karP¢ab;famBlGKÁIsnIxñattUce TAnwgbNþajrbs;rdæ³ bTBiesaFn__BIRbeTséfCamYyn igbBaØtþirbs; VSPP Connecting small renewable energy generators to the grid: Lessons from the Thai experience with VSPP regulations sikçasalasÞIBIkarkekItfamBlrbs; SME extþ)at;dMbg RbeTskm<úCa éf¶TI % SME Renewable Energy Workshop Battambong Cambodia 5 April 2004 Chris Greacen Thai Net Metering Project Palang Thai

GnaKtBIrsMrab;bNþajGK ÁIsnICnbT enAkm<úCa Two futures for rural electrification in Cambodia A : GKÁIsnIkm<úCa smøab; shRKasGKÁIsnICnbT EDC kills REEs b¤ or B : shRKasGKÁIsnICnbTlk;ePøIgeGayG KÁIsnIkm<úCa nigGtifiCntammUldæan REE sells electricity to EDC and to local customers

eKalsMxan;² Outline etIGVIxøHeTACabBaØtþirbs;GñkplitfamBlxñ attUc (VSPP) ? What are VSPP (Very Small Power Producer) regulations? etI VSPP GacGnuvtþrebobNaenAkm<úCa? How can VSPP apply to Cambodia? etIRbeTséfTTYl)anbBaØtþirebobNa? How did Thailand get the regulations? etIvakMBugRtUv)aneKGnuvtþl¥kMritNa? How well are they being implemented? etIemeronb¤bTBiesaFn_NaxøHEdlnigmanR beyaKcMeBaHkm<úCa? What lessons may be useful for Cambodia?

bBaØtþi VSPP VSPP regulations

kartbNþajénfamBlxñattUc Grid interconnection of small scale renewable energy

PUmimYyRtUveKkMNt;kugTr½dUcCaGtifiCnmñak; Village is metered as a single customer karRbmUlBnæBIRKYsarnimYy² nigkarEfTaMbNþajKWCaPar³kic©rbs; shRKasGKÁIsnICnbT Collection of tariffs from individual households and maintenance of local lines is the responsibility of the REE. karTTYlxusRt Uvrbs;Rkum hu‘n Utility’s responsibility karTTYlxus RtUvrbs;PU mi Village’s responsibility M kugTr ½ meter karTijb¤cMNayCarYm Aggregate Net Metering

CIv]sµn½ BIksidæan ciBa©wmRCUk Biogas from Pig Farms kat;bnßyCatiRkxVk;enAkñúg xülnigTwk Reduces air and water pollution begáIt)anCaCI Produces fertilizer begáIt)anCaGKÁIsnI Produces electricity

CIv]sµn½ BIksidæan ciBa©wmRCUk Biogas from Pig Farms Ex ksidæan $ )anP¢ab;CapøÚvkar As of Jan 2004: 4 farms legally connected ksidæaCaeRcInryeTotmanskþan uBl Potential for hundreds of farms

etIkm<úCaGaceRbIbBaØtþi VSPP rebobNa? How could Cambodia use VSPP regulations? c,ab;tMrUveGayGKÁIsnIrdæ ( GKÁIsnIkm<úCa b¤GVIk¾eday ) GnuBaØtrGayman Cv]sµn½PavUniykmµ/ varIGKÁIsnItUc² nig famBlepSgeTottP¢ab; niglk;famBl Laws require the grid (EDC or whatever) to allow biogassifiers, micro-hydro and other renewables to connect and sell power. pþl;nUvkarFanaebIeTaHCamanePøIgrdæ eTAdl;k¾eday/ manTIpSarsMfamBl Provides assurance that even if grid arrives, there is a market for power. mankarRbfuyTab EdlKMeragnwgRtUveKElgeRbI RbsinebIbNþajePøIgrdæeTAdl; Lowers risk that project will be obsolete if grid arrives.

etIéfTTYl)an bBaØtþi VSPP dUcemþcsMrab;RbeTséf How did Thialand get VSPP regulations for Thailand? !> rdæaP)al)ansMuRkumhu‘nGKÁIsnII (PEA &MEA) begáItbBaØtþi VSPP… Rkumhu‘nGKÁIsnI)anRcanecalsMeNI (1999) Government asked utilities (PEA & MEA) to develop VSPP regulations… utilities ignored request bNþaGñksµRK½mYycMnYn)aneRBognUvbBaØ tþieLIg edaymankarCYyBImitþmYycMnYnenA RbeTséf nig shrdæGaemrik ( ) Volunteers drafted regulations – helped by friends in Thailand & USA (Late 2001) #> Rkumkargar CamYyRkumhu‘nGKÁIsnI/ rdæaPi)al ( ekIteLIg ) Working-group with utilities, government (Spring 2002) $> sPaGnumt½enAéf¶ !$ ]sPa Cabinet approval on 14 May 2002

eKalbMNgénkarTijzamBlBIGñ kplitzamBlxñattUc Objectives of Power Purchase from VSPPs CMrujkareRbIR)as;eGaymanRbsiT æPaBnUvFnFanFmµCati nig kat;bnßykar eRbIR)as;eRbg To promote efficient use of domestic natural resources and reduce dependency on the use of commercial fuels ebIk»kaseGaytMbn;dac;RsyalcUlrY mkñúgkarplitGKÁIsnI To open up an opportunity for remote areas to participate in electricity generation kat;sMralbnÞúkfvikarbs;rdæaPi)ale FVIvinieyaKelIkaplitGKÁIsnI nig bNþajEckcay To alleviate the government’s budgetary burden to invest in electricity generation and distribution systems

kareRbIR)as;Rbkb edayRbsiTæPaB Customer Efficiency sßanIyplitGKÁIsnIfñak;kNþal Central Generation Rkumhu‘nGKÁIsnIfñak;kNþalsBVéf¶ Today's Central Utility kaeEckcayrbs;Rkumhu‘nGKÁIsnIeTAGnaKt Tomorrow's Distributed Utility? GñkeRbIR)as;enAtMbn; dac;Rsyal Remote Loads zamBlykBIxül; Wind zamBlykBiRBHGaTitü PV m:asuInePøIg Genset eRbgBIpUssuIl Fuel Cell zamBlykBIGaKuy Battery GtifiCneRbIR)as; Customers sßanIyplitGKÁIsnIfñak;kNþal Central Generation © Distributed Utility Associates, Used with Permission 12

RbtþibtþkarN_Eckcay Operating The Distributed Utility m:asuInePøIg Genset zamBlykBIxül; Wind zamBlykBIRBHGaTitü Photovoltaic sßanIyplitGKÁIsnIfñak;kNþal Central Generating Station ~ ~ bNaþjbBa©ÚnzamBl Transmission Line EckcaykñúgtMbn; Regional Dispatch GnusßanIyEckcay Distribution Substation Bt’manBItMélzamBl Energy Value Information ]bkrN_RtYtBinitüy:agmanRbsiTßPaB Smart Controller zamBlBIGaKuy Battery RbBnæ½RtYtBinitü nig P¢ab;TMnak;TMng Communication & Control Links bNþajEckcay Distribution Line eragcRk Factory TIRkug Town kareRbIR)as;enAtMbn;dac;Rsyal Remote Load Electric Power Monitoring & Control Lines © Distributed Utility Associates, Used with Permission 13

kareRbIR)as;EdlTTYl)an kalBIEx mkra 2004 Applications received(as of 20 Jan 2004) GaCJaFrGKÁIs nIRksUg MEA GaCJaFrGKÁIs nIextþ PEA cMnYnK Merag # of projectskW cMnYnK Merag # of projectskW zamBlRB HGaTitü Solar PV CIv]sµ½n Biogas110486>750 CIvm:as; Biomass srub Total >576 5

kic©snüaEdl)ancuHhtßelxa kalBI Ex mkra 2004 Contracts signed ( as of 20 Jan 2004) GaCJaFrGKÁIs nIRksUg MEA GaCJaFrGKÁIs nIextþ PEA cMnYnK Merag # of projectskW cMnYnK Merag # of projectskW zamBlRB HGaTitü Solar PV CIv]sµ½n Biogas004? CIvm:as; Biomass srub Total 008 >400 0

bBaðacMbg Sticking points… karP©ab;bNþajRtUvkartMélx<s; Expensive interconnection requirements bBaðBnæelItMélbEnßmminTan;) anedaHRsay VAT tax issue unresolved Karyl;RBmBI naykdæan GaCIvkmµzamBl rbs;RksUgzamBl Concession by Department of Energy Business, Ministry of Energy xVHkaryl;dwgkñúgcMenamGtifi CneRbIR)as;ma:suInePøIgEdlma nskþanuBl Lack of awareness among potential customer generators

emeronsMrab;RbeTskm<úCa Lessons for Cambodia shRKasGKÁIsnICnbTKYEteFVIkarrYmK ñaedIm,ICMrujeGayrdæaPi)al Gnum½tbBaØtþiTaMgenaH REEs should to work together to encourage government to adopt these regulations begáItsmBnæ½CamYyrdæaPi)al Cultivate allies within government begáItsmBnæ½CamYy GKÁIsnIkm<úCa Cultivate allies within EDC eRbIbBaØtþiBIRbeTsepSg ² eFVICaKMrU ¬ bBaØtþirbs;RbeTséfmanenAkñúg evbsay ¦ Use regulations from outer countries as template (Thai regulations available at:

sMrab;Bt’manbEnßmsUmT ak;Tg For more information Contact: Tel