competitiveness of petroleum supply options through appropriate regulatory framework. ---The Government would encourage competition in the fuels market in the entire business value chain.
Governance
Energy management principles: 
The National Energy Policy with its accompanying National Energy Plan and sub policies and plans shall be made public to create widespread understanding, awareness and support for reform objectives and current practises amongst key stakeholders including government agencies, industry participants, consumers, and the community at large.---Ensure security of petroleum products supply through a regulated 90 day stock level to be held by a State nominee.---Establish a one stop source for petroleum upstream licensing and operations to be known as the Petroleum Resources Authority. It will be the overall Regulator of the Industry. ---Develop a policy on management of commercial discoveries of petroleum resources.---Continuation of resource development agreements/mining development contracts but with fiscal terms taken out and included in general legislation.---The Government shall draft a new legislation specifically to regulate Geothermal Energy.---The Government shall: Transform PNG Power Limited (PPL) into a profitable business by unbundling it into independent bodies for generation of power, transmission, distribution and retail.
National policy structure: 
Foster co-operative arrangements between the Department of Provincial Affairs and Local Level government, Provincial governments, District Development Authority’s, Special Purpose Authority’s by virtue of the National Energy Policy shall take ownership of the path of energizing the Province and Local Level areas [...].---Ensure that a comprehensive, integrated and well informed energy sector plan - The National Energy Plan is approved along with the National Energy Policy.---Promote the development of appropriate regulatory guidelines including standards to meet the needs of producers, suppliers and users.---Promote the efficiency and robustness of the Electricity Service Industries (ESI) through market reforms.
Energy institutional structures: 
The Government shall establish the National Energy Authority of Papua New Guinea (NEA) to be the umbrella agency for development of fossil fuels and renewable energy resources. ---The Government shall establish the Energy Regulatory Commission (ENERCOM) to take custody of all regulatory functions within the energy and electricity industries.---The GoPNG will unbundle the current PNG Power Limited (PPL) into distinct entities operating in the Generation, Transmission, Distribution and Retail and Regulation. ---a. Establish the Petroleum Resources Authority (refer to NEC Decision 145/2013 dated 1st May 2013), National Energy Authority, and the Energy Regulatory Commission by legislation.---a. Ensure adequate resources including infrastructure are made available for the three entities the Petroleum Resources Authority, National Energy Authority and Energy Regulatory Commission.---Designate an entity to promote, undertake data acquisition, accelerate exploitation of wind energy and provide a one stop shop for information and guidance to investors in wind energy projects.
Statistics collection and management: 
Promote energy data reporting both in supply and demand across all sectors. ---Collect and compile wind energy data and update the wind atlas.
Technology
Clean energy technology priorities: 
Promote suitable energy supply and technology systems for industrial sector including mining and oil and gas industries. ---Adopt clean technologies in exploration, exploitation and development of fossil fuels.---Geothermal energy: Utilize the best available technologies that optimise the resource and conserve the reservoir such as binary generation and bottoming cycles.----Promote early geothermal generation through implementation of efficient modular geothermal wellhead technologies.------Undertake a comprehensive base line study on biomass energy resources and potential, and establish status of tree cover in PNG.---Promote and update standards for efficient conversion and cleaner utilization of biomass including cleaner charcoal and wood burning stoves.---Promote alternative sources of energy and technologies such as biogas and solar as a substitute for biomass.---Promote inter-fuel substitution to reduce the over reliance on wood fuel.---Create awareness on the benefits and potential of biogas technology.---Undertake a comprehensive study on the viability of bottling biogas for rural development. ---Biomass Cogeneration: Accelerate investment in efficient and emerging technologies.---The Government is aware that high aviation cost is a disincentive to investment in PNG, including tourism. It will therefore take appropriate actions to address the high cost issues. ---The Government shall promote the utilisation of Combined Cycle Gas Turbine (CCGT) plants to increase efficiency.---Dedicating a certain percentage of the nation’s income from conventional energy sub-sector to support training, research, development demonstration and technology acquisition.
Clean energy technology transfer: 
- Strengthen institutional capacity and recruit right human capital to manage the energy sector.---Develop local content policy that covers technology and knowledge transfer, capacity building of local industry and local employment opportunities as well as laws and regulations to govern local content implementation.---Ensure that petroleum exploration and production activities shall include technology transfer and development of local manpower; including engaging qualified local personnel as a priority.---Hydropower: ---Promote development of capacity and knowledge upon the youth, on usage of appropriate technologies.---Undertake capacity building for biomass energy technologies.---Enhance capacity building on wind technologies to provide support services.---Undertake capacity building programmes in cogeneration technologies.---Build appropriate local capacity for manufacture, installation, maintenance and operation of appropriate energy technologies in rural areas. ---Adequate funding and training by the state for energy related training overseas.
Clean energy technology deployment: 
Research, Development and Dissemination as well as human resource development are key in achieving the objectives of this policy. It is therefore necessary to establish a National Energy Institute (NEI) to undertake training, research, development, innovation, dissemination, nurture talent and to enhance capacity building in the sector.---The government will promote research development and dissemination and capacity building for geothermal development through provision of fiscal and other incentives.---Increase Government allocation of funds for the geothermal programme and support GEODEVCO in sourcing more funds.---The Government will continue to promote and encourage feasibility studies to develop large hydro potential in the country.---Develop a hydro risk mitigation to address risks such as prolonged droughts so as to cushion generators, transmitters, distributors and consumers against effects of adverse hydrology.---Provide incentives for private sector participation in generation, exploitation, production, distribution, supply and use of biomass energy.---Undertake studies to identify and promote the most appropriate biomass energy conversion technologies and implement the recommendations.---Undertake a comprehensive study on the viability of use of renewable sources with a view to eliminating use of kerosene in households.---Support RD&D for the cultivation of high yielding and fast maturing feedstock so as to enhance the production and use of liquid bio-fuels.---Provide fiscal incentives for bio-fuel production projects, plant and equipment in so far as such products are used to meet energy demands.---Formulate and enforce minimum standards for solar energy technologies---Provide incentives for conversion of municipal waste to energy. ---Provide incentives to promote cogeneration from biomass.
Low-emission and cleaner coal technology: 
Promote utilization of coal using clean technology for domestic energy needs.---The Government shall promote an intensive coal exploration programme and efficient utilisation of coal resources while minimising the environmental impacts associated with its use. It will establish data and information on coal resources intensify promotional campaigns in local and international conferences and exhibitions. A conducive investment environment for exploration and exploitation of coal will be created by providing fiscal incentives to attract investment in this sector. The National Government shall establish a coal development corporation as a special purpose vehicle to be the lead agency in the development of the coal industry.
Natural gas transportation technology: 
Offer more favourable fiscal terms for natural gas including more favourable profit splits as an incentive for natural gas exploration and development.---Establish natural gas handling and storage facilities in the country.
R&D renewable energy: 
Support RD&D for the cultivation of high yielding and fast maturing feedstock so as to enhance the production and use of liquid bio-fuels.---Undertake Research Development and Dissemination (RD&D) through institutions of higher learning. ---Undertake RD&D in co-generation technologies. ---Establish a Renewable Energy Research Centre (RERC) under the auspices of the new National Energy Authority (NEA) and supported by other Research Institutions in the country and abroad for the handling of renewable energy promotion, potential analysis, mapping and other related studies.
R&D pollution abatement: 
Promote Research, Development and Dissemination (RD&D) of biomass energy technologies.