Moves are under way to trial a rooftop solar power programme in Papua New Guinea's capital of Port Moresby.
Photo: AFP
The International Finance Corporation, which is a member of the World Bank Group, and PNG Power, are currently consulting with industry players before introducing the pilot.
IFC's resident representative in PNG, John Vivian, said it was a significant move as until now, it had been illegal for businesses to generate power from rooftop solar panels.
But if this trial is successful, the programme could be rolled out to other parts of PNG.
Mr Vivian said there was no lack of businesses wanting to sign up.
"The cost of solar versus diesel, and ongrid power in the systems, it just makes so much commercial sense, and then everyone is also very conscious of the climate issues as well."
PNG is working towards 100 percent renewable energy by 2050.
The Pacific has some of the most expensive electricity prices in the world with much of its energy coming from diesel.
The Australian and New Zealand governments work with the IFC, as part of the Pacific Partnership, to stimulate private sector investment and reduce poverty in the Pacific.