Energy

                                                                                                  KEY ADMINISTRATIVE ROLES

The key roles of the Division/ Wing is to ensure that the regulatory functions and responsibilities relating to implementation of policy directives to guide the development of the renewable energy sector and the downstream petroleum activities and electricity licensing, but fragmented and vested with various commercial entities of government, are properly aligned for effective management and to gain economic returns.

                                                                   OFFICE OF THE DEPUTY SECRETARY/ DIRECTOR- ENERGY WING

The Office of the Deputy Secretary provides administrative and operational leadership roles and responsibilities and in collaboration with Executive Management Team (‘’EMT’’) to ensure the formation of strategic work plans and directions for delivery of the programs and services.

This approach is focus on strategic long-term planning, governance and evaluation of performances, implementation of core functions and the outcomes and the identification and evaluation of emerging programs that may influence high-level decision making, hence affect the sustainability of the Wing’s goals and objectives.

The Energy Wing/ Division consist of the following branches:

 

1. RURAL ELECTRIFICATION/ ENGINEERING BRANCH

The branch basically provides engineering, co-ordinate activities and programs (including Rural Electrification Program) of the energy sector participants as well as monitor and review development of the new and renewable energy resources and technologies in relation to photovoltaics, solar thermal technology and biomass.

Unit Goal

The branch is responsible to implement and achieve a number of goals, as outlined hereunder:

  • Ensure the branch is administered and functions are fully aligned with the Mid-Term Development Strategy (‘’MTDS’’), The Medium-Term Development Plan III (‘’MTDP III”) and the National Vision 2050 and as may be determined periodically;
  • Ensure that the plans and development and implementation functions are guided by the whole of Government considerations including stakeholder position;
  • Assist with the growth in the energy sector through facilitating industry development and rural electrification expansion.

2. POLICY AND MARKETING BRANCH

Key Responsibility

The branch is responsible for policy formulations and marketing purposes. An essential responsibility is to develop, implement and monitor a national energy work plan and programs to achieve policies outcomes; thus, formulate and implement an overarching National Energy Policy.

Roles to perform Policy and Marketing Functions

The branch is responsible to develop and maintain a comprehensive energy sector database for policy formulation, planning and monitoring, through collection and collation of information on energy supply, demand, pricing, etc. and thus collaborate with cluster-agencies of Sate and Non-government Organization (‘’NGOs”) on the environmental aspects of energy projects and programs.

In essence, the branch must develop and assist in implementing energy conservation and efficiency programs for the State, commercial sector and the public including education campaigns and evaluation of energy efficient appliances and technology.

Furthermore, it must develop and maintain a comprehensive energy sector database for policy formulation, planning and monitoring, through collection, collation of information on energy supply, demand, pricing, etc.

Finally, it is obligated to develop and facilities education and awareness programs to highlight fuel substitution options.

Goals

The important goals for the branch are:

  • Ensuring that policy development and implementation functions are fully aligned with the national development goals are enunciated in the Mid-Term Development Strategy (‘MTDS”), the Med-Term Development Plan III (“MTDP III’’) and the National Vision 2050 and as may be determined periodically;
  • Ensure that policy development and implementation functions are guided by the whole of Government considerations including stakeholder position;
  • Articulate and promote work programs and plans underpinning the energy policy priorities; and
  • Assist with growth in the energy sector through facilitating industry development and market expansion.

3. REGULATION AND LICENSING BRANCH

The branch performs the key responsibilities of the Wing in as far as regulation and licensing functions are concerned.

Core Functions

The core functions are basically to ensure that the regulatory functions and responsibilities relating to implementation of policy directives to guide the development of the renewable energy sector and the downstream petroleum activities and electricity licensing, which are fragmented and vested with various commercial entities of government are properly aligned for effective management and to gain economic returns.

Advisory Responsibility and Collaboration with Cluster-Agencies

The branch provide to the GoPNG and or the State, as commonly referred and its key agencies concerning energy investment budgets and specific project funding;

It collaborates with cluster-agencies of State to develop, implement and monitor regulations and standards governing the energy sector ibn relation to safety of petroleum handling and storage facilities and environment guidelines for petroleum sector such as oil spill contingency plans and waste oil disposal.

 It   monitors, review and provide recommendations on future developments in public and private sector infrastructure. In particular, encourage public sector agencies to adopt a least cost, financially and environment sustainable strategy to meeting energy demand;

Formulation and Request for Funding Sources

It formulates and secured proposals for donor assistance where appropriate and screen out those lacking in technical maturity, economic viability or environment sustainability.

Licensing and Regulation of Renewable Energy Service

A critical role of the branch is to monitor, review and provide recommendations on fuel pricing, electricity tariffs, and Government charges and subsidies to ensure that full and correct price signals are conveyed to consumers wherever and whenever possible. 

As such, to also develop and maintain the capacity to monitor and evaluate the landed price of petroleum products, petroleum company cost elements, pricing formula and Government charges so as to negotiate and maintain equitable pricing and proper contractual arrangements for petroleum products.

4. ELECTRICITY MANAGEMENT COMMITTEE (‘’EMC”)

 Mandate and Objective

The Electricity Industry Policy (“EIP”) approved by Cabinet in 2011 is designed to address three strategic objectives of the Government-

  1. Improve access in the provision of electricity services;
  2. Improve reliability of electricity supply; and
  3. Ensure that electricity services are affordable for consumers.

Composition of the Committee

And as such, under the EIP, the Government approved the establishment of the Electricity Management Committee (‘’EMC’’) within the Department of Petroleum and Energy. The Energy Wing of the Department is the chair in this Committee which facilitates proper planning and implementation of the EIP.

The EMC is the overarching coordinating body to achieve the objectives of the EIP as approved in 2011.

Membership of the EMC includes the Secretaries or their respective senior delegates from the Department of Petroleum and Energy, Department of Treasury, Department of National Planning and Monitoring, Kumul Consolidated Holdings Limited and the Papua New Guinea Chamber of Commerce and Industry (“PNGCCI’’).

The chair of the Committee is the Secretary of the Department of Petroleum and Energy or his delegate.

Key Function and Responsibility

A key function and responsibility of the EMC amongst others is to develop a National Electrification Roll-Out Plan (NEROP).

This Plan will facilitate mechanisms to achieve PNG’s Vision 2050 development plans as well as the targets in Strategy for Responsible Sustainable Development (StaRS) and MTDP.

However, the EMC will be replaced by an Authority upon establishment under a new Act, thus it’s roles and functions will be absorbed and performed by the Board and Executive Management of the Authority with better capacity to perform these functions.

Following the approval of the EIP in 2011, the Government through the Ministry and Department of Treasury (DoT), signed a Financing Agreement as well as a GEF Grant Agreement with the World Bank for funding and Technical assistance in developing the NEROP program.

Scope of Work

The main area of responsibility of the EMC is as follows:

  • Develop a National Electrification Roll-Out Plan (NEROP), which identifies needs both in rural and urban areas;
  • Ascertain and prioritize projects in relation to the NERPO under CSOs to be funded by the National Government and delivered on annual basis according to Government’s priority;
  • Collaborate with the Provincial or Local Level Governments (LLGs), individual Members of the National Parliament seeking assistance with the delivery of electrification projects, should they be seeking to utilize their provincial funds, district support grants or Parliamentary discretionary funds and development funding, for electrification purpose. Such resources could be used as counterpart funding to prioritize projects identified as priorities for rural electrification;
  • Identify opportunities for Public Private Partnership (PPP) in electricity generation activities and make recommendations to the NEC in this regard, consistent with the National PPP policy;
  • Manage a public tender process and screen proposals for electrification investment projects under CSOs in accordance with the rules of the National procurement Commission (‘’NPC”);
  • Oversee the administration of an electricity trust fund;
  • Monitor and evaluate the achievement of the stated policy objectives and report to Ministers responsible for organizations represented on the Committee; and
  • Facilitate private sector participation.