Cambodia: Government Aims for Energy Independence to Lower Power Prices

Cambodia: Government Aims for Energy Independence to Lower Power Prices

With electricity costs among the highest in the region and concerns that a
limited supply of stable power will hinder foreign investment, the
government is aiming to achieve energy independence within the next year or
two, an official said on Wednesday.

"In 2016, we were importing 28 percent of our electricity consumption. This
year, 25 percent. We hope by 2018 to 2019 we will be self-sufficient," said
Sok Chenda Sophea, secretary-general of the Council for the Development of
Cambodia (CDC), the government's private sector investment arm.

"It's urgent for us to find our own source of supply," Mr. Chenda Sophea
said at the International Business Summit in Phnom Penh. "And we will be
independent."

Cambodia's Industrial Development Policy for 2015 to 2025 says "the lack of
stable electricity supply at a competitive price" compared to neighboring
countries is the main challenge for industrial development and an urgent
priority in efforts to expand manufacturing.

The country could achieve electricity self-sufficiency within 12 months of
constructing a 700-megawatt utility-scale solar facility on 1,400 hectares
of land, according to a report released last year by investment and advisory
firm Mekong Strategic Partners.

But the majority of Cambodia's electricity currently comes from hydropower
dams and coal-fired power plants-about 48 percent and 47 percent,
respectively, of the electricity-by-kilowatt-hour generated in 2015,
according to the Electricity Authority of Cambodia.

"Given the large scale hydro and coal fired plants coming online, and the
likelihood that we'll see a lot more solar in the market over that time
frame, Cambodia should be close to achieving energy self-sufficiency by
2019, at least during the rainy season," Stephen Higgins, a managing partner
of Mekong Strategic Partners, said in an email.

"Hydro isn't always at full capacity during the dry season, so this doesn't
mean that Cambodia would achieve self sufficiency throughout the year," he
added.

Hydropower and coal were forecasted to remain the dominant sources of
electricity through 2026, with domestic gas-fired generation entering the
energy mix by 2024 and energy imports becoming minimal by next year,
according to 2015 estimates from the Mines and Energy Ministry. Russia has
even offered to help Cambodia look into the potential of nuclear power
plants.

Tin Ponlok, secretary-general of the National Council for Sustainable
Development, said making Cambodia energy independent would be no simple
task.

"It depends on the options that you consider," Mr. Ponlok said. "We need to
have a stable supply [of electricity] to meet the baseload."

Even renewable sources of energy have drawbacks, he said, since the dry
season limits hydropower, and solar-power generation stops at night.

"Hydro alone won't be a solution," Mr. Ponlok said. "To get the best
economic value, and the least environmental impact, and in terms of national
security, it's not easy."

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Link to Original Article:
https://www.cambodiadaily.com/business/government-aims-for-energy-independen
ce-to-lower-power-prices-125241/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com