1. PNG Power SAFE, RELIABLE & FINANCIALLY VIABLE
August 2019
PNG Power SAFE, RELIABLE & FINANCIALLY VIABLE
Carolyn Blacklock | Acting Managing Director

2. ELCOM high to 2017 low Mostly imported, expensive and dirty fuel
Financially unsustainable
business model
Regression on access to electricity
Reliably
unreliable energy
Not following
a least cost
power plan
Reactive,
outdated,
unsafe
Poor financial
governance
Lack of stakeholder trust

3. 2018 — Our “Blackstart” year
Revitalised board
established in
May 2018
Leadership restructure in
late 2018
Better cash flow management and expenditure
Reduction in
bank debt
Thorough auditing & discovery with actionable outcomes
Performance based enterprise
agreement
Reliability improvements
Financial Reform

4. Develop PNG Power through safe, reliable and financially viable means.
Today and beyond:
Develop PNG Power through
safe, reliable and financially viable means.
Continued reform of PNG Power
Least cost
power
development
Large industrials to supercharge the power ecosystem
PNG Electrification
Partnership
Improving
Safety

5. Our path ahead
Reliability
Growth
Rewiring

6. Reliable Reliability Port Moresby, Lae & Gazelle grid focus
Increased energy security for isolated centres
Frequent reporting on results
Proactive not reactive approach to maintenance and planning

7. Energy Security Distributed generation
N-1 (planned interruptions but not disturbing customer supply)
Grid interconnectivity
Replacing shipped diesel with solar, battery, diesel hybrid solutions in remote centres
Modern protection engineering

8. Growth PNG Electrification Partnership Customer centricity
New Industrial Customer loads
Reduce illegal and free power
(currently around 1 in 4 kW of power is stolen)

9. PNG Electrification Partnership
Creating 30,000
new connections
2019
Turning settlements into suburbs
Powering up villages
2020
to 2030
Electrification Plan
being built by NRECA with
World Bank/DFAT Funding
(counterpart is Department of ICT & Energy)

10. Customer Centricity New easier ways
of paying for power
Lower cost and financially accessible
Rebranding
& reposition
(late 2019/2020)
Smart Meters
and AMI
Relationship managers dedicated to corporate and industrial customers

11. Powering up our country
We create the connection
Powering up our country

12. Rewiring Changing our attitudes Changing the way we do business Safety
Performance based management
Least Cost Power Development Plan
Bureaucracy busting:
Streamline cumbersome processes to allow staff to spend more time on the frontline and leading

13. Least Cost Power Development Plan
DEMANDS AND SOLUTIONS—RAMU & POM GRIDS
Refurbishment
of Hydro
Distributed
Hydropower
Hybridised solutions for isolated centres
Gas in the Interim
These initiatives put around K250m back into PNG Power each year in reduced
fuel expenditure, and reduce cost to generate power by about half across the company.
New Generation and Transmission to be added according to Least Cost Power Development Plan to ensure a low-risk, financially viable approach

14. Least Cost Power Distributed Plan
Port Moresby Grid
Switch from high cost Heavy Fuel Oil IPP & gas turbines operating on diesel to Domestic Gas and Hydropower
Ramu Grid
Refurbish YTOD; Ramu 1 & Paunda Hydropower stations to name plate capacity
Gas as transitionary fuel. GE Gas Turbine relocation project to Hides.
Distributed, locally owned hydropower IPPs
Isolated Centres
and Small Grids
Lower cost, hybrid solutions

15. How we will achieve this reform

16. Hydropower refurbishment & Connectivity Program Financial remediation
Village of Experts
Family of Funders
Hydropower refurbishment
Network Upgrade
PNG Power Revenue
& Reliability Program
Power Infrastructure
& Connectivity Program
Business improvement
program
Financial remediation
Cash flow management
PIP
Bank South Pacific
Export Credit
Agencies
Australian Fund for Infrastructure in the Pacific
PEP Partners: Australia New Zealand United States of America Japan

17. Be a company fuelled by good governance
Build trust with all stakeholders from community through to international
Remove Corruption, including time theft
Supportive policy environment and government that can move with the pace of PPL's reform agenda
Competitive, transparent procurement to drive value for money and quality delivery

18. 1 2 3 4 By 2020 we will be: K400-K500m profit (or tariff reduction)
Transparent
Quarterly Reporting
More
Accountability
Community
Importance
Stakeholder Support
is crucial for our joint
reform journey
By 2020 we will be: 1 2
K400-K500m profit (or tariff reduction)
Safe 3 4
POM Grid
99% reliable
Ramu Grid
98% reliable
Double access to electricity

19. Managing Director’s Report
Thank you.