CAMBODIA HAS BIG RENEWABLE

ENERGY POTENTIAL
JULY 21, 2015

Energy is a basic human need that must be fulfilled to achieve sustainable development. This
kind of development is not possible without energy and policies to meet energy demand.

In Cambodia, energy is a critical development challenge. Today, only 35 percent of the total
population has access to grid electricity, leaving millions of rural population in the
dark. Imported diesel fuel accounts for 90 percent for domestic electricity production. Electricity
prices are among the highest in the world.
Energy shortages hinder Cambodias economic growth and push potential investors away.
Promoting clean energy is an effective way to address this problem. Renewable energy from the
sun, water, wind and biomass can help reduce Cambodias dependence on imported fossil fuel,
contribute to mitigating climate change, and widen access to electricity.

Abundant Resources
The good news is Cambodia has huge untapped clean energy potential.

Thanks to its rich waterway, Cambodia has the second highest hydropower potential in the lower
Mekong basin. So far, only 10.3 percent of the total 10,000 MW has been exploited.
While large dams can have negative effects on the environment and people, mini and micro
hydropower projects are safer and more environmentally friendly. The estimated capacity of
these small-scale dams is about 300 MW with present installed capacity of just 1.87 MW.

With plenty of sunshine, Cambodias weather is favorable for solar energy generation. The
technical potential of solar power is 65 GWh per year but only about 2 MW of solar power has
been installed so far. Thanks to the decrease in cost of solar technology, a local market is now
emerging. As of today, more than 20 companies in Cambodia import and sell solar products.

Wood-fuel serves about 85 percent of total energy demand and is used for domestic cooking.
Currently, it is not used for electricity generation.

Biomass has great potential as a fuel substitute and could reduce diesel fuel consumption by up
to 75 percent. Abundant agricultural residue and rapid growth of the agroindustry have resulted
in growing biomass resources which can be exploited for power production.
Wind power is one of the least explored renewable resources in Cambodia. Wind speeds of at
least 5 meters per second are available for electricity generation in the southern parts of the
Tonle Sap River and coastal regions. The total electrical capacity from wind turbines is estimated
at 3,665 GWh per year.

Challenges
While Cambodia has large resource availability, harnessing such resources faces many
challenges.

First, awareness of clean energy remains low. Information on benefits of using clean energy is
still limited.

Second, there is a high risk perception among financers and project developers. Coupled with the
lack of supportive policies from the government, this has led to low investment in this sector.
Third, the technology to harness clean energy is costly and not readily available in the country.
In 2003, the government introduced the Renewable Energy Action Plan (REAP) and the Rural
Electrification Master Plan (REMP) to promote renewable energy development and utilization.
Import taxes on solar PV components, biomass, and solar water heating components have also
been cut substantially. But progress has been slow.

To effectively promote clean energy development, a more in-depth and inclusive policy package
is necessary. The Government should draw up a comprehensive program for developing a
renewable energy industry and markets including technology, supportive infrastructure,
financing mechanisms. It should use market-based instruments such as renewable portfolio
standards, green pricing, feed-in tariffs, net metering, and tradable renewable energy certificates.

Heng Pheakdey is founder of the Center for Green Growth of Enrich Institute, a Phnom Penh-
based policy and research organization working to promote green growth and sustainable
development.

Source: REVE (Article published by Wind Energy and Electric Vehicle Magazine)

https://www.evwind.es/2015/07/21/cambodia-has-big-renewable-energy-potential/53444