Cambodia: Energy policy needs flexibility

Cambodia: Energy policy needs flexibility

Despite Cambodia's growing power generation, grid access is limited and the
country still imports electricity from its neighbours. The Post's Matthieu
de Gaudemar sat down with John Rice, vice chairman of General Electric (GE),
during his visit to the World Economic Forum (WEF) regional summit in Phnom
Penh, to discuss the future of energy generation in Cambodia.

Is there is a right mix of energy sources that developing countries should
strive for?

I'm not sure there is a right energy mix, because the technology keeps
evolving and changes over time. What we advocate is to have a set of options
and keep all the doors open and be as flexible as possible. Here it is
largely coal and hydro. But in the future, if natural gas sources become
available, I don't think the country should rule that out. Although there is
not a lot of wind in Cambodia that lends itself to a big wind farm, you
never know, as the technology develops, there might be a way to do some wind
here too.

How does a country like Cambodia balance an immediate need to produce
electricity at low costs with a necessity for more expensive infrastructure
that would pay dividends in the long term?

I think in a country where not everybody has access to electricity on a
regular basis, you've got to solve that problem as quickly as you can. With
a country like Cambodia, coal is important today and will continue to be
important. It is incumbent upon us to deliver coal technologies that are
more efficient and allow coal to be consumed in a more environmentally
responsible way.

How important is it to ensure that electricity transmission is efficient?

It is very important because you can't have a big renewable component if you
don't have a stable grid that can handle some of the intermittencies that
come with renewables. Hydro is great during the rainy season and more
challenging during the dry season. You need stable grids to be able to
handle that energy flow.

What is the future of power generation in Cambodia and the region?

I think that you will see a little more coal, but with advanced
technologies, that allow for the right environmental management. Hydro will
continue to be part of the picture and I also believe we shouldn't stop
exploring for wind opportunities. And then we have to see about natural gas.
If a supply becomes available I think that should be considered because the
newest combined cycle gas turbine technology is efficient and responsible
from an environmental perspective. I wouldn't rule that out in the longer
term depending on the availability of fuel supply.

Should Cambodia be looking to diversify its energy production?

A diverse portfolio will always be better because you just don't know where
the technology is going to develop the most. I mentioned the progress that
has been made in wind power generation, but gas turbines are also becoming
much more efficient. You don't want to look in to any one source, you want
to remain flexible and explore as many options as possible.

What is your view of centralised versus decentralised grids?

I think you need both. In the populated areas, you are going to have bigger
more centralised power production, so investing in transmission and
distribution there is smart and cost-effective. When you talk about running
wires to remote villages, it becomes less efficient.

I think the more expedient answer in some cases is to invest in distributed
power generation and micro-grids that allow for a combination of villages to
be taken care of by a smaller distributed power generating unit.

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Link to Original Article:
http://www.phnompenhpost.com/business/energy-policy-needs-flexibility

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com