1. Cambodian Energy Sector Development Ministry of Industry, Mines and Energy Vietnam, Ho Chi Minh, 11 November, 2011 Greater Mekong Subregion Fifth Meeting of the Subregional Energy Forum

2.  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.

4.  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

5.  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

6. Efficient 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.

7.  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)

8. 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

9. Hydropower Locations MOU Perhaps 5000 MW Under construction 1100 MW -Hydro potential remaining 3500MW. 73% 26% 1%

10. Current Rural Electrification policy 1. Grid expansion from the existing network 2. Cross-border Power Supply from neighboring countries (Thailand, Vietnam and Lao PDR) 3. Mini-Utility Systems  Diesel systems (to be phased out)  Renewable Energy (Solar, Wind, Mini-micro hydro, Biomass, Biogas, Bio-fuel, etc…) 4. Stand-alone for the remaining (PV, battery charging…)

11. 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)

12. 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.

13. 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.

14. 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.

15. 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

16. 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

17.  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 to Support Cambodia

18. Thank you for your attention. The Fifth Meeting of the Subregional Energy Forum