The Papua New Guinea National Energy Access Transformation Project (NEAT or the ‘Project’) will be financed by the World Bank and implemented by the National Energy Authority (NEA) and PNG Power Limited (PPL). The project will support the GoPNG in achieving its energy access target through investments in on-grid electrification, sustainable renewable energy mini-grids, private sector-led off-grid market promotion, and institutional development.
The Project consists of four components:
- Component 1: Rehabilitation, resiliency enhancement of PPL infrastructure, and on-grid electrification – will aim to support PNG Power Limited (PPL) restore and improve the reliability and resilience of power supply in the existing grid; expand and densify its MV and LV distribution networks; and support households with connection financing.
- Component 2: Renewable energy micro-grids – Establish micro-grids in peri-urban/rural/remote areas where grid electricity cannot reach in the next 10-15 years. The microgrids will utilize renewable energy, including solar and/or hydropower combined with or without battery storage, and have a maximum capacity of less than 1 MW. The micro-grids will also include street lighting, a meter and main switch installation, standard internal wiring, a plug-in socket, and basic LED bulbs for newly electrified customers.
- Component 3: Rural energy market development – Support growth of off-grid solar and clean cooking markets through a joint solar-cooking fund to support companies in expanding their offer of quality products and services, prioritizing underserved and rural populations. This will be done through catalytic and results-based financing (RBF) framework grants.
- Component 4: Institutional development and project management – to strengthen PPL and NEA’s capabilities to plan, survey, design, coordinate, and implement NEROP to achieve the GoPNG national energy access targets and to support the two entities conduct strategic studies for the energy sector.
The project will be implemented per GoPNG laws and the World Bank’s Environmental and Social Standards.
The project’s Environmental and Social Framework (ESMF) will serve as the Project’s umbrella for environmental and social management. This ESMF aims to guide NEA and PPL on the environmental and social screening of the Project activities and subsequent environmental and social assessment and management of these activities during project preparation, design, and implementation. Other key E&S instruments include the Environmental and Social Commitment Plan (ESCP); Stakeholder Engagement Plan (SEP); Land Access and Resettlement Framework (LARF); Labour Management Procedure (LMP) – refer to ESMF Annex; and Indigenous Peoples’ Policy Framework (IPPF) – refer ESMF Annex.