Cambodia - Lao energy not so 'cheap': experts

Cambodia - Lao energy not so 'cheap': experts

During a visit to the Lao border on Tuesday, Prime Minister Hun Sen thanked
the government of Laos for "selling electricity at a cheap price to
Cambodia". Experts, however contend a continued reliance on energy imports
means prices will invariably remain high for consumers.

Electricity prices in Cambodia are, in fact, among the highest in the
region. The most inexpensive option comes from the national grid, where
prices range from $0.11 to $0.27 per kilowatt hour, but only about 25
percent of the country is connected to the grid.

Prices in neighbouring countries, meanwhile, cost an average of $0.08 per
kilowatt hour. In Cambodia, some electricity suppliers use diesel fuel or
charge transmission tariffs that can reach up to $1 per kilowatt hour.

Rather than buying "cheap" electricity from abroad, experts say, the first
step in reducing the cost of electricity is upgrading the Kingdom's grid.

"Less reliance on diesel is essential to get prices down, and some roof-top
solar feeding the grid," says Paul Chapman, executive research director of
the consultancy AARN Global, via email. "The cheapest way is to continue to
focus on coal in centralized generators for short- and medium-term expansion
of the grid, and augment that with solar-battery micro-grids in hard to
reach areas."

According to Phillip Stone of the renewable energy company Star 8, Cambodia
would need a 10-year plan to fully implement solar energy in the Kingdom,
but solar energy supply could be fast-tracked through the creation of
micro-grids.

"If the EDC were prepared to embrace solar, it would be feasible for them,"
he said, referring to state utility provider Electricité du Cambodge. "The
decisions they make today will have a big impact for 10 years."

Cambodia's government is using imported electricity as a quick-fix for the
country's energy shortage, Stone says. But relying on imported electricity
leaves the country vulnerable to market forces and subjects consumers to
additional costs.

Construction of the Lower Sesan II hydropower dam, which is expected to
produce about 400 megawatts of electricity, is currently underway. But
critics say the harmful environmental impact of the dam will outweigh the
potential benefits of energy production.

However, Christoph Frei, secretary-general of the London-based World Energy
Council, noted in an email that dams alone won't fix Cambodia's electricity
shortage.

"Hydropower surely has great potential for development in [Cambodia], but
with peak demand in energy coming outside of the wet/rainy season,
alternative solutions need to be found to balance this source of energy,
outside of the currently expensive diesel and import-based solutions that
are pushing prices up."

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.phnompenhpost.com/national/lao-energy-not-so-cheap-experts

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com