Nick Beresford, country director of the United Nations Development Programme (UNDP) in Cambodia, discusses the state of Cambodia’s energy sector, the hope of solar, and bringing electricity to everyone.
UNDP Country Director Nick Beresford says he is very optimistic about Cambodia embracing renewable energy
Where does Cambodia’s electricity come from? It has a very large hydro sector – 46 % – so that’s the single largest part of the energy mix. It then has another 33% coming from traditional coal-fired power stations, and a further 13% is imported. The biggest import share is Vietnam, followed by Thailand, and a small amount coming from Laos. The remaining 8% is a mixture of oil and some additional fuels.
Where is the imported electricity coming from? It’s a bit of an odd situation that Cambodia does import so much, and it’s good to see that Electricité du Cambodge (EDC) is reducing that by bringing up production here – now Cambodia is looking at exporting electricity to Thailand. There is a lot of scope there to have a more optimal mix of energy, and indeed, where energy security issues can be tackled and energy trading might be better. [Cambodia is] importing electricity from Vietnam, but Vietnam’s labour costs and land costs are much higher than Cambodia’s. So we can see potential for Cambodia to produce more of its own energy and indeed, get into energy exportation itself.
What about renewable energy? The reason I didn’t mention renewables is because they [make up] less than 1% of the energy mix; it’s so tiny it’s almost non-existent. There is no solar effectively. There are one or two solar pilots that we’ve seen, such as the Sunseap solar facility close to Bavet and a bunch of commercial buildings with rooftop solar – so there are some good footsteps towards it, and [there has been] encouragement from EDC, the Ministry of Mines and Energy and from the Ministry of Environment – but it’s at a very low state at the moment.
On that subject, how open has the government been to investing more in renewables? To be fair to them they are certainly open to the idea, and if you compare the atmosphere to, say, five years ago, it has come quite a way to understanding it.
Also, to be fair to those civil servants and officials, it’s because it is such a fast-moving subject. It’s a different world from five years ago, certainly from ten years ago. It’s a very complex issue as well because it involves issues of how you manage a grid, of the technology in the actual production of the electricity itself, and also innovation in the financing options.
If you take those three things together then there are a lot of moving parts to this, but I think now we are at a point where the government is keenly aware that there is an opportunity here – that there is scope for what they would call a win-win. You can get your high growth, you can get your contribution to energy costs, you can keep those prices coming down and you can start to move more in environmentally improved ways so that you… don’t lock yourself into a brown energy spiral, which is easy to do, but very dangerous and extremely costly later on.
For example, we did some work with the Ministry of Economy and Finance to find out what the climate change risks coming through the system are. We concluded that we could lose up to 10% of the country’s gross domestic product (GDP) by 2050 through climate change effects, if we don’t successfully adapt to mitigate. These climatic and environmental factors are real and they need to be taken into the consideration of the choices that we make in the energy mix.
UNDP recently installed rooftop solar panels on their headquarters in Phnom Penh
Cambodia’s electricity demand is increasing… The thing about electricity demand is that it is very difficult to forecast because it’s a little bit like an iceberg where you see the top of it but you don’t really see the bottom of it. Why, because people look at the levelised cost of electricity in this country and they think about setting up a factory or a service centre but they decide against it. Because they say that even if the cost of electricity comes down by 5% or 8%, it’s still really expensive. So it is very difficult to measure that loss of foreign direct investment because electricity costs are only revealed when the price of the fuel changes.
Although there are subsidies for very micro uses of electricity within Cambodia, particularly in Phnom Penh… the electricity price costs here are punishing. There are all sorts of benefits, I think, in terms of industrial, in terms of growth, social cohesion, equity, and in leaving no one behind so that electricity really is genuinely more affordable for all people.
To be fair to EDC, the government is very aware of this and has been successful in bringing the cost down, so it’s not like they don’t know or care or they are not aware.
The other thing people keep saying is “grid stability, grid stability, we can’t put in solar”. Grid stability is a factor on a traditional centralised grid such as the one in Cambodia. Once you get to maybe 20% solar, then yeah, you would maybe need to start thinking about how you would manage the grid. But at less than 1% solar, there is no issue of stability. It’s fine. It needs to be thought of in the long-term planning, but in the [near term] the road is clear in that respect.
What about off grid communities? Off grid is tremendously important, I think primarily just from the point of view of social equity – often these are the poorest communities. I think that off grid solutions five to ten years ago were quite the poor-persons option, they really weren’t very good. They are getting better and better all the time now. We’re seeing both innovation in the way that electricity is generated and also in the way that it is managed, for example with microgrids – although such systems at the moment are technically illegal because you have to go through EDC.
There are clear benefits [to] accelerating off grid, because EDC is not going to get to [many regions in Cambodia] for a long time. So I think even something as simple as a plan for where the grid is going to go and when would be hugely beneficial. Then private investors would be able to say, “okay, I’ve got at least 12 years to make my money back if I start to work with these communities and these villages”.
Sometimes I think NGOs, the UN and others have to be a little careful not to randomly assign grant funding that gives away solar systems and then kills the market, then the project comes to an end and the NGO disappears. And what is the community left with? It is left with a broken, non-functioning solar system, without a proper backup, and the private company has already gone bust because it couldn’t compete against zero cost.
So I think we have to be a bit careful about how we, as development partners, work with government communities, but also make sure that we can allow the private sector to come in and make money. There could be some very nice solutions there for the off grid.
What we would like to do is to stand between the government, the private sector and between the communities and then try to make sure we get the best outcome for those who have been denied access to energy. And [this is] something the government understands and is very supportive of.
Are you optimistic about the future of renewable energy in Cambodia? Yes, I’m very optimistic because I see lots of opportunities and I also see a government that is cautiously thinking through the different options, but is genuinely motivated to find options that bring all Cambodians into some form of power – preferably on the grid, but if not, high-quality off grid solutions. The government is genuinely motivated by wanting to keep power prices falling and really seize economic growth that is inclusive.
BENGALURU (Oct 24): Thai shares fell nearly 1% on Wednesday as the country’s energy sector came under pressure after oil prices slumped overnight, while shares in Singapore pulled back from the previous day’s losses.
Thai stocks were down 0.9%, having resumed trading after a local holiday, with PTT Public Company Ltd falling 2%, while PTT Exploration and Production Public Co Ltd shed 2.5%.
Crude prices hurtled to two-month lows on Tuesday after Saudi Arabia said it could supply more crude quickly if needed to meet possible shortfalls ahead of US sanctions on Iran.
Meanwhile, mounting diplomatic pressure on Saudi Arabia over journalist Jamal Khashoggi’s death and worries about US corporate earnings weighed on sentiment.
Asian markets were largely subdued, with MSCI’s broadest index of Asian shares ex-Japan falling 0.2%, extending the previous session’s losses.
Philippine stocks slipped 0.4% led by financial and real-estate shares, with conglomerate Ayala Corp losing 0.4%.
“Markets had been up for five sessions, and we saw profit-taking eating into the market yesterday. Now we’re seeing some follow through selling from the continued weakness in Wall Street,” said Manny Cruz, an analyst at Asiasec Equities Inc.
“If you look at what happened yesterday, Philippine’s losses were meagre compared to losses in other Asian markets… some of them are recovering but now Philippines continues to suffer from selling pressure,” he added.
Vietnamese shares extended their decline, with all major sectors in the red. Petrovietnam Gas Joint Stock Corp lost 3.1% and food processor Masan Group Corp fell 2.2%.
Singapore stocks, which led losses in the previous session, posted a strong recovery with a 0.7% gain. Transport provider ComfortDelGro Corp Ltd gained 3.2%, after a fall in the previous session.
Indonesian shares inched up, with consumer and energy stocks offsetting losses in the telecom sector. PT Telekomunikasi Indonesia Tbk was the biggest loser, falling 1.1%, while PT Bank Mayapada Internasional Tbk gained the most.
Malaysian stocks also ticked up, and were on track to snap four straight days of falls.
Telecom service provider Axiata Group Bhd rose 3.7% and resort and hospitality operator Genting Malaysia Bhd added 1.1%.
High-performance modules have been installed on oil and gas company’s units.
Russia’s Hevel Solar has supplied HJT panels to Thai oil and gas company Bangchak.
Hevel Group has supplied 279 kW of 60-cell heterojunction solar modules to one of the largest oil and gas companies in Thailand – Bangchak Corporation Plc.
HJT modules are installed on top of Bangchak Corporation’s infrastructure units.
The parties agreed not to disclose the terms of the deal.
“This is our first major shipping in southeast Asia,” said Igor Shakhray, CEO of Hevel Group, “We are working in a niche, high-performance segment, that is why our solutions are ideal for rooftop solar systems to maximize output per square meter. Besides module supplies, we are also considering providing a wide range of PV services, from EPC to IPP.”
Welcoming the shipment, Chaiwat Kovavisarach – President and CEO of Bangchak Corporation – said: “Bangchak’s vision, ‘evolving greenovation’, comes from our belief that green innovation is the key to solving the social and environmental challenges of the modern world. Our flagship ‘greenovative experience’ service station embodies this spirit of innovation, and hence our choice of incorporating Hevel’s high efficiency HJT solar modules into our unique ‘green community energy management system’, and our commitment to offer the latest technology to our customers.”
Last year, Hevel Group converted its thin-film fab line to heterojunction technology, and at the end of the previous year. completed the ramp up of its 160 MW solar module production line.
The Nam Theun 2 is a 1070 MW hydropower plant on Nam Theun river in Laos. Photo by: Asian Development Bank / CC BY-NC
BANGKOK — It wasn’t a flood. It was a tsunami, Premrudee Daorung said of the wall of water that tore through the forests of Laos’ Attapeu province, snapping timber like matchsticks and flattening entire villages.
The July collapse of the Xe-Pian Xe-Namnoy saddle dam in southern Laos and the widespread disaster that followed made international headlines. But Premrudee, coordinator of the Lao Dam Investment Monitor — along with several other development and water experts — says many other mega-hydropower projects in Laos are little more than quiet, slow-moving disasters.
Shortly after the Xe-Pian Xe-Namnoy collapse displaced thousands and claimed at least 40 lives, the Mekong River Commission called the dam break a national tragedy, but also an opportunity. It’s one that “ushers in new hope for a more optimal, sustainable, and less contentious path for development of one of the greatest rivers in the world,” MRC CEO Pham Tuan Phan said in a statement at the time.
The Laos government announced a halt to proposed dams while it reviewed existing hydropower facilities in a move that pleased watchdogs. But just one day later, it initiated prior consultations on the controversial Pak Lay dam in northwestern Laos. The collapse may have triggered international sympathy, but it wasn’t enough to shatter the idea that hydropower should be a pillar of sustainable development along the Mekong — a farce that the World Bank has spent nearly two decades promoting, according to Bruce Shoemaker, an independent researcher focused on development issues in the Mekong region.
In December 2017, the World Bank handed over the Nam Theun 2, a $1.3 billion dam partly financed by the Asian Development Bank, to the Laos government. The mega-project was positioned as the future of sustainable hydropower, said Shoemaker, who began following the project long before its approval in 2005. Instead, in a bid to become a socially and environmentally responsible “model dam,” NT2 failed communities, the environment, and continues to threaten local livelihoods, critics say.
A ‘model’ dam
Plans for NT2 can be traced back to the early 2000s, when, Shoemaker said, the World Bank began touting the concept of hydropower as one of dual purpose: To make the country richer while contributing to poverty alleviation and conservation efforts. But the community benefits attached to the mega-dam were doomed from the start, experts who have researched the project told Devex.
When NT2 got the green light, several NGOs signed on to help relocate 6,000 people to the southern edge of the new reservoir site, beside an area identified for community forestry practices. The dam was operational by 2010, with 90 percent of the power exported to Thailand. But by 2012, progress reports regarding livelihoods and conservation efforts from bank-appointed external panel of experts were souring, said Shoemaker, who is co-editor of recent book “Dead in the Water: Global Lessons from the World Bank’s Model Hydropower Project in Laos.”
It wasn’t surprising to Glenn Hunt, who previously worked in the region and conducted an early assessment of the project’s social development plan. Community forestry is something that has never worked in Laos, he said, and this experiment was no different: “For one of the pillars that was supposed to be the primary source of income, it’s been an unmitigated disaster.”
The reservoir flooded farmland, meaning much of the community’s livestock soon starved and people could no longer count on their crops for income. The association set up to manage the forest largely fell apart, the sawmill will soon be closed, and the effort has not provided the third of villagers’ income it was meant to, Hunt said.
Residents were relocated to new houses, which are accessible via new roads, and the World Bank celebrated the new clinics, toilets, electricity, and water pumps in its statement declaring the closure of the project in December 2017. It’s the tradeoffs for the infrastructure that are problematic, said Niwat Roykaew, head of the Thai people’s network Rak Chian Khong Group.
“If you have the house, you have the house. But what to eat? How do you feed your family?” Niwat said.
Reservoir fisheries have proven to be the most sustainable pillar, though it’s been difficult to keep those outside the immediate community from fishing as well. But with an absence of other income-generating opportunities, community members are instead using the reservoir to access nearby protected land — an area that hosts several threatened species and was meant to benefit from funding and additional oversight — to poach animals and valuable rosewood.
Downstream, villagers have reported a drop in wild fish catch and loss of riverbank gardens. Shoemaker, who had conducted a livelihoods study of the community along the Xe-Bang Fai river in 2001, returned in 2014 to find that the fish market had dwindled, and low-lying rice fields had flooded.
The impact of NT2 is strikingly similar to the World Bank-financed Pak Mun dam, completed in 1994 in Thailand’s Ubon Ratchathani Province, said Kanokwan Manorum, a professor at Ubon Ratchathani University who has researched water and land governance in the area for 20 years. There, resettled villagers faced comparable losses, and turned to broom making after fish catch declined.
“The mistakes we face about the Pak Mun dam are already repeated in the Xe-Bang Fai area,” Kanokwan said. “It shouldn’t be like that. The World Bank should have learned about the impacts of the Pak Mun dam, and should make a better dam. I feel like the better dam will never happen.”
After several emails, World Bank staff said they could not reply to questions regarding NT2 on short turnaround, but pointed Devex to the final report by an international environmental and social panel of experts, particularly this portion:
“The POE [Panel of Experts] has confidence that the project is on the road to overall sustainability. It is not there yet. The solemn additional undertakings by all stakeholders to maintain their support in the years ahead provide evidence of a renewed commitment to the ultimate goal of sustainability by all parties.”
The panel of experts had refused to sign off on the resettlement program in 2015, prompting a two-year extension. Now, as part of the final sign-off, the French development agency has taken over livelihood support for the next five years. Rather than evidence of renewed commitment, it’s proof that the project wasn’t sustainable, Shoemaker said.
Damming the Mekong
Laos is planning to build about 140 hydropower dams in its quest to become the “battery of Southeast Asia.” But Shoemaker and other water and development experts are urging the country to consider a different way forward.
“Investors position mega-dams as ‘high risk, high reward,’ Shoemaker said. “But who is taking the risks? The bank put in all these loan guarantees to the investors, but not for the people there.”
There is little room for communities to engage and advocate on these issues, especially against the nearly nonexistent civil society backdrop of Laos, where the majority of the dams in the region are planned. Lao Dam Investment Monitor’s Premrudee stated she was speaking on behalf of Laos villagers, who did not feel it was safe to speak themselves. The Xe-Pian Xe-Namnoy disaster has prompted global dialogue, and she is hopeful a review of the project will inspire change, she said.
But Hunt wants governments and developers to think further outside the box if they’re going to continue disrupting people’s lives to build massive dams: “Maybe the citizens need to be shareholders, or they need to be getting dividends from the company, something different. It’s their traditional land, why shouldn’t they be part-owners in the entire enterprise? That’s the type of thinking that needs to take place.”
Other suggestions revolve around considering alternatives to hydropower dams altogether. International Rivers, an advocacy group that has opposed the construction of mega-dams, is calling for participatory, Mekong basin-wide planning, and comprehensive options assessment, as well as financial and technical assistance to promote energy and development alternatives. No matter what, social and environmental risk must be costed into projects, said Maureen Harris, the NGO’s Southeast Asia program director.
NT2 and Xe-Pian Xe-Namnoy are just two examples that are now being heavily studied, Niwat, from the Thai Rak Chian Khong Group, said, but he worries about the hundreds of dams proposed along tributaries in the region undergoing less scrutiny.
Xe-Pian Xe-Namnoy is a “clear example” of how corruption and profit-driven investment can cause a disaster, he added, but he witnessed the slow-moving disaster caused by the NT2 project himself.
Niwat visited the plateau area that villagers called home before the dam construction. People living upstream or on the reservoir area had been told they could not build a new house or farm their rice paddies since the land would soon be flooded — and they would soon live in a nice new house elsewhere.
Comin Khmere, the Cambodian arm of international solutions provider Comin Asia, has enjoyed booming business in the Kingdom by installing large-scale solar projects for clients across the country. Southeast Asia Globe spoke to Comin Asia’s regional operations director Michael Freeman to discuss the business end of the company’s renewable energy projects.
Comin Khmere’s Renewable Energy Division was established in 2008. How has it grown since then? Comin Khmere has always been interested in solar and renewable energy. In 2008, when the renewable energy division was first established, solar power was still expensive and only smaller off-grid systems were financially attractive.
One of the first larger systems we installed was in 2013, at the Bollore Logistics office in Siem Reap, and it was intended to help power the first electric cars. In 2016, we signed our first solar contract with Cleantech to install a large 2.6MW rooftop solar project at the Coca-Cola plant, which opened the same year within the Phnom Penh Special Economic Zone.
We have since worked together with Cleantech to focus on rooftop solar for industrial clients through a leasing model. The leasing business is becoming increasingly attractive, as the prices of solar panels have come down significantly, from over a $1 per watt peak to just about $0.40 now. In partnership with Cleantech, we consider ourselves the leading contractor in this market.
As Cambodia passes clear and precise legislation regarding clean energy, we now have a strong pipeline of future projects lined up. We expect our Renewable Energy Division to remain a profitable part of our business and a key area for growth.
Can you discuss regional interest in your renewable solutions? What type of client do you typically attract? In the region, Comin Asia is exploring solar opportunities in Myanmar and Laos. The current prices of electricity there are low, which makes it currently less attractive to invest in solar in those countries compared to solar projects in Cambodia. We expect that it will not take long for our solar projects to begin to take off in these countries.
Our cooperation with Cleantech is mainly for larger commercial rooftop solar systems. Many of our clients invest themselves in smaller-scale solar systems across Cambodia and the region. Cambodia is currently our main market, but Myanmar, Laos and Vietnam could potentially become major markets for us in the next few years.
How does Comin Khmere encourage clients to purchase renewable solutions? First of all, we suggest to our clients that they install energy-efficient appliances. We also do audits and advise clients on how they can reduce electricity consumption, and explain to them about how much they can save on energy costs by using replacement appliances.
Secondly, we propose solar systems or other appropriate renewable energy technologies depending on the type of client we are talking to.
Thus far, we have completed several large rooftop solar projects in Cambodia. In addition to the 2.6MW system installed at the Coca-Cola plant, we have installed systems at the International School of Phnom Penh and at the US Embassy, to name just a few of our major projects. We are also currently building a 9.8MW solar system at Chip Mong Insee Cement’s factory in Kampot.
We have collected enough data from our completed projects to demonstrate to our clients that solar systems have the potential to be highly financially attractive.
Shanghai-based Jinko Solar, one of the world’s leading solar module manufacturers, will participate in the construction of what will become the Kingdom’s largest solar plant by supplying more than 200,000 solar modules to local firm SchneiTec Group.
The 60-megawatt solar plant will be raised in Kampong Speu province.
New York Stock Exchange-listed Jinko Solar announced Tuesday the signing of the deal with SchneiTec Group.
Warren Lee, business development manager for Southeast Asia at Jinko Solar, said both companies have been working on the deal for about a year before coming to a final agreement.
He said it is the company’s biggest deal in the Kingdom yet: “We have other small projects here already, mostly for residential rooftops and smaller scale commercial projects.
“But, this project is our first utility-scale installation,” Mr Lee said.
The power produced at the upcoming plant will be supplied to Electricite du Cambodge (EDC), Mr Lee said.
“This project marks a milestone in Cambodia’s renewable power section, not only in terms of capacity, but also as major stepping stone for the country to find clean and efficient energy solutions in tackling the energy deficit,” he said.
The installation of the modules is due to begin next month, with an expected completion and commercial operation date set for December 2019, Mr Lee said.
He did not disclose the total amount of money the company will receive for the modules.
“We have great expectations for the entire region. The region’s booming population, strong economic growth engines, and abundant sunlight represent an exciting opportunity for solar and for Jinko Solar,” said Gener Miao, vice president of global sales and marketing at Jinko Solar.
“This 60MWs solar installation is just the first step towards an abundant and vibrant renewable energy future in Cambodia,” he added.
SchneiTec Group project director Say Sotheara said Jinko Solar’s world-class products and service will help them meet their goals.
“We chose Jinko Solar modules for their superior reliability, proven durability and performance in hot and humid environments,” he said.
Last year, the Asia Development Bank provided a $9.2-million loan to Singapore-based Sunseap Group to build a 10MWs solar farm in Bavet city, in Svay Rieng province. The solar farm is already in operation.
ADB is now conducting a feasibility study for a 100MWs solar park in Cambodia. The study is expected to be finished in November, when the bidding process for the project will begin.
With seven hydropower plants scheduled to be fully operational by the end of 2018, the Electricity Authority of Cambodia forecasts that total energy output will reach 1,329MWs, of which 538MWs will come from coal power plants, 251MWs from fossil fuel power stations, and 72MWs from renewable energy sources.
The electric buses, which will be equipped with systems that provide commuters with audio and visual information about their journey, are part of the LTA’s efforts to build a more environmentally friendly public bus fleet.
SINGAPORE — Sixty electric buses from three suppliers will hit the road in 2020, providing commuters with quieter and smoother rides, said the Land Transport Authority (LTA) on Wednesday (Oct 24).
The buses, worth S$50 million, will arrive in Singapore from next year and the routes they will ply will be announced at a later date.
The LTA said it awarded the tender to multiple suppliers in order to test the different charging technologies available in the market.
The three suppliers of the electric buses are:
BYD (Singapore), which will supply 20 single-deck electric buses in a contract worth S$17 million. BYD is a Shenzhen-based automaker
ST Engineering Land Systems, which will provide 20 single-deck electric buses for a sum of about S$15 million
Yutong-NARI Consortium, a Chinese consortium, which will supply 10 single-deck and 10 double-deck electric buses in a contract worth about S$18 million.
The buses, which will be equipped with systems that provide commuters with audio and visual information about their journey, are part of the LTA’s efforts to build a more environmentally friendly public bus fleet.
Last year, the LTA bought 50 diesel hybrid buses from Volvo East Asia for S$30 million and said the buses would be put in service by the second half of this year.
Former Second Minister for Transport Ng Chee Meng said in March last year that an issue with pure-electric technology is that it is not fully proven yet for tropical climates, due in part to the vehicles consuming a lot of energy for air-conditioning.
The 60 electric buses will help the LTA to better understand the operational and technical challenges that come with the wider deployment of such buses under local tropical weather and traffic conditions, it said.
In evaluating the bids, the LTA said it considered factors such as the track records of the firms, their technical capabilities, adherence to requirements and compliance with local regulations.
Myanmar is developing its electricity infrastructure to overcome power shortages due to the country’s rapid economic growth. As of this effort, the country is urgently refurbishing and upgrading its aging substations as a high-priority measure.
For example, Mitsubishi Electric Corporation has been selected to supply Electric Power Generation Enterprise (EPGE) in Myanmar with 46 gas-insulated switchgear (GIS), seven transformers and other equipment via subsidiary Mitsubishi Electric Asia (Thailand) Co., Ltd. The equipment will be delivered beginning next year for use at substations scheduled to commence operation in 2021.
The supply order falls under the Urgent Rehabilitation and Upgrade Project Phase 1 (Package 2), a Japanese official development (ODA) project in Myanmar. Going forward, Mitsubishi Electric will supply a variety of reliable, high-quality equipment to contribute to the development of Myanmar’s infrastructure and economy.
Mitsubishi Electric’s gas-insulated switchgear can be installed in space-restricted areas of existing substations and its special divided three-phase transformers can be packed in separate compact modules for easier shipping to locations where transportation infrastructure is underdeveloped. According to Mitsubishi Electric, the company was awarded with this supply order based on the high evaluation of its product quality and experience in supplying related products to customers in Japan and other markets.
