29 C
Port Moresby
February 23, 2020
Business News Southern

Power Generation Approved

Landowner Company, Dirio Gas & Power, today officially received its Electricity Generation Undertaker’s Licence.

The certification from Independent Consumer & Competition Commission is part of the final compliance requirements for the landowner company in its bid to provide gas to power for the Port Moresby grid.

Dirio aims to provide 30 megawatts of power to PNG Power’s Port Moresby Grid by mid this year.

ICCC Commissioner and CEO, Paulus Ain today issued landowner company, Dirio Gas & Power, with a Generation Licence to generate electricity to be supplied to PNG Power’s Port Moresby Grid.

This licence issued by the ICCC following, after a Power Purchasing Agreement was also approved by the ICCC in 2019.

The Generation Licence from the ICCC a mandatory requirement under the Electricity Industry Act.

“So today’s announcement will bring light to the city, and we expect the people of Port Moresby to enjoy, and we are looking forward to other announcements in the future, for other parts of the country. and we know and we trust that Dirio will take some on board in the future to help the ICCC in those process(es) again.” Ain said.

The ICCC hopes that with increased competition within electricity generation, the benefits can be realised by electricity consumers.

“We are expecting players in the industry, business houses, to translate this into reduction in rates of goods and services we experience in the city, Port Moresby.”

For Dirio Gas & Power, this approval from ICCC is another step in their aim to have 30 megawatts of power supplied into the Port Moresby grid – in a K200 million investment that they hope will bring benefits to its shareholders – landowners of the PNGLNG Project, and respective provincial governments.

“For the provinces that have decided to invest in this vusiness venture, (its) uncharted territory” says Dirio Gas & Power Chairman, Isaac Lupari,” that no Papua New Guineans have ever gone into power production. There was little experience for us to learn and lessons to commence the journey. It is totally uncharted water, but I think the landowners and provincial governments, and to the governors of those three provinces, decided that this is one investment that they will see that provide good cash flow”.

There are plans for the company to also establish a similar gas-to-power facility in Hides, Southern Highlands Province.

By Meriba Tulo, EMTV News, Port Moresby

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