Lae coal proposal was presented in 2016: Report
A PNG Power classified board information paper of October 2018 detailed that the proposed Lae Coal Power Plant to be undertaken by Mayur Power Generation was presented on March 23, 2016 which has been an ongoing issue since then.
The report gathering dust has been provided as a culmination of previous submission information since MPG’s PPA proposal dated March 23, 2016 that came about from a solicited written request by PPL from previous leadership.
According to the report, the Board then had directed the Strategic Business Development Group in PPL and PPL management on the further requirement to:
• Provide MPG a full and complete hearing;
• Assess historical submission information from MPG;
• Assess MPG’s response on their interaction with Mr Brian Furnace (the Independent consultant from New Zealand PPL appointed last year);
• Assess matters that have transpired since last year including the material movement in oil prices with its impact on the electricity prices and updated position on the progress of implementation of other PPA’s and the forecast demand;
• Assess the commercial and technical merit of the MPG PPA proposed;
• Assess other non-commercial and technical matters i.e. environmental from a point of PPL gaining comfort as to other departmental agencies appropriate support.
In that report, an independent assessment presented to PPL board and management reported particularly on the technology selection and the performance around MPG’s proposed EEP in Lae and the associated environmental performance of the proposed facility.
Additionally specific legal advice from Ashurst on the appropriateness of the environmental permit for the Enviro Energy Park residing with PNG Ports and MPG’s contracted obligation of compliance as a sub lessor to the land lord was also provided.
The previous opinion that MPG’s proposed 52.5MW was in competition with Ramu 2 had somewhat changed as the enviro EEP was a power solution that could be delivered at the key load centre end of the grid in Lae and within 2.5 years of PPA signing.
Ramu 2 was a 180 MW (guaranteed at 104MW due to hydrological flows) that would not be completed for several years i.e. 2025 and if Wafi came on, requiring updated 80MW, the majority of the Ramu 2 bankable output would largely be spoken for.
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