Geography and Climate

Papua New Guinea is located on the eastern part of New Guinea, north of Australia, and contains multiple smaller islands within. The geographical structure features mountains, rugged terrain, dense valleys, and active volcanic areas.

The highlands are home to dense rural populations (85% of total), while the Southern Coast has more urban infrastructure. The lowlands have sparser populations due to dense vegetation and challenging soil conditions.

The climate remains tropical year-round with hot and humid conditions. Heavy rainfall often results in landslides and erosion, along with natural hazards like earthquakes, volcanic eruptions, floods, and cyclones.

Current Energy Mix

In 2022, fossil fuels accounted for about 75% of total electricity generation in Papua New Guinea. The country is heavily dependent on petroleum and natural gas, with crude oil reserves estimated at 159.7 million barrels and gas reserves at 183.1 billion cubic meters.

Renewable energy makes up the remaining 25%, with hydropower accounting for 69.3% of renewable electricity and geothermal currently at 28.6%.

Energy Access

Papua New Guinea has one of the lowest electrification rates in the Pacific, with only 13% of the population having access to reliable electricity. The government aims to increase this to 70% by 2030, requiring about 300MW of additional capacity.

Economic Context

With a GDP of $32.86 billion and 40% of the population living in poverty, energy costs are significant. The average annual electric bill is $225 USD at $0.50 per kWh - one of the highest rates in the world relative to income levels.