Session 1: Implementing SDG 7 and Achieving Target 7.1 CAMBODIA CHHE LIDIN

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1 Session 1: Implementing SDG 7 and Achieving Target 7.1 CAMBODIA Seminar on Supporting Sustainable Development Goal 7, Target 7.1 By 2030 ensure universal access to affordable, reliable and modern energy services Bangkok, June 2016 CHHE LIDIN Director Department of International Cooperation Ministry of Mines and Energy

2 Content 1. Structure of Energy Organization 2. Energy Policy 3. Cambodia Power Strategy 4. Development of Rural Electrification 5. Strategy and Plan for Development of Rural Electrification 6. Development Program of Rural Electrification 7. Key Lesion Learned 8. Conclusion 2

3 1. Structure of Energy Organization

4 2. ENERGY POLICY To provide an adequate supply of energy throughout Cambodia at reasonable and affordable price, To ensure a reliable and secured electricity supply at reasonable price, which facilitates investment in Cambodia and development of national economy, To encourage exploration and environmentally and socially acceptable development of energy resources needed for supply to all sectors of Cambodia economy, To encourage the efficient use of energy and to minimize the detrimental environmental affects resulted from energy supply and consumption.

5 3. CAMBODIA POWER STRATEGY A-Development of Generation B-Development of Transmission System C-Development of Rural Electrification Increasing diversify of power supply such as Hydro, Coal power, Importing electricity, biomass and others renewable energies to meet the electricity demand and reduce fuel oil for power generation. Development the national transmission system, GMS & ASEAN power grid, extent the grid to rural areas, upgrading the HV, MV & LV. Supply from the National Grid, Mini-grid, Grid extension and stand-alone system (BCS, SHS, Micro Hydropower, biomass, etc.

6 4. Development of Rural Electrification Goal of the Rural Electrification Development Program 6

7 5. Strategy and Plan for Development of Rural Electrification 1 Strategy for Rural Electrification Development: 1.1 Strategy for resolution of electricity supply to rural areas. Supply from the National Grid; Supply by mini-grid; Supply by stand-alone system. 1.2 Strategy for the distribution network development in rural areas: Encourage existing licensees to make investment for expansion of their distribution areas; and If private licensees do not come up to supply electricity in an grid extension area, EDC shall have the obligation to develop distribution infrastructures to supply electricity in that grid extension area.

8 2 Mobilization of fund for Development of Rural Electrification in Cambodia : 1. The major challenge is the investment funds 2. Possible sources: EDC s participation in development of rural electrification from its budget; RGC s fund for assistance in development of rural electrification; Investment by private service providers; Direct participation by electricity consumers; Loan from local banks; Soft loan from development banks; Grant from other countries. 8

9 6. Development Program of Rural Electrification (1)- Solar Home System (SHS) program: To facilitate the remote rural household, which may not have access to the electricity network for a long period, access electricity though SHS. REF has programmed for more 4,000 units of SHS. (2)-Power to the Poor (P2P) Program: To facilitate the poor households in rural areas to have access to electricity for their houses from grid supply by providing interest free loan. Provide up to USD 120 per HH, interest free loan to meet expenses for connection, deposit, meter, wires from meter to house, and in-house wiring fees, to be repaid in 36 monthly installments without interest. (3)- Provide Assistance to improve and develop Electricity Infrastructure in Rural Areas Facilitate the private licensees to access fund for investing on electricity infrastructure in rural areas. The criterion for implementation of this program is formulated for 3 different types of area considering the density of population as follows: Area No. 1: Area with high density of population having economic efficiency - To provide the guarantee on loan borrowed by licensees from the local banks for investment on electricity infrastructure in rural areas. Area No. 2: Area with medium density of population, where doing electricity business may not be profitable if he has to pay interest on the investment capital - To provide interest free assistance up to USD 100,000 per project for investment on LV electricity infrastructure in rural areas connected from the national grid. Area No. 3: Area with low density of population, where doing electricity business is not viable unless part of the infrastructure cost is provided as grant - To provide assistance up to USD 100,000 per project consisting of (1)- up to 30% of cost as grant (2)- balance as interest free assistance for investment on electricity infrastructure in rural areas connected from the national grid. 9

10 7. Key Lessons Learned Participation by public and private entrepreneurs to overcome fund constraints and rapid electrification Supply to rural areas by grid extension is preferred, for remote areas mini-grid systems and for other further remote areas stand-alone system is encouraged For areas where electricity supply is not viable, subsidy is required. The amount of subsidy depends on degree of non-viability A well designed framework is essential for properly assessing the real achievements of a project To make private sector investments happen in Renewable Energy (RE) in rural areas, the basic policy and regulatory enabling environment should be complimented with careful designed and well targeted financing support, technical assistance and capacity building 10

11 8. Conclusion We have come a long way in term of energy s hard and soft infrastructure We are looking ahead to 2020 and 2030 milestones in line with SDGs to improve accessibility, efficiency and affordability We are fully committed to the success of 3Es: Economic, Energy and Environment We plan to leverage on our strengths, improve on our weaknesses based on key lessons learned and march to the future of sustainability as an opportunity in order to improve the life of every ordinary Cambodian 11

12 End of Presentation Thank you for your attention. BCS 12

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