KCH accelerates power energy for lae

Ribbon cutting for Commissioning at Taraka Power Station. (Image: Supplied)

State-owned enterprise Kumul Consolidated Holdings Limited (KCH) has invested more than K100 million in two major power projects aimed at easing electricity demand in Lae.

The projects include the Yalu Solar Power Project and a new power station at Taraka, both expected to improve power reliability for residents and businesses in Morobe’s capital.

KCH Board Chairman Moses Maladina said the investments will help meet Lae’s growing electricity demand and support economic growth in Morobe and Papua New Guinea.

"Yalu Solar Project indicates the Government’s policy to invest in renewable and clean energy. This would be the largest solar generated power supply system built in the country".

Leaders from KCH, Morobe Province, PNG Power, and other dignitaries gathered at Yalu, outside Lae, to witness the groundbreaking ceremony for the solar project on Friday

The Yalu Solar Project is a K88 million investment by KCH and is expected to generate 10 megawatts of power for Lae City. Chairman Maladina said the project will help reduce pressure on the Ramu Grid.

For KCH, the project aligns with its “Stabilise, Invest and Growth” strategy and is expected to be completed by mid-2026.

"Stable power delivers real cascading benefits, when the grid is stable, homes experience less outage and businesses operate with confidence, and industries become more competitive, and investment is encouraged," Chairman Maladina said.

KCH Managing Director Professor David Kavanamur said the company is investing where demand is highest, noting that many PNG Power facilities across the country are ageing.

"We need that hybrid requirement, we can't depend on thermal energy because fuel is very expensive," Kavanamur said.

"Solar Project in Yalu is just the start and KCH will shift to more renewable energy sources. Population is growing and there is no time wait, and we are working around the clock so that such infrastructure is in place to serve our communities, businesses, and energise industrialization," Kavanamur added.

(L-R) Professor David Kavanamur, Energy Minister, Peter Isoaimo, National Planning Minister, Sir Ano Pala, SOE Minister, William Duma, acting Prime Minister, John Rosso, Morobe Governor Rainbo Paita, and KCH Board Chairman, Moses Maladina, break ground to mark the start of the Yalu solar power project outside Lae (Image: Supplied)

Later the same day, officials travelled to Taraka for the commissioning of a new 10-megawatt thermal power generation unit, also funded by KCH at a cost of about K33 million.

The Taraka Power Plant includes eight new diesel generators supported by eight step-up transformers. KCH says the facility will replace old, ageing power infrastructure and provide more reliable electricity for Lae.

The two projects have been welcomed by Lae residents and the business community, who have long faced frequent power outages.

Lae MP John Rosso said the city experiences power cuts almost every two days and demand continues to rise as the population grows and the city expands.

"For any country to prosper, you need cheap reliable energy so that people and businesses can thrive.
Power demand in Lae has increased. These two projects by KCH bring hope for Lae residents who have been facing power outages," Rosso said.

"Today, as I stand here, it makes my heart more joyous that my people of Lae will now have hope for a better power supply like any other citizen and taxpayer of the country," he added.