{"id":36706,"date":"2019-12-03T10:14:00","date_gmt":"2019-12-03T10:14:00","guid":{"rendered":""},"modified":"2020-06-20T18:21:20","modified_gmt":"2020-06-20T18:21:20","slug":"11706-in-cambodia-solar-power-surges-2","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/energy\/11706-in-cambodia-solar-power-surges-2\/","title":{"rendered":"In Cambodia, solar power surges"},"content":{"rendered":"<p>One hour west of Cambodia\u2019s capital an array of iridescent panels stretches between palm trees, glistening through dust clouds from a neighbouring highway. A year ago it was a barren expanse of chalky soil. Now it\u2019s Cambodia\u2019s largest solar farm.<\/p>\n<p>The joint Cambodian-Chinese project, which came online in August, is only Cambodia\u2019s second utility-scale solar project. But the government has approved more than\u00a0<a href=\"https:\/\/www.khmertimeskh.com\/50623720\/four-solar-projects-approved\/\">four<\/a>\u00a0major solar farms to be built across the country.<\/p>\n<p>For a nation that has <a href=\"https:\/\/www.stimson.org\/sites\/default\/files\/file-attachments\/WEB-FEB_Cambodia%20Report.pdf\">relied on<\/a> massive dams, fuel oil, and more recently, coal power for electricity, the solar surge is a significant step toward a lower-carbon electricity grid. However, Cambodia has also signed off on more fossil fuel power plants. As electricity demand in the country and across Southeast Asia continues to climb, whether solar can displace\u00a0fossil-fuel-generated power\u00a0will greatly influence the region\u2019s air pollution and carbon emissions.<\/p>\n<h2>Cambodia\u2019s solar potential<\/h2>\n<p><a href=\"https:\/\/chinadialogue-production.s3.amazonaws.com\/uploads\/content_image\/content_image\/6275\/20191204_Cambodia_Solar_capacity_web.jpg\"><img decoding=\"async\" style=\"width: 100%; height: 100%;\" src=\"https:\/\/chinadialogue-production.s3.amazonaws.com\/uploads\/content_image\/content_image\/6275\/20191204_Cambodia_Solar_capacity_web.jpg\" alt=\"Cambodia's solar potential map\" \/><\/a><br \/>\n<span class=\"caption\">(Image: adapted from\u00a0<a href=\"https:\/\/www.stimson.org\/content\/letters-mekong-toward-sustainable-water-energy-food-future-cambodia-0\">Stimson Center<\/a>)<\/span><\/p>\n<p>With its sunny climate, Cambodia has strong\u00a0solar-development potential:\u00a0an estimated\u00a0<a href=\"https:\/\/www.stimson.org\/sites\/default\/files\/file-attachments\/WEB-FEB_Cambodia%20Report.pdf\">minimum of 8,000 megawatts<\/a> of\u00a0capacity. But as recently as 2016 the Cambodian government was sceptical of solar. Policymakers <a href=\"https:\/\/www.stimson.org\/sites\/default\/files\/Mekong%20Power%20Shift%20Emerging%20Trends%20in%20the%20GMS%20Power%20Sector.pdf\">expressed concerns<\/a> that it was too expensive and unreliable, and the government did not include any renewable energy projects or targets in its national energy plan.<\/p>\n<p>\u201cFive years ago, I think it still was reasonably correct for policymakers to say that they did not see a way for solar to compete with alternatives that were locally available,\u201d said <a href=\"https:\/\/www.stimson.org\/staff\/weatherby\">Courtney Weatherby<\/a>, a researcher at the Stimson Center who focuses on power planning in the region. But since then the country has rapidly changed course, she said.<\/p>\n<p>Over the past decade, Cambodia\u2019s electricity usage shot up \u2013 <a href=\"https:\/\/www.stimson.org\/sites\/default\/files\/file-attachments\/WEB-FEB_Cambodia%20Report.pdf\">averaging a 20% annual increase<\/a> in demand since 2010. Power supplies were already having trouble keeping up, but then a <a href=\"https:\/\/www.xinhuanet.com\/english\/2019-03\/16\/c_137900673.htm\">lengthy drought<\/a> struck earlier this year, crippling the country\u2019s dams, which have historically provided the bulk of its electricity.<\/p>\n<p>In response, the government <a href=\"https:\/\/www.khmertimeskh.com\/50610658\/no-power-cuts-next-year-hun-sen\/\">commissioned<\/a> the four new solar farms, as well as a new diesel power station and a dam. Cambodia now plans to generate <a href=\"https:\/\/www.khmertimeskh.com\/50623720\/four-solar-projects-approved\/\">20% of its power<\/a> from solar within the next few years, up from just <a href=\"https:\/\/www.khmertimeskh.com\/50621694\/solar-energy-to-be-prioritised\/\">1% in 2018<\/a>.<\/p>\n<p><iframe style=\"width: 100%; height: 600px;\" src=\"https:\/\/public.flourish.studio\/visualisation\/1029603\/embed\" frameborder=\"0\" scrolling=\"no\"><\/iframe><br \/>\nThe fact solar farms can be constructed in months makes them an appealing choice to address the energy shortage; dams and fossil fuel plants typically\u00a0take much longer.<\/p>\n<p>Falling costs have also helped boost solar. In many countries across the region, new solar plants are now\u00a0<a href=\"https:\/\/climateanalytics.org\/media\/decarbonisingasia2019-fullreport-climateanalytics.pdf\">less expensive<\/a> than coal plants.<\/p>\n<p>Developers from more mature solar markets in the region including Thailand and Vietnam have sought out opportunities to build and invest in Cambodia\u2019s burgeoning solar market, said Weatherby.<\/p>\n<h2>Solar milestones<\/h2>\n<p>The 80-megawatt solar farm that came online this summer in Kampon Speu province is the most significant project yet in Cambodia\u2019s turn toward solar. Before it broke ground, Cambodia\u2019s only utility-scale solar farm was a 10-megawatt pilot project funded by the Asian Development Bank.<\/p>\n<p>The Kampon Speu project has shown that solar is commercially viable in the country \u2013 selling power to the utility <a href=\"https:\/\/www.khmertimeskh.com\/631779\/solar-to-make-up-15-pct-of-local-energy-production-by-2020\/\">at a rate<\/a> competitive with other power sources.<\/p>\n<p>One factor driving costs down is the price of panels. SchneiTec, the project\u2019s developer, is a joint Chinese-Cambodian venture and JinkoSolar, a China-based company that is the <a href=\"https:\/\/seekingalpha.com\/article\/4295283-jinkosolar-worlds-top-solar-panel-manufacturer-bright-future\">largest solar panel manufacturer<\/a> in the world, supplied the site\u2019s panels. Last year, China had a glut of solar panels, which brought panel prices <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-06-20\/solar-prices-nosedive-after-china-pullback-floods-global-market\">down globally<\/a>.<\/p>\n<p><img decoding=\"async\" style=\"width: 100%; height: 100%;\" src=\"https:\/\/chinadialogue-production.s3.amazonaws.com\/uploads\/content_image\/content_image\/6259\/Cambodia_s_energy_plans_1.png\" alt=\"An 80-megawatt solar farm developed by SchneiTec in Cambodia\u2019s Kampon Speu province\" \/><br \/>\n<span class=\"caption\">An 80-megawatt solar farm developed by SchneiTec in Cambodia\u2019s Kampon Speu province (Image: Lili Pike\/China Dialogue) \u00a0<\/span><\/p>\n<p>Arif Ibrahim, a sales manager at JinkoSolar who covers the Cambodia market, said the company is actively looking for new opportunities there. \u201cWe have seen a lot of upward movement in the Cambodian solar industry in 2019 compared to previous years.\u201d<\/p>\n<p>The growing strength of Cambodia\u2019s solar market can be seen in a recent milestone. The Asian Development Bank has provided a loan for a <a href=\"https:\/\/www.adb.org\/news\/adb-help-build-100-mw-solar-park-cambodia\">100-megawatt solar park<\/a>. And an auction for companies to develop the first 60 megawatts of the park saw the lowest solar auction price in Southeast Asia \u2013 <a href=\"https:\/\/www.khmertimeskh.com\/643971\/record-low-bid-for-southeast-asias-solar-power-industry\/\">3.88 cents per kilowatt-hour<\/a>. The price was partly driven down by development bank financing and land and transmission costs being borne by the utility, but Ibrahim said it was still significant. \u201cIt shows that solar projects in Southeast Asia are becoming more and more competitive.\u201d<\/p>\n<h2>Will solar replace fossil fuels?<\/h2>\n<p>Although solar has surged this year, its future remains uncertain. Solar resources and land are available, but everything depends on the government\u2019s plans, said Say Sotheara, the general manager of SchneiTec.<\/p>\n<p>\u201cThe bright future for solar power in Cambodia depends on the growing support by the government in terms of policies and regulations,\u201d said Ibrahim.<\/p>\n<p>With the looming threat of another crippling dry season, the government has unveiled plans to generate more electricity from fossil fuels along with solar. The government <a href=\"https:\/\/www.khmertimeskh.com\/50642313\/cambodia-and-laos-to-sign-2400-megawatt-power-deal-today\/\">recently agreed<\/a> to purchase 2,400 megawatts of coal power from across the border in Laos. These projects are part of a broader problematic trend across the region: Southeast Asia has to phase out coal <a href=\"https:\/\/climateanalytics.org\/media\/decarbonisingasia2019-fullreport-climateanalytics.pdf\">almost entirely by 2030<\/a> to stay within the Paris Agreement goals of keeping global warming well within 2C, but <a href=\"https:\/\/www.carbonbrief.org\/mapped-worlds-coal-power-plants\">dozens of new coal plants<\/a> are planned or under construction.<\/p>\n<p>However, for a country that had no utility-scale solar on the grid until recent years and a government that was sceptical of renewables, Cambodia is making strides. It has yet to formalise policies to incentivise solar development, but the government is increasingly backing solar.\u00a0\u201cI do think it is a notable shift that you have got high-level government officials from the ministry of mines and energy and from EDC, the utility company, saying that they want to see this level of solar investment in the country,\u201d said Weatherby. \u201cThat itself is a big policy change.\u201d<\/p>\n<p><em>With reporting assistance from Sokhorng Cheng<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cambodia has turned to solar to meet\u00a0its energy shortage,\u00a0but it\u2019s not quite ready to give up fossil fuels<\/p>\n","protected":false},"author":2301,"featured_media":60655,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[757],"tags":[17073,585,593],"hashtags":[],"country":[20029278],"class_list":["post-36706","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-energy-transition","tag-renewables","tag-solar","country-cambodia"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v26.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In Cambodia, solar power surges | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"Cambodia has turned to solar to meet\u00a0its energy shortage,\u00a0but it\u2019s not quite ready to give up fossil fuels\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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