Keeping it clean and green
Clean energy is playing a crucial role in the global economy and in keeping the planet green. Khmer Times reporter Jason Boken spoke with Energylab director of emerging markets Bridget McIntosh about the growth of the clean energy market in Cambodia and the region, with a focus on new technology, policy and the future of the sector.
BM: This was an important decision towards avoiding the future economic, social and ecological damage that mainstream hydro dams have, particularly that the Sambor Dam, would’ve had. Seventy-five percent of Cambodia’s protein comes from fisheries in the Mekong and Tonle Sap system – that represents a lot of livelihoods dependent on the health of that river system. Sambor was oversized for Cambodia’s needs anyway and it can be made up with [renewables including] solar and wind power.
Analysis by Natural Heritage Institute indicates that floating solar [installations] on existing hydro dams, such as Lower Sesan II, could be built on a large scale with a lower cost than the most recent agreements signed with Laos’ coal projects at 7.7 cents per kilowatt hour (kWH) and the Stung Tatai Leu hydro dam at 7.92 cents per kWh. Solarising hydro dams has many benefits – they reduce evaporation, they don’t use additional land and they can smooth any variable output from the grid operator if required. Thailand committed last year to solarise all its hydro dams and has already started [on that process].
KT: According to an EnergyLab analysis, by 2030, if all announced energy projects go forward, 74 percent of Cambodia’s grid electricity will come from fossil fuel-fired generation, up from about 34 percent in 2018. Why do you think this is the direction Cambodia is heading when other Asean countries are going the opposite way?
BM: Vietnam was on a similar path until about three years ago – when the [associated] costs and speed in building up solar and wind generation became viable in helping to meet that country’s rapidly growing demand. Delays in the financing of coal-fired projects has Vietnam set to announce the cancellation of up to seventeen 1,000 megawatt (Mw) coal-fired projects. In Cambodia, up until the power shortages in 2019, the power challenge was having too much hydro power in the wet season, combined with contracts for coal power output that required payment regardless of whether power was used. After the power shortages, there was a rush to contract for more projects. In the space of less than one year, more than 4,000mW of new coal projects were signed by the government, including two deals importing 400mW from a coal fired project in Laos. From these projects, our analysis indicates Cambodia will face a significant oversupply of electricity out to 2030. And coal is not very flexible so “peaker” plants [those capable of producing short term peak power] will also be needed to keep the system in balance.
This will significantly hold up solar and wind project development in Cambodia, unless these coal projects also suffer delays in financing like Vietnam is experiencing.
KT: With the industrial sector utilising approximately 19 percent of the total annual energy supply, access to renewable energy is especially important to the garment and footwear industry, Cambodia’s largest export earner.
Multiple big-name brands have strict rules to follow in terms of renewable energy.
Do you believe that some of these garment factory owners may choose to leave and set up where there are fewer rules and cheaper electricity?
BM: Yes, unfortunately. Brands could move production to Vietnam and know they would be able to meet their targets, avoiding the hassle of trying to understand why rooftop solar is actively limited in Cambodia, or sourcing carbon credits to make up for all the fossil fuel in the mix. Thailand and Vietnam are both actively developing policies to attract the purchase power of these brands. For example, Vietnam is establishing corporate power purchase agreements – similar to what Facebook is using to meet their 100 renewable energy targets. Another misconception is that most think these brands only care about the price of electricity, but in a recent consultation with the Ministry of Economy and Finance sector representatives, brands outlined their priorities in order: 1. Reliability 2. Source. 3. Price.
KT: There is more being done in Cambodia in terms of educating people on renewables. What more would you like to see?
BM: We are always impressed by how much young people care about the environment and the future of their country, so we are pleasantly surprised by how much [Khmer youth] love the idea of using solar and wind for their country’s electricity supply. We recently organised a tour of the floating solar plant at the Chip Mong cement plant in Kampot. It was completely sold out and actually oversubscribed by three times. Imagine if those people could also go and see Cambodia’s first wind farm in Kampot?
KT: There have been recent talks about the new wind farm in Cambodia. How much potential do you think wind power has in the Kingdom?
BM: I loved Electricity of Cambodia (EDC) Keo Rottanak’s comment recently about wind power when he said that “if we could have some wind power, it would add some nice colour to our flag of renewable energy”. Thankfully, wind power is cheap too, 6.85 cents/kWh, as proposed for the Kampot project. Recent analysis of the Ministry of Mines and Energy’s renewable energy was conducted by an Australian funded wind power development study which identified Cambodia as having more than 6,800 mW potential from good wind power resources. Not only that, wind power helps balance other sources, with output at night when solar is not available and output in the early dry season which preserves water in reservoirs for peak demand in May.
KT: How could renewable energy boost Cambodia’s economy and what should the Kingdom be focusing on the most right now?
BM: Cambodia has a fuel imbalance and relies on imports that are increasingly and dramatically reliant on coal- and gas-fired power plans. Renewable energy offers the opportunity for more energy independence. Wind and solar are cheaper than coal and far cheaper than gas [even when you take out the gas pipeline and import terminal infrastructure]. Thai analysis showed that increasing solar and wind generation resulted in a net system cost reduction and also increased the resilience and reliability of their electricity system via a diversity of supply, greater investment in the network and more backup options such as battery storage. So, it’s cheaper, cleaner, supports local jobs and investments and supports energy independence. What’s not to like? The Kingdom needs to have a clear renewable energy target – companies are queuing up to invest and develop solar projects in Cambodia but they can’t do it without agreements to buy their output from the single buyer EDC. Thankfully, the Ministry of Mines and Energy, supported by EDC, the Electricity Authority of Cambodia and the Australian government are leading the development of a renewable energy master plan to be incorporated into power development planning. It is likely to be ready in January next year and we hope it will pave the way to dramatically increasing an ambition for solar and wind in Cambodia.
Source : khmertimeskh
