Papua New Guinea's electricity consumption in 2023 is predominantly fueled by fossil sources, with more than three-quarters of its electricity generated from fossil fuels. Low-carbon sources, such as hydropower and geothermal energy, account for nearly a quarter of the electricity generation. Among the low-carbon energy types, hydropower makes up the majority, with over 21% of total electricity coming from this source. Geothermal energy contributes a much smaller share, providing just about 2%. This composition highlights a significant reliance on fossil fuels, with a need to bolster the low-carbon sectors to reduce emissions and improve sustainability.

Is Electricity Growing in Papua New Guinea?

Currently, electricity consumption in Papua New Guinea is on a downward trend. The total electricity consumption stands at 455 kWh per person in 2023, representing a decrease from the peak consumption of 555 kWh per person recorded in 2004. This decline is quite concerning as it suggests a dwindling energy sector that may struggle to sustain economic growth and meet the needs of the population. Moreover, the generation of low-carbon electricity has also declined. The latest figures show that low-carbon electricity generation is 108 kWh per person, which is a significant drop from the previous record of 194 kWh per person in 1995. This negative trend in green energy production is alarming and calls for immediate action to rectify the situation and encourage growth.

Suggestions

To enhance its low-carbon electricity generation, Papua New Guinea can draw lessons from regions that have excelled in this domain. For instance, the state of California generates almost a third of its electricity from solar and Denmark powers more than half of its electricity from wind. These examples demonstrate the potential for solar and wind energy to play a significant role in clean electricity generation. Additionally, the success of countries like France and Slovakia, where more than two-thirds of electricity comes from nuclear energy, makes a compelling case for adopting nuclear energy as a reliable low-carbon source. By diversifying with solar and nuclear installations, Papua New Guinea can reduce its dependency on fossil fuels and move towards a more sustainable, green-energy future.

History

In the late 20th century, Papua New Guinea experienced both growth and setbacks in low-carbon electricity generation. The 1980s saw gradual increases, such as modest gains in hydropower in 1983 and 1986, although minor setbacks occurred as seen in 1987. The 1990s marked notable growth in hydropower, with a significant increment in 1995. The early 2000s introduced geothermal energy with small contributions beginning in 2003, further enhanced by a marked increase in 2005. Despite some fluctuations—declines in geothermal in 2018 and hydropower in 2017 and 2022—there were also recoveries with geothermal and hydropower regaining ground by 2023. This history reflects incremental yet inconsistent development, underscoring the necessity for a strategically consistent approach to significantly boosting low-carbon electricity generation.

Electricity Imports and Exports

Balance of Trade