CLEAN POWER ASIA on Policy and incentives to encourage renewable energy development in Cambodia

Transcription

1 CLEAN POWER ASIA on Policy and incentives to encourage renewable energy development in Cambodia April 2013 Bangkok, Thailand Prepared Mr. HANG Seiha Department of Energy Technique Ministry of Industry, Mines and Energy Tel:

2 Contents 1. Basic Facts of Cambodia 2. Government Power Sector Policy 3. Background Situation for Renewable Energy Development in Cambodia 4. Completed and on Going Activities Related to RE 5. Plan for Future RE Development 6. Levels of Rural Electrification 7. Summary of Installed Capacity and Construction Costs 8. Incentive and Encourage 9.Conclusion 2

3 1. Basic Facts Of Cambodia Country: Area 181,035 sq km, water 2.5%. Population 14,241,640. Pop growth rate 1.75% (2008) Border: with Thailand in the west, Vietnam in the east and south and Lao PDR in the north Phnom Penh is Capital city GDP growth rate 6% (2010) GDP/capital $802 (2010) GDP by sectors: - agriculture 33.9%, - industry 21.9%, - service 44.2%.

4 2. Government Power Sector Policy To provide an adequate supply of energy throughout Cambodia at reasonable and affordable price, which facilitate the investment in Cambodia and development of national economy, To encourage exploration an environmentally and socially acceptable development of energy resources, in particular the mobilization of our RE sources, where they are cost-effective, the promotion of RE technologies, To encourage the efficient use and energy conservation to minimize the environmental affects resulted from energy supply and consumption. 4

5 3. Background Situation for Renewable Energy Development in Cambodia At present, the development of RE sources in Cambodia are slowly in comparing with other countries of the region, because of the lack of experiences, funds, and inadequate data, Current status of RE Technologies in Cambodia are mainly in researching development and demonstration stages, Renewable Energy will reduce the impact on climate change/ decrease the CO2 emission and contributed to global warming reduction. 5

6 3. Background Situation for Renewable Energy Development in Cambodia (Con t) Renewable Energy Potential Solar Energy: the average sunshine duration of 6-9 hours per day, giving an average of 5kWh/day. thus, considerable potential of solar energy Wind Energy: The southern part of the great lake Tonle Sap, the mountainous districts in the southwest and the coastal regions, such as Sihanoukville, Kampot,Kep and Koh Kong have the annual average wind speed around 5m/s Hydro: The potentiality (10.000MW, but current contribution to electricity production less than 3%) 6

7 3. Background Situation for Renewable Energy Development in Cambodia (Con t) Renewable Energy Potential Biomass: The report prepared by NEDO on the Assistance Project for the Establishment of an Energy Master Plan identified significant biomass energy resources from a variety of agricultural residues such as rice husk, Acacia tree, Cassava, Luscenia tree, Coconut, Biogas: The effectiveness of small scale biogas has been demonstrated in Cambodia by a number of different projects. The use of animal wastes to generate high quality gas for cooking has significant economic, health, social and environment benefits for poor rural households and Giga digester from cassava factory Biofuel: Jatropha curcas 200 ha (Fencing), Palm Oil 10, 000 ha and sugar cane more then 20,000 ha. 7

8 4. Completed and on Going Activities Related to Renewable Energy Solar Photovoltaic: Project with NEDO Japan, SIDA, other international and national institutions including Prime Minister project, we had installed around 1.5 MW in the country. Biomass Gasification: Project with Canada in Battambang (7kw + 20kw), with DEDE Thailand in Kompong Cham (30kw). and project in Sambour District, Kompong Thom Province with the capacity 30kw by FONDEM France in 2009 and a number of biomass gasifies have done by local developers' Micro-hydro: On Going Project with UNIDO capacity 65kw two units (130 kw), Grant from JICA project 2 micro hydropower plants with capacity of 370 kw already put in operation in Nov 2008 and others 8

9 4. Completed and on Going Activities Related to Renewable Energy (Con t) Bio-fuel: Have more than 10 companies doing with Jatropha, planting around 1,000 ha, no once do with big scale yet. Bio-Energy: One company from Korea doing on this field with the production capacity of ethanol 36,000 t/year from cassava. 9

10 4. Completed and on Going Activities Related to Renewable Energy (Con t) The LFG Power Generation Project developed by Korean Company. 2 MW was MIME supports this project as it is the multi-purposes project such: - to generate electricity by using landfill gas that has been emitted to the air since 1975, - to reduce Green House Gas, In order to participate in international challenge to cope with climate change, - to make clean environment In order to eliminate bad smell, fire smoke, fire, and explosion of landfill, (LFG: land filling gas) 10

11 5. Plan for Future Renewable Energy Development GOAL: To improve the current level of electrification and poverty reduction as well as enhancing education and medical treatment in the rural areas. PURPOSES: - Study of policies to promote electrification in those areas (not yet serviced), - Introduction and development of Renewable Energy Technologies, - Study of institution and organization for sustainable operation and maintenance supported by the appropriate business model, including the financial procurement plan. TARGET: To achieve 100% Electrification of Rural Villages by the year

12 Framework Goals and Targets Goal - Reduce poverty level - Improve living standard - Foster rural economic development Effects of RE Targets of Rural Electrification Sector (1) 100% village electrification by 2020 (2) 70% household electrification with grid-quality electricity by

13 6. Levels of Rural Electrification Three levels of electrification Level 3: National Grid (grid electrification) 2: Mini-grids 1: Battery lighting Use of renewable energy Mini-grids: biomass and micro hydro BCS: solar, (locally wind) off-grid areas BCS 13

14 Village Electrification Plan 100.0% 90.0% Level-up Plan of Village Electrification Ratio (including Battery Lighting) 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% Electrification Strategies ES1 to ES3 Soar BCS & SHS Diesel Mini-Grid Biomass Mini-Grid Micro Hydro Mini-Grid Grid Electrification 10.0% 0.0% Short-term Policy Measures SP1 to SP3 Mid-term Policy Measures MP1 to MP Source: Master plan

15 Household Electrification Plan 70.0% 70% 60.0% Level-up Plan of Household Electrification Ratio with Grid Quality 50.0% 47% 40.0% 30.0% 20.0% Electrification Strategies ES1 to ES3 Diesel Mini-Grid Biomass Mini-Grid Micro Hydro Mini-Grid Grid Electrification 10.0% 0.0% Short-term Policy Measures SP1 to SP3 Mid-term Policy Measures MP1 to MP

16 7. Summary of Installed Capacity and Construction Costs Energy Source Number of villages Number of households Number of households to be electrified Installed Capacity (Kw) Construction Cost (x 1,000 US$) Total Total Estimated cost per household Grid Extension , ,250 42,000 62, Solar BCS 1, , ,000 8,487 52, Individual SHS (planned by the WB) ,000-4, Mini-grid Micro hydro Hybrid (micro hydro and biomass gasification) ,541 14,833 2,078 14, Biomass gasification 3, ,636 Grid extension or Biomass gasification 3, ,397 Diesel ,390 Grid extension or Diesel 1, , , , , ,011 37,831 87, Sub Total 11,205 1,834,428 1,521, , , Indirect costs (Sub Total x 30%) (including the administrative management, technical and operational supports, and reserves) Total (Source: EAC 2012, census 2008) 11,205 (68% of villages) 1,834,428 1,521,208 (45% of households) 169, , ,

17 8. Incentive and Encourage Low tax exemption on RE imported 0 to 7% Facilitate to invertors and donors who would like to invest in Cambodia REF supports to people for solar installation 50Wp incentive USD 100 REP expand grid; EDC guarantee for borrowing money from local bank (unlimited) Power to the poor; people can borrow from bank USD 120 per household, no interest rate. 17

18 9. Conclusion RE development is a key element of the RGC's rural electrification strategy; The capacity building, technical assistance and financial support are very important to promote RE development in Cambodia; The RGC is very encouraged to produce the electricity from RE in order to reduce the GHG emission. 18

19 THANK YOU FOR YOUR KIND ATTENTION 19