Page 27 - IB July 2018

Finance

“Fiji is one of a few countries in the PNG gives rooftop solar the green light
world that still offers policies with an
investment or savings benefit and we
have found that these products are attrac- By Dionisia Tabureguci
tive due to the absence of a fully-fledged
investment market where individuals can POWER bills are expected to ease for some
invest. We hope that people will continue businesses in Papua New Guinea with the
to see their importance as vehicles for launch last month of a pilot rooftop solar
savings and capital formation,” added programme in Port Moresby.
Naiyaga. A collaboration between PNG’s national
He commended policyholders for their power utility PNG Power Ltd and the In-
loyaty to ensuring premiums were paid on ternational Finance Corporation (IFC),
time for the duration of the policy allow- the programme will allow PNG Power’s
ing it to accumulate value for them and commercial customers in Port Moresby
providing valuable returns at important to install rooftop solar PV systems to aid
stages of their lives. their needs. Connecting PNG... In 2014, 88% of households in PNG
have access to a mobile phone but with little capacity
“It’s delightful to see many Fijian house- This was previously illegal in PNG, to charge it. Photo: World Bank
holds benefiting from their bread winners’ hence, the project has been welcomed.
investment in a BSP Life insurance policy. “This move represents a significant policy before it will finalise and implement
We view life and health insurance as an change for Papua New Guinea, as to date, the pilot in the capital.
essential and integral part of one’s finan- it has been illegal for businesses to install “The aim is to learn from the experi-
cial planning.” and generate power from rooftop solar,” ence of a pilot in Port Moresby,” Corbet
“As Fiji’s leading life and health insur- said John Vivian, IFC’s Resident Represen- said. “Based on the interest we’ve already
ance provider it is our firm belief, now tative in PNG. had from other centres such as Popon-
more than ever, that insurance is a need “But now that the costs of rooftop solar detta, Madang and Wewak, PNG Power
and no longer a want. Our view is that systems have dropped by about 80 per anticipates the pilot programme could be
life and health insurance are essential cent in the last five years, it makes com- expanded outside Port Moresby.”
components of good financial planning, mercial sense for business to look at this The pilot programme deals specifically
providing safeguards for families in the source of renewable energy and it is good with solar PV systems that are synchro-
event of untimely death, medical treatment for the environment.” nised to PNG Power’s grid and can meet
due to a chronic illness, as well as future The aim is to initially allow about two consumer demand, as and when required.
life needs. per cent of peak demand for electricity in Initially solar PV systems will only be
“With the prevalence of NCD’s and low Port Moresby to be generated from rooftop allowed to connect in limited numbers
level of retirement funds for most of our solar and this is expected to help the coun- and under specific conditions so that the
people, BSP Life’s policies can assist in try achieve its renewable energy goals. technical and commercial impacts on PNG
putting aside a small contribution every “PNG Power wants to work proactively Power’s system can be carefully monitored
week, fortnight, or month to build a fund to implement the Paris Agreement on and managed.
that will support those needs.” climate change,” said PNG Power’s Bruce The programme received the green light
Naiyaga further added: “We take great Corbet, Director of Strategic Planning following a request by PNG Power for IFC
care to be there when our policyholders & Business Development. “With Papua to build on its off grid solar programme
need us most. Our ability to allocate these New Guinea the first country to lodge its called Lighting PNG, launched in 2015
large bonuses and benefits year-on-year national plan under the Paris Agreement, and which has helped an additional 20 per
is underpinned by our strong financial we take our responsibility seriously but cent of the population have some sort of
standing. We have a stable, balanced need the expertise of IFC to help us. IFC access to electricity, providing them with
and growing investment portfolio, sound have implemented similar projects in other basic lighting and mobile phone charging
governance processes and internationally countries with great success and we want service for the very first time.
recognised actuarial expertise to ensure to build on what they already know here In the preliminary market analysis re-
we can deliver on our promises now and in Port Moresby.” port on that project produced in 2014, it
in the future. We take this responsibility Under its national plan, PNG wants to was estimated that PNG consumers spend
seriously. transition to 100 per cent renewable en- between US$120-150 million a year on
“Our message is simple, it pays to have ergy by 2050 but with just less than 20 off-grid lighting through an expensive
life and medical insurance and you can per cent of the population currently having mix of kerosene lanterns, battery powered
trust BSP Life to honour its commitments.” access to an electricity grid, PNG is said to torches, and to a lesser extent, candles
BSP Life MD concluded: “We thank present one of the most challenging and and firewood.
our policyholders for their confidence in underserved energy markets in the world. And by 2008, the number of household
us and can assure them and prospective According to IFC, it believes PNG’s 300 with mobile phones had surpassed the
new customers that we are committed to plus sunshine days a year makes it sen- grid. In 2014, 88 per cent of households
honouring this trust.” sible to consider rooftop solar to generate in PNG have access to a mobile phone but
Formerly owned by the Commonwealth electricity to help meet needs and the with little capacity to charge it.
Bank of Australia and operating as Co- country’s renewable energy targets. Under the Lighting PNG project, IFC
lonial Life & Health, the company was Under the initiative, supported by do- was instrumental in bringing in solar
acquired by Bank South Pacific of Papua nors, Australia and New Zealand, the IFC manufacturers from other emerging mar-
New Guinea in November 2009 and re- and PNG Power are currently consulting kets to help bring off grid power to most
branded BSP Life in 2011. with businesses on a draft rooftop solar underserved areas.

Islands Business, July 2018 27