PORT MORESBY, November 29, 2024 -The World Bank has approved the National Energy Access Transformation (NEAT) Project, a $204 million initiative that will improve the lives of over 400,000 Papua New Guineans by providing reliable electricity. The project will bring electricity to rural households; expand renewable energy generation; support the modernization of the country's electricity infrastructure; and benefit households, businesses, and communities across the nation.
"This project represents a major step forward for Papua New Guinea's energy future. It will not only expand access to reliable electricity but will also contribute to the country's climate goals by scaling-up renewable energy," said World Bank Group Country Manager for Papua New Guinea, Khwima Nthara. "The project is a crucial part of our ongoing support for the people of PNG to ensure they live in a world free of poverty, on a livable planet, and we are excited to be part of this transformative effort."
With only 20 percent of PNG's population connected to the grid, the project addresses the significant challenge of low electricity access, particularly in rural areas where less than 15 percent of people have access to electricity. The new project supports PNG's goal of achieving 70 percent electrification by 2030, focusing on grid expansion, densification, and innovative off-grid solutions. It also leverages the support of the International Finance Corporation (IFC) through a pilot mini-grid concession under a public-private partnership. The Global Partnership for Results-Based Approaches is also supporting the project through a $4.2 million grant to support last-mile electricity access, using results-based financing to connect underserved communities.
This project is part of a new World Bank regional program which will help countries across East Asia and Pacific ramp up renewable energy. The program will help them achieve their development goals while lowering carbon intensity. The $2.5 billion Accelerating Sustainable Energy Transition Program is aligned with the Bank's global effort to accelerate low-carbon energy transition and combat climate change. It will contribute to reducing greenhouse gas emissions by 60 million tons over its lifetime, while providing over 20 million people with new or improved access to clean electricity across the region. The program will add 2.5 gigawatts of renewable energy capacity - equivalent to 50 utility-scale solar farms or more than 1,000 wind turbines in the EAP region.
The projects in this program follow a multiphase programmatic approach, an evolved model of doing business that can scale the impact of World Bank knowledge and financing commensurate with the challenge. Through this design, countries select activities from a menu-based approach to help them achieve their specific development goals while being part of a broader regional effort.
Key benefits Papua New Guinea will see from the wider program include increased access, with more than 194,000 people gaining access to clean, reliable electricity through grid densification and expansion. Around 232,000 people in remote areas will also benefit from off-grid renewable energy solutions such as micro-grids and solar home systems.
Reliable electricity will boost essential services like healthcare, education, and community safety, particularly in rural areas where these services have been inconsistent due to a lack of infrastructure. It will also provide growth opportunities for small businesses and reduce carbon emissions by roughly 440,000 metric tons over the project's lifetime.
The World Bank's support for the National Energy Access Transformation Project underscores its commitment to helping Papua New Guinea achieve its energy and development goals. By improving electricity reliability and expanding access to clean energy, the project will drive long-term socio-economic growth and enhance PNG's climate resilience.
