The World Bank has announced the approval of the National Energy Access Transformation (NEAT) Project, a $204 million initiative aimed at improving electricity access for over 400,000 people in Papua New Guinea. The project will focus on providing reliable electricity to rural households, expanding renewable energy generation, and modernizing the country's electricity infrastructure.
“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 Khwima Nthara, World Bank Group Country Manager for Papua New Guinea. “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.”
Currently, only 20 percent of Papua New Guinea's population is connected to the grid. The NEAT Project aims to address this challenge by supporting the nation's goal of achieving 70 percent electrification by 2030. This will involve grid expansion and densification as well as innovative off-grid solutions. The International Finance Corporation (IFC) is involved through a pilot mini-grid concession under a public-private partnership. Additionally, the Global Partnership for Results-Based Approaches contributes with a $4.2 million grant aimed at connecting underserved communities.
This initiative is part of a broader World Bank regional program designed to enhance renewable energy across East Asia and Pacific regions while lowering carbon emissions. The $2.5 billion Accelerating Sustainable Energy Transition Program aligns with global efforts to combat climate change by reducing greenhouse gas emissions by 60 million tons during its lifetime and providing over 20 million people with improved access to clean electricity.
Papua New Guinea is expected to see significant benefits from this program, including increased access to clean electricity for more than 194,000 individuals through grid enhancements and another 232,000 in remote areas via off-grid solutions like micro-grids and solar home systems.
Improved electricity reliability is anticipated to bolster essential services such as healthcare and education in rural areas while offering growth opportunities for small businesses and reducing carbon emissions by approximately 440,000 metric tons throughout the project's duration.
The World Bank's involvement underscores its commitment to aiding Papua New Guinea in achieving its energy and development objectives by enhancing both socio-economic growth and climate resilience through improved electricity infrastructure.