Cambodian Energy Sector Development

Ministry of Industry, Mines and Energy

Vietnam, Ho Chi Minh, 11 November, 2011

Greater Mekong SubregionFifth Meeting of the Subregional Energy

Forum

Present electricity supply:• Oil fired generation• Imported electricity from Vietnam, Laos and Thailand;• Cambodia’s electricity consumption in 2010 was 2,243 GWh;• Consumption per capita is 155 kWh/years; and households

had grid electricity only 4% in 2000 now 29%. Government target 70% of households will have grid quality electricity by 2030

Electricity price (average):• $0.18 kWh in Phnom Penh• $0.25 to $0.40 in towns and urban areas connecting to the

grid• $0.50 to $1 per kWh in rural areas with diesel generators;• $0.16 in communities cross-border connecting to Vietnam,

Thailand and Lao PDR.

Share of Petroleum Products Consumption in 2010

LPG26%

Gasoline16%Jet Fuel

2%

Diesel41%

Fuel Oil10%

Kerosene5%

Garment industry consuming 34,000t diesel and 400,000t wood

Agriculture: rice milling consuming 65,525t diesel

Construction: brick works consuming 250,000t wood and diesel

Leading Industry Energy Users

Efficient Cook Stoves

Over 1 million efficient cook stoves sold by over 25 individual producers

Each stove saves about 0.7 ton CO2 per year Mainly sold to urban market A pilot program successfully disseminated a

cheaper efficient stoves in rural area on the basis of a major program has been specified to support distribution to 2 million rural households.

Renewable Energy Mitigation

Efficient Cookstove In CambodiaEfficient Cookstove In Cambodia The New Lao Stove. 1 million produced, and the Neang Kongrey

Stove. Both saving 22% compared to traditional stoves and 50% compared to the three stone stove. Each stove can save 0.7 tCO2 per year.

National Bio-digester Program 25% of households have possibility to construct a

household bio-digester 6,000 digesters have been constructed , each saves

about 2 tons of wood per year Dutch carbon broker provides 6 tons of CO2 per digester

from which the Bio-digester Program subsidizes $150 per digester (total cost of 1 digester is about $400)

Provides clean cooking fuel, lighting and excellent natural manure increasing agricultural yields.

Renewable Energy (cont)

Status of renewable energy development

Hydro Large technical potential (10,000 MW) but only 13

MW developped until now Large projects ongoing

Biomass Few large projects, only for autoconsumption in

industries However, agro-industry sector is expanding quickly

and associated biomass projects are being developed Solar (PV)

Good technical potential, but few projects until now, besides stand-alone systems

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Kep

Takeo

Pailin

PursatKratie

Kandal

Kampot

Siemreap

Koh Kong

Prey Veng

Svay Rieng

Phnom Penh

Battambang

Stung Treng

Mondul Kiri

Ratanak KiriPreah Vihear

Kampong Thom

Kampong Speu

Kampong Cham

Sihanoukville

Oddar Meanchey

Kampong Chhnang

Banteay Meanchey

Coal 700MWCoal 400MW

Coal 200MW

Kep II

Stungsen

Prekpor I

St.piphotKirirom I

Prek ter I

Prek thnot

Prek ter II

St.pursat I

Kirirom III

Prek ter IIISt.pursat II

Prek Liang I

Prek liang IA

Prek Liang II

Upper prek ter

Bokor Planteau

St. Meteuk III

Prek chhlong II

St.battambong I

St.battambong II

USt. russei chrum

Sekong

Sambor

Kam Chay

St.tatay

St. Atay

L.Sesan II

L.Sesan III

Stung Treng

L.Srepok II

L.Srepok IV

St. Meteuk I

L.Srepok III

St.chay Areng

St. Meteuk II

MSt. russei chrum

LSt. russei chrum

Legend

! Large>=100MW

! Medium>=10MW

" Coal Power Plant

MOU

Perhaps 5000 MW

Under construction1100 MW

-Hydro potential remaining 3500MW.

73%

26%

1%

Current Rural Electrification Policy

Objectives 2020: 100% village coverage

national grid extension, mini-grid and stand-alones (80% villages national grid connection and remaining 20% in mini-grids)

2030: 70% HH grid quality connection mini grids and national grid extension only(95% villages to have national grid connection

and remaining 5% in mini-grids)

Renewable energy target : 15% by 2015 (including large hydro)

Rural Electrification Fund (REF)

• Providing grant assistance to Rural Electricity Enterprises (REEs) for 50,000 new connections;

• Provide grant assistance to Solar Firms for supplying 12,000 Solar Home Systems (SHS) for household in rural areas;

• Provide grant assistance for development of micro hydro for development of micro hydro (average 50kW), for mini hydro (average 0.75 to 5MW) and for development of other renewable energy technology power plant with a total capacity 6,850 kW.

Rural Electrification Fund (REF) (cont.)

Future Plan is to consider: Major off Grid Program mainly utilizing

Renewable Energy Solar grid and battery changing

station Biomass gasification Mini and Micro hydro

Soft loan facility for REEs grid extension from the National Grid.

Programmatic Specification and Funding of Rural Energy Development

• Electricity Sector Development:– 100% villages have access to electricity by 2020

(including battery charging)– 70% of the household have grid quality electricity by

2030

– Sustainable Rural Electrification Plan for Cambodia– Major planning undertaken – Village mapping using satellite technology and field

work– For each province a plan specify for on-grid and off-

grid technologies.

Sustainable Rural Electrification Plan for Cambodia (SREP)

• Results and Technology and costs– First Stage of SREP 2011- 2015– National Grid Extension $ 327,4 million– Off Grid Technologies:

– Hydro mini-grid $ 31.5 million– Biomass mini-grid $ 16.4 million– Diesel mini-grid $ 23.9 million– Solar Home Systems $ 6.7 million– Community PV $ 2.2 million– Solar Battery Charging $ 0.4 million

– Total Off-Grid $ 91.1 million

Off Grid technologies are mainly renewable technologies

– Grand total $ 418. 5 million-require for stage 1 to 2015

Sustainable Rural Electrification Plan for Cambodia (SREP) (cont.)

• Results and Technology and costs– Stage 2: 2016 – 2020, 301.8 million– Stage 3: 2021 – 2030, 287.6 million

– Conclusion: To reach the Government electrification targets by 2030, $ 1 Billion needs to be mobilized in three phases

Many Investment Opportunities for Modern Clean Energy Development (price about $0.10 per kWh);

Companies and donors are invited to undertake feasibility studies with support from MIME;

MIME would like to receive technical support to development standards for clean energy; such as for gasification, hydro, solar, improved cookstoves and industrial energy processes such as boilers, brick, kiln firing and rubber processes.

Rural Electrification Fund for Renewable Energy and expansion of electrification

Cambodia is committed to implement Clean Energy Development Programs

Opportunities toSupport Cambodia

BCS

Thank you for your attention.

The Fifth Meeting of the Subregional Energy Forum