PNG Power Limited says restoring confidence in Lae’s electricity supply is critical to the city’s economic recovery, as many businesses continue to rely on private generators due to unreliable grid power. focuses 

Speaking to the Lae business community recently, PNG Power Chief Executive Officer (CEO) Mr. Paul Bayly said the company is focused on fixing core electricity systems rather than short-term solutions, with reliability and voltage stability as top priorities.

“Our investment is about fixing the system,” Bayly said. “As reliability improves, voltage stability improves as well.”

PNG Power is expanding substation infrastructure across Lae, including the construction of a new substation at Malahang funded through the Asian Development Bank (ADB).

Bayly said additional substations allow electricity to be rerouted during faults, reducing both the scale and duration of power outages.

Plans are also underway for a new substation to support the proposed Lae Port Special Economic Zone (SEZ), aimed at strengthening power supply for industrial and commercial users.

Bayly said international partners play a major role in supporting network upgrades, with funding assistance coming from the Asian Development Bank, the World Bank, DFAT and the Australian government.

He clarified that the US$50 million allocated for upgrades is an ADB loan to the PNG Government, which has been on-lent to PNG Power and specifically earmarked for transmission and distribution improvements.

Renewable energy is also a key part of PNG Power’s long-term strategy, with growing investor interest in solar power projects in Lae.

Bayly said rebuilding trust in the public power supply is essential, noting that many businesses still rely on generators due to a lack of confidence in the grid.

“If we rebuild reliability and give people confidence, we can bring that suppressed demand back,” he said.

“Our focus is clear — reliable power for Lae, and a system that finally does what it should,” Bayly added.