The Energy Division of Papua New Guinea's Petroleum Department is finalising new policies for energy and rural electrification.
The National newspaper reports the policy centres on affordable electrification using renewable energy sources and technologies.
It also looks at a community-ownership approach as one way to ensure sustainability.
Budget papers for 2006 say US$763,000 has been allocated for rural electrification projects.
The documents also say rising commodity prices, macroeconomic stability and the 2003 fiscal incentives have resulted in renewed and widespread exploration interest in the past 12 months in the oil and gas sector, which was a major part of Papua New Guinea's economy, contributing significantly to production, export earnings, and government revenue.
Oil production came from the fields of the Kutubu, Moran, and Gobe projects, with gas production from the Hides project.
